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Royal Bank of Canada net income increased $432 million

Staff Writer |
Royal Bank of Canada reported record net income of $10,458 million for the year ended October 31, 2016, up $432 million or 4% from a year ago.

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Results were driven by strong results in Wealth Management, which includes City National Bank (City National), and higher earnings in Insurance, which includes the Q3/16 gain on the sale of company's home and auto insurance manufacturing business.

Solid results in Personal & Commercial Banking and record earnings in Investor & Treasury Services also contributed to the increase. These factors were partially offset by lower earnings in Capital Markets.

In addition, company's provision for credit losses (PCL) ratio of 0.29% was up 5 basis points (bps) primarily as a result of the low oil price environment.

As of October 31, 2016, company's capital position was strong, with a Basel III Common Equity Tier 1 (CET1) of 10.8%. In 2016, we increased company's quarterly dividend twice, for an annual dividend increase of 5%.

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