Royal Bank (TSX:RY)(NYSE:RY) is the largest financial institution in Canada. Shares have climbed 14.5% in 2019 as of close on May 7. The stock is up 9.4% from the prior year.
Royal Bank is set to release its second-quarter results for fiscal 2019 before markets open on May 23. The Canadian economy shrank in the month of February, and the Bank of Canada continues to warn about anemic growth for the full year. Conditions have dramatically improved in the stock market, but broader headwinds are a concern for Canada’s top banks.
In the first quarter, Royal Bank reported a 5% year-over-year increase in net income to $3.2 billion. Royal Bank reported strong growth in its Personal and Commercial Banking and Insurance segments, but market turbulence led to a flat performance in its Wealth Management segment.
Capital Markets and Investors & Treasury Services experienced a year-over-year drop in net income. Improved market conditions should provide a boost to the latter categories in Q2 2019.
Royal Bank last announced a dividend increase of $0.04 or 4% to $1.02 per share in Q1. This represents a 3.8% yield.
Shares are currently trading at the high-end of its 52-week range. The stock had an RSI of 57 as of close on May 7, which puts it outside of technically overbought territory. Its forward P/E just shy of 12 makes it a little pricier than its peers ahead of its second-quarter earnings release.
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