{"id":818891,"date":"2025-02-27T06:06:18","date_gmt":"2025-02-27T11:06:18","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/royal-bank-of-canada-reports-first-quarter-2025-results\/"},"modified":"2025-02-27T06:06:18","modified_gmt":"2025-02-27T11:06:18","slug":"royal-bank-of-canada-reports-first-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/royal-bank-of-canada-reports-first-quarter-2025-results\/","title":{"rendered":"ROYAL BANK OF CANADA REPORTS FIRST QUARTER 2025 RESULTS"},"content":{"rendered":"
\n

Canada NewsWire<\/p>\n<\/p><\/div>\n

\n
\n\n\n
\n

\n All amounts are in Canadian dollars and are based on financial statements presented in compliance with International Accounting Standard 34 Interim Financial Reporting<\/i>, unless otherwise noted.\u00a0Our Q1\u00a02025 Report to Shareholders and Supplementary Financial Information are available at http:\/\/www.rbc.com\/investorrelations<\/a>\u00a0and on https:\/\/www.sedarplus.com\/<\/a>.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n\n\n\n
\n

\n
\n
\n Net income
$5.1 Billion
Up 43% YoY<\/i>\u00a0<\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n Diluted EPS1<\/sup>
$3.54
Up 42% YoY<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0Total PCL1<\/sup>
$1,050 Million
PCL on loans ratio1<\/sup><\/i>
up 7 bps1<\/sup> QoQ<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0ROE1<\/sup>
16.8%
Up 370 bps YoY<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0CET1 ratio2<\/sup>
13.2%
Above regulatory<\/i>
requirements<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n \u00a0Adjusted net income3<\/sup>
$5.3 Billion
Up 29% YoY<\/sup><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0Adjusted diluted EPS3<\/sup>
$3.62
Up 27% YoY<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0Total ACL1<\/sup>
$6.9 Billion
ACL on loans ratio1<\/sup><\/i>
up 4 bps QoQ<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0Adjusted ROE3<\/sup>
17.2%
Up 230 bps YoY<\/i><\/span>
\n <\/b>\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n
\n \u00a0LCR4<\/sup>
128%
Unchanged from 128%<\/i>
last quarter<\/i><\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\n \u00a0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n
\n TORONTO<\/span>
\n <\/span>, Feb. 27, 2025<\/span><\/span> \/CNW\/ –\u00a0Royal Bank of Canada<\/span>5<\/sup> (TSX: RY) (NYSE: RY) today reported record net income of $5.1 billion<\/span> for the quarter ended January 31, 2025<\/span>, up $1.5 billion<\/span> or 43% from the prior year. Diluted EPS was $3.54<\/span>, up 42% over the same period, reflecting growth across each of our business segments. The inclusion of HSBC Bank Canada (HSBC Canada) results6<\/sup> increased net income by $214 million<\/span>. Adjusted net income3<\/sup>\u00a0and adjusted diluted EPS3 <\/sup>of $5.3 billion<\/span> and $3.62<\/span> were up 29% and 27%, respectively, from the prior year.<\/p>\n

Our consolidated results reflect an increase in total PCL of $237 million<\/span> from a year ago, mainly reflecting higher provisions in Commercial Banking, Wealth Management and Personal Banking, partially offset by lower provisions in Capital Markets. The PCL on loans ratio of 42 bps increased 5 bps from the prior year.<\/p>\n

Pre-provision, pre-tax earnings3<\/sup>\u00a0of $7.5 billion<\/span> were up $2.3 billion<\/span> or 45% from last year. The inclusion of HSBC Canada results increased pre-provision, pre-tax earnings3<\/sup> by $451 million<\/span>. Excluding HSBC Canada results, pre-provision, pre-tax earnings3<\/sup>\u00a0increased 36% from last year, mainly due to higher fee-based revenue in Wealth Management reflecting market appreciation and net sales, and higher revenue in Capital Markets driven by strength across Corporate & Investment Banking and Global Markets. Both segments also benefitted from the impact of foreign exchange translation. Higher net interest income reflecting strong average volume growth in Personal Banking and Commercial Banking and higher spreads in Personal Banking, also contributed to the increase. These factors were partially offset by higher expenses driven by higher variable compensation on improved results and continued investments in technology and talent across our businesses.<\/p>\n

Compared to last quarter, net income was up 22% reflecting growth across each of our business segments. Adjusted net income3<\/sup> was up 18% over the same period. Pre-provision, pre-tax earnings3<\/sup> were up 24% as higher revenues more than offset expense growth. The PCL on loans ratio of 42 bps increased 7 bps from the prior quarter, mainly reflecting higher provisions in Wealth Management and Capital Markets. The PCL on impaired loans ratio1<\/sup> was 39 bps, up 13 bps from the prior quarter, including one account in the other services sector that migrated from performing to impaired during the quarter. The PCL on performing loans ratio was 3 bps, down 6 bps from the prior quarter.<\/p>\n

Our capital position remains robust, with a CET1 ratio2<\/sup> of 13.2%, supporting solid volume growth, and $2.4 billion<\/span> of capital returned to our shareholders through common share dividends and share buybacks.<\/p>\n

\n “RBC’s first quarter exemplifies our commitment to staying ahead of our clients’ expectations in an increasingly complex world. In Q1, we delivered strong results and client-driven growth across our businesses, while prudently managing risk and making investments in technology and talent to position the bank for the future. At our upcoming Investor Day, we look forward to sharing more about how we plan to capitalize on our financial and strategic strength to elevate the value we create for our clients and shareholders.”<\/i>\n <\/p>\n

\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u2013 Dave McKay<\/span>, President and Chief Executive Officer of Royal Bank of Canada<\/span><\/b><\/i>\u00a0\u00a0<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n Reported:<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Adjusted3<\/sup><\/span>:<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n
\n Q1 2025<\/b>
\n
\n Compared to
Q1 2024<\/b>
\n <\/span>\n <\/p>\n

\u00a0<\/p>\n<\/td>\n

\n

\n \u2022 Net income of $5,131 million<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 43%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0Net income of $5,254 million<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 29%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0Diluted EPS of $3.54<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 42%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0Diluted EPS of $3.62<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 27%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0ROE of 16.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 370 bps<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0ROE of 17.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 230 bps<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0CET1 ratio2<\/sup> of 13.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2193 170 bps<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n
\n Q1 2025
Compared to
Q4 2024\u00a0<\/span>
\n <\/b>
\n <\/span>\n <\/p>\n

\u00a0<\/p>\n<\/td>\n

\n

\n \u2022 \u00a0Net income of $5,131 million<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 22%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0Net income of $5,254 million<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 18% <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0Diluted EPS of $3.54<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 22%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0Diluted EPS of $3.62<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 18%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0ROE of 16.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 250 bps<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022 \u00a0ROE of 17.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2191 210 bps<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022 \u00a0CET1 ratio2<\/sup> of 13.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2192 unchanged<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n\n\n\n
\n

\n _____________________________<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 1<\/sup> See the Glossary section of our interim Management’s Discussion and Analysis dated February 26, 2025, for the three months ended January 31, 2025, available at https:\/\/www.sedarplus.com\/<\/a>, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 2<\/sup> This ratio is calculated by dividing Common Equity Tier 1 (CET1) by risk-weighted assets (RWA), in accordance with Office of the Superintendent of Financial Institutions’ (OSFI) Basel III Capital Adequacy Requirements (CAR) guideline.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 3<\/sup> These are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 4 to 5 of this Earnings Release.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 4<\/sup> The liquidity coverage ratio (LCR) is calculated in accordance with OSFI’s Liquidity Adequacy Requirements (LAR) guideline. For further details, refer to the Liquidity and funding risk section of our Q1 2025 Report to Shareholders.<\/span>\n <\/p>\n

\n
\n 5<\/sup> When we say “we”, “us”, “our”, “the bank” or “RBC”, we mean Royal Bank of Canada and its subsidiaries, as applicable.<\/span>\n <\/p>\n

\n
\n 6<\/sup> On March 28, 2024, we completed the acquisition of HSBC Canada (HSBC Canada transaction). HSBC Canada results reflect revenue, PCL, non-interest expenses and income taxes associated with the acquired operations and clients, which include the acquired assets, assumed liabilities and employees with the exception of assets and liabilities relating to treasury and liquidity management activities. For further details, refer to the Key corporate events section of our Q1 2025 Report to Shareholders.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Personal Banking<\/b>\n <\/p>\n

Net income of $1,678 million<\/span> increased $325 million<\/span> or 24% from a year ago. The inclusion of HSBC Canada results increased net income by $91 million<\/span>. Excluding HSBC Canada results, net income increased $234 million<\/span> or 17%, primarily driven by higher net interest income reflecting higher spreads and average volume growth of 8% in deposits and 4% in loans in Personal Banking \u2013 Canada<\/span>. Higher non-interest income also contributed to the increase. These factors were partially offset by higher non-interest expenses, primarily due to higher staff-related costs, including severance, higher professional fees and ongoing technology investments.\u00a0<\/p>\n

Compared to last quarter, net income increased $99 million<\/span> or 6%, primarily driven by higher net interest income reflecting higher spreads supported by a favourable shift in product mix, and average volume growth of 1% in deposits and 1% in loans in Personal Banking – Canada<\/span>.<\/p>\n

\n Commercial Banking<\/b>\n <\/p>\n

Net income of $777 million<\/span> increased $127 million<\/span> or 20% from a year ago. The inclusion of HSBC Canada results increased net income by $73 million<\/span>. Excluding HSBC Canada results, net income increased $54 million<\/span> or 8%, primarily driven by higher net interest income reflecting average volume growth of 10% in loans and acceptances. The increase also includes the impact of the cessation of Bankers’ Acceptance-based lending, which was largely offset in non-interest income, and average volume growth of 8% in deposits. These factors were partially offset by lower non-interest income, primarily in credit fees reflecting the impact of the cessation of Bankers’ Acceptance-based lending, which was largely offset in net interest income as noted above, as well as higher non-interest expenses.<\/p>\n

Compared to last quarter, net income remained relatively flat, as higher net interest income reflecting average volume growth of 1% in loans and acceptances and 1% in deposits, as well as higher non-interest income, was offset by higher PCL, mainly due to higher provisions on impaired loans in a few sectors.<\/p>\n

\n Wealth Management<\/b>\n <\/p>\n

Net income of $980 million<\/span> increased $316 million<\/span> or 48% from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. The prior year also included the cost of the Federal Deposit Insurance Corporation special assessment.<\/p>\n

Compared to last quarter, net income increased $11 million<\/span> or 1%, mainly reflecting revenue growth driven by higher fee-based client assets and net interest income. This was largely offset by higher expenses, primarily reflecting higher staff costs, including seasonally higher compensation, and higher PCL, which includes provisions related to the California<\/span> wildfires.<\/p>\n

\n Insurance<\/b>\n <\/p>\n

Net income of $272 million<\/span> increased $52 million<\/span> or 24% from a year ago, primarily due to higher insurance service result driven by the impact of reinsurance contract recaptures and improved claims experience across the majority of our products. Lower taxes reflecting changes in earnings mix also contributed to the increase. This was partially offset by lower insurance investment result, primarily reflecting higher favourable investment-related experience in the prior period on transition to IFRS 17.<\/p>\n

Compared to last quarter, net income increased $110 million<\/span> or 68%, primarily due to higher insurance service result driven by the impact of reinsurance contract recaptures, adjustments relating to deferred acquisition expenses in the prior period and improved claims experience.<\/p>\n

\n Capital Markets<\/b>\n <\/p>\n

Net income of $1,432 million<\/span> increased $278 million<\/span> or 24% from a year ago, primarily driven by higher revenue in Corporate & Investment Banking and Global Markets, as well as the impact of foreign exchange translation. These factors were partially offset by higher compensation on increased results and higher taxes including the impact of Pillar Two legislation and changes in earnings mix.<\/p>\n

Compared to last quarter, net income increased $447 million<\/span> or 45%, mainly due to higher revenue in Global Markets, reflecting higher fixed income, equity and foreign exchange trading revenue across most regions. Higher revenue in Corporate & Investment Banking also contributed to the increase. These factors were partially offset by higher compensation on increased results and higher taxes including the impact of Pillar Two legislation and changes in earnings mix.\u00a0<\/p>\n

\n Corporate Support<\/b>\n <\/p>\n

Net loss was $8 million<\/span> for the current quarter.<\/p>\n

Net loss was $247 million<\/span> in the prior quarter, primarily due to the after-tax impact of HSBC Canada transaction and integration costs of $134 million<\/span>, which is treated as a specified item. Residual unallocated costs also contributed to the net loss.<\/p>\n

Net loss was $459 million<\/span> in the prior year, primarily due to the after-tax impact of HSBC Canada transaction and integration costs of $218 million<\/span> and the after-tax impact of management of closing capital volatility related to the HSBC Canada transaction of $207 million<\/span>, both of which are treated as specified items.<\/p>\n

\n Capital, Liquidity and Credit Quality<\/b>\n <\/p>\n

\n Capital <\/b>\u2013 As at January 31, 2025<\/span>, our CET1 ratio7<\/sup> of 13.2% was unchanged from last quarter, as net internal capital generation was offset by RWA growth (excluding FX).<\/p>\n

\n Liquidity<\/b> \u2013 For the quarter ended January 31, 2025<\/span>, the average LCR8<\/sup> was 128%, which translates into a surplus of approximately $91 billion<\/span>, compared to 128% and a surplus of approximately $86 billion<\/span> in the prior quarter. Average LCR8<\/sup> remained relatively stable from the prior quarter as growth in deposits and funding was largely offset by loan growth and securities and securities financing transactions.<\/p>\n

NSFR9<\/sup> as at January 31, 2025<\/span> was 115%, which translates into a surplus of approximately $143 billion<\/span>, compared to 114% and a surplus of approximately $137 billion<\/span> in the prior quarter. NSFR9<\/sup> increased compared to the previous quarter, primarily due to an increase in wholesale funding, lower funding requirements on securities and securities financing transactions, and growth in the bank’s book capital as well as in deposits, partially offset by loan growth.<\/p>\n

\n Credit Quality<\/b>\n <\/p>\n

\n
\n Q1 2025 vs. Q1 2024
<\/i>
\n <\/b>Total PCL of $1,050 million<\/span> increased $237 million<\/span> or 29% from a year ago, mainly due to higher provisions in Commercial Banking, Wealth Management and Personal Banking, partially offset by lower provisions in Capital Markets. The PCL on loans ratio of 42 bps increased 5 bps. The PCL on impaired loans ratio of 39 bps increased 8 bps.<\/p>\n

PCL on performing loans of $68 million<\/span> decreased $65 million<\/span> or 49%, mainly due to migration to impaired in Capital Markets, partially offset by unfavourable changes to credit quality and portfolio growth.<\/p>\n

PCL on impaired loans of $985 million<\/span> increased $300 million<\/span> or 44%, primarily due to higher provisions in Commercial Banking, Personal Banking and Capital Markets.<\/p>\n

\n
\n Q1 2025 vs. Q4 2024
<\/i>
\n <\/b>Total PCL increased $210 million<\/span> or 25% from last quarter, mainly reflecting provisions taken in the current quarter in Wealth Management, as compared to releases of provisions last quarter and higher provisions in Capital Markets. The PCL on loans ratio increased 7 bps. The PCL on impaired loans ratio increased 13 bps.<\/p>\n

PCL on performing loans decreased $140 million<\/span> or 67%, mainly due to lower unfavourable changes in credit quality and migration to impaired in Capital Markets, partially offset by lower favourable changes to our macroeconomic forecast and portfolio growth.<\/p>\n

PCL on impaired loans increased $345 million<\/span> or 54%, primarily due to higher provisions in Capital Markets, Commercial Banking and Personal Banking.<\/p>\n

\n\n\n\n\n\n
\n

\n __________________________________________________<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 7 <\/sup>This ratio is calculated by dividing CET1 by RWA, in accordance with OSFI’s CAR guideline.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 8<\/sup> The LCR is calculated in accordance with OSFI’s LAR guideline. For further details, refer to the Liquidity and funding risk section of our Q1 2025 Report to Shareholders.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n 9<\/sup> The Net Stable Funding Ratio (NSFR) is calculated in accordance with OSFI’s LAR guideline. For further details, refer to the Liquidity and funding risk section of our Q1 2025 Report to Shareholders.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Key Performance and Non-GAAP Measures<\/b>\n <\/p>\n

\n Performance measures
<\/b>We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics, such as net income and ROE. Certain financial metrics, including ROE, do not have a standardized meaning under generally accepted accounting principles (GAAP) and may not be comparable to similar measures disclosed by other financial institutions.<\/p>\n

\n Non-GAAP measures
<\/b>We believe that certain non-GAAP measures (including non-GAAP ratios) are more reflective of our ongoing operating results and provide readers with a better understanding of management’s perspective on our performance. These measures enhance the comparability of our financial performance for the three months ended January 31, 2025<\/span> with the corresponding period in the prior year and the three months ended October 31, 2024<\/span>. Non-GAAP measures do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions.<\/p>\n

The following discussion describes the non-GAAP measures we use in evaluating our operating results.<\/p>\n

\n
\n Pre-provision, pre-tax earnings
<\/i>
\n <\/b>We use pre-provision, pre-tax earnings to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of the credit cycle. The following table provides a reconciliation of our reported results to pre-provision, pre-tax earnings and illustrates the calculation of pre-provision, pre-tax earnings presented:<\/p>\n

\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n For the three months ended<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n January 31\u00a0<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n October 31\u00a0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n January 31\u00a0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n (Millions of Canadian dollars)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 2025<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2024<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Net income <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 5,131<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,222<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 3,582<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Add: Income taxes<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 1,302<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 993<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 766<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Add: PCL<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n 1,050<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n 840<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 813<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n
\n Pre-provision, pre-tax earnings <\/b>(1)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 7,483<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 6,055<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 5,161<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
\n\n\n\n
\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n For the three months ended January 31, 2025, pre-provision, pre-tax earnings excluding HSBC Canada results of $7,032 million is calculated as pre-provision, pre-tax earnings of $7,483 million less net income of $214 million, income taxes of $82 million, and PCL of $155 million.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n
\n Adjusted results
<\/i>
\n <\/b>We believe that providing adjusted results as well as certain measures and ratios excluding the impact of the specified items discussed below and amortization of acquisition-related intangibles enhances comparability with prior periods and enables readers to better assess trends in the underlying businesses.<\/p>\n

Our results for all reported periods were adjusted for the following specified item:<\/p>\n