RBC's first-quarter profit flat; increases provisions for credit losses

TORONTO -- Royal Bank (TSX:RY) reported a first-quarter profit that was flat from a year ago, as higher earnings from its wealth management and its main banking division were offset by weaker results from insurance and capital markets.

See Full Article

The bank reported net income of $2.45 billion for the quarter -- flat compared to a year ago and six per cent lower than the previous quarter, when it had $2.59 billion of profit.

RBC also increased its provisions for credit losses to $410 million -- an increase of $140 million, or 52 per cent -- due to higher provisions in the oil and gas sector and in its personal lending and credit card portfolios.

Barclays analyst John Aiken said that while earnings were disappointing, investors may react positively to the bank's "increasingly realistic" view on how its energy portfolio will be impacted by lagging crude prices.

RBC's personal and commercial banking operations reported net income of $1.29 billion, up three per cent from a year ago.

Its wealth management division had net income of $303 million -- an increase of 32 per cent as the bank benefited from the inclusion of Los Angeles-based City National Bank. The acquisition closed at the end of November.

Meanwhile, RBC's insurance division saw its net income decrease by 29 per cent to $131 million due to higher claim costs. Its capital markets profits slumped by four per cent to $570 million.



Advertisements

Latest Economic News

  • Economists meet with Alberta officials, say worst appears to be over

    Economic CTV News
    EDMONTON - Alberta Finance Minister Joe Ceci met with key economists to look ahead to 2017, with the consensus being the worst is over for the provincial economy. But Avery Shenfeld, chief economist of CIBC, says how much things will improve is still up in the air and tied to the price of oil. Source
  • Dow Jones, S&P 500 rallies to record highs; TSX racks up 100 points

    Economic CTV News
    TORONTO -- Major North American stock markets pushed higher, with the Dow Jones and S&P 500 hitting record levels, as anticipation builds over the corporate policies of U.S. president-elect Donald Trump. In New York, the Dow Jones industrial average surged 297.84 points at 19,549.62, while the S&P 500 added 29.12 points at 2,241.35. Source
  • Bovine TB: More cattle quarantined, but officials 'optimistic' worst is over

    Economic CTV News
    OTTAWA - The quarantine of cattle in a western Canada bovine tuberculosis outbreak continues to grow, even as no new confirmed cases of the disease have been found. Officials say, however, they are cautiously optimistic that the number of animals quarantined may have peaked. Source
  • Commercial real estate sales hit quarterly record as investors hunt yields

    Economic CTV News
    CALGARY - Real estate firm CBRE says Canada hit a record level for commercial real estate sales in the third quarter and is on track to beat an annual record set during the 2007 boom. Source
  • Moose Knuckles reaches deal with Competition Bureau over 'Made in Canada' claims

    Economic CTV News
    OTTAWA -- Winter jacket maker Moose Knuckles has reached a deal with the Competition Bureau regarding concerns over its advertising and labelling of certain parkas that are promoted as made-in-Canada. Under the agreement, reached through mediation, the company has agreed to donate $750,000 over five years to charities in Canada, such as those that provide winter coats to children in need. Source
  • Starbucks to boost number of shops, add more food to menu

    Economic CTV News
    NEW YORK -- Starbucks, looking to the future as its longtime CEO moves to other projects, plans to open 12,000 new locations within five years to boost its number of coffee shops worldwide by almost 50 per cent. Source
  • TransCanada to proceed with $655-million northern Alberta natural gas pipeline

    Economic CTV News
    CALGARY -- TransCanada Corp. says it's moving ahead with a $655-million expansion of its Nova Gas Transmission Ltd. system in northwestern Alberta. The company (TSX:TRP) says the Saddle West Expansion Project will add 29 kilometres of pipeline capacity to existing routes, as well as five compressor units, that together will increase the capacity of the system by about 355 million cubic feet per day. Source
  • N.B. to phase out coal, put price on carbon in new climate plan

    Economic CTV News
    FREDERICTON -- The New Brunswick government will phase out coal as an electricity source under a new climate change plan that also puts a price on carbon. Premier Brian Gallant said Wednesday that climate change is the most important issue to face humankind in modern times and New Brunswick must do its part to combat it. Source
  • Starbucks planning to add 12,000 new outlets around the world

    Economic CBC News
    Starbucks plans to add 12,000 new locations over the next five years. (David Horemans/CBC News) Starbucks plans to open 12,000 new locations within five years, boosting the total number of its coffee shops worldwide by almost 50 per cent. Source
  • WestJet pilots union drive takes flight again

    Economic CBC News
    The Air Line Pilots Association has formalized its drive to unionize pilots at WestJet. After months of laying the groundwork, the U.S.-based international union said in a letter to pilots that it is collecting membership cards, and warns about a pushback from the Calgary-based airline. Source