Royal Bank of Canada reports $4.22-billion Q4 profit, raises quarterly dividend

RBC's $4.22-billion profit

Photo: THE CANADIAN PRESS/Sean Kilpatrick

Royal Bank of Canada raised its dividend as it reported a fourth-quarter profit of $4.22 billion, up from $3.94 billion in the same quarter last year.A Royal Bank of Canada sign and a Canadian flag are pictured in Ottawa on Thursday, June 27, 2024.

Royal Bank of Canada raised its dividend as it reported a fourth-quarter profit of $4.22 billion, up from $3.94 billion in the same quarter last year.

The bank said Wednesday it will now pay a quarterly dividend of $1.48 per share, up from $1.42 per share.

The increased payment to shareholders came as RBC says it earned $2.91 per diluted share for the quarter ended Oct. 31, up from a profit of $2.76 per diluted share in the same quarter last year.

Revenue totalled $15.07 billion, up from $12.69 billion a year ago, while its provision for credit losses amounted to $840 million, up from $720 million in the same quarter last year.

On an adjusted basis, RBC says it earned $3.07 per diluted share in its latest quarter, up from an adjusted profit of $2.65 per diluted share a year earlier.

The average analyst estimate had been for an adjusted profit of $3.01 per share, according to data provided by LSEG Data & Analytics.

"As our results exemplify, our premium franchises delivered diversified revenue growth, underpinned by a strong balance sheet and prudent risk management," RBC chief executive Dave McKay said in a statement.

"One of our year's defining moments was the acquisition of HSBC Bank Canada, which marked a pivotal milestone in our client-driven growth story and strengthened our position as a competitive global financial institution."

RBC said its personal banking business earned $1.58 billion, up from $1.37 billion a year earlier, helped by the inclusion of HSBC Canada results.

Meanwhile, the bank's commercial banking operations earned $774 million, up from $668 million, also helped by the addition of HSBC Canada.

RBC's wealth management business earned $969 million, up from $272 million, while its insurance operations earned $162 million, up from $97 million a year ago.

The bank's capital markets business earned $985 million for the quarter, down from $987 million a year ago.

RBC's corporate segment reported a loss of $247 million primarily due to the after-tax impact of the HSBC Canada transaction and integration costs compared with profit of $549 million for the segment a year ago.