DBRS Morningstar: RBC Reports Lower Q4 2019 Earnings Driven by Investor & Treasury Services and Capital Markets

Royal Bank of Canada (RBC or the Bank) reported Q4 2019 net income of $3.2 billion, a modest decline of 2% quarter over quarter (QOQ). During the quarter, expenses grew 5% as a result of the timing of professional fees coupled with severance and other related costs associated with the repositioning of Investor & Treasury Services (I&TS), which is expected to drive future efficiencies. For F2019, net income climbed 4% to $12.9 billion, reflecting solid performance in Personal & Commercial Banking (P&C), Wealth Management (WM), and Insurance that more than offset weaker results in I&TS and Capital Markets (CM) largely due to challenging market conditions. The Bank has maintained strong asset quality while capital levels have risen as RBC continues to build its total loss absorbing capacity (TLAC).