RBC hikes quarterly dividend, reports lower Q4 profit – National | Globalnews.ca

Royal Bank of Canada Its dividend grew as it reported a fourth-quarter profit of $3.88 billion, compared to $3.89 billion in the same quarter last year.

The bank said Wednesday it will now pay a quarterly dividend of $1.32 per share, an increase of four cents.

The higher payout to shareholders came in the form of profit of $2.74 per diluted share for the quarter ended October 31, up from $2.68 per diluted share in last year’s fourth quarter when it had more shares outstanding.

Total revenue was $12.57 billion, up from $12.38 billion a year earlier.

RBC chief executive Dave McKay said in a statement: “While market conditions remain difficult, our 2022 results reflect a resilient bank that is well-positioned to pursue strategic growth and deliver long-term shareholder value I’m in.”

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RBC inks deal to buy HSBC Canada for $13.5B

Provisions for loan losses were $381 million in RBC’s latest quarter, compared with $227 million recovered in its fourth quarter last year.

On an adjusted basis, RBC says it earned $2.78 per diluted share in its latest quarter, compared to an adjusted profit of $2.71 per diluted share a year ago.

Analysts on average had expected a profit of $2.68 per share, according to estimates compiled by financial market data firm Refinitiv.

RBC on Tuesday announced a deal to buy HSBC Bank Canada, the country’s seventh-largest bank by assets, for $13.5 billion in cash.

The acquisition, which would see RBC absorb HSBC Canada’s 800,000 customers, 4,200 employees, 130 branches and $130 billion in assets, requires approval from the Office of the Superintendent of Financial Institutions, the Competition Bureau and the Ministry of Finance.

Reporting its fourth-quarter results on Wednesday, RBC said its personal and commercial banking operations earned $2.14 billion, up from $2.03 billion in the same quarter last year.


Click to play video: 'BIV: Royal Bank buys HSBC Canada for $13.5 billion'


BIV: Royal Bank buys HSBC Canada for $13.5 billion


The bank’s wealth management arm earned $822 million, up from $558 million a year earlier, and its insurance business earned $268 million, up from $267 million in the same quarter last year.

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RBC’s Investor and Treasury Services group earned $110 million, up from $109 million in the previous year’s fourth quarter, while the bank’s capital markets business earned $617 million, down from $920 million a year ago.

For its full fiscal year, RBC said it reported a profit of $16.05 billion, or $11.06 per diluted share, on $48.99 billion in revenue, compared to a profit of $15.81 billion, or $11.06 per diluted share, on $49.69 billion in revenue in the same period last year. Diluted shares earned.

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