Net income at the lender's capital markets business, which includes trading, investment banking and advisory, fell 6% to C$653 million.

However, interest rate hikes in the United States and Canada last year benefited its personal and commercial banking business, where net income rose 10% to C$1.66 billion.

Overall net income rose to C$3.26 billion ($2.45 billion), or C$2.22 per share, in the third quarter ended July 31, from C$3.11 billion, or C$2.10 per share, a year earlier. [https://reut.rs/2P7EYCn ]

On an adjusted basis, the largest Canadian lender by market cap earned C$2.26 per share. Analysts were expecting a profit of C$2.30 per share, according to IBES data from Refinitiv.

RBC is the first of Canada's big banks to report third-quarter earnings. Smaller rival Canadian Imperial Bank of Commerce is slated to report its quarterly results on Thursday.