Topic: How To Invest

The Successful Investor Hotline – Friday, August 25, 2017

Article Excerpt

ROYAL BANK OF CANADA, $93.25, Toronto symbol RY, reported lower-than-expected earnings this week. Lower results for its trading operations offset strong gains for its retail banking and wealth management businesses. The bank also raised its dividend. In its fiscal 2017 third quarter ended July 31, 2017, Royal’s overall earnings fell 3.4%, to $2.8 billion from $2.9 billion a year earlier. Due to fewer shares outstanding, earnings per share declined at a slower pace of 1.6%, to $1.85 from $1.88. If you disregard a gain on the sale of an insurance business in the year-earlier quarter, earnings per share in the latest quarter improved 7.6%. Even so, that missed the consensus estimate of $1.87 a share. Revenue fell 2.6%, to $10.0 billion from $10.3 billion. Earnings from Royal’s retail banking (which supplied 49% of the total) rose 5.8%, mainly due to gains at its Canadian operations. The wealth management business (17%) reported 13.4% higher earnings as rising stock prices pushed up the value of the securities…

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