Royal Bank of Canada (NYSE:RY) Q3 2023 Earnings Call Transcript

Nadine Ahn: Didn’t really — so happy you got your last question in there, Sohrab. In terms of the tax rate, what I can tell you from a guidance standpoint is that you can see that most of it was driven off of capital markets. We do expect this to persist into Q4. I would say as it relates going forward, you can probably keep it in that 19% to 20% range overall for RBC as an effective tax rate.

Sohrab Movahedi: I appreciate you squeezing me. Thank you.

Operator: Thank you. That’s all the time we have for questions. I would now like to turn the meeting back over to Mr. McKay.

David McKay: Thank you, operator, and thanks, everyone, for your questions. Just to kind of sum up the quarter, I think very strong performance from our customer franchises on revenue growth, as you saw, strength of diversification, whether it was in Canada and our ability to grow our commercial and consumer businesses, our wealth businesses and combined with our global businesses, we didn’t talk at all any of the questions about the real strength in capital markets this quarter, particularly in global markets and trading, credit trading was very, very strong. We saw good market share gains in investment banking, as well as our advisory businesses are really kicking in and strong corporate banking performance. So I think from that perspective, very strong capital markets operations, fairly strong U.S. wealth and our advisory and broker in the U.S. as well.

So those global franchises were very strong. And the importance from all the questions on our deposit franchise, where it’s U.S. dollar deposits and particularly Canadian dollar deposits, how they move, how do consumers behave has a big impact on all banks, including ourselves. It’s a core strength of ours and are generally low beta and particularly in comparison to peers. And that strength has led to NIM expansion, very important this quarter and will continue to benefit as a tailwind over the coming quarters and years. So very, very important to talk about that. And then I would say balance sheet strength. Diversification of our balance sheet, the global diversification of our balance sheet, customer diversification of our balance sheet. You saw some strong credit performance in a volatile world.

I think continued strong performance and very, very excited about HSBC as we move forward and continue to plan for and wait for to hear on approvals but also plan for conversion and close in the coming quarters. So we feel very good about our customer momentum and what’s in store for the coming quarters. Thanks very much and we look forward to seeing you next quarter.

Operator: Thank you. The conference has now ended. Please disconnect your lines at this time and we thank you for your participation.