By Vernon Khelawan From Trinidad and Tobago’s Newsday

AFTER the trauma of transition in its Caribbean operations over the last few years RBC is waving a flag to celebrate its return to increased earnings and subsequently some profit.

According to information from the RBC Royal Bank News, its Caribbean and United States business record net earnings of (US)$35 million in the first quarter of 2015. For RBC Financial (Caribbean) Limited (RBCFCL) it marked a significant improvement in the company’s performance over the previous year.

Caribbean Banking net income was a record (US)$1.22 billion, up $83 million or seven percent compared to last year, driven by strong fee-based revenue growth of 13 percent and solid volume growth of five percent. The (US)$ 35 million reflects the bank’s ongoing efficiency management activities of the full-service pricing across the Caribbean.

This prompted RBCFCL’s Chief Executive Officer, Robert Johnston to remark, “This quarter marks a return to profitability for Caribbean Banking. This is due in large part to the sustained efforts of our employees and the support and loyalty of our clients and key partners across the region, even in the face of economic challenges in some markets.”

Johnston said the bank’s improved market offering and pricing structure in key markets, as well as continued investment in the development of regional talent, has helped improve RBC’s performance in the quarter under review.

The first Quarter ended on January 31, 2015.

Continuing CEO Johnston said, “Our focus is on strengthening our overall business performance and on markets and client segments where we can be a leading competitor over the long term and we are making progress in this regard.”

The information sheet added, “In addition to improved net income, RBCFCL saw gains in revenue mainly due to increases in Non-Interest Income (NII). The company also recorded lower Provisions for Credit Losses (PCLs) and an improvement in its Efficiency Ratio.”

Meanwhile parent company Royal Bank of Canada (RBC) has announced reported record net income of (US)$2.456 million for the first quarter of 2015, which reflects an increase of $364 million or 17 percent from the prior year and up $123 million or five percent from the prior quarter. Net income was up $272 million or 12 percent, excluding specific items in the prior year.

A media release on earnings stated, “Our results were primarily driven by record earnings in Personal and Commercial Banking and strength in Capital Market due to strong trading results and M and A activity. Our performance this quarter also reflects record results in Investor and Treasury Services, continued strength in Insurance and solid earnings in Wealth Management.”
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