RBC profit rises on HSBC Canada acquisition, capital markets powerhouse By Reuters

(Reuters) – Royal Bank of Canada reported a rise in third-quarter profit on Wednesday as the country’s biggest lender benefited from its acquisition of HSBC Canada and robust performance in its capital markets business.

Including HSBC Canada’s results boosted net income by $239 million, RBC said.

Dealmaking activity is on a resurgence as expectations of a soft landing have given corporate executives the confidence to continue acquisitions and sell stocks and bonds to raise capital.

RBC’s capital markets business posted a 23% increase in net income to $1.17 billion ($869.2 million).

The bank took on billions of dollars in loans after completing the purchase of HSBC Canada in March, the largest acquisition in its history.

The bank’s adjusted net income rose to $4.73 billion, or $3.26 per share, in the three months ended July 31, from $4.01 billion, or $2.83 per share, a year earlier earlier.

($1 = 1.3457 Canadian dollars)