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Net income rise forRBC Trust Bahamas

Royal Bank of Canada Trust Bahamas Limited recorded an 8.5 percent increase in its net income for the year ended October 31, 2010, posting$1.9 million for the fiscal year.

The improved performance was year-on-year compared to 2009, when the financial institution recorded$1.8 million in net income. One of the factors that attributed to the profit rise was the company’s reduction of its total expenses by 21.2 percent during that period to$5.1 million from$6.6 million in 2009. Staff costs experienced the largest change from 2009, with a 39 percent drop year-on-year from$3.6 million to$2.2 million.

Royal Bank of Canada Trust also experienced increases in other areas, with its total assets increasing 53.7 percent from$571.3 million in 2009 to$878.4 million in 2010. This included cash and cash equivalents spiking 77.1 percent from$398.5 million to$705.9 million, which accounted for the majority of asset growth.

Total liabilities nearly doubled for the end of the 2010 fiscal year, increasing 95 percent to$687.7 million from$352.6 million. Depositors’accounts were responsible for most of the activity in this segment, with a 95.5 percent rise from$350.6 million in 2009 to$685.7 million in the same corresponding period in 2010.

Total equity decreased for Royal Bank of Canada Trust, with the financial institution recording a 12.8 percent decline year-on-year from$218.7 million to$190.6 million. Most of the movement occurred in retained earnings, dropping 65.4 percent from$42.8 million to$14.8 million. Share capital, contributed surplus and share premium remained the same compared to the previous year’s figures, recording$5 million,$102.6 million and$68.1 million respectively.

The company paid$30 million in dividends in the 2010 fiscal year and also managed to increase its cash and cash equivalents to$312 million, which only rose$12.5 million in 2009. It started the year with$378.8 million and closed it with$690.9 million, a 45.1 percent increase from its starting total and the ending figure of 2009.

Royal Bank of Canada Trust Bahamas Limited was incorporated in The Bahamas in 1962 and is a wholly-owned subsidiary of RBC Holdings Bahamas Limited, which are both subsidiaries of the Royal Bank of Canada. The company’s primary functions include private banking and trust services.

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