Topic: How To Invest

The Successful Investor Hotline – Friday, February 24, 2017

Article Excerpt

ROYAL BANK OF CANADA, $96.91, Toronto symbol RY, continues to benefit from strong demand for consumer and business loans as well as higher security-trading volumes. Improved earnings at the bank’s wealth management business have also helped to boost profit—and Royal’s dividend. In the quarter ended January 31, 2017, the bank earned $2.8 billion. That’s up 15.0% from $2.4 billion a year earlier. Per-share earnings gained 15.8%, to $1.83 from $1.58, on fewer shares outstanding. Those results exclude unusual items, including Royal’s gain on the recent sale of a subsidiary. On that basis, the latest results beat the consensus estimate of $1.76 a share. In the quarter, earnings from retail banking (which supplied 49% of the total) rose 7.0%. Lower loan-loss provisions and higher fee-based income also lifted earnings. Profit from securities trading (23% of total earnings) gained 16.1% on higher trading volumes. The bank’s wealth management business (15%) reported 41.9% higher earnings. That’s largely due to last year’s purchase of U.S.-based City National for $5.5…