02:30 PM EDT, 08/28/2024 (MT Newswires) -- RBC's third quarter results were underpinned by stronger-than-expected credit performance, a positive outcome at a time of heightened investor scrutiny (and concern) related to this issue, notes National Bank's Gabriel Dechaine.

The quarter wasn't simply a credit-driven one, with nearly all segments delivering strong PTPP growth (incl. organically in Canadian banking) and with consolidated PTPP ahead of expectations.

"At a time when RY's premium valuation may deter some investors, this quarter's performance (and this year's, for that matter) justifies our bullish stance," Dechaine writes. Separately, HSBC Canada integration appears to be going smoothly, with the bank achieving half of targeted expense synergies on a run-rate basis. However, sparse disclosure on HSBC Canada loan balances limits our ability to assess client retention levels.

RBC is rated Outperform.

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