The typical HNWI image is changing as younger generations come into the fray and women take more charge of wealth. Does this mean alternative practice is needed? And what needs to change? Are the values shifting in the wealthy? Patrick Brusnahan writes
The earnings beat analyst forecasts and benefit from strong volume growth and increased client activity. This is partially offset by the impact of low interest rates and higher expenses.
Specifically, the RBC Q1 2021 numbers represented record earnings in Capital Markets.
In addition, RBC posted positive earnings growth in Personal & Commercial Banking, Wealth Management and Insurance. Results this quarter also reflected lower provisions for credit losses, with a PCL on loans ratio of 7 basis points. This is largely attributed to releases of provisions on performing loans. Lower provisions on impaired loans also contributed to the decrease.
Wealth management net income rose by 4% year-on-year to C$649m. This was primarily due to average loan growth and higher average fee-based client assets.
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Patrick Brusnahan (PB): Do you see as younger generations getting more involved in wealth? Are there conflicting values? Stereotypically, and the truth is, younger generations are more into ESG and the likes of sustainable investments, whereas older generations might not.
PB: So how do you maintain this relationship? How different is it between say men and women, or the younger generation and the older generation? Obviously, you interact with different types of clients differently? Some require more communication. Some want to build a laissez faire relationship, how does it differ?
PB: Is that an unintentional consequence?
PB: Anything more to add?
RBC has joined the WealthiHer Network which has a focus on helping educate women to feel confident when it comes to talking about and managing their finances, and to challenge us as a sector to support with that education.
An unintended consequence of the last few months has been the conversations that we are having with both spouses, and the industry should use this as a catalyst to continue to involve all parties in financial discussions, regardless of who is the primary breadwinner.