Royal Bank of Canada (RY) reported a fiscal first-quarter profit of $3.21 billion, down 22% from $4.10 billion a year earlier as it increased its loan loss provisions.
Royal Bank, which is Canada’s biggest lender, said the profit amounted to $2.29 per share for the quarter ended January 31, 2023, down from $2.84 per share a year earlier.
The profit represented a big miss for Royal Bank. Analysts who cover the bank had expected a profit of $2.94 per share in the quarter, according to financial markets data firm Refinitiv.
However, revenue in the quarter totaled $15.09 billion, up 16% from $13.07 billion a year ago.
The bank's provision for loan losses amounted to $532 million in the latest quarter compared with a provision of $105 million in the fiscal first quarter last year.
Royal Bank’s stock is essentially flat (up 0.83%) over the last year at $138.54 per share.
