Junk loan, souring economy push up RBC loan-loss reserves

Royal Bank of Canada (RBC) put aside C$514 million ($391 million) to cover loan-losses in the three months to end-January, 46% more than in the prior quarter.

Almost half of the quarterly increase was due to a so-called 'fallen angel' utility company, meaning a firm that had been relegated to junk credit status from investment grade. Total provisions for credit losses (PCLs) for stage three credit assets – those that had become impaired – jumped to C$423 million from C$289 million at end

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