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February 29th, 2008

Royal Bank Q1 profit falls 17 per cent to $1.25B as debt-loss provisions rise

“Strong results in a number of our businesses demonstrate the importance of having a diversified business model and robust risk management practices”

– Royal Bank of Canada (TSX:RY) has reported first-quarter net income of $1.25 billion, down 17 per cent from a bonanza quarter a year ago, as provisions for U.S. credit losses swelled and RBC Capital markets took a big writedown.

Revenue at Canada’s biggest bank slipped one per cent to $5.65 billion in the November-January quarter, compared with just under $5.7 billion in the year-earlier period.

Return on equity was a robust 21.4 per cent, but down from 27.3 per cent in the first quarter of last year, which benefited from one-time insurance-segment adjustments. Read more



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