Royal Bank of Canada reported a first-quarter profit of $3.21 billion, down from $4.10 billion a year earlier as its provisions for credit losses increased.

The bank says the profit amounted to $2.29 per diluted share for the quarter ended Jan. 31, down from $2.84 per diluted share in the same quarter last year.

Revenue totalled $15.09 billion, up from $13.07 billion a year earlier.

The bank's provision for credit losses amounted to $532 million compared with a provision of $105 million in the same quarter last year.

On an adjusted basis, RBC says it earned $3.10 per diluted share in its latest quarter, up from an adjusted profit of $2.87 per diluted share a year earlier.

Analysts on average had expected a profit of $2.94 per diluted share in the quarter, according to estimates compiled by financial markets data firm Refinitiv.

"As our first-quarter results demonstrate, we are prudently managing risk while delivering strong revenue growth driven by our diversified business model," RBC chief executive Dave McKay said in a statement.

RBC said its personal and commercial banking operations earned $2.13 billion, up from $1.97 billion in the same quarter a year earlier as higher net interest income was partly offset by higher provisions for credit losses and staff-related costs, lower average mutual fund balances, as well as a higher effective tax rate.

The bank's wealth management business earned $848 million, up from $821 million a year earlier, while RBC's insurance arm earned $148 million, down from $197 million in the same quarter last year.

RBC's capital markets division earned $1.22 billion, up from $1.12 billion in its first quarter of 2022.

This report by The Canadian Press was first published March 1, 2023.