Royal Bank of Canada is reporting increased profits for the fourth quarter ending October 31. The rise comes despite an increase in loan loss provisions, weaker capital markets and higher expenses due to restructuring.

Royal said net income was at $656 million, or 91¢ a share, up from $595 million, or 93¢ a share, last year.

Fourth-quarter profit on a cash basis rose to $778 million, or $1.09 a share for the quarter, compared with $595 million, or 93¢ a share, in the corresponding quarter a year earlier.

The bank’s return on equity slipped to 15.2% from 20.9%. On a cash basis, ROE dipped to 18.1% from 20.9%.

Commenting on the results, Gordon Nixon, president and CEO, said, “There is no doubt that the turbulence witnessed throughout the economy presented significant challenges for our company during the past quarter. This was reflected in reduced fourth quarter capital markets-related revenues, higher expenses due to restructuring and increased loan losses.”

During the fourth quarter operating highlights, Royal announced the consolidation of its Canadian financial planning businesses, bringing together, 1,500 sales people from within Wealth Management and Personal & Commercial Banking.

As well, the bank completed the acquisition of Tucker Anthony Sutro, a Boston-based broker dealer, for US$594 million in cash. The bank also sold off RT Capital Management for a gain of $$251 million after-tax.