Financial Results
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.