RBC profit rises 26 percent on stronger lending

Thursday, May 30th, 2013 | Finance News

TORONTO (Reuters) - Royal Bank of Canada said on Thursday that its quarterly profit rose 26 percent on stronger lending volumes and lower loan-loss provisions.

The bank, Canada's largest, said it earned C$1.94 billion ($1.87 billion), or C$1.27 a share, in the second quarter ended April 30.

That compares with a year-earlier profit of C$1.53 billion, or 99 Canadian cents a share, that included a C$202 million after-tax charge for the acquisition of the 50 percent stake of the RBC Dexia joint venture that it did not already own.

Excluding a restructuring charge, the bank earned C$1.31 a share in the latest quarter, matching analysts' estimates, according to Thomson Reuters I/B/E/S.

Personal and commercial banking income rose 12 percent to C$1.1 billion, as loan and deposit growth benefited from the acquisition in February of auto lender Ally Financial.

Income from RBC's capital markets division, which the bank has been expanding in the United States and Europe in recent years, rose 4 percent to C$386 million. Wealth management income climbed 6 percent to C$225 million.

Provisions for bad loans fell to C$288 million from C$348 million.

($1 = 1.0396 Canadian dollars)

(Reporting by Cameron French; Editing by Lisa Von Ahn)

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