Royal Bank Boosts Dividend, Report $3.5-Billion Profit

Royal Bank of Canada has announced that it is raising its dividend following a first-quarter profit of $3.5 billion.

Canada’s largest retail bank said it will now pay a quarterly dividend of $1.08 per share, up from its previous payment to shareholders of $1.05 per share.

Royal Bank also said in a statement that its latest profit amounted to $2.40 per diluted share for the quarter ended January 31, compared with a profit of nearly $3.2 billion or $2.15 per diluted share in the same quarter a year earlier.

Analysts on average had expected an adjusted profit $2.31 per share, according to financial markets data firm Refinitiv. The better than expected results were driven by record earnings in capital markets as well as strong earnings growth in its personal and commercial banking operations.

Royal Bank said it also saw strong growth in wealth management and insurance during the quarter, which were partially offset by lower results in investor and treasury services.

RBC shares gained $1.32, or 1.2%, to $109.32.