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RBC reports Q2 profit rises to $4.25B, raises quarterly dividend

$4.25 billion profit at RBC

Royal Bank of Canada raised its quarterly dividend as it reported its second-quarter net income rose to $4.25 billion compared with $4.02 billion in the same quarter last year.

The bank said Thursday it will now pay a quarterly dividend of $1.28 per share, up from $1.20 per share.

RBC said its profit amounted to $2.96 per diluted share for the quarter ended April 30, up from a profit of $2.76 per diluted share in the same quarter last year.

Revenue for the quarter totalled $11.22 billion, down from $11.62 billion a year ago, while the bank reversed $342 million of its provisions for credit losses in its most recent quarter compared a reversal of $96 million in the same quarter last year.

On an adjusted basis, RBC said it earned $2.99 per diluted share, up from an adjusted profit of $2.79 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $2.67 per share, according to estimates compiled by financial markets data firm Refinitiv.

"The resilience of our diversified business model, prudent risk and capital management, and strategic investments in talent and technology continued to define our performance in the second quarter," RBC chief executive Dave McKay said in a statement.

"We remain well-positioned for future growth, and to deliver differentiated long-term value for our clients, employees and shareholders."

The results came as RBC said its personal and commercial banking business earned $2.23 billion, up from a profit of $1.91 billion in the same quarter last year, helped by lower provisions for credit losses, while its Canadian banking business also benefited from higher net interest income.

The bank's wealth management business earned $750 million, up from a profit of $683 million a year ago, while its insurance arm earned $206 million, up from a profit of $187 million in the same quarter last year.

RBC said its capital markets business earned $795 million, down from a profit of $1.07 billion a year ago, mainly due to lower global markets revenue largely resulting from lower fixed income and equity trading revenue primarily in the U.S.

The bank's investor and treasury services arm earned $121 million compared with a profit of $120 million a year ago.



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