RBC raises quarterly dividend by 11% regardless of fall in This autumn revenue – Nationwide


Royal Financial institution of Canada raised its dividend because it reported a fourth-quarter revenue of $3.9 billion, up from $3.2 billion in the identical quarter final yr.

The financial institution mentioned Wednesday that it could now pay a quarterly dividend of $1.20 per share, up from $1.08 per share. It additionally says it plans to purchase again 45 million of its shares.

The transfer follows a choice final month by the Workplace of the Superintendent of Monetary Establishments to elevate restrictions imposed in the beginning of the pandemic, which prevented federally regulated banks and insurers from elevating dividends, shopping for again shares and rising government compensation. .

RBC says its revenue for the quarter ended October 31 was $2.68 per diluted share, up from $2.23 per diluted share a yr in the past. Complete income stood at $12.4 billion, up from $11.1 billion in the identical quarter final yr.

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“Throughout all of our companies, we noticed excessive progress in buyer exercise and our groups got here up with completely different concepts and choices to satisfy the wants of our clients and create long-term worth,” mentioned RBC Chief Government Dave McKay in an announcement. responded.”

“In consequence, our total efficiency in 2021 mirrored sturdy earnings, premium shareholder efficiency, and highlighted our capacity to efficiently navigate a posh working setting whereas persevering with to put money into expertise and innovation to help future progress. “

On an adjusted foundation, RBC mentioned its adjusted revenue was $2.71 per diluted share, up from $2.27 per diluted share in the identical quarter a yr in the past.


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Analysts had anticipated a median adjusted revenue of $2.81 per share, based on estimates compiled by monetary market information agency Refinitiv.

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The end result was that RBC reversed its provisions for credit score losses within the quarter by $277 million, in comparison with $427 million put aside for dangerous debt in the identical quarter final yr.

For its fourth quarter, RBC mentioned its private and industrial banking enterprise generated $2 billion, up from $1.5 billion in the identical quarter a yr in the past, whereas its wealth administration enterprise grew from $546 million in the identical quarter final yr. Earned $558 million.

RBC’s insurance coverage enterprise earned $267 million in its fourth quarter, up from $254 million a yr earlier, whereas its capital markets enterprise earned $920 million, up from $840 million. Investor and Treasury Companies earned $109 million, up from a revenue of $91 million a yr earlier.

For its full yr, RBC mentioned it earned $16.1 billion or $11.06 per diluted share on $49.7 billion in income, up from $11.4 billion or $7.82 per diluted share on $47.2 billion in income in the identical interval a yr in the past. from the advantages of.

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