Royal Bank Of Canada (RY) Financials

Royal Bank of Canada’s balance sheet shows steady growth in the franchise over the last three years, with assets, loans, deposits, and common equity all trending higher into fiscal 2024. At the same time, the bank’s liability base also expanded, and some balance sheet mix items moved in ways investors will want to watch, including a notable increase in goodwill and a sharp decline in “other assets” from 2022’s elevated level.

• Total assets rose to $1.56 trillion in FY2024 from $1.45 trillion in FY2023 and $1.41 trillion in FY2022, showing continued scale expansion.
• Net loans and leases increased to $704.1 billion in FY2024 from $614.5 billion in FY2023 and $601.2 billion in FY2022, indicating loan book growth.
• Total common equity climbed to $91.2 billion in FY2024, up from $83.0 billion in FY2023 and $73.9 billion in FY2022, which strengthens the capital base.
• Retained earnings continued to build, reaching $63.6 billion in FY2024 versus $58.9 billion in FY2023 and $57.2 billion in FY2022, a sign of cumulative profitability and capital retention.
• Non-interest-bearing deposits increased to $636.6 billion in FY2024 from $569.1 billion in FY2023 and $589.4 billion in FY2022, which can support lower-cost funding.
• Cash and due from banks remained substantial at $40.7 billion in FY2024, providing liquidity support even though it was down from the prior year.
• Trading account securities expanded to $423.7 billion in FY2024 from $397.9 billion in FY2023 and $0.0 billion? No—these levels remained very large in both years, meaning market-sensitive assets remain a major part of the balance sheet.
• Total liabilities also increased to $1.47 trillion in FY2024 from $1.36 trillion in FY2023 and $706.8 billion in FY2022, which is expected for a growing bank but still warrants monitoring.
• Goodwill rose to $13.8 billion in FY2024 from $9.1 billion in FY2023 and $9.0 billion in FY2022, suggesting more intangible-heavy assets on the books after acquisitions or revaluations.
• Federal funds purchased and securities sold declined to $219.0 billion in FY2024 from $241.6 billion in FY2023, but the overall funding mix still relies heavily on wholesale-style liabilities.
• Cash and due from banks fell from $44.7 billion in FY2023 to $40.7 billion in FY2024, while total assets continued rising, which slightly tightens near-term liquidity.
• “Other assets” dropped sharply from $172.1 billion in FY2022 to $58.6 billion in FY2023 and $66.1 billion in FY2024; the 2022 spike suggests that line item may be volatile and worth reviewing for composition.

Bottom line: Royal Bank of Canada enters FY2024 with a larger balance sheet, stronger common equity, and continued loan growth. For retail investors, the key positives are scale, deposit funding, and capital growth. The main things to watch are rising leverage from balance sheet expansion, higher goodwill, and the bank’s exposure to trading assets and other market-sensitive balance sheet categories.