RBC Profits Rise Despite Plunge in Originations

Royal Bank of Canada's net income rose 3% to C$793 million (about $592 million) in its most recent quarter despite certain adverse developments, among them a 52% decline in originations at its U.S.-based RBC Mortgage unit.The RBC Banking subsidiary's U.S. earnings fell by C$54 million (about $40 million) to C$6 million (about $4.5 million) in the quarter ended Jan. 31 mainly due to the origination decline and lower returns from the RBC Centura subsidiary's investment portfolio. "We are taking steps to improve returns from our banking operations in the U.S.," said Gordon M. Nixon, RBC's president and chief executive officer. "Our expansion efforts in the U.S. remain measured and disciplined, and we will continue to emphasize returns over size." The Royal Bank of Canada can be found online at http://www.rbc.com.