As confirmed by the country's largest lender with regards to assets, the Royal Bank of Canada recorded a 10% in the fourth quarter earnings, on the back of hiked earnings from consumer lending and strict money management.

Net earnings for the three months up-to October 31 surged to C$1.24 Billion ($1.17 Billion), or 82 cents per share, from the figure of C$1.12 billion, or 81 cents a share, recorded for the same period from last year. Revenue also recorded a whopping 47% rise to C$7.46 Billion.

"There's a very strong franchise value with the Canadian banks and very conservative risk management. They're profit machines", said Ian Nakamoto, Director of Research at MacDougall MacDougall & MacTier Inc.

For the aforementioned period, RBC has reportedly set aside about C$883 Million for bad loans, which is a 43% hike from the amount set aside last year.

Yesterday, on the Toronto Stock Exchange, RBC recorded a fall of 40 cents to C$57.48. So far this year, the bank's shares have gained as much as 59%.