Royal Bank profits rise 14 per cent in second quarter

TORONTO – Royal Bank (TSX:RY) says profits jumped 14 per cent in the second quarter on earnings growth in divisions like Canadian banking and capital markets.

The bank reported net income of $2.5 billion, or $1.68 per share, versus $2.2 billion or $1.47 per share a year ago.

Filtering out selected one-time items, Royal Bank’s adjusted earnings were $1.63 per share, which was three cents better than analyst expectations, according to a survey from Thomson Reuters.

Royal Bank says its capital markets division increased profits by 23 per cent to $625 million on strong growth in corporate and investment banking activity.

The insurance division saw net income drop 20 per cent to $123 million affected by changes in Canadian tax laws.