TORONTO - Royal Bank of Canada (TSX:RY) earned $2.09 billion in its latest quarter as it recorded growth across most of its business, the bank said Wednesday as it announced a six per cent increase to its dividend.
RBC's quarterly dividend will rise to 71 cents per share from 67 cents starting with the May 23 payment, the bank announced ahead of its annual shareholders meeting in Toronto.
Its net income amounted to $1.38 per diluted share on $8.45 billion in revenue for the quarter ended Jan. 31, compared with a profit of $2.05 billion or $1.34 per share on $7.86 billion in revenue a year ago.
The results included a loss of $60 million related to the sale of RBC Jamaica and $40 million in restructuring charges for the bank's Caribbean operation.
Excluding the one-time charges, RBC said it earned $2.18 billion or $1.44 per share compared with $2.05 billion or $1.34 per share a year ago.
Royal Bank chief executive Gordon Nixon, who has announced plans to retire in August, said RBC remains committed to the Caribbean, but was consolidating branches, cutting jobs and streamlining its head office structure to help improve the business.
"We have been navigating through challenging economic and market conditions in the region over the last couple of years," Nixon told a conference call with financial analysts before the shareholders meeting.
"We've been focusing on managing the business to drive better performance and recently completed a comprehensive review of our operations across the Caribbean to find ways to operate more efficiently."
Nixon's designated successor, Dave McKay, has been group head of RBC personal and commercial banking, which generated more than half of the company's overall profit during the first quarter.
RBC said its personal and commercial banking operations saw its profits slip $33 million compared with last year to $1.071 billion. However, excluding the Caribbean banking charges, the group increased its profit $59 million or five per cent from a year ago.
The Canadian banking operations earned $1.14 billion, up four per cent from a year ago, helped by the Ally Canada acquisition, partially offset by higher provision for credit losses,
Its other major divisions were generally more profitable than last year, with the exception RBC Insurance, which had $157 million of net income, down four per cent from a year earlier.
RBC said the insurance division was affected by higher disability and weather-related claims.
Net income from wealth management was $235 million, up $6 million or three per cent from a year before, net income from investor and treasury services was $106 million, up $27 million or 34 per cent, while net income at RBC Capital Markets was $505 million, up 43 million or nine per cent from a year earlier.
Royal said the improvement at its capital markets division was the result of several factors, including lower provisions for credit losses, a lower tax rate and the impact of foreign exchange fluctuations.
