Royal Bank of Canada is reporting reduced earnings for the third quarter ended July 31.

Net income for the quarter was of $492 million or 68¢ a share. Excluding a restructuring charge following the acquisition of Centura Banks, and a writedown of deferred income tax assets, net income was $579 million or 82¢ a share. Net income for third quarter of fiscal 2001 was $574 million or 89¢ a share.

In addition, the banks says this quarter’s results reflected an unusually high expense for Stock Appreciation Rights resulting from a 19% rise in the bank’s common share price during the quarter, and an increase in the provision for credit losses.

Commenting on the results, Gordon Nixon, president and CEO, said, “Despite continuing weak capital markets, we performed well again, demonstrating the value of our diversified business mix.”

Net income for the nine months ended July 31 was $1,755 million or $2.61 a share, up from $1,675 million or $2.58 a share one year ago.

Total revenues were $3,727 million up 24% from last year’s third quarter, reflecting strong growth in all business segments and recent acquisitions. For the first nine months of 2001, total revenues were $10,725 million up 20 % from a year ago.

Return on equity for the quarter was 12.5%, down from 19.7% a year ago. ROE for the nine months was 16.9%, also down from 19.7% a year ago.

Net income from personal and commercial banking slipped 16% in the quarter to $238 million, down from $284 million a year ago.

Net income form insurance soared 96% during the quarter, climbing to $47 million from $24 million a year ago.

Volatile markets took a bite out of the bank’s wealth management division during the third quarter. Net income fell 40% to $56 million, down from $93 million a year ago. The bank says the Canadian private client group experienced a drop in trading volumes from the robust levels a year ago. As well, the bank’s U.S. brokerage RBC Dain Rauscher experienced lower trading volumes, while retention expenses amounted to $29 million.