Royal Bank Fourth Quarter Profit Increases 20%, Dividend Increased

RRoyal Bank of Canada (RY), Canada’s second-largest bank in terms of assets, posted higher earnings in the fourth quarter as retail banking boosted results.

The bank increased its quarterly dividend by 11%. (See the top analyst stocks on TipRanks)

Income and income

Revenue totaled C $ 12.38 billion in the third quarter, compared to C $ 11.09 billion in the previous year quarter. Analysts expected sales of C $ 11.98 billion.

Net income was C $ 3.89 billion (C $ 2.68 per diluted share) in the fourth quarter of 2021, up 19.7% from net income of C $ 3.25 billion. Canadian dollars (C $ 2.23 per diluted share) in the fourth quarter of 2020. On an adjusted basis, the Canadian bank earned C $ 2.71 per share, compared to C $ 2.27 per share a year earlier. Analysts expected RBC to report adjusted EPS of C $ 2.82 in the quarter ended Oct. 31.

Personal and Commercial Banking earnings were C $ 2.03 billion in the quarter, up 35% from a year ago. Wealth Management earnings increased 2% to C $ 558 million, while Capital Markets earnings increased 10% to C $ 920 million.

Management commentary

Royal Bank of Canada President and CEO Dave McKay said: “In a year marked by the continuing effects of the pandemic, RBC employees around the world have demonstrated a incredible resilience and a commitment to helping our clients thrive and communities thrive. Across our business, we have experienced high growth in client activity and our teams have responded with differentiated ideas and offerings to meet our clients’ needs and create long-term value. As a result, our overall performance in 2021 reflects strong earnings, blue chip shareholder performance and underscored our ability to successfully navigate a complex operating environment while continuing to invest in talent and innovation to support the business. future growth.

“We are delighted to increase our quarterly dividend by 11% and today announced our intention to repurchase up to 45 million common shares, in line with our commitment to generate long-term value for our shareholders. ”

The Taking of Wall Street

Following the results, Canaccord Genuity analyst Scott Chan maintained a buy rating on RY and set a price target of C $ 143. This implies an upside potential of 13.2%.

The rest of the street is cautiously bullish on RY with a moderate buy consensus rating based on two buys and two takes. The Royal Bank of Canada’s average price target of C $ 145.75 implies upside potential of 15.3% from current levels.

TipRanks smart score

RY scores 8 out of 10 on TipRanks’ Smart Score rating system, indicating that stock returns are likely to outperform the broader market.

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