BMO 01:14 PM EDT, 08/25/2022 (MT Newswires) -- BMO Capital notes that Royal Bank's cash adjusted diluted EPS of $2.55 fell below BMO/consensus expectation of $2.68/$2.66.
"The miss to our estimate came from Capital Markets (challenging market conditions; unrealized bridge loan marks) and higher credit allowances (reserve builds in Canadian Banking); results were better than our forecasts for Canadian Banking and Wealth."
Balance sheet remains strong with CET1 ratio of 13.1% (~40bps impact expected from Brewin Dolphin acquisition in Q4); LCR of 123%. RY repurchased ~10MM shares in the quarter (73% of NCIB completed).
BMO has an Outperform rating and $140 target on the stock.
Price: 125.13, Change: +1.93, Percent Change: +1.57