RBC reports Q2 profit up, raises dividend, plans to buy back up to 30 million shares

Royal Bank of Canada raised its dividend as it reported its second-quarter profit rose compared with a year ago, helped by record earnings in its capital markets business. Royal Bank of Canada signage is shown in the financial district in Toronto on Tuesday, Sept. 20, 2022. THE CANADIAN PRESS/Alex Lupul

Republished May 30, 2024 - 5:13 AM

Original Publication Date May 30, 2024 - 4:16 AM

TORONTO - Royal Bank of Canada raised its dividend as it reported its second-quarter profit rose compared with a year ago, helped by record earnings in its capital markets business.

The bank said Thursday it will now pay a quarterly dividend of $1.42 per share, an increase of four cents. It also said it plans to buy back up to 30 million of its shares.

The moves came as RBC said it earned $3.95 billion or $2.74 per diluted share for the quarter ended April 30, up from $3.68 billion or $2.60 per diluted share a year earlier.

Revenue totalled $14.15 billion, up from $12.45 billion in the same quarter last year. while the bank's provision for credit losses amounted to $920 million for the quarter, up from $600 million a year ago.

On an adjusted basis, RBC said it earned $2.92 per diluted share, up from an adjusted profit of $2.68 per diluted share a year earlier.

Analysts on average had expected a profit of $2.75 per share, according to LSEG Data & Analytics.

During the quarter, RBC completed its acquisition of HSBC Bank Canada.

"This historic acquisition, along with our solid results driven by our strong balance sheet, expense control and volume growth across our premium franchises, shows that RBC has the right strategy in place to continue building the bank of the future and our position as a global competitor," RBC chief executive Dave McKay said in a statement.

RBC said its personal and commercial banking business earned $2.05 billion, up from $1.92 billion in the same quarter last year, while its wealth management business earned $769 million, up from $719 million a year ago.

The bank's insurance business earned $177 million in the second quarter, up from $170 million in the same quarter last year.

RBC's capital markets business earned $1.26 billion, up from $962 million a year ago, helped by higher merger and acquisition activity, loan syndications, as well as equity and debt origination.

The bank's corporate support segment reported a loss of $309 million for its latest quarter compared with a loss of $86 million a year ago.

This report by The Canadian Press was first published May 30, 2024.

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