Toronto-based Royal Bank (RY) has reported a 43% increase in its quarterly profit following its acquisition last year of HSBC Bank Canada.
Canada’s largest lender announced a Fiscal first quarter profit of $5.13 billion, up 43% from $3.58 billion in the same quarter a year earlier.
Royal Bank said the profit amounted to $3.54 per share for the quarter ended on Jan. 31 of this year, up from a profit of $2.50 a year earlier.
The bank’s profit topped the consensus estimate among analysts that had called for earnings per share (EPS) of $3.26.
Revenue in the latest quarter totalled $16.74 billion, up 24% from $13.49 billion achieved the previous year.
Management at Royal Bank of Canada largely attributed the strong results to the completion of its $13.50 billion takeover of HSBC Bank Canada.
HSBC Bank Canada provided Royal Bank with 130 additional branches and about 750,000 retail and commercial customers nationwide.
Additionally, Royal Bank of Canada reported that the provisions it set aside for credit losses during its Fiscal Q1 totalled $1.05 billion, up from $813 million a year earlier.
Canada’s commercial banks have been putting aside more money to cover potentially bad loans as mortgage interest rates reset at higher levels and the U.S. threatens to impose trade tariffs.
The stock of Royal Bank has risen 30% over the past 12 months to trade at $171.42 per share.
