/TD, RBC report 2nd quarter profits up

TD, RBC report 2nd quarter profits up

Canada’s two biggest banks posted profits of more than $3 billion dollars each in the second quarter, exceeding analyst expectations.

Royal Bank of Canada earned $3.23 billion, helped by growth in its capital markets, personal and commercial banking and wealth management businesses.

The bank says the profits rose six per cent for the quarter ended April 30.

The result compared with a profit of $3.06 billion a year ago.

TD Bank Group earned a second-quarter profit of $3.17 billion, up from $2.92 billion in the same quarter last year.

The Toronto-based lender says its profit increased by 6.7 per cent compared to the same time period one year ago.

At RBC, total provisions for credit losses climbed to $426 million, up from $274 million in the same quarter last year, due to higher provisions in personal and commercial banking, wealth management and capital markets.

The RBC Royal Bank of Canada logo is seen in Halifax on Tuesday, April 2. RBC reported profits of $3.23 for the 2nd quarter. (Andrew Vaughan/The Canadian Press)

On an adjusted basis, RBC reported $2.23 in diluted cash earnings per share for the quarter, up from $2.10 per share a year ago.

Analysts on average had expected a profit of $2.21, according to Thomson Reuters Eikon.

Provisions for credit losses in the quarter totalled $633 million, up from $556 million a year ago.

On an adjusted basis, TD says it earned $1.75 per share in the quarter, up from an adjusted profit of $1.62 per share in its second quarter last year.

Analysts on average had expected a profit of $1.67 per share, according to Thomson Reuters Eikon.

TD reported its Canadian retail business earned $1.85 billion, up from $1.83 billion a year ago, while its U.S. retail business earned $1.26 billion, up from $979 million. Profit at its wholesale banking business fell to $221 million, compared with $267 million a year ago.

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