RBC beats profit estimates on wealth and retail growth

Royal Bank of Canada reported first-quarter earnings on Thursday that surpassed analyst expectations, fueled by significant growth in its wealth management and personal banking segments. The results highlight a broader trend among lenders in Canada who are prioritizing fee-based, high-margin operations to navigate a period of subdued consumer and business confidence linked to trade tensions with the United States.

The wealth management division was a standout performer, recording a 32% increase in net income to C$1.3 billion ($950.22 million). This growth was driven by higher fees from client assets as the bank continues to expand its adviser base and scale its operations internationally.