RBC hikes dividend, posts profit gain as bank earnings kick off

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RBC hikes dividend, posts profit gain as bank earnings kick off GlobeBusiness

This translation has been automatically generated and has not been verified for accuracy.Royal Bank of Canada reported a 5-per-cent rise in quarterly profit and raised its dividend as strong results from personal and commercial banking as well as wealth management offset a weak quarter in capital markets.

Adjusted to exclude certain items, RBC said it earned $2.26 per share, whereas analysts had expected $2.31 per share, according to data from Refinitiv.RBC increased its quarterly dividend by 3 cents per share, to $1.05. RBC's provisions for credit losses, or the money banks set aside to cover bad loans, amounted to $425-million in the third quarter, up 23 per cent from a year earlier. But that compares with historically low levels a year ago, and RBC's ratio of provisions to overall loans declined slightly from the second quarter.

On Wednesday, RBC also announced that Doug McGregor, the head of its capital markets arm, will retire at the end of January after 37 years at the bank. He has led RBC Capital Markets, the brand name for the investment and corporate banking unit under RBC Dominion Securities Inc., since 2008, and also oversees the bank's investor and treasury services group.

 

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