The wealth management arm of UK-based Royal Bank of Scotland logged an operating profit, before impairment losses, of £73 million ($117.4 million) in the three months to 30 September, up from £49 million a year ago.

The wealth management arm of UK-based Royal Bank of Scotland logged an operating profit, before impairment losses, of £73 million ($117.4 million) in the three months to 30 September, up from £49 million a year ago, while over the nine-month period, the firm's profit rose to £204 million from £187 million.

The business, which includes the firm’s flagship Coutts brand, had a net interest margin of 3.88 per cent, up from 2.96 per cent a year before; net interest income was £185 million at end-September, up from £152 million a year ago. The cost/income ratio of this division was 75 per cent, unchanged from the end of June but down from 82 per cent a year before.

Assets under management, excluding deposits, stood at £29.5 billion, a 4 per cent decline from the end of June.

“Assets under management declined by £1.1 billion, with £1.5 billion of net outflows of low margin custody assets in international markets only partially offset by favourable market movements of £0.4 billion. Lending and deposit volumes were broadly stable,” RBS said.

At the end of September, a total of 5,400 staff worked at the wealth arm of RBS, down from 5,600 in June this year.