Wall Street Journal
An article in the Wall Street Journal states that Royal Bank of Canada’s ROE during the fourth quarter of 2009 was 14.5%, having fallen from 16.4% during the fourth quarter of 2008. Despite the decline in ROE, the article states that the total amount the bank had earned in profits was higher than it had been a year earlier. What is the most likely explanation of a bank experiencing rising total profits and a falling ROE?