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RBC Bank shows improvement

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Tags: .biz | banks | RBC Bank

RBC Bank's performance improved in the latest quarter, although it is still losing money.

Royal Bank of Canada, the corporate parent of Raleigh-based RBC Bank, today reported that its international business lost $86.5 million (in U.S. dollars) in the fiscal third quarter that ended July 31.

That was a major improvement over the $1 billion loss posted in the prior quarter, which was driven by a writedown on goodwill related to its U.S. banking business.

Royal Bank includes RBC Bank in its international segment and doesn't break out the performance for RBC Bank.

"The credit profile in our U.S.retail operations is showing signs of improvement as the rate of deterioration in our loan portfolios slowed," Royal Bank CEO Gordon Nixon said in a prepared statement.

Although an improvement over the immediately prior quarter, the loss by the international unit that includes RBC Bank was worse than the loss of $14.6 million a year earlier.

RBC Bank has 430 branches across the Southeast and more than 5,000 employees, including more than 500 in the Triangle. It is in the midst of restructuring its operations, including some job cuts and reconfiguring management, in the wake of losses that have been a drag on Royal Bank's performance.

Today, however, Royal Bank reported a record profit of $1.42 billion, which was up 24 percent from a year ago and topped analysts' estimates.

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About the blogger

David Ranii has been a business reporter at The News & Observer since 1993. Over the years he has covered information technology, banking, insurance, the pharmaceutical and biotechnology industries, media businesses and real estate. Contact him at 919-829-4877 or e-mail him.
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