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TORONTO (Reuters) - Royal Bank of Canada said on Thursday its earnings surged 24 percent in the third quarter as a big jump trading revenue more than offset higher loan-loss provisions.
Canada's largest bank roared past analysts' estimates for the quarter, reporting net income of C$1.56 billion, or C$1.05 a share, in the third quarter that ended July 31. That was up from C$1.26 billion, or 92 Canadian cents a share, a year earlier.
Excluding one-time items, diluted earnings per share were C$1.18, well above analysts' expectations for earnings of 93 Canadian cents a share before exceptional items, according to Reuters Estimates.
"Royal destroyed consensus," said Dundee Securities analyst John Aiken. "It was a good quarter all around, with very few complaints."
The amount of money the bank set aside for bad loans more than doubled to C$770 million, from C$334 a year earlier, but the credit troubles were more than offset by the overall strength of earnings.
The bank continued to build capital. The Tier I capital ratio climbed to 12.9 percent, above most Canadian competitors and far beyond that of global rivals.
The dividend was unchanged at 50 Canadian cents a share.
RBC's shares closed at C$53.09 Wednesday on the Toronto Stock Exchange.
($1=1.099 Canadian Dollar)
Additional reporting by Krishna Chaithanya in Bangalore; Editing by Maureen Bavdek