December 4, 2019 / 11:47 AM / 4 days ago

UPDATE 1-Royal Bank of Canada profit misses estimates on weak equity trading

(Adds segment income, compares with estimates)

Dec 4 (Reuters) - Royal Bank of Canada missed estimates for quarterly profit on Wednesday, as equity trading weakened and also set aside more funds to cover bad loans.

The lender reported a net income fall of 12.3% to C$584 million in its capital markets business, which includes trading, investment banking and advisory.

Total loan loss provisions, or the money a bank sets aside to cover unpaid loans, rose 41.4% to C$499 million.

Net income at RBC’s personal and commercial banking division rose 5% to C$1.62 billion from a year earlier, helped by interest rate hikes in the U.S. and Canada last year, regions where the bank has substantial operations.

On an adjusted basis, the largest Canadian lender by market cap earned C$2.22 per share, falling short of analysts’ estimates of C$2.28 per share.

Net income fell to C$3.20 billion ($2.41 billion), or C$2.18 per share, in the fourth quarter ended Oct. 31, from C$3.25 billion, or C$2.22 per share, a year earlier.

$1 = 1.3301 Canadian dollars Reporting by Abhishek Manikandan in Bengaluru; Editing by Krishna Eluri

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