Canada's RBC reports higher profit, but capital markets weigh
By Jeffrey Hodgson
TORONTO (Reuters) - Royal Bank of Canada (RY.TO: Quote) reported a higher quarterly profit on Wednesday as gains at its main personal and commercial banking and wealth management businesses offset weakness at its capital markets arm.
RBC, Canada's largest bank, said net income rose to C$2.3 billion ($2.02 billion), or C$1.57 a share, in the fourth quarter ended on Oct. 31 from C$2.1 billion, or C$1.39 a share, a year earlier.
Excluding the amortization of intangible assets, earnings were C$1.59 a share.
Analysts on average had expected an adjusted profit of C$1.58 a share, according to Thomson Reuters I/B/E/S.
"They were basically in line," said Edward Jones financial services analyst Tom Lewandowski, who rates the stock a "hold."
The results provided some relief for investors the day after Bank of Montreal BMO.TO reported lower-than-expected earnings on weakness at its capital markets arm.
That profit miss had weighed on RBC shares because both banks have large capital markets divisions.
RBC shares were down 2 Canadian cents at C$81.40 in afternoon trading in Toronto. Continued...