Royal Bank of Canada (TSX:RY) surpassed analysts' expectations for its fiscal third-quarter profit, reporting earnings of $3.26 per share, above the forecasted $2.97.
The strong performance was driven by a 17% rise in earnings from its personal and commercial banking segment, totaling C$2.49 billion, bolstered by the recent acquisition of HSBC's Canadian assets.
RBC's provision for credit losses was lower than expected, at C$659 million, compared to the anticipated C$903 million.
The bank's capital markets division also saw a 23% increase in net income, reflecting a resurgence in dealmaking activity.
These results come as RBC prepares to restructure its Canadian business and absorb HSBC's domestic operations, positioning it for further growth amidst a challenging banking environment.
Shares of Royal Bank jumped 1.5% in early trading in Toronto.