Royal Bank makes $1.18B in Q3

Royal Bank, the country's biggest bank, reported Friday that its third-quarter income rose 20 per cent from last year to hit $1.18 billion.

Royal Bank is reporting third-quarterincome of $1.18 billion, a 20 per cent increaseoverlast year's quarter.

Income per diluted share was90 cents, up 22 per cent from last year, the bank reported Friday.

Total revenue was $5.21 billion, up six per cent from $4.93 billion.

Royal, the country's biggest bank,cited growth across all of its businesses for the improvement in its bottom line. The bank's Canadian personal and business division reported a nine per cent rise in income, while earnings at RBC Capital Markets were up 29 per cent from last year.

The bank's U.S. personal and business division reported a 39 per cent increase inincome from continuing operations, despite the increasing value of the Canadian dollar against the U.S. greenback.

RBC's return on common equity came in at 23.1 per cent, up from 20 per cent in the third quarter of last year.

The bank's total provision for bad loans was lower by $29 million, or 23 per cent, from a year ago, primarily reflecting lower Canadian and U.S. commercial credit losses.

"Our strong performance reflects our continuing momentum from the strength of our franchise as we successfully execute our growth initiatives in North America and abroad," RBC CEO Gordon Nixon said in a statement.

"Our business segments continued to deliver solid results this quarter."

Coinciding with the good earnings report, the bank announced it wouldincreaseits quarterly common share dividend by four cents per share to 40 cents, payable on Nov. 24 to common shareholders of record on Oct. 26.

Royal Bank shares finished down 90 cents on Friday at $49.80 on the TSX.