💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

UPDATE 1-RBC expects oil gains since January to hold -CEO

Published 2016-04-06, 10:01 a/m
© Reuters.  UPDATE 1-RBC expects oil gains since January to hold -CEO
RY
-

* CEO says provision for credit loss in line with norms
* Oil & gas accounts for 1.6 pct of total loan book

(Recasts with CEO comments from annual meeting)
By Matt Scuffham
MONTREAL, April 6 (Reuters) - Royal Bank of Canada RY.TO
expects oil price gains since the beginning of the year to hold,
Chief Executive Officer Dave McKay told shareholders on
Wednesday, addressing concerns over the slump's impact on the
bank.
RBC is one of Canada's biggest lenders to oil and gas
companies and has a sizeable consumer loan book in the
oil-producing province of Alberta, which has been hit by
thousands of job losses.
However, McKay played down the bank's exposure in a speech
at the bank's annual meeting.
"Oil and gas represents about 1.6 percent of our total loan
book, and our provision for credit loss remains in line with
historic norms," McKay said. "We also believe the significant
gains that oil markets have made since January will hold, given
that the U.S. economy continues to grow."
RBC, which is Canada's biggest lender, said in February that
impaired loans to companies in the oil and gas sector had almost
doubled from the previous quarter to C$310 million and that it
had set aside C$106 million to cover bad credit in the energy
sector.
That warning, along with increased provisions by other
lenders, raised concerns that the impact on Canadian banks could
worsen in the remainder of the year.

(Editing by Matthew Lewis and Lisa Von Ahn)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.