Royal Bank of Canada profit falls on M&A loss
(Reuters) - Royal Bank of Canada (RY.TO: Quote) reported a 7 percent decline in quarterly earnings as an acquisition-related loss obscured strength in its domestic banking and capital markets-related businesses.
RBC, Canada's largest bank, said on Thursday that net income from continuing operations was C$1.56 billion ($1.52 billion), or C$1.01 a share, in the second quarter ended April 30, compared with C$1.68 billion, or C$1.10 a share, a year earlier.
Continuing operations exclude results from RBC's U.S. retail bank, which it agreed to sell last year.
Excluding certain items, RBC earned C$1.17 a share. Analysts on average had expected C$1.18, according to Thomson Reuters I/B/E/S.
Canadian banking income rose 5 percent to C$937 million due to stronger loan and deposit volumes, while capital markets income climbed 11 percent to C$449 million, spurred by higher trading and investment banking revenue.
RBC's international banking division took a C$196 million loss due to the acquisition of the 50 percent of its joint venture with Franco-Belgian lender Dexia (DEXI.BR: Quote) that it did not already own.
The company took a C$202 million after-tax loss on the deal as the purchase price forced it to write down the value of the stake it already owned.
(Reporting by Cameron French in Toronto; Editing by Lisa Von Ahn)
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