RBC Financial posts $96m profit

RBC Financial (Caribbean) Ltd has posted a profit of $96 million with total revenue growth of ten per cent or $411 million for the year ended October 31, 2012. According its consolidated financial statements published yesterday, RBC also reported an increase in customer deposits by more than $3 billion. Total assets increased by $652 million, with major interest earning assets— loans, advances and investments— increasing by $1.3 billion during the year. RBC’s chief executive officer Suresh Sookoo said the Group “expanded its footprint in the Caribbean with the acquisition of the banking operations of Royal Bank of Canada branches in the Cayman Islands at a cost of $550 million”.

“There was strong growth in mutual fund business with the Routrin suite of funds outperforming the competition in T&T as the investment fund of choice,” he said. Sookoo said the Group strengthened its loan loss provisions during the year and this was reflected in impairment losses on loans and advances increasing by $391 million. He added: “The Group’s ability to generate profitability, coupled with its strong capital base, allows us to significantly increase loan loss coverage on impaired loans and advances.

“The bank’s continued strategic focus on investment for growth in people, processes and technology to enable global standards pf performance in the Caribbean led to an increase in non-interest expenses of $385 million. “Continued e c o n o m i c challenges throughout the region have impacted loan growth and recoveries.” The statements show that RBC Financial is well capitalised with a capital base of $16.9 billion and a group capital adequacy ration of 13.4 per cent—well in excess of the required regulatory threshold