RBC reports Q2 profit down as loan-loss provisions rise, raises quarterly dividend
TORONTO –
Royal Bank of Canada raised its dividend because it reported its second-quarter revenue fell in contrast with a yr in the past and the amount of cash it put aside for unhealthy loans rose.
The financial institution says it would now pay a quarterly dividend of $1.35 per share, up from $1.32 per share.
The elevated cost to shareholders got here 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 identical quarter final yr.
Revenue totalled $13.52 billion, up from $11.22 billion in its second quarter final yr, whereas its provisions for credit score losses amounted to $600 million in contrast with a restoration of $342 million a yr earlier.
On an adjusted foundation, RBC says it earned $2.65 per diluted share in its newest quarter, down from an adjusted revenue of $2.99 per diluted share in the identical quarter final yr.
The common analyst estimate had been for an adjusted revenue of $2.79 per share, based on estimates compiled by monetary markets knowledge agency 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 government Dave McKay mentioned in a press release.
“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 mentioned its private and industrial banking business earned $1.92 billion, down from $2.23 billion a yr in the past, primarily as a consequence of larger provisions for unhealthy loans within the quarter.
Meanwhile, RBC’s wealth administration business earned $742 million, down from $809 million in the identical quarter final yr.
RBC’s insurance coverage operations earned $139 million, down from $206 million within the second quarter final yr, whereas the financial institution’s capital markets arm earned $939 million in its newest quarter, up from $857 million a yr in the past.
This report by The Canadian Press was first revealed May 25, 2023.
