Explanation of a bank experiencing rising total profits

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Reference no: EM131305061

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?

Reference no: EM131305061

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