RBC Reports C$44 Million Pre-Tax Restructuring Charge Related to Investor Services Integration

RBC Investor & Treasury Services (RBCIS) reported improved results in 2013 Q2, with a 23% increase in net income (on a non-GAAP basis) from the previous quarter when excluding restructuring charges related to the integration of the business into RBC.

RBCIS net income for the second quarter of 2013 was C$67 million compared to a net loss of $121 million a year ago.

RBC reported net income of C$1,936 million for the second quarter ended April 30, 2013, up 26% compared to net income of C$1,533 million last year. Results exclude a restructuring charge of C$31 million (C$44 million before-tax) in the current period related to the integration of RBCIS and a loss of C$202 million (C$212 million before-tax) in the prior year related to the acquisition of the remaining 50% interest in RBC Dexia Investor Services, renamed RBCIS.

Excluding certain items related to RBCIS, second quarter net income of C$98 million (non-GAAP)increased C$17 million or 21% from last year, largely due to improved results in RBCIS and incremental earnings related to RBC’s additional 50% ownership, which were partially offset by lower funding and liquidity revenue.

Compared to last quarter, net income was down C$13 million or 16%.