Royal Bank Warns of Headwinds as Profit Misses Estimates BusinessWeek
(Updates with closing share price in fifth paragraph.)
Aug. 26 (Bloomberg) -- Royal Bank of Canada Chief Executive Officer Gordon Nixon warned of “significant headwinds” for banks after his company posted profit that missed analysts’ estimates for the sixth time in seven quarters.
“Banks around the world are facing other significant headwinds such as a slowdown in consumer lending and the added difficulty of an operating and prolonged low interest rate environment,” Nixon said today in a conference call with analysts.
Canada’s largest lender missed estimates as earnings from capital markets and trading fell short of analysts’ expectations. The bank said it earned C$1.06 a share excluding items such as the loss from the sale of its U.S. consumer banking business, RBC Bank, missing the C$1.08 a share estimate of 13 analysts surveyed by Bloomberg.
Profit from continuing operations was C$1.57 billion ($1.59 billion), or C$1.04 a share, for the period ended July 31, up 13 percent from C$1.38 billion, or 92 cents, in the year-earlier period, the bank said in a statement. The bank had a net loss of C$92 million including C$1.57 billion in costs from selling RBC Bank.
