ROYAL BANK SEES IMPROVED RESULTS

  &lt;Royal Bank of Canada>, in reporting a
  19 pct drop in first quarter earnings, said it expects to
  report improved results in future earnings periods.
      "Healthy consumer credit growth, record fee-based income,
  highly profitable securities and foreign exchange trading, and
  a solid capital position...combined with the restraint of
  non-interest expenses, should lead to improved results in the
  periods ahead," chairman Allan Taylor said in a statement.
      The bank earlier reported profit for the first quarter
  ended January 31 fell to 114 mln dlrs from 140 mln dlrs a year
  ago.
      Taylor said loans to the energy sector continue to
  substantially hurt earnings while profitability of the bank's
  international operations remains weak, reflecting
  resource-related difficulties of private and public sector
  borrowers and unsatisfactory results from capital market
  activities.
      The bank said earnings from domestic operations rose to 103
  mln dlrs in the first quarter from 98 mln dlrs a year ago while
  earnings from international operations plunged to 11 mln dlrs
  from 42 mln dlrs last year.
      Royal Bank said first quarter international net interest
  income declined from last year, reflecting reduced revenues
  from international investment banking as well as a significant
  loss on disposal of its affiliate in Trinidad and Tobago.
      Other income rose to 251 mln dlrs from 220 mln dlrs last
  year. The rise was due to higher commercial banking and retail
  deposit service fees, and higher foreign exchange revenue but
  lower securities commissions from international investment bank
  operations partly offset the gains, Royal Bank said.
      The bank said a two billion dlr increase in total assets to
  98.7 billion dlrs was due mainly to continued growth in
  consumer lending, particularly residential mortgages.
  

