Royal Bank of Canada quarterly profit slumps on higher loan loss provisions

Royal Bank of Canada reported a 54% drop in quarterly profit on Wednesday, as the lender kept aside more funds to cover bad loans amid the COVID-19 crisis that has battered the economy.

Net income fell to C$1.48 billion, or C$1 per share, in the second quarter ended April 30, from C$3.23 billion, or C$2.20 per share, a year earlier.

"The unprecedented challenges brought on by the COVID-19 pandemic led to increased provision for credit losses of $2,830 million, up $2,404 million from last year", the bank said in a statement.

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