RBC reports $4.13B Q4 profit, up from $3.88B a year ago, and raises dividend

Profits climb at RBC

Royal Bank of Canada reported a fourth-quarter profit of $4.13 billion, up from $3.88 billion a year earlier, and raised its dividend.

The bank said Thursday it will now pay a quarterly dividend of $1.38 per share, up three cents from $1.35.

The increased payment to shareholders came as RBC reported its profit amounted to $2.90 per diluted share for the quarter ended Oct. 31, up from $2.74 per diluted share a year earlier.

Revenue totalled $13.03 billion in the bank's most recent quarter, up from $12.57 billion in the same quarter last year, while the bank's provision for credit losses jumped to $720 million, up from $381 million a year earlier.

On an adjusted basis, RBC earned $2.78 per diluted share in its latest quarter, unchanged from the same quarter last year.

Analysts on average had expected an adjusted profit of $2.62 per share, according to estimates compiled by financial markets data firm Refinitiv.

"Our strong balance sheet, prudent risk management and diversified business model continue to underpin our ability to deliver differentiated client experiences and advice across all our businesses," RBC chief executive Dave McKay said in a statement.

RBC said its personal and commercial banking business earned $2.09 billion in its latest quarter, down from $2.14 billion a year earlier, as it faced higher provisions for credit losses, severance costs and a higher effective tax rate.

The bank's wealth management earned $215 million, down from $822 million a year earlier, while its insurance business earned $289 million, up from $268 million in the same quarter last year.

RBC's capital markets business earned $987 million, up from $727 million a year ago.

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