Topic: How To Invest

The Successful Investor Hotline – Friday, February 25, 2022

Article Excerpt

ROYAL BANK OF CANADA, $140.37, Toronto symbol RY, is a buy. Royal continues to benefit from higher loan demand from consumers and businesses as the economy recovers from COVID-19 lockdowns. Rising stock markets also boosted results at its wealth management division. In the bank’s first quarter of fiscal 2022, ended January 31, 2022, earnings rose 6.4%, to $4.10 billion from $3.85 billion. Per-share earnings gained 6.8%, to $2.84 from $2.66, on fewer shares outstanding. If you factor out unusual items, the bank earned $2.87 a share in the quarter. That beat the consensus estimate of $2.73. Earnings from Royal’s retail banking division (48% of the total) rose 10.1% on higher loan volumes and mutual fund fees. Earnings at the wealth management division (19%) jumped 24.0% mainly due to higher assets under management. Those gains offset declines at Royal’s other businesses. Earnings at the capital markets division (25%) fell 3.5% on lower bond trading volumes and higher employee compensation costs. Royal’s insurance business (5%) reported 2.0%…