TORONTO — Royal Bank of Canada saw its second-quarter profit cut to less than half what it was a year ago as the amount it set aside for bad loans soared due to the pandemic.
The bank says it earned $1.48 billion or $1.00 per diluted share for the quarter ended April 30, down from $3.23 billion or $2.20 per diluted share a year ago.
The drop came as the bank’s provision for credit losses climbed to $2.83 billion compared with $426 million in the same quarter last year.
The bank says the increased provisions hurt its results in personal and commercial banking, capital markets and wealth management.
RBC says its adjusted diluted cash earnings for the quarter amounted to $1.03 per share, down from $2.23 per share a year ago.
Analysts on average had expected an adjusted profit of $1.59 per share for the quarter, according to financial markets data firm Refinitiv.
This report by The Canadian Press was first published May 27, 2020.
