Royal Bank of Canada’s third-quarter profit fell 17 per cent as the bank started rebuilding reserves against possible loan defaults, with CEO Dave McKay warning North America’s economy is getting closer to “the end of an economic cycle.”
Rising loan loss provisions and unusually weak results from capital markets dampened RBC’s earnings, despite encouraging signs of demand for loans and expanding profit margins on lending in personal and commercial banking.
RBC RY-T is the second major lender to fall short of analysts’ estimates for the fiscal third quarter after Bank of Nova Scotia BNS-T reported mixed results on Tuesday. National Bank of Canada NA-T also reported earnings Wednesday that were in line with consensus estimates.
With inflation persistently high, strained supply chains, global tensions stemming from the war in Ukraine and tight labour markets, “the operating…
