TORONTO  - Royal Bank of Canada (RY.TO) on Wednesday reported an increase in third-quarter earnings, helped by gains in its core Canadian banking unit and double digit earnings growth at its wealth management business, which offset a weaker showing in capital markets.

The bank also increased its quarterly dividend five per cent to $0.91 per share. 

Canada's biggest lender reported net income, excluding one-off items, of $2.8 billion for the quarter to June 30, up 5 per cent on the year before.

Earnings per share, excluding one-off items, were $1.89.

Analysts had on average anticipated earnings of $1.87 per share, according to Thomson Reuters I/B/E/S data.

“Although we and the Street had been expecting a drop in RY’s earnings after a strong second quarter, RY managed to exceed expectations on the back of impressive performances in its retail bank and wealth management platforms,” wrote Barclays Capital Aiken John Aiken in a report to clients. “This solid performance, in conjunction with the better than forecast increase in its dividend will likely be well rewarded by investors today.”

Canadian personal and commercial banking was the primary profit driver in the quarter, as net income rose six per cent to $1.4 billion. RBC noted that it benefited from higher fees and lower loan losses.

"We are driving sustainable growth by further investing in our people, digital capabilities, and key markets, while leveraging our strengths in data and technology to exceed our clients' expectations," said CEO Dave McKay in a press release.