UPDATE 1-Royal Bank of Canada posts higher profit, raises dividend

Thu Aug 29, 2013 6:40am EDT
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* Profit driven by loan growth, wealth management

* Capital markets income falls on bonds, investment banking

* Results top estimates

TORONTO, Aug 29 (Reuters) - Royal Bank of Canada reported a 3 percent rise in quarterly profit on Thursday, topping analysts' estimates, as higher consumer loan volumes and wealth management fees more than offset a drop in fixed-income trading revenue.

The bank, Canada's largest, also raised its quarterly dividend by 6 percent to 67 Canadian cents per share.

Toronto-based RBC earned C$2.30 billion ($2.19 billion), or C$1.52 a share, in the third quarter ended July 31, compared with C$2.24 billion, or C$1.47 a share, a year earlier.

Excluding a C$90 million favorable income tax adjustment, the profit was C$1.48 a share, it said. Analysts on average had expected C$1.38, according to Thomson Reuters I/B/E/S.

Earnings at RBC's retail bank climbed 7 percent to C$1.2 billion, helped by higher lending volumes and by the acquisition of Ally Financial Inc's Canadian auto finance and deposit arm in February.

The US$4.1 billion deal nearly doubled the bank's commercial auto lending business.   Continued...