Royal Bank is reporting that its earnings soared 66% for the third quarter ended July 31. Royal is first bank to report third-quarter results.

Royal said third-quarter net income was $722 million, or $1.02 a share, compared with a year-earlier profit of $436 million, or 60¢ a share. Last year’s third quarter included $146 million in charges and write-downs.

Loan loss provisions for Q3 2002 were slightly lower at $216 million, compared with a year-earlier $236 million.

“This is the third consecutive quarter that we have generated net income of over $700 million in what remains a challenging environment. Our consistent performance reflects our diversified business base, rising contribution from U.S. acquisitions, tight cost management and relatively stable asset quality,” said Gord Nixon, president & CEO, in a release.

Return on equity was 16.1% compared to 10.8% (14.8% excluding special items) a year ago.

Revenues were up 5%, reflecting contributions from recent U.S. acquisitions, including those in RBC Investments, which led this platform to generate double-digit revenue growth over a year ago.

The bank’s capital ratios strengthened, with the Tier 1 capital ratio and the Total capital ratio rising to 9.1% and 12.7%, respectively, from 9% and 12.6% last quarter.

The bank also increased its common share quarterly dividend by 2¢ to 40¢ a share.