CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our target price by $8 to $99, 11.3x our FY 25 (Oct.) EPS view ($8.77 converted from CAD), a minimal discount to RY’s five-year forward P/E of 11.7x given a weaker Canadian economy. We raise our FY 24 EPS to CAD11.51 from CAD11.09 and increase FY 25’s to CAD11.91 from CAD11.35. RY posted adjusted Jan-Q EPS of CAD2.85 vs. CAD3.04 a year ago, beating the CAD2.79 consensus. Net interest income rose 2% Y/Y given strength in trading and volume growth in Canadian Banking. Capital Markets saw revenue fall 6% as higher M&A activity was offset by lower equity trading revenue. RY’s core expense growth rose 2% on higher professional fees and improvements to City National. Importantly, RY’s acquisition of HSBC Canada is expected to close […]

The following is a summary of the Royal Bank of Canada (RY) Q1 2024 Earnings Call Transcript: Financial Performance: Royal Bank of Canada reported Q1 earnings of $3.6 billion and adjusted earnings of $4.1 billion. Capital Markets recorded strong pre-provision pre-tax earnings of $1.3 billion. The ratio of allowance for credit losses increased to 64 basis points. CET1 (Common Equity Tier 1) ratio of 14.9%, up 220 basis points from last year, indicating strong balance sheet. Mortgage growth declined to 3% year-over-year while commercial loan growth was strong, up 14% from last year. Earnings per share of $2.50 this quarter, down 6% from last year. Noninterest expenses were up 10% from last year. The net interest income was up 2% year-over-year. The adjusted effective tax rate was 18.3%. Core expense growth decelerated to 2% year-over-year. Personal & Commercial Banking reported earnings of $2.1 billion. Wealth Management earnings were down 27%