Royal Bank of Canada said its net income in the third quarter ended 31 July fell by 10 per cent year-on-year to C$1.262 million ($1.99 million), while diluted earnings per share fell to C$0.92, a drop from C$1.06.

Earnings were cut by write-downs of C$498 million before-tax (C$263 million after-tax and compensation adjustments), as well as higher provisions for credit losses largely in its US banking operations.  

At RBC’s wealth management arm, net income was C$186 million, up by 5 per cent or C$9 million over last year on higher fee-based revenue, including the contribution from its Phillips, Hager & North acquisition, and higher loan and deposit balances in international wealth management.

RBC is Canada’s largest bank as measured by assets and market capitalisation.