Royal Bank Of Canada Q2 Profits Tumble 13% On Huge Provision For Credit Losses
Portfolio Pulse from Lekha Gupta
Royal Bank of Canada (NYSE:RY) reported a Q2 FY23 adjusted net income of C$3.8 billion, down 13% Y/Y, with adjusted EPS declining by 11% Y/Y to C$2.65. The results were impacted by high provisions for credit losses of C$600 million. Revenues increased to C$13.5 billion from C$11.2 billion a year ago. RY declared a quarterly dividend of C$1.35 per share, up 2%.
May 25, 2023 | 1:31 pm
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NEGATIVE IMPACT
Royal Bank of Canada's Q2 FY23 net income declined 13% Y/Y to C$3.8 billion, impacted by high provisions for credit losses. Revenues increased to C$13.5 billion, and the quarterly dividend was raised by 2%.
The decline in net income and the high provisions for credit losses are negative factors for Royal Bank of Canada's stock price in the short term. However, the increase in revenues and the dividend raise may provide some support. Overall, the negative factors outweigh the positive ones, leading to a likely short-term decline in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100