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RBC raises dividend as profit grows

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Royal Bank of Canada (RY-T) reported an 13 percent increase in quarterly profit on Friday, benefiting from solid growth within Canada and strong results from its wealth management and insurance businesses.

Net income in the second quarter ended April 30 rose to $1.51 billion, or $1 a share, from $1.33 billion, or 88 cents, a year earlier. Toronto-based RBC, the country's largest bank, also raised its quarterly dividend by 8 percent to 54 cents a share.

Excluding certain amortization costs, cash earnings were $1.03 a share. Analysts on average had forecast earnings of $1.12 a share, according to Thomson Reuters.

While RBC's Canadian personal and commercial banking unit continued to underpin growth, the bank's international banking and capital market's segments weighed on results. The international banking segment posted a $23 million loss in the quarter and profits in the capital markets segment fell almost 20 percent to $407 million, due to weaker fixed income trading results and higher costs.

RBC and its Canadian counterparts, which reported results earlier this week, have all seen profits benefit from smaller provisions for bad loans. The bank said its provisions for soured loans declined more than 30 percent from a year ago to $344 million, reflecting lower write-offs in its Canadian credit card portfolio and an improving credit quality within its U.S. and Caribbean wholesale portfolios.

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