Royal Bank of Canada is reporting a higher profit for the first quarter ended January 31.

Canada’s largest bank by assets said net profit was $793 million, or $1.19 a share, up from $767 million, or $1.10 a share, in the year-earlier period, based on U.S. generally accepted accounting principles.

Under Canadian generally accepted accounting principles, the bank’s Q1 net income was $790 million, up by $11 million from a year ago. On a per-share basis, Canadian GAAP earnings were $1.18, up by 6¢.

First-quarter earnings benefited from a $97 million after-tax reversal of credit loss provisions. However, there was a $74 million earnings hit from the bank’s settlement of its dispute with Rabobank of the Netherlands over a US$517 million Enron-related swap transaction.

Revenues were down by $140 million or 3% from a year earlier, to just under $4.2 billion from $4.34 billion, as the rise of the Canadian dollar against the U.S. dollar knocked down the bank’s top line by $240 million.

Return on equity increased to 18.1% in the three months ended Jan. 31, up from 16.9% a year earlier.

The bank said narrower interest margins due to low interest rates more than offset higher consumer loan volumes and higher capital market revenues.

Stated CEO Gordon Nixon: “We benefited this quarter from improved credit quality and our business diversification which resulted in higher brokerage, underwriting and mutual fund revenues as equity markets strengthened.”

The bank also raised its quarterly dividend by 6¢ per share to 52¢.