By Patrick Thomas 

Royal Bank of Canada's profit fell slightly in the fourth quarter, missing Wall Street forecasts.

The bank, based in Toronto, reported net income of 3.21 billion Canadian dollars ($2.41 billion) in the three months that ended Oct. 31, down from roughly C$3.25 billion in the year-prior quarter. Earnings were C$2.18 a share, down from C$2.20 a share a year ago.

The Canadian bank's personal and commercial banking and wealth management businesses grew from a year ago, but income from its insurance unit and treasury investor services fell 11% and 71%, respectively. Income from capital markets declined 12% from a year earlier, driven by lower revenue in corporate and investment banking, the company said.

The bank's credit-loss provision climbed 41% to C$499 million.

Net interest income, or the money that banks make from loans after taking out what they pay customers in interest, was C$5.11 billion, up about 9% from a year earlier. Noninterest income, which comes from categories like insurance premiums and investment management, was C$6.26 billion, up 4%.

Total revenue rose to C$11.37 billion from C$10.67 billion a year earlier. Analysts had expected C$11.63 billion of revenue in the quarter, according to FactSet.

The bank's capital ratio climbed to 12.1% in the fourth quarter from 11.9% in the second quarter and 11.5% the same period a year ago.

Write to Patrick Thomas at Patrick.Thomas@wsj.com

 

(END) Dow Jones Newswires

December 04, 2019 07:09 ET (12:09 GMT)

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