Royal Bank of Canada (RY.TO) on Friday reported quarterly net income of more than $3 billion for the first time, beating market estimates, while benefiting from a strong performance at all its businesses.

Canada's biggest bank said net income for the first quarter to Jan. 31 rose by 24 per cent to $3.03 billion.

Earnings per share increased to $1.97 from $1.58 a year earlier. After adjusting for one-time items, RBC earned $1.87 per share, exceeding analysts' forecasts of $1.77, according to Thomson Reuters I/B/E/S.

Net income at the bank's personal & commercial business rose by 23 per cent to $1.59 billion. The capital markets division reported a 16 per cent increase to $662 million. The bank also benefited from improved credit conditions as loan loss provisions fell 18 per cent sequentially to $294 million.

RBC also cheered investors with a five per cent increase in its quarterly dividend, to 87 cents per share.

"With the size of the beat as well as a better-than-anticipated dividend increase, coupled with a lack of an acquisition overhang, we would expect to see a greater lift in Royal Bank's relative valuation today," said Barclays analyst John Aiken.

Smaller rival Canadian Imperial Bank of Commerce (CM.TO) reported higher-than-expected earnings on Thursday, but uncertainty over a planned U.S. acquisition overshadowed its performance.

Shares of in RBC, which has a substantial business in the United States, have risen by nearly 20 per cent since Donald Trump's election as U.S. president in November. The stock has benefited from expectations the new administration will introduce softer banking regulations and a lower corporate tax rate and that pro-growth policies will lead to higher interest rates.

At current share prices, RBC is North America's fifth most-valued bank, with a market capitalization of $147 billion.

- with files from Reuters