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RBC Swings To Profit In Q2

Royal Bank of Canada (RBC) has reported a net income of CAD1.33bn, or CAD0.88 per diluted share, for the second quarter ended April 30, 2010, compared to a net loss of CAD50m, or CAD0.07 per diluted share, for the same quarter in 2009, largely reflecting a goodwill impairment charge of CAD1bn.

Excluding the goodwill impairment charge, RBC net income was up CAD379m, or 40% from last year driven by good results across most businesses, continued stabilization of credit quality, and a general improvement in market and economic conditions.

Canadian banking net income was CAD736m, up CAD155m or 27% from last year. Wealth management net income was CAD90m, down CAD36m or 29% over last year primarily due to an unfavorable accounting impact of CAD68m (CAD61m after-tax) related to foreign currency translation on certain AFS securities. Excluding the accounting impact, net income was CAD151m, up CAD25m or 20% over last year.

International banking net loss of CAD27m in second quarter of 2010 was lower than the net loss of CAD1.13bn as the prior year included the goodwill impairment charge of CAD1bn. Capital markets net income was CAD502m, up CAD82m or 20% from a year ago.

Gordon Nixon, president and CEO of RBC, said: “Our results reflect strong performances across our businesses and demonstrate the longstanding strength of this organization. Our relentless focus on providing clients around the world with sound financial advice is enabling us to build our franchise for long term growth.”