Royal Bank of Canada (RBC)

topped analysts’ first-quarter expectations after reporting strong results in its wealth management, capital markets and personal banking segments on Thursday.

Net income grew 13 per cent year over year to almost $5.8 billion for the three months ending Jan. 31. Net earnings per share were $4.03.

Adjusted net income, which excludes the impact of nonrecurring items, increased 12 per cent to around $5.9 billion. Adjusted earnings per share were $4.08, up 13 per cent from the $3.62 reported a year ago and higher than analysts’ forecasts of $3.84 per share.

“RBC entered the 2026 fiscal year in a position of strength across our diversified business model and the core global markets where we operate,” chief executive

Dave McKay

said in a release. “We carried this momentum into our first quarter, reporting record results underpinned by strong earnings growth, our robust balance sheet and capital position and a premium (return on equity) that continues to deliver value for our shareholders.”

The bank declared a quarterly dividend of $1.64 per common share, up 16 cents from a year earlier. RBC also repurchased four million shares during the quarter.

RBC increased its provision for credit losses (PCL), which is the money banks set aside to cover loans that might default, by $40 million year over year to nearly $1.1 billion. This was due to higher provisions in capital markets and personal banking divisions and partially offset by lower provisions in wealth management and commercial banking.

Earnings in its wealth management segment increased 32 per cent to almost $1.3 billion, driven by higher fee-based client assets reflecting market appreciation and net sales.

Net income in capital markets increased three per cent to $1.5 billion, based on higher revenue in global markets.

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Personal banking net income grew 17 per cent to almost $2 billion, driven by both higher net interest income from higher spreads and loan growth and higher non-interest income from fee-based client assets.

Commercial banking earnings were up 11 per cent to $863 million based on higher net income from volume growth in loans and deposits and lower PCL.

• Email: jswitzer@postmedia.com