WRAPUP 1-RBC, CIBC profits rise, shares fall on growth doubts

Thu May 30, 2013 12:43pm EDT
 
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* RBC profits meet estimates, CIBC beats

* Canadian lending profits pressured by rates, housing

* CIBC says planning alternative to Aerogold card as talks drag on

* RBC shares down 2 pct, CIBC down 0.9 pct

By Cameron French

TORONTO, May 30 (Reuters) - Royal Bank of Canada and Canadian Imperial Bank of Commerce posted second-quarter results that met or beat analyst estimates, but shares of both companies declined on uncertainty about future growth.

Shares of RBC, Canada's largest lender, were off 2 percent after it reported profits that were up 26 percent rise from a messy year-before quarter but down from the bank's blockbuster first quarter of 2013.

"It was an in-line quarter ... but we did see some weakness in Canadian banking," National Bank Financial analyst Peter Routledge said, pointing to narrower interest margins and sluggish loan growth.

"It's something we've seen from Royal's peers for several quarters now, and Royal's always avoided it. So, I guess gravity caught up with them."   Continued...