Royal Bank quarterly profit up 12%, enough to push annual profit to record $11.5B

Profit at the Royal Bank of Canada increased by 12 per cent in its fourth quarter, enough to push its annual net income to an all-time record of $11.47 billion.

Profit up but bank also set aside less money to cover loans that went bad

Royal Bank of Canada earned $2.84 billion in the fourth quarter led by double-digit increases in personal and commercial banking, wealth management and capital markets. (Nathan Denette/Canadian Press)

Profit at the Royal Bank of Canada increased by 12 per cent in its fiscal fourth quarter, enough to push its annual net income to an all-time record of $11.47 billion.

Canada's largest lender earned $2.84 billion in the three-month period ending on Oct. 31, led by double-digit increases in personal and commercial banking, wealth management and capital markets.

"We had a great year in 2017, with record earnings of $11.5 billion, driven by robust growth across our businesses," RBC president and CEO Dave McKay said in a statement Wednesday.

Backstopping the profit increase, overall revenue was higher, up 12.3 per cent to $10.52 billion for the quarter from $9.36 billion a year earlier.

RBC's wealth management and capital markets divisions saw the largest jumps in quarterly profit with net income of $491 million and $584 million, up 24 per cent and 21 per cent, respectively, from the same period a year ago.

The bank also set aside less money for bad loans with credit-loss provisions coming in at  $234 million during the quarter, down from $358 million a year earlier.

Earlier this month, the bank was named to a list of the world's most systemically important banks.

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