Royal Bank profit dips to $3.6B as bank set aside to cover bad loans | CBC News

Royal Bank of Canada reported its third-quarter profit fell compared with a year ago as it took provisions for potential loan defaults due to a deterioration in its economic outlook.

The bank said Wednesday it earned net income of $3.6 billion or $2.51 per diluted share for the quarter ended July 31 compared with a profit of $4.3 billion or $2.97 per diluted share in the same quarter a year earlier.

Revenue totalled $12.1 billion, from $12.8 billion a year ago.

Provisions for credit losses totalled $340 million for the quarter compared with a release of provisions for credit losses of $540 million in the same quarter last year.

“In an uncertain world, we continue to operate from a position of strategic and financial strength,” RBC chief executive Dave McKay said in a statement.

“Looking ahead, our size, scale and diversified business model will continue to create value for our clients, communities and shareholders.”

On an adjusted basis, RBC says it earned $2.55 per diluted share for the quarter compared with an adjusted profit of $3.00 per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $2.66 per share, according to financial markets data firm Refinitiv.