TORONTO — Royal Bank of Canada raised its dividend as it reported its second-quarter profit fell compared with a year ago and the amount of money it set aside for bad loans rose.
The bank says it will now pay a quarterly dividend of $1.35 per share, up from $1.32 per share.
The increased payment to shareholders came as RBC says it earned $3.65 billion or $2.58 per diluted share for the quarter ended April 30, down from $4.25 billion or $2.96 per diluted share in the same quarter last year.
Revenue totalled $13.52 billion, up from $11.22 billion in its second quarter last year, while its provisions for credit losses amounted to $600 million compared with a recovery of $342 million a year earlier.
On an adjusted basis, RBC says it earned $2.65 per diluted share in its latest quarter, down from an adjusted profit of $2.99 per diluted share in the same quarter last year.
The average analyst estimate had been for an adjusted profit of $2.79 per share, according to estimates compiled by financial markets data firm Refinitiv.
"Our focused growth strategy, prudent risk and capital management, and diversified business mix exemplify our strength and stability amidst a complex macro environment," RBC chief executive Dave McKay said in a statement.
"As we continue to realize the benefits of our strategic investments in technology and our incredible talent, we are confident in our ability to slow expense growth and drive greater efficiencies while supporting our clients' needs."
RBC said its personal and commercial banking business earned $1.92 billion, down from $2.23 billion a year ago, mainly due to higher provisions for bad loans in the quarter.
Meanwhile, RBC's wealth management business earned $742 million, down from $809 million in the same quarter last year.
RBC's insurance operations earned $139 million, down from $206 million in the second quarter last year, while the bank's capital markets arm earned $939 million in its latest quarter, up from $857 million a year ago.
This report by The Canadian Press was first published May 25, 2023.
Companies in this story: (TSX:RY)
The Canadian Press
