Financial Results

Wealth Management Net Income Drops At RBC

Editorial Staff Group Editor London 29 February 2024

Wealth Management Net Income Drops At RBC

One of Canada's main banks reported wealth and other results for a quarter period that ends on 31 January.

Royal Bank of Canada has said that net income in its wealth management business dropped to C$606 million ($446 million) in the three months to 31 January. A rise in noninterest expenses and a dip in net interest income – in US dollars – affected the bottom-line result for the wealth arm.

Within the wealth segments, Canadian revenue rose to C$1.77 billion from C$1.111 billion; US wealth management (including City National), rose to C$2.158 billion from $2.128 billion; and international wealth management revenue rose to C$317 million from $288 million. 

Total assets under management stood at C$1.41 trillion at the end of January this year. 

At a group-wide level, RBC, which is listed in Toronto and New York, reported net income of C$3.6 billion for the quarter, rising 14 per cent from the prior year, which included the C$1,050 million impact of the Canada Recovery Dividend and other tax related adjustments.

RBC said figures also reflected the impact of specified items relating to the planned acquisition of HSBC Bank Canada (HSBC Canada), including transaction and integration costs (C$265 million before tax and C$218 million after tax), and management of closing capital volatility (C$286 million before tax and C$207 million after tax). 

“Results benefitted from higher net interest income driven by solid volume growth, as well as higher fee-based client assets reflecting market appreciation and net sales in wealth management,” RBC said.

The bank said it had a Common Equity Tier 1 ratio of 14.9 per cent.

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