RBC says a majority of its mortgage clients can absorb higher payments

Royal Bank of Canada (RBC) reported net income of $3.9bn in Q4 2022 and full-year profits of nearly $16bn, both of which were down approximately 2%. During the earnings call, RBC said a majority of its mortgage borrowers could absorb payment increases despite rising interest rates and softness in housing demand and prices. The bank’s mortgage portfolio reached nearly $362bn in the quarter, and President and CEO Dave McKay noted that mortgage origination volumes remained in line with pre-pandemic levels, despite supply-demand imbalances and rising interest rates. RBC added 400,000 clients in 2022, and it expects mortgage growth to be in the mid-single digits next year.