The dividend on its common shares remains unchanged at 52 cents a share.
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For the current quarter, Wall Street brokerages are anticipating earnings of $1.29 per share for the quarter ending on 2015-07-31.
Royal Bank of Canada will be raising its dividend to shareholders following a third-quarter profit of $2.475 billion that included record-high earnings from its Canadian banking arm.
However, the bank said it is beginning to be affected by the decline in the price of crude oil, which is now worth less than half what it was in the summer of 2014 and recently traded at the lowest levels in years.
“People have underestimated the resiliency of their earnings”, said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier Inc.in Toronto, which oversees about $5 billion.
Personal and commercial banking, Royal Bank’s largest division, rose 13 percent to C$1.28 billion, fueled by record Canadian banking results. TD Securities upped their price objective on shares of Royal Bank of Canada from C$88.00 to C$90.00 and gave the stock a “buy” rating in a report on Friday, May 29th. The lender set aside $270 million for bad loans, a decrease of 4.6 per cent.
Insurance net income declined 19 percent to C$173 million from last year, and capital markets decreased 15 percent to C$545 million from the year-ago quarter. Underwriting and advisory fees slid 3.8 per cent to $531 million, while trading revenue across the bank fell 21 per cent to $679 million, pulled down by bonds and equities trading. Excluding items, net income to shareholders was C$427 million, and earnings per share was C$1.25, for the quarter. Bank of Montreal (TSX:BMO) also beat analyst estimates as its net income rose six per cent from previous year to $1.19 billion.
About half of RBC’s total profit was from personal and commercial banking, including $1.239 billion from its Canadian operations – a record for Royal.
“What gives me confidence during this period of market and economic uncertainty is that RBC is diversified across different businesses, client segments and geographies, has strict risk and cost discipline, and is backed by a strong capital position”, David McKay told analysts during a conference call Wednesday, after the bank announced its third-quarter results. The soured loans were tied to a couple of oil-and-gas accounts in its capital-markets unit and one account in U.S. and worldwide wealth management, the bank said.
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In other Royal Bank of Canada news, insider Alex Douglas Mcgregor sold 12,761 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The Montreal-based lender posted third- quarter profit of $453 million, up from $441 million a year earlier.
