RBC Misses Estimates as Bank Prepares for Souring Loans

Royal Bank of Canada missed estimates after setting aside more money than expected to cover possible loan losses amid a faltering economy even as income rose across most business lines.

Canada’s largest lender earned C$3.12 per share on an adjusted basis in its fiscal second quarter, according to a statement Thursday, falling short of the C$3.18 average estimate of analysts in a Bloomberg survey. Provisions for credit losses totaled C$1.42 billion ($1.03 billion) for the three months through April, more than the C$1.26 billion analysts had forecast.