Royal Bank of Canada (RBC) has posted a net income of C$1.27bn, or C$0.84 per diluted share for the third quarter ended 31 July 2010 compared to C$1.56bn, or C$1.05 per diluted share, for the same quarter of 2009.
Canadian Banking net income was C$766m, up C$97m or 14% from last year, driven by strong volume growth and lower provision for credit losses (PCL).
Wealth management net income was C$185m, up C$17m or 10% from last year, primarily reflecting a favorable accounting impact related to the foreign currency translation on certain AFS securities and a favorable income tax adjustment in the current quarter.
International banking net loss of C$76m was lower than the net loss of C$95m last year, primarily due to lower PCL in US banking.
Total PCL of C$432m decreased C$338m or 44% from a year ago and decreased C$72m or 14% from last quarter. Specific PCL decreased C$272m from a year ago and decreased C$40m from last quarter.
RBC president and CEO Gordon Nixon said that the company continues to build on its strong competitive positions and invest in its businesses for long term growth.
“The strength of our geographic and business diversity enabled us to produce another solid quarter despite challenging global capital market conditions,” Nixon said.