* 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)