TORONTO - Royal Bank of Canada raised its dividend as it reported a first-quarter profit of $3.5 billion.

The bank says it will now pay a quarterly dividend of $1.08 per share, up from its previous payment to shareholders of $1.05 per share.

RBC says its profit amounted to $2.40 per diluted share for the quarter ended Jan. 31 compared with a profit of nearly $3.2 billion or $2.15 per diluted share in the same quarter a year earlier.

The bank says its adjusted diluted cash earnings per share for the quarter amounted to $2.44.

Analysts on average had expected an adjusted profit $2.31 per share, according to financial markets data firm Refinitiv.

The bank says the results were driven by record earnings in capital markets as well as strong earnings growth in its personal and commercial banking operations. It also saw growth in wealth management and insurance, partially offset by lower results in investor and treasury services.