Royal Bank of Canada reports $4.22-billion Q4 profit, raises quarterly dividend
Posted December 4, 2024 6:50 am.
Last Updated December 4, 2024 9:31 am.
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.
