RBC earnings off by 10%
Royal Bank 3-month TSX chart
Royal Bank of Canada said its third-quarter profit tumbled by 10 per cent as rising loan losses and writedowns pulled down earnings.
The biggest of Canada's chartered banks, Royal Bank said it made $1.262 billion, or 92 cents a share, down from $1.395 billion, or $1.06 a share, a year earlier.
The bank said writedowns lowered its net income in the quarter by $263 million, or 20 cents a share.
The bank's revenue of $5.91 billion was up eight per cent from the $5.48 billion is reported a year earlier.
RBC said it lost $16 million in its international banking unit, down $103 million from net income of $87 million a year ago. The bank said the decline was due to higher provisions for credit losses on impaired loans in the U.S. residential market, coupled with a $53 million pre-tax writedown on the investment portfolio in its U.S. banking operations.
The bank said its capital markets division produced a profit of $269 million, down $91 million from a year ago due to before-tax writedowns of $342 million.
RBC's Canadian banking unit produced net income of $709 million, up 19 per cent from last year on strong growth across its business.
Net income for the bank's wealth-management unit was $186 million, up five per cent over last year on higher fee-based revenue, including the contribution from the recently acquired money manager Phillips, Hager & North.
On the Toronto Stock Exchange, RBC's share price closed at $48.13, its high for the day, for a gain of $2.83 or 6.25 per cent.
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