By Matt Grossman
Royal Bank of Canada reported a lower-than-expected profit as revenue declined and the bank increased its provision for credit losses during the Covid-19 pandemic.
The Toronto-based financial institution reported a profit in the second fiscal quarter of 1.48 billion Canadian dollars, or C$1 a share, compared with C$3.23 billion, or C$2.20 a share, for the same period a year earlier. Analysts were expecting earnings of C$1.81 a share, according to FactSet.
The bank's adjusted per-share earnings were C$1.03. Analysts were expecting adjusted earnings of C$1.64 a share, according to FactSet.
Net interest income was C$5.47 billion in the quarter, up from C$4.77 billion a year earlier, and non-interest income was C$4.87 billion, compared with C$6.73 billion a year earlier.
Revenue was C$10.33 billion, a decline from C$11.5 billion in last year's first quarter. Analysts were expecting C$11.19 billion
The effects of the coronavirus pandemic led Royal Bank of Canada to increased provisions for credit losses of C$2.83 billion, compared with C$426 million a year earlier and C$419 million in the first quarter.
Write to Matt Grossman at firstname.lastname@example.org