RBC profits rise in Q3, credit quality outperforms [Video]

Royal Bank of Canada reported a jump in earnings in the third quarter that handily beat analyst expectations as it had only a modest increase in money set aside for potentially bad loans while revenue rose.

The bank reported a third-quarter profit of $4.49 billion, up from $3.86 billion a year earlier.

RBC says the addition of HSBC Bank Canada increased its net income by $239 million for the quarter.

On an adjusted basis, RBC says it earned $3.26 per diluted share, up from an adjusted profit of $2.83 per diluted share a year ago.

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Earnings were well above the average of $2.97 per share that analysts had expected, according to LSEG Data & Analytics.

“While there’s a higher degree of geopolitical uncertainty and volatility, our diversified businesses are well positioned for the macro …