(CP) -- Royal Bank of Canada (TSX:RY) enjoyed sharply higher profits in the second quarter, driven by solid growth in its Canadian banking, wealth management and insurance divisions, but still missed analyst expectations.
Canada's largest bank on Friday reported net income of $1.51 billion or $1 per share for the second quarter, up 13 per cent from earnings of $1.33 billion or 88 cents per share a year ago.
Cash earnings per share were $1.03 for the quarter, missing the average analyst estimate of $1.12 per share, according to those surveyed by Thomson Reuters.
The bank also announced a four-cent, or eight per cent, increase in its quarterly dividend, bringing it to 54 cents.
"Earning over $1.5 billion in the second quarter and more than $3.3 billion for the first half of the year reflects the diversity of our business model and the strength of our businesses with Canadian banking, wealth management and insurance showing strong revenue and earnings growth," said president and CEO Gordon M. Nixon.
"We advanced our leadership across our key businesses and we are executing our long-term strategy and investing in our businesses to drive future growth."
Royal Bank's Canadian banking division's net income was $851 million, up $115 million from a year ago. The bank said the figures reflected solid volume growth across all businesses and lower provision for credit losses.
Its wealth management division's net income was $220 million, up $130 million from last year, benefiting from improved market conditions and increased investor confidence.
Royal Bank is the country's largest bank by assets and market capitalization, and has 77,000 employees serving more than 18 million clients. The bank has operations across North America and 52 other countries.