RBC earnings highlights

Q1 net income: $3.2 billion (-22% Y/Y)

Earnings per share: $2.29

- RBC added $28 billion of mortgages to its portfolio over the last 12 months, up 8% from last year.

- “Our outlook for the mortgage business for the full year would be mid-single digits,” said Neil McLaughlin, Group Head, Personal and Commercial Banking. “But there isn’t anything…based on what we are seeing, where negative growth in the quarter would be something we would expect.”

- “While interest rates may be peaking, they may remain higher for longer as tight labour markets and other supply imbalances keep inflation high and constrained economic and market activity,” said President and CEO Dave McKay. “Furthermore, the global economy remains susceptible to geopolitical shocks and regional political deadlocks. Overall, evaluating all the moving parts, we do forecast the softer landing characterized by a modest recession, largely underpinned by the impact of rising debt service costs on the consumer.”

- “On the whole, we believe the probability of a more severe inflation and interest rate environment has started to reduce,” said Graeme Hepworth, Chief Risk Officer. “However…we continue to expect a moderate recession in 2023.”