Royal Bank of Canada bumps up dividend as income increases

Hayley Kirton
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Investors were not that pleased with the deal, however, as shares dropped (Source: Getty)

Royal Bank of Canada (RBC) has today announced a boost to its income, along with a slightly sweeter dividend for its third quarter of its financial year.

RBC revealed net income of CA$2.9bn (£1.7bn) for the three months to the end of July, an increase of 17 per cent on CA$2.5bn the year before.

Meanwhile, diluted earnings per share were reported as CA$1.88, beating out a Thomson Reuters' consensus of CA$1.70 and increasing by CA$0.22 from CA$1.66 the year before.

Canada's largest bank also boosted its quarterly dividend by two per cent to CA$0.83 per share.

However, despite the increased payout, shares still dropped on the New York Stock Exchange and are currently trading down 0.4 per cent at $63.35.

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The company's wealth management, capital markets and personal and commercial banking divisions helped to drive up the numbers, although earnings were not quite as strong from RBC's insurance and investor and treasury services offerings.

Dave McKay, RBC president and chief executive, credited the bank's "diversified business model and our disciplined risk and efficiency management" for the strong set of figures.

"We remain focused on prudently managing risks and costs while innovating to enhance the client experience and deliver long-term shareholder value," McKay added.