It was a big news day for Royal Bank of Canada (RY
before the opening bell on Wednesday, as the company announced its fourth quarter earnings and declared a dividend, and also had its CEO announce his retirement.
RY Earnings in Brief
-The company reported quarterly net income of C$2.1 billion, which is up 11% from last year's same period.
-Revenue for the quarter came in at $7.97 billion, up from $7.52 billion reported in last year's Q4.
-Earnings per diluted share was reported at $1.40, up from last year's Q4 EPS of $1.25.
-The company met analysts' EPS estimates of $1.40, and came in above revenue estimates of $7.51 billion.
CEO Earnings Comments
Gordon M. Nixon, RBC's President and CEO, had the following comments about the quarter and full year results: "With solid fourth quarter earnings of more than $2 billion, RBC delivered record earnings of $8.4 billion in 2013. These results build on our financial strength, diversified business mix and ability to serve clients across many products, markets and geographies. We believe our domestic leadership and focus on global growth position us well to deliver sustainable earnings growth and build long-term value."
CEO to Retire
Nixon also announced his retirement this morning, which will take place in August of 2014. Nixon has been the CEO and president for 13 years. Dave McKay, Group Head, Personal & Commercial Banking will be appointed as President at the Annual Meeting on February 26, 2014, and President and Chief Executive Officer effective August 1, 2014.
RY declared a quarterly dividend of 67 cents today, which will be paid on February 24, 2014 to all shareholders on record as of January 27, 2014. The ex-dividend date is January 24, 2014. Royal Bank's last dividend raise occurred this past fall when the company bumped its dividend to 67 cents from 63 cents. The company also raised its dividend earlier in the year from 60 cents to 63 cents.
Royal Bank of Canada was inactive in pre-market trading. YTD, the bank's stock is up 5.25%.
The Bottom Line
Shares of Royal Bank of Canada (RY
have yield of 4.15% based on Wednesday's closing price of $64.61 and the company's annualized payout of $2.68.
Royal Bank of Canada (RY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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