
Royal Bank of Canada reported a first-quarter profit of $3.58 billion, up from $3.13 billion a year earlier, as the money it set aside for bad loans rose.
The bank said Wednesday the profit amounted to $2.50 per diluted share for the quarter ended Jan. 31, up from $2.23 per diluted share in its first quarter last year.
Revenue for the three-month period totalled $13.49 billion, up from $13.36 billion.
RBC says its provisions for credit losses totalled $813 million for the quarter, up from $532 million a year earlier.
On an adjusted basis, the bank says it earned $2.85 per diluted share in its most recent quarter, down from an adjusted profit of $3.04 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of $2.80 per share, according to estimates compiled by financial markets data firm Refinitiv.
"As our first quarter results show, RBC has the right strategy in place to grow today while also generating long-term value for shareholders," RBC chief executive Dave McKay said in a statement.
"Underpinned by our balance sheet strength, prudent approach to risk management and diversified business model, we delivered solid, client-driven volume growth and a continued focus on expense control."
RBC said its personal and commercial banking business earned $2.06 billion, down from $2.13 billion a year ago as it was hit by higher provisions for credit losses and non-interest expenses, partially offset by higher net interest income.
The bank's wealth management arm earned $606 million, down from $830 million a year earlier, while its insurance business earned $220 million, up from $67 million in the same quarter last year.
RBC's capital markets business earned $1.15 billion, down from a profit of $1.24 billion a year earlier.
The bank's corporate support recorded a loss of $459 million in its most recent quarter compared with a loss of $1.13 billion in the same quarter last year.