By Ketki Saxena
Investing.com -- The Royal Bank of Canada (TSX:RY) (RBC) saw profits drop and fall short of market expectations. The decline in earnings for the second quarter was primarily attributed to an increase in credit-loss provisions coupled with rising staffing and technology expenses.
The net income reported by RBC saw a reduction of 14% compared to last year, settling at $3.6 billion for the three months ending April 30th. When considering adjustments, the bank's profit demonstrated a decrease of 13%, amounting to $3.8 billion. Adjusted diluted earnings per share were recorded at $2.65—below Bloomberg analysts' expected figure of $2.80 per share.
Despite this dip in profits, RBC managed to achieve revenue growth during this period; total revenue witnessed an impressive increase of 20% since the same quarter last year, reaching $13.52 billion.
RBC also announced it will raise its quarterly dividend by three cents to $1.35 per share.