Toronto — Royal Bank said Monday that third-quarter net income rose to $5.4 billion, driven by higher net interest income and gains across capital markets and wealth management, signaling durability in the country’s largest lender even as lending growth moderates.

The bank’s statement put quarterly revenue higher year over year, with management citing a blend of stronger trading results and fee income that offset a softer mortgage market. On a constant-currency basis, revenue climbed roughly 4 percent from the same quarter a year earlier to about C$15.9 billion (approximately $11.8 billion), according to company figures provided to investors. Net interest income expanded by an estimated 6 percent as deposit repricing and higher margins benefited the lending book.

“These results reflect the strength of our diversified model,” Chief Executive Dave McKay said in prepared remarks. “We continue to invest in technology and wealth capabilities while managing credit prudently through an uncertain macro backdrop.”

Royal Bank also reported a decline in provisions for credit losses, which fell about 18 percent year over year to C$350 million, suggesting improved borrower performance and lower forward-looking credit costs. The bank pointed to stable corporate loan performance and a modest easing of consumer credit strain, though it warned that elevated borrowing costs and soft housing demand remain headwinds.

Investors responded positively: Royal Bank shares rose about 2.1 percent in late trading in Toronto, narrowing the gap with smaller regional peers that have reported more mixed results this earnings season. Analysts noted the outperformance of trading and wealth segments compared with legacy retail banking, a structural shift that has been underway for several years as Canadian banks pursue fee diversification.

The results arrive at an inflection point for monetary policy. The Bank of Canada has left its policy rate largely unchanged in recent months after an aggressive tightening cycle, and durable bank profits could influence the central bank’s calculus on the timing and scale of future cuts. “Stronger bank earnings reduce immediate urgency for rate reductions from the financial-stability perspective, though inflation dynamics remain the key driver,” said Margaret Chen, a senior economist at a Toronto research firm.

While the headline numbers are robust, executives flagged risks that could temper momentum. Commercial real estate exposure in certain sectors and the prospect of slower mortgage origination were cited as areas the bank is monitoring closely. Management reiterated commitments to cost discipline and incremental investment in digital platforms, where it sees long-term gains for customer retention and fee generation.

Longer-term trends underpinning the quarter include growing wealth-management revenue, a steady shift toward non-interest income, and technology-driven efficiency gains that have allowed large banks to maintain return on equity even as growth slows. For Royal Bank, the challenge will be converting this quarter’s gains into sustainable growth without taking on outsized credit risk as economic conditions evolve.