The Royal Bank of Canada (RBC) posted a record net income of $12,431 million for the year ended Oct. 31, up $962 million or 8% from the previous year.

The bank highlighted the strong earnings growth in personal & commercial banking and wealth management, which reflected higher Canadian and U.S. interest rates, and average volume growth of 5% in Canadian banking.

Over the fourth quarter of this year, it was noted that the solid growth in residential mortgages, commercial lending and deposit products drove a rise in average volume. As a result, personal and commercial banking generated a net income of $1,538 million, which was up 10% from a year ago.

The bank further reported that non-interest income growth benefitted from higher credit-card purchase volume.

Compared to last quarter, personal and commercial banking’s net income tracked higher by $28 million or 2%, mainly due to higher spreads, and average volume growth of 1% in loans and 2% in deposits in Canadian banking, and lower provision for credit losses (PCL). These factors were partially countered by more expensive marketing costs.

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