Royal Bank of Canada’s Earnings Top Estimates; Hikes Dividend

 RY  Royal Bank of Canada (NYSE: RY – $53.28) the country’s largest bank by assets, reported fiscal third-quarter results that beat expectations and raised its quarterly dividend by 3%. Toronto-based RBC said it had a net profit of C$2.48 billion, and an adjusted earnings per share of C$1.6, in the quarter ended July 31, up from C$2.38 billion, or C$1.59 a share, a year earlier. The results topped Street estimates by two cents. RBC was the second big Canadian bank to report quarterly results this week, and like smaller rival Bank of Montreal, which also reported higher earnings, it performed well in a slowing Canadian economy battered by the collapse in prices for oil, Canada’s top export and a key driver of domestic growth in recent years. Personal and commercial banking, the bank’s mainstay division, achieved record earnings of C$1.28 billion in the third quarter, up 13% from the same period last year. That helped offset a decline in its capital-markets business where results fell 15%, largely due to weaker trading results and lower equity origination activity. Wealth-management earnings held steady at C$285 million. RBC also said that it raised its quarterly dividend by two Canadian cents, to C$0.79 a share. Long-term capital appreciation potential is worthwhile for shares of RY. Also, it offers an attractive level of current dividend income (which is well covered by profits and currently yields 4.4%), and future, steady increases in the payout are probable.

RY

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: