RBC hikes dividend as it reports flat first-quarter profit of $3 billion

TORONTO - Royal Bank of Canada hiked its dividend as it reported a first-quarter profit of $3 billion, which was relatively flat compared with a year ago but beat expectations.

The Toronto-based lender increased its quarterly payment to common shareholders by three cents to 94 cents per share.

The dividend increase came as the lender saw strong results across its divisions for the quarter ended Jan. 31, but also recorded a writedown due to U.S. corporate tax cuts.

The bank's profit for the three-month period ended Jan. 31 amounted to $2.01 per diluted share, compared with $3 billion or $1.97 per diluted share during the same period a year earlier when it had more shares outstanding.

The results in the most recent quarter included a $178-million writedown related to deferred tax assets due to U.S. corporate tax cuts.

After adjustments, Canada's biggest lender by market capitalization earned $2.05 per diluted share, beating the $1.99 expected by analysts surveyed by Thomson Reuters.

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