December 5, 2013 / 11:44 AM / 5 years ago

UPDATE 1-Royal Bank of Canada CEO Nixon to step down; profit rises

* CEO Nixon to be replaced by executive Dave McKay

* Profit rises on retail, capital markets, tax adjustment

* Results tops estimates

TORONTO, Dec 5 (Reuters) - Royal Bank of Canada, the country’s largest bank, said on Thursday that its quarterly profit rose 11 percent and that Chief Executive Officer Gordon Nixon would step down next summer after 13 years in his position.

Dave McKay, who runs RBC’s Canadian retail banking division, will replace Nixon, whose retirement comes during a changing of the guard at Canada’s other top banks. The changeover will take place on Aug. 1.

RBC earned C$2.1 billion ($1.96 billion), or C$1.40 a share, in the fourth quarter ended Oct. 31, compared with C$1.9 billion, or C$1.25 a share, a year earlier.

Excluding certain items, the bank earned C$1.42 a share, it said.

Analysts had expected, on average, a profit of C$1.38 a share, according to Thomson Reuters I/B/E/S.

Profit was driven by stronger retail banking and capital markets income and by a favorable C$124 million tax adjustment.

Besides the succession at RBC, Toronto-Dominion Bank CEO Ed Clark has said he will step down next year, while Brian Porter took over last month as CEO of Bank of Nova Scotia , replacing Rick Waugh. TD and Scotiabank are Canada’s second- and third-largest banks.

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