Reported 6 months ago
Royal Bank of Canada exceeded analysts' expectations with a strong performance in its capital-markets business and lower-than-expected provisions for potential loan losses. The shares surged 5.2% after the bank reported earnings of C$2.92 per share in the fiscal second quarter, beating the average estimate of C$2.76. The bank's provisions for credit losses were lower than forecast at C$920 million. Royal Bank's capital-markets unit saw a 31% increase in net income to a record C$1.26 billion, attributed to higher revenue in corporate and investment banking. Following the strong quarter, analysts raised their share-price targets for the stock, with National Bank of Canada, Toronto-Dominion Bank, and Desjardins setting targets at C$161, C$160, and C$156, respectively.
Source: YAHOO