Canada’s largest bank by assets, Royal Bank of Canada (NYSE: RY – US$63.48) reported income for the second quarter, excluding special items, grew to C$2.4 billion, or C$1.61 per share, from C$2.2 billion, or C$1.47 per share, in the similar period last year. Overall earnings were boosted by record profit from the lender’s investor and treasury services and by notable increases in income from the personal and commercial banking and capital markets segments. The average analyst estimate for adjusted diluted earnings per share was for C$1.59. Investor and treasury services net income rose 42% year-over-year to C$159 million, primarily due to strong growth in foreign exchange businesses, higher funding and liquidity results, and higher earnings on growth in client deposits. Profit from the personal and commercial banking and capital markets units improved 8% and 23%, respectively. The bank will be paying a quarterly dividend of $0.77 per common share on and after August 24, to shareholders of record at the close of business on July 27, and yield investors about 3% at current levels. The shares of Canadian banks have struggled in recent months because of investor concerns that the banks might face the brunt of the oil price slump, a sluggish domestic economy and a potential housing market correction. And while the retail banking segment and possible increases in loan loss reserves remain headwinds for RBC, the investment banking and wealth management businesses are picking up the slack. Shares are worth holding for recovery in a well-diversified income portfolio.