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TORONTO: Royal Bank of Canada (TSX:RY) had a $1.3-billion profit in its second quarter, much better than in the same period last year but below analyst estimates.

The bank's net income amounted to 88 cents per share, on a diluted basis. Cash EPS was 96 cents per share.

Analysts had been expecting $1.08 per share.

Revenue was $6.97 billion, up $200 million from the second quarter of 2009 but about $100 million below analyst estimates compiled by Thomson Reuters.

Royal said the strength of the Canadian dollar had a negative impact on both its profit and revenue, especially in capital markets and wealth management.

RBC's profit was still a big improvement on the $50-million loss it reported a year ago, when it recorded a $1-billion impairment of goodwill assets.