Bank of Canada leaves interest rate unchanged

Results benefited from a decline in provisions. Loan volumes have been rising and deposits growing. However, a rise in non-interest expenses and lower revenues were the headwinds.

Full year profit: $3.59 billion, up 11 %. Some analysts suggested fourth-quarter results looked better because of one-time items such as the sale of its retirement services and a legal settlement.

The bank and financial services company posted revenue of $2.64 billion in the period. Revenue was reported as $4.63 billion.

Royal’s fourth-quarter growth was largely driven by its capital markets operations, which increased its net income by 38 per cent or $153 million to $555 million. The Bank, along with its material operating affiliates, National Leasing Group, Canadian Western Trust, Canadian Western Financial, Adroit Investment Management, and McLean & Partners Wealth Management, collectively offer a diversified range of financial services across Canada and are together known as the CWB Group. The company has a market cap of $14.82 billion. A loss on securities of $10 million or $0.02 vs. a gain of $43 million or $0.10 a year earlier was a material drag on YoY growth. Royal Bank of Canada has a market cap of 85391.85 and its gross margin is *TBA.

The company’s estimated Basel III Common Equity Tier 1 (CET1) ratio stood at 10.6%, up 50 basis points sequentially.

Institutional Investors own 48.1% of Royal Bank Of Canada shares.

While house prices in the US have been recovering for years after an historic correction, in Canada they have surpassed affordability limits of the average Canadian homebuyer, particularly for regular homes.

This was supposed to be the year that the bottom line of Canada’s big banks would feel the pain of a weak economy, the slumping oilpatch, cautious consumers and low interest rates.

Members voted unanimously in favour of maintaining the base rate at 1.35 per cent and agreed that, if the assumptions underlying the Bank’s projections held, the current level of the base rate and maintaining loose monetary conditions over the entire forecast horizon were consistent with the medium-term achievement of the inflation target and a corresponding degree of support to the economy.

The Canadian economy emerged from a mild recession in the first half of the year with 2.3% annualized growth in Q3, Statistics Canada reported this week. Scotiabank restated a “sector outperform” rating and issued a $106.00 target price on shares of Canadian Imperial Bank of Commerce in a research note on Thursday, October 8th. cut shares of Canadian Imperial Bank of Commerce from a “sector perform” rating to an “underperform” rating in a research note on Monday, October 12th. This quarterly dividend represents a 5% increase over the previous quarter and is 9% higher than the quarterly dividend declared one year ago.

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.