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The drop-off in building loan-loss reserves was helped by the COVID-19-related government support programs and payment deferrals provided to customers, as well as some positive economic developments, the bank said.
RBC’s earnings per share were $2.23, and when adjusted for certain items, they were $2.27, up two per cent from a year earlier and above the $2.05 consensus estimate among banking analysts.
“Looking ahead, while it is difficult to predict how the coming year will unfold, RBC has the strength, stability and operational resilience to face a range of scenarios, and to continue creating long-term sustainable value,” RBC president and CEO Dave McKay said in a press release.
Montreal-based National, Canada’s sixth-biggest bank, said its fourth-quarter profit fell year-over-year, sliding to $492 million from $604 million a year earlier. Even so, its adjusted earnings per share were $1.69, the same as the fourth quarter of 2019 and better than the $1.52 expected by analysts.
Provisions for credit losses ticked up for the bank’s fourth quarter, reaching $110 million, an increase of 24 per cent from a year earlier. However, National’s results were helped by a boost from its U.S. specialty finance and international division, the profit from which was up 36 per cent from a year earlier, to $106 million.
National also said it is boosting its stake in Atlanta, Georgia-based Credigy Ltd. to 100 per cent, buying the remaining 20 per cent of the firm it didn’t already own for approximately US$235 million. Credigy, which buys consumer debt from companies, is part of National’s U.S. specialty finance and international arm.
