Royal Bank of Canada is reporting a jump in fourth-quarter profit. Canada’s largest bank attributed the increase to growth in its U.S. businesses and a drop in loan loss provisions during the quarter ended October 31.

The bank earned $666 million, or 95¢ a share, up from $656 million, or 91¢ a share in the year-before quarter, using Canadian accounting rules.

RBC Capital Markets returned to profitability during the fourth quarter by contributing $80 million to the bottom line. The group had lost $13 million last year.

Meanwhile, the retail banking unit continued to reap the lion’s share of earnings, rising 22% in the fourth quarter.

The bank said its U.S. operations earned $55 million compared with a loss of $124 million last year.

The bank said loan loss provisions were lower at $235 million, down from a year-earlier provision of $425 million.

Revenues fell to $3.7 billion in the quarter from $4.2 billion, while return on equity fell to 14.8% from 15.2%.

The bank also cut its forecast for 2003 revenue growth to 5% to 8% because of continued uncertainty over the economy. Royal’s revenue grew by 11% in 2002, slightly exceeding its target range of 7% to 10% percent.

The bank set its 2003 earnings per share growth goal at a higher 10% to 15% on the expectation that capital market activity will “pick up somewhat” next year.

Commenting on the results, Gordon M. Nixon, President & CEO, said, “We performed well this year in terms of our objectives. We grew both revenues and earnings per share at a double-digit pace and demonstrated ongoing vigilance on the cost and asset quality fronts. In addition, the market price of our common shares increased 16% during the fiscal year.”

The bank declared a quarterly common share dividend of 40¢ per share

http://www.newswire.ca/releases/November2002/19/c3377.html