HomeMortgageRoyal Bank profit dips to $3.6B as bank set aside more money...

Royal Bank profit dips to $3.6B as bank set aside more money to cover bad loans

Rising interest rates gave a boost to RBC’s earnings in the third quarter, but the benefits were outweighed by a significant pullback in capital markets and the deteriorating economic outlook that higher borrowing costs have also triggered.

Canada’s biggest bank said Wednesday it earned profit of $3.6 billion or $2.51 per diluted share for the quarter ended July 31, down from a profit of $4.3 billion or $2.97 per diluted share in the same quarter a year earlier, as it booked provisions for potential loan losses ahead and took a hit on a loan underwriting markdown because of market conditions.

“Our market-sensitive businesses reported a challenging set of results, against the backdrop of one of the toughest environments for financial markets,” said chief executive Dave McKay on an earnings call Wednesday.

“This was underpinned by increased uncertainty, heightened volatility, lower…

Read more at www.cbc.ca

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