Royal Bank of Canada EPS Beats Estimate, Raises Dividend 7% and Plans 45M Share Buyback
RY•Royal Bank of Canada posted adjusted EPS of C$3.90 in Q2, beating the C$3.79 estimate as net income rose 25% to C$5.5 billion and ROE hit 17.2%. Provisions for credit losses dropped 36% to C$912 million; the bank raised its dividend 7% to C$1.76, authorizing a 45 million share repurchase.
1. Quarterly Performance
Royal Bank of Canada reported adjusted earnings per share of C$3.90 for the quarter ended April 30, surpassing the C$3.79 consensus. Net income climbed 25% year over year to C$5.5 billion while return on equity reached 17.2%, exceeding the bank’s internal target.
2. Credit Loss Provisions
Provisions for credit losses fell 36% from the prior year to C$912 million, reflecting improved underwriting metrics and fewer souring loans, which contributed significantly to the earnings beat.
3. Dividend Hike and Share Repurchase
The board approved a 7% increase to the quarterly dividend, raising it to C$1.76 per share, and authorized a repurchase of up to 45 million common shares to bolster shareholder returns.
