Financial Results

Another Strong Quarter For RBC Wealth Management

Eliane Chavagnon Editor - Family Wealth Report 4 December 2014

Another Strong Quarter For RBC Wealth Management

Royal Bank of Canada has reported fourth quarter wealth management net income of C$285 million, up $83 million or 41 per cent compared to last year – mainly due to higher earnings from growth in average fee-based client assets at its global asset management and Canadian wealth management businesses.

Royal Bank of Canada has reported fourth quarter wealth management net income of C$285 million ($251 million), up $83 million or 41 per cent compared to last year – mainly due to higher earnings from growth in average fee-based client assets at its global asset management and Canadian wealth management businesses.

Compared to this year's previous quarter, net income was flat as the positive impact of higher earnings from growth in average fee-based client assets was offset by restructuring costs of C$27 million (C$18 million after-tax) related to RBC's US and international wealth management businesses. Last month it emerged that RBC is shutting down its international client wealth management business in the Caribbean, along with some international advisory businesses in Canada and the US (see more here).

Revenue from wealth management was C$1.64 billion at end-October 2014, up slightly from C$1.56 billion in the previous quarter and C$1.42 billion a year ago.

RBC as a whole reported record net income of C$9.0 billion for the year ended October 31, 2014, up from C$662 million or 8 per cent from last year, driven by “record earnings across all of our business segments,” it said.

The US- and Canada-listed firm logged a Basel III Common Equity Tier 1 ratio of 9.9 per cent at the end of fiscal 2014.

Its earnings of $2.3 billion were up C$232 million or 11 per cent from last year, driven by strong performance across retail businesses as well as higher earnings in Canadian banking and lower net claims in Insurance.

Meanwhile, RBC also announced that Toos Daruvala has joined its board of directors, effective January 1, 2015.

Daruvala is a director and senior partner at McKinsey & Company in New York City. He currently leads McKinsey’s risk management practice in the Americas and from 2005 to 2011 led its banking and securities practice in the region.

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