To view the Q2 2020 Report to Shareholders in PDF, please click on the link below. 

http://www.rns-pdf.londonstockexchange.com/rns/2886O_1-2020-5-28.pdf 

 

Royal Bank of Canada second quarter 2020 results 

All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. 

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Net Diluted Total ROE[(4)] CET1 Ratio
Income EPS[(1)] PCL[(2)] 7.3% 11.7%
$1.5 $1.00 $2.8 Billion Down from Well above
Billion Down 55% Total PCL 17.5% last regulatory 
Down YoY  ratio on year  requirements
54% loans
YoY  up 139
bps[(3)] QoQ 

TORONTO, May 27, 2020 - Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $1,481 million for the quarter ended April 30, 2020, down $1,749 million or 54% from the prior year. Diluted EPS[1] was $1.00, down 55% over the same period. The unprecedented challenges brought on by the COVID-19 pandemic led to increased provision for credit losses of $2,830 million, up $2,404 million from last year. The increased provisions unfavourably impacted results in Personal & Commercial Banking, Capital Markets and Wealth Management. These factors were partially offset by higher earnings in Investor & Treasury Services and Insurance.

Compared to last quarter, net income was down $2,028 million with lower results in Personal & Commercial Banking, Capital Markets and Wealth Management. Earnings in Insurance were relatively flat compared to the prior quarter. These factors were partially offset by higher results in Investor & Treasury Services.

The total PCL ratio on loans was 165 bps, up 139 bps from last quarter as we prudently increased reserves due to the impact of the COVID-19 pandemic. The PCL ratio on impaired loans of 37 bps increased 16 bps from last quarter, due to higher PCL on impaired loans mainly in Capital Markets. Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 11.7%. We also had a strong average Liquidity Coverage Ratio (LCR) of 130%.

"My sincere
thanks to all
those on the
frontlines
who are
combatting
the virus
with courage
and
compassion,
and to the
RBCers who
are living
our Purpose
with
extraordinary
dedication to
help our
clients
manage during
these
uncertain
times," said
Dave McKay,
RBC President
and Chief
Executive
Officer. "We
entered this
period of
heightened
macroeconomic
uncertainty
from a
position of
strategic and
financial
strength. Our
scale,
diversified
business mix,
technology
investments
and talented
employees
define our
leading
client
franchises.
Our strong
capital and
liquidity
position, and
disciplined
risk
management,
have enabled
us to remain
resilient and
focused on
delivering
long-term
value for our
clients,
shareholders
and
communities."

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https://news.cision.com/royal-bank-of-canada/r/2nd-quarter-results,c3122777

https://mb.cision.com/Main/8160/3122777/1255650.pdf

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