RBC Raises Quarterly Dividend, 4th Quarter Earnings Decline – National

Royal Bank of Canada increased its dividend as it reported fourth-quarter profit of $3.88 billion, compared with $3.89 billion in the same period last year.

The bank said Wednesday it will pay a quarterly dividend of $1.32 per share, up 4 cents.

The higher payouts to shareholders came as RBC’s earnings reached $2.74 per diluted share for the quarter ended October 31, compared to last year’s strong fourth quarter of diluted shares. up from $2.68 per share after conversion.

Revenue increased to $12.57 billion from $12.38 billion a year ago.

“Despite continued challenging market conditions, our 2022 results are well positioned to pursue strategic growth and deliver long-term shareholder value,” RBC CEO Dave Mackay said in a statement. It reflects a resilient bank.

Loan loss reserves were $381 million in RBC’s most recent quarter, compared with a recovery of $227 million in the fourth quarter of last year.

On an adjusted basis, RBC said it earned $2.78 per diluted share in its most recent quarter, compared with adjusted earnings of $2.71 per diluted share a year ago.

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Analysts expected earnings of $2.68 per share on average, according to estimates compiled by financial market data firm Refinitiv.

RBC announced Tuesday a deal to acquire HSBC Bank Canada, the nation’s seventh-largest bank by assets, for $13.5 billion in cash.

The acquisition, in which RBC will absorb HSBC Canada’s 800,000 customers, 4,200 employees, 130 branches and $130 billion in assets, is subject to approval from the Financial Institutions Regulatory Authority, the Competition Authority and the Ministry of Finance.

In reporting fourth-quarter results on Wednesday, RBC said its personal and commercial banking business earned $2.14 billion, up from $2.03 billion in the same period last year.

The bank’s wealth management division earned $822 million, up from $558 million a year ago, and its insurance business earned $268 million, up from $267 million a year ago.

RBC’s Investor and Treasury Services Group earnings increased to $110 million from $109 million in the fourth quarter last year. Meanwhile, bank capital markets earnings decreased $617 million from $920 million a year ago.

For the full year, RBC said it earned $15.81 billion, or $11.06 per diluted share, on earnings of $48.99 billion, compared with earnings of $49.69 billion, or $16.05 billion, or $16.05 billion per diluted share, in the same period last year. It was $11.06 per.

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