Royal Bank today reported a 20% increase in first-quarter earnings.
Canada’s largest bank said made a record profit of $1.17 billion, or $1.78 per diluted share, in the first three months of its fiscal year. In the same period last year, the bank made $979 million, or $1.50 per diluted share).
Revenue from continuing operations came in at $4.98 billion, up from $4.77 billion year over year.
Royal Bank also announced an increase to its quarterly common share dividend of 8¢ per share to 72¢.
The bank also said it is giving shareholders a stock dividend, which would effectively amount to a 2-for-1 stock split.
“We are pleased with the strong earnings growth and return on equity of 23.9% in the first quarter,” said Gordon Nixon, Royal’s president and CEO, in a news release.
“The performance of our RBC Canadian personal and business segment was exceptional, with revenue up substantially and well in excess of expense growth.
Nixon said the company’s Canadian personal and business banking division produced revenue growth of 10%, reaching a record $3.3 billion.
Earnings at Royal’s U.S. and international personal and business segment’s continuing operations increased 3% and revenue rose 5% over a year ago.
Total provision for credit losses from continuing operations decreased $61 million, or 56%, from a year ago.
RBC Capital Markets had record earnings this quarter of $330 million, up 25% from a year ago.