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Provisions for credit losses at Royal Bank, Canada's largest
lender, fell to C$427 million ($329.65 million) in the three
months through October, by over a third from the previous
quarter's multi-year high and 14% from its year-ago,
pre-pandemic level. Analysts had expected nearly C$800 million.
National Bank, the smallest of Canada's six largest lenders,
took provisions of C$110 million, versus the nearly C$160
million expected.
Over the past three quarters, Canadian banks have set aside
billions of dollars to cover a spike in sour loans due to the
economic impact of the coronavirus crisis. While the surge has
resulted in profit declines, their allowances for bad loans are
now at multi-year highs.
On Tuesday, rivals Bank of Montreal and Bank of Nova Scotia also
beat expectations on lower provisions than analysts had
anticipated, and said their allowances were sufficient to cover
any increase in impaired loans in fiscal 2021.
Royal Bank's gross impaired loans fell 17% from the previous
quarter, while they rose 3% at National Bank.
Royal Bank reported adjusted net income of C$2.27 per share,
versus estimates of C$2.05.
National Bank's adjusted profit was C$1.69 a share, compared
with expectations of C$1.52.
($1 = 1.2953 Canadian dollars)
(Reporting by Nichola Saminather, editing by Louise Heavens and
Bernadette Baum)
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