Royal Bank of Canada's Net Interest Margin Trajectory Outweighs Earnings Beat
Dow Jones
Aug 28
0752 ET - Royal Bank of Canada's modest selloff post-3Q beat reflects a backdrop of "elevated expectations and very healthy valuation multiples," says Scotiabank's Mike Rizvanovic. In a report, the analyst notes core cash EPS of C$4.28 was ahead of his estimate of C$4.03 and consensus of C$4.07, driven largely by "a stronger top-line (+$0.13/sh) and lower expenses (+$0.14/sh), which drove a strong beat on PTPP[pre-tax, pre-provision] earnings (+$0.27/sh)." He says the positives were offset by "concerns on the bank's NIM [net interest margin] and NII [net interest income] trajectory that drove a miss in the Personal Banking Segment."
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