Royal Bank of Canada’s insurance unit sees higher net income
Royal Bank of Canada’s insurance unit sees higher net income | Insurance Business Canada
Insurance News
Royal Bank of Canada’s insurance unit sees higher net income
The bank has outlined its interim financials
Insurance News
By
Terry Gangcuangco
Royal Bank of Canada has published its financial results for the quarter ended January 31, 2024.
According to the financial services company, its net income in the quarter grew 14% to $3.6 billion. Notably, net income from personal & commercial banking, wealth management, and capital markets all went down from the same three-month span a year ago. Insurance, on the other hand, saw its net income climb to $220 million.
“[Insurance] net income of $220 million increased $153 million from a year ago, primarily due to higher insurance investment result from favourable investment performance as we repositioned our portfolio for the transition to IFRS 17,” RBC noted. “The current period also benefitted from favourable market conditions.”
In the quarter, personal & commercial banking contributed $2.06 billion to the group’s net income; wealth management, $606 million; and capital markets, $1.15 billion.
Lifting the lid on the group’s financials, RBC president and chief executive Dave McKay cited the banking giant’s “right strategy” for growth and shareholder value.
“As our first quarter results show, RBC has the right strategy in place to grow today while also generating long-term value for shareholders,” McKay said. “Underpinned by our balance sheet strength, prudent approach to risk management, and diversified business model, we delivered solid, client-driven volume growth and a continued focus on expense control.
“As we look towards the completion of our planned HSBC Canada acquisition, we remain focussed on being a trusted advisor to clients through the delivery of new and differentiated banking experiences.”
Manned by more than 94,000 people, RBC serves over 17 million clients in Canada, the US, and 27 other countries.
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