Aug. 29 (Bloomberg) -- Royal Bank of Canada, the country’s largest lender by assets, said third-quarter profit rose 2.9 percent to a record on gains in its wealth-management business. Royal Bank raised its dividend 6.3 percent to 67 cents.
Net income for the period ended July 31 rose to C$2.3 billion ($2.19 billion), or C$1.52 a share, from C$2.24 billion, or C$1.47, a year earlier, the Toronto-based bank said today in a statement.
Royal Bank benefited from 51 percent increase in profit from its wealth-management unit as fund sales and improving stock markets lifted fee-based client assets. The lender also added contributions from its RBC Investor Services custodian business after buying out partner Banque Internationale a Luxembourg SA in July 2012.
Profit excluding some items was C$1.48 a share, the bank said, beating the C$1.38 average estimate of 13 analysts surveyed by Bloomberg.
Royal Bank is the fifth of Canada’s six biggest banks to report quarterly results. Earlier today, Canadian Imperial Bank of Commerce said profit rose 5.8 percent to C$890 million, or C$2.16 a share, beating analysts’ estimates.
CIBC’s earnings were aided by a 34 percent gain in its wealth-management unit, as well as increases in investment banking and record profit in Canadian consumer lending. CIBC said in a separate statement that it plans to buy back as many as 8 million shares, or 2 percent of its stock.
(Royal Bank will hold a conference call to discuss quarterly results at 7:30 a.m. Toronto time at +1-416-695-7806 or 1-888-789-9572, passcode 2674741 or at www.rbc.com/investorrelations/ir_events_presentations.html.)
To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.org