Royal Bank of Canada missed analysts' estimates for quarterly profit on Wednesday as equity trading weakened and it kept aside more funds to cover bad loans.
Net income at the lender's capital markets business, which includes trading, investment banking and advisory, fell 6% to C$653 million.
However, interest rate hikes in the United States and Canada last year benefited its personal and commercial banking business, where net income rose 10% to C$1.66 billion.
Overall net income rose to C$3.26 billion ($2.45 billion), or C$2.22 per share, in the third quarter ended July 31, from C$3.11 billion, or C$2.10 per share, a year earlier. [https://reut.rs/2P7EYCn ]
On an adjusted basis, the largest Canadian lender by market cap earned C$2.26 per share. Analysts were expecting a profit of C$2.30 per share, according to IBES data from Refinitiv.
RBC is the first of Canada's big banks to report third-quarter earnings. Smaller rival Canadian Imperial Bank of Commerce is slated to report its quarterly results on Thursday.
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