RBC posts $100 million loss

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RBC Bank losses continue

RBC Bank continues to post significant losses: $103.4 million in the third quarter.

Still, the quarterly loss was the Raleigh-based company's best in four quarters, according to data filed with the Federal Deposit Insurance Corp. In the immediately preceding quarter, RBC Bank lost $110.1 million.

The bank continues to be hurt by problem loans. Its non-current loans totaled $1.13 billion in the latest quarter. That was just a slight increase over the $1.12 billion in the second quarter, but significantly more than the $440.5 million of a year ago.

RBC bank shows improvement

RBC Bank's performance improved in the latest quarter, although it is still losing money.

Royal Bank of Canada, the corporate parent of Raleigh-based RBC Bank, today reported that its international business lost $86.5 million (in U.S. dollars) in the fiscal third quarter that ended July 31.

That was a major improvement over the $1 billion loss posted in the prior quarter, which was driven by a writedown on goodwill related to its U.S. banking business.

Royal Bank thrives despite RBC Bank's losses

Royal Bank of Canada shrugged off continuing losses in its international banking businesses -- including U.S. subsidiary RBC Bank -- and posted a 10 percent increase in quarterly profits.

But Jim Westlake, the new CEO of RBC Bank, said in an interview this morning that better times are coming for the U.S. business.

"I would expect to do better in 2010 than 2009, and better in 2011 again," said Westlake, who took over as CEO last month. "Where the absolute numbers fall will depend on the economy." Westlake also is the head of international banking and insurance for Royal Bank.

RBC is down but upbeat

The CEO of RBC Bank says the company's performance is improving but remains constrained by the difficult economic environment.

"Our whole region is still in a fairly stressed state," said Scott Custer, who noted that one in 10 workers in the six states where the bank operates is unemployed.

That said, Custer has become more upbeat.

RBC Bank weighs on Royal Bank

RBC Bank once again undermined the earnings of its corporate parent, Royal Bank of Canada, which on Friday reported its first quarterly loss since 1993.

Royal Bank, Canada's largest lender, doesn't break out the performance of Raleigh-based RBC. But the Canadian company's $45.8 million loss for the quarter that ended April 30 was driven by a $916 million writedown on goodwill that it said was related to its U.S business.

The writedown was triggered by a decline in the U.S. housing market and the overall economy, and the accompanying downturn in the market value of U.S. banks, according to Royal Bank.