Royal Bank of Canada
RY: XTSE (CAN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CAD 331.00 | Rgcs | Btkcxxynxr |
Reserve Release Demonstrates Credit Strength for Royal Bank of Canada In Q2, But Fees Start To Slow
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Wide-moat-rated Royal Bank of Canada reported decent fiscal second-quarter earnings. Adjusted earnings per share were CAD 2.99, ahead of the CapIQ consensus of CAD 2.68 and representing year-over-year growth of 7%. The bank recorded a net provisioning benefit of CAD 342 million, and this was arguably the key reason for the earnings beat. We would expect these numbers to start normalizing higher eventually, but predicting the timing of such a normalization in credit remains difficult.