ROYAL BANK/CANADA SEES HIGHER 1987 LOAN LOSSES <Royal Bank of Canada> said it estimates 1987 loan losses at one billion dlrs, a 25 mln dlr increase over last year. Royal Bank said it set its provisions "given the continued debt-servicing problems ... in the North American energy industry and the uncertain outlook for energy prices," and also continued to add to its general provisions for loans to troubled borrower countries. The bank's loan loss provision for the first quarter ended January 31 rose to 223 mln dlrs from 187 mln dlrs in the year-ago quarter. The bank said non-accrual loans, net of provisions for loan losses, totalled 2.2 billion dlrs on January 31, up from 2.0 billion dlrs a year ago. In reporting lower first quarter earnings, chairman Allan Taylor said problems with credit quality--particularly in loans associated with the energy sector--continue to have a substantial adverse effect on the bank's earnings. Taylor said profitability of the bank's international operations remains weak, reflecting resource-related difficulties of private and public sector borrowers and unsatisfactory results from capital market activities. Taylor said it would be premature to speculate on the outcome of debt resturcturing negotiations with Brazil or their potential impact on the Royal Bank. The bank earlier reported first quarter profit fell to 114.1 mln dlrs from 140.4 mln dlrs a year ago.