Royal Bank of Canada, the country's top bank by market value, reported fourth-quarter profit above analyst expectations helped by its acquisition of HSBC's domestic business this year and strength at its wealth management division.

Royal Bank of Canada on Wednesday reported higher fourth-quarter profits than it did last year, exceeding analyst expectations. On an adjusted basis, the bank earned $4.4 billion, up 18 per cent from a year ago,

In October, the Bank of Canada cut interest rates for the fourth time in a row, marking a shift towards a low inflation era, and boosting banks' loan growth as lower rates prompt consumers to take more loans.