By Robb M. Stewart


Royal Bank of Canada plans to repurchase up to 2.1% of its outstanding shares.

The bank, Canada's largest by market value, said Thursday it plans to launch a normal course issuer bid to buy and cancel up to 30 million of its shares, subject to approval from the Toronto Stock Exchange the country's Superintendent of Financial Institutions.

The buybacks could begin June 12 and continue until June 11, 2025.

Royal Bank said the proposed buyback would will give the lender the flexibility to manage its capital position while generating shareholder value. As of April 30, its common equity Tier 1 ratio stood at 12.8%.

The buyback plans come as Royal Bank said it also is lifting its quarterly dividend 2.9% to 1.42 Canadian dollars ($1.04) a share, payable on and after Aug. 24 to shareholders of record at the close of business July 25.

The new payout, equal C$5.68 year, represents an annual yield of about 4% based on Wednesday's closing price of C$140.96.

The Toronto-based bank recorded net income of C$3.95 billion, or C$2.74 a share, for the three months to April 30, up from C$3.68 billion, or C$2.60, a year earlier. Second-quarter revenue was up 14% at C$14.15 billion, ahead of the C$13.63 billion analysts polled by FactSet had expected.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

05-30-24 0658ET