银行业绩都不错 RBC smashes Q1 profit estimates as mortgage book tops $300B

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Royal Bank of Canada's profit climbed 10 per cent in the latest quarter, as record performance in its capital markets division and a drop in loan-loss provisions powered gains at the country's largest financial institution.

Net income for the three-month period ending Jan. 31, representing the fiscal first quarter, reached 3.85 billion, compared to $3.51 billion a year earlier and $3.25 billion in RBC's prior quarter. On an adjusted basis, the bank earned $2.69 per share. Analysts, on average, were expecting $2.28 in per-share profit.

RBC's core personal and commercial (P&C) banking operations delivered the lion's share of profit, as net income rose six per cent year-over-year to $1.79 billion as deposit and loan volumes rose.Mortgage demand was evident in the period as low rates spurred housing-related activity. Indeed, RBC’s Canadian residential mortgage book had an average balance of $305.1 billion in the fiscal first quarter, compared to $293 billion in the previous quarter and $271.8 billion a year earlier.

But it was the bank's trading operations that really stood out, as profit from capital markets activity surged 21 per cent to a new record of $1.07 billion. RBC noted the gains were driven in large part by equity trading activity in the United States.

As with Bank of Montreal and Bank of Nova Scotia on Tuesday, RBC's results on Wednesday also benefitted from improved credit quality. Provisions for credit losses in the fiscal first quarter fell to $110 million from $427 million in the previous quarter.

"Against the uncertain macroeconomic backdrop due to the COVID-19 pandemic, we entered 2021 with strong momentum across our businesses. This is a reflection of the resiliency of our diversified business model, prudent approach to risk management, significant technology investments, and our colleagues' dedication to our clients and communities," said CEO Dave McKay in a release.

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'Credit is last year's story': Scotia CEO sets sights on growth

Bank of Nova Scotia President and Chief Executive Officer Brian Porter is confident the days of setting aside more cash to cover potential sour loans are a thing of the past.

Porter said in an interview Tuesday that the bank took a cautious approach to provisions for credit losses in the first fiscal quarter of 2021, and that he expects reserves will continue to fall as the economic recovery continues to gain traction.

“There will be releases, in terms of credit going forward for Scotiabank, and that’s (because) we over-provided a bit. We erred to the conservative, which is what we do,” he said. “So, credit trends are better than what we expected last April, or May or June, and that’s a good thing. That speaks to the strength of the underlying economy; the strength of the Canadian household.”

Provisions for credit losses fell to $764 million in the quarter that ended Jan. 30, down from $1.13 billion in the previous quarter. That’s been a key trend for the big Canadian banks, who have steadily released previously set-aside funds as it became clear fewer loans would turn sour.

Porter said the Canadian consumer has acted prudently throughout the pandemic, which helped drive the decision to release funds.

“Canadian households have managed this pandemic really quite well, under a fair amount of stress,” he said. “They paid off higher-interest rate debt - credit cards, for example - and managed accordingly.”

Porter said the bank is shifting its focus away from playing defence with higher provisions. Instead, he says the bank is turning to the task of growing the domestic and global economies in hopes that the worst of the economic damage from the pandemic is behind it.

“Credit is really last year’s story, in terms of the build of allowances. What we’re focused on, and what the market’s focused on is: ‘How do we grow here? How do we grow the Canadian economy? How do we get the global economy back on track? How do we create jobs for the future?’ That’s really what we’re focused on.”

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bokchoy888 发表于 2021-2-24 12:55 PM
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