Royal Bank of Canada raised its dividend as it reported a fourth-quarter profit of $3.88 billion compared with $3.89 billion in the same quarter last year.
The bank said Wednesday it will now pay a quarterly dividend of $1.32 per share, an increase of four cents.
The higher payment to shareholders came as RBC’s profit amounted to $2.74 per diluted share for the quarter ended Oct. 31, up from $2.68 per diluted share in its fourth quarter last year when it had more shares outstanding.
Revenue totalled $12.57 billion, up from $12.38 billion a year earlier.
“While market conditions continue to be tough, our 2022 results reflect a resilient bank that is well-positioned to pursue strategic growth and deliver long-term shareholder value,” RBC chief executive Dave McKay said in a statement.
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Provisions for credit losses amounted to $381 million in RBC’s latest quarter compared with a recovery of $227 million in its fourth quarter last year.
On an adjusted basis, RBC says it earned $2.78 per diluted share in its latest quarter compared with an adjusted profit of $2.71 per diluted share a year earlier.
Analysts on average had expected a profit of $2.68 per share, according to estimates compiled by financial markets data firm Refinitiv.
RBC announced a deal Tuesday to buy HSBC Bank Canada, the seventh largest bank in the country by assets, for $13.5 billion in cash.
The takeover, which would see RBC absorb HSBC Canada’s 800,000 clients, 4,200 employees, 130 branches and $130 billion in assets, requires approval from the Office of the Superintendent of Financial Institutions, the Competition Bureau, and the Ministry of Finance.
In reporting its fourth-quarter results on Wednesday, RBC said its personal and commercial banking operations earned $2.14 billion, up from $2.03 billion in the same quarter last year.
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The bank’s wealth management arm earned $822 million, up from $558 million a year ago and its insurance business earned $268 million, up from $267 million in the same quarter last year.
RBC’s investor and treasury services group earned $110 million, up from $109 million in the fourth quarter last year, while the bank’s capital markets business earned $617 million down from $920 million a year earlier.
For its full financial year, RBC said it earned $15.81 billion or $11.06 per diluted share on $48.99 billion in revenue compared with a profit of $16.05 billion or $11.06 per diluted share on $49.69 billion in revenue in the same period last year.
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