By Robb M. Stewart
Royal Bank of Canada bumped up its dividend 6.5% after logging record net income in the final quarter of its fiscal year with higher earnings across most of its business segments.
The bank, the country's largest by market value and one of the biggest in North America by assets, recorded fourth-quarter net income of 5.43 billion Canadian dollars ($3.89 billion), or C$3.76 a share, up from C$4.22 billion, or C$2.91, a year earlier.
Excluding certain items, adjusted per-share earnings came in at C$3.85 for the three months to Oct. 31, beating the C$3.55 forecast of analysts polled by FactSet.
Total revenue increased 14% to C$17.21 billion from C$15.07 billion last year, and against the C$16.8 billion analysts expected.
The Toronto-based bank's provision for credit losses increased C$167 million year-over-year to C$1.01 billion, and was up $126 million on the prior quarter.
Royal Bank's board declared a quarterly dividend of C$1.64 a share, up C$0.10. The dividend will be payable on or after Feb 24 to shareholders of record at the close of business Jan. 26.
Royal Bank's capital position remains strong, with a common equity Tier 1 ratio of 13.5%, widened from 13.2% the quarter before and a year earlier. Canada's banking regulator requires the big lenders to maintain a capital ratio of at least 11.5% of risk-weighted assets.
The bank said it currently expects to operate between a 12.5% and 13.5% CET1 ratio in the current environment, and will aim to increase capital deployment above a 13.5% ratio through either accelerated share buybacks or investment in internal growth opportunities.
Royal Bank said it now is targeting a return on equity over the medium term of 17%-plus, where it previously was looking to achieve 16%-plus.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
December 03, 2025 07:07 ET (12:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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