The Royal Bank of Canada announced net income for the fourth quarter increased by 15 percent to $ 3.25 billion, exceeding analysts' expectations to mark a record annual return of $ 12.4 billion.
The Bank's results based on Toronto's three-month period ended October 31, were based on strong performance in the personal and commercial bank, capital markets, asset management and insurance.
"Our diverse business and geographic combination ensured a good revenue growth, but we prudently managed risk and secured a higher return on equity," said Dave McKay, President and CEO of the RBC.
"Looking to the future, we continue to focus on investing in our nations and technologies, and we offer more individualized insight and connectivity to give more value to our customers and shareholders."
The Bank's earnings in the fourth quarter amounted to $ 2.20 per diluted share, rising from $ 1.88 per share a year ago.
After adjusting for the cash principle, the bank claims that it earned $ 2.24 per share, rising from $ 1.92 during the same period in 2017. Analysts predicted a profit of $ 2.12 a share on average, according to Thomson Reuters Eikon.
During the quarter, the Bank's staff and commercial banks' net income amounted to $ 1.54 billion, an increase of 10 percent over a year ago, largely reflecting higher interest rates on deposit rates from Canada's highest interest rates. RBC also saw an increase of five percentage points in the Canadian banks' operations based on residential mortgage lending, commercial loans and deposit products.
The bank's net income from its capital market grew by 14 percent to $ 666 million, mainly due to the lower actual tax rate after US President Donald Trump's tax reforms.
The RBC Property Management Division's net income rose by 13 percent to $ 553 million, while the RBC Insurance Department reported a 20 percent increase in net income of $ 318 million as compared to the corresponding period of the previous year.
However, the Bank's Investors and Finance Department's net income of $ 155 million was relatively similar in comparison with the previous year.
Provisions for loan losses or bad credit for the quarter ended in year-to-date amounted to $ 353 million, rising from $ 234 million in the RBC in the fourth quarter of 2017.
During all financial years, Canada's largest lender, with market capitalization, reported net income of $ 12.4 billion, which is about eight percent from $ 201.5 million.
It reached $ 8.36 a decrease in earnings per share each year, compared with $ 7.56 per 2017 fiscal year.
In the twelve-month period ended October 31, the RBC's personal and commercial banks reached a five-percent increase to $ 6.03 billion. Its property management division, which includes the Los Angeles-based City National Bank, was also a bright place for a bank with a 23% profit increase to $ 2.27 billion in the 2018 financial year.
Its main financial health indicator, known as the Tier 1 capital ratio (CET1), was 11.5% compared to 10.9 years ago a year ago and 11.1 in the previous quarter.