Royal Bank of Canada's Earnings Rise -- Update

Royal Bank of Canada's sales and profit handily topped expectations in the first quarter, led by gains in fee-based businesses.

Net interest income increased 4.2% to 4.2 billion Canadian dollars while noninterest income climbed 11% to C$6.11 billion.

Toronto-based RBC, Canada's largest lender by assets, said its net profit jumped to C$2.81 billion, or C$1.85 a share, in its latest quarter ending April 30, from C$2.57 billion, or C$1.66 a share, a year earlier.

When adjusted to exclude gains from the sale of Moneris Solutions Inc., the U.S. operations of a payment processor, and other items, earnings came in at C$1.89 a share.

Revenue rose 8.2% to C$10.31 billion.

Analysts polled by Thomson Reuters had expected adjusted earnings per share of C$1.80 and revenue of C$9.45 billion.

Revenue from personal and commercial banking operations rose 5%, as growth in Canadian banking more than offset declines in its U.S. and Caribbean business. Assets under management at the bank increased 12%.

Shares, inactive premarket, have gained 2.3% so far this year.

Write to Imani Moise at imani.moise@wsj.com

Royal Bank of Canada's sales and profit handily topped expectations in the second quarter, led by gains in its fee-based businesses.