Sina U. S. stocks, December 4, Royal Bank of CanadaQuarterly profits fell for the first time since early 2018, hit by a decline in trading and a grumpy market.

Profits and revenues from the bank's capital markets division were the worst in two years, with falling investment bank revenues and increased provisions for bad debts causing earnings in the business to fall by 12 per cent. King's capital markets accounted for about 20 per cent of the bank's total earnings, which fell, offsetting earnings growth in consumer banks and wealth divisions, causing fourth-quarter earnings to fall short of analysts' expectations.

"the King rarely falls short of expectations," Barclays analyst John Aiken said in a client report. "Capital market business income declined due to lower consultancy fees and increased provisions and expenditure."

Investment banking has had a tough year, with the total value of mergers and acquisitions falling by 15 per cent and equity financing by 6 per cent, hitting the total income of the global investment banking industry. At Royal Bank of Canada, investment banking revenue fell 17 per cent to C $428 million (US $322 million) in the quarter, the lowest level since the first quarter.

Revenue from trading operations was C $706 million, the lowest level in a year and down from the third quarter. The Canadian capital markets department also withdrew C $78 million, more than double that of the same period last year and an increase of 39 per cent over the third quarter.

The bank's overall net profit fell 1.4 per cent to C $3.21 billion in the three months to October 31, the first decline since the first quarter of 2018. Adjusted earnings per share of C $2.22 fell short of the C $2.27 average expected by 14 analysts.

Despite the slowing pace of earnings growth, Royal Bank of Canada ended the year with a profit of C $12.9 billion, continuing the record momentum since 2011. Earnings growth of 3.5% this year is the slowest in a decade.