Royal Bank of Canada (RBC) (TSE:RY) said on Thursday bad loans increased by C$583 million, or 19 percent, in the second quarter from the quarter before, largely due to a rise in credit to oil firms that had turned sour.
Canada’s biggest banks are seeing an increase in energy clients struggling to pay back loans following a sharp decline in the price of oil. Bank of Montreal said on Wednesday it had set aside more funds to cover losses.
Despite the warning, RBC reported a 7 percent increase in second-quarter profit from the same quarter a year earlier, which it said reflected strength across its businesses.
Read the full article at: ca.finance.yahoo.com