06:31 AM EST, 12/04/2024 (MT Newswires) -- Royal Bank of Canada ( RY ) on Wednesday said the inclusion of HSBC Canada results boosted fourth-quarter earnings. The bank increased its dividend by 4%.

Net income in the quarter rose 7% to $4.2 billion while diluted earnings per share advanced 5% to $2.91. Higher results in Wealth Management, Personal Banking, Commercial Banking and Insurance were partially offset by lower results in Corporate Support. Results in Capital Markets were relatively flat. The inclusion of HSBC Canada results increased net income by $265 million.

RBC said a higher tax rate pulled down the results with the prior year including the favorable impact of the specified item relating to certain deferred tax adjustments of $578 million. Adjusted net income and adjusted diluted EPS of $4.4 billion and $3.07 were up 18% and 16%, respectively, compared to the prior year.

Pre-provision, pre-tax earnings of $6.1 billion were up 31% from a year ago. The inclusion of HSBC Canada results increased pre-provision, pre-tax earnings by $437 million. Excluding HSBC Canada results, pre-provision, pre-tax earnings increased 21% from last year, mainly due to higher average fee-based client assets in Wealth Management and higher revenue in Capital Markets including record lending revenue. Higher net interest income in our Personal Banking and Commercial Banking franchises reflecting solid client-driven growth in volumes and higher spreads also contributed to the increase. These factors were partially offset by higher staff-related costs, including higher variable compensation and salaries.

The bank increased its quarterly common share dividend by $0.06 to $1.48 per share, payable on and after Feb. 24 to shareholders of record at the close of business on Jan. 27.