By (Reuters) -Royal Bank of Canada reported a rise in third-quarter profit on Wednesday, as the country’s largest lender benefited from the acquisition of HSBC Canada and robust performance in its capital markets business.
The inclusion of HSBC Canada’s results boosted net income by C$239 million, RBC said.
Dealmaking activity is on a resurgence as expectations of a soft landing have given corporate executives the confidence to push ahead with acquisitions and sell stocks and bonds to raise capital.
RBC’s capital markets business recorded a 23% jump in net income to C$1.17 billion ($869.2 million).
The bank took on billions of dollars in loans after it completed the purchase of HSBC Canada in March, the largest acquisition in its history.
The bank’s adjusted net income rose to C$4.73 billion, or C$3.26 per share, in the three months ended July 31, from C$4.01 billion, or C$2.83 per share, a year earlier.
($1 = 1.3457 Canadian dollars)