Royal Bank of Canada's Profit Decreases
December 04 2019 - 7:24AM
Dow Jones News
By Patrick Thomas
Royal Bank of Canada's profit fell slightly in the fourth
quarter, missing Wall Street forecasts.
The bank, based in Toronto, reported net income of 3.21 billion
Canadian dollars ($2.41 billion) in the three months that ended
Oct. 31, down from roughly C$3.25 billion in the year-prior
quarter. Earnings were C$2.18 a share, down from C$2.20 a share a
year ago.
The Canadian bank's personal and commercial banking and wealth
management businesses grew from a year ago, but income from its
insurance unit and treasury investor services fell 11% and 71%,
respectively. Income from capital markets declined 12% from a year
earlier, driven by lower revenue in corporate and investment
banking, the company said.
The bank's credit-loss provision climbed 41% to C$499
million.
Net interest income, or the money that banks make from loans
after taking out what they pay customers in interest, was C$5.11
billion, up about 9% from a year earlier. Noninterest income, which
comes from categories like insurance premiums and investment
management, was C$6.26 billion, up 4%.
Total revenue rose to C$11.37 billion from C$10.67 billion a
year earlier. Analysts had expected C$11.63 billion of revenue in
the quarter, according to FactSet.
The bank's capital ratio climbed to 12.1% in the fourth quarter
from 11.9% in the second quarter and 11.5% the same period a year
ago.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
December 04, 2019 07:09 ET (12:09 GMT)
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