Royal Bank of Canada delivered a record quarterly profit for the first quarter of fiscal 2025, reporting net income of $5.1 billion — a 43% increase year on year. The bank published its earnings on 27 February 2025.
Adjusted net income came in at $5.3 billion, up 29% on the same quarter a year earlier. Diluted earnings per share rose 42% to $3.54, while on an adjusted basis EPS reached $3.62, representing a 27% improvement over the prior-year quarter. Return on equity for the period stood at 16.8%.
NET INTEREST INCOME AND WEALTH MANAGEMENT
Net interest income rose, underpinned by average volume growth in Personal and Commercial Banking, higher spreads in Personal Banking that benefited from the integration of HSBC Canada, which RBC completed in fiscal 2024. Wealth Management net income rose 48% to $980 million. The increase was mainly due to higher fee-based client assets reflecting market appreciation and net sales.
The bank's Common Equity Tier 1 ratio was 13.2%. RBC returned $2.4 billion of capital to shareholders through common share dividends and buybacks during the quarter.
HSBC CANADA CONTRIBUTION
RBC said the inclusion of HSBC Canada results added $214 million to net income in the quarter.