Royal Bank of Canada (RBC) reported a 32% increase in the Wealth Management segment’s Q4 2019 income at $552.8m.
The Wealth Management segment posted an income of $133.4m in fourth quarter of 2018.
RBC attributed the $68.2m (14%) increase to the sale of BlueBay private debt business ($101.6m) and higher average fee-based client assets.
However, these were partly offset by lower net interest income due to lower spreads, primarily at City National Bank.
Increase in costs and higher variable compensation commensurate with revenue growth also resulted in lower net interest income.
For the full year, the Wealth Management segment recorded a 13% growth in earnings due to higher average fee-based client assets.
The segment posted net income of $1.93bn for the year ended 31 October 2019 compared to $1.71bn for 2018.
In August, RBC Wealth Management strengthened its Asia private banking team with the appointments of Andrew White and Andrew Cheng.
The bank’s Capital Markets segment reported 4% lower earnings during the year due to challenging market conditions.
For the fourth quarter, the segment recorded net income of $443m, a $62m decrease compared to Q4 of 2018.
RBC attributed the decline to lower revenue in Corporate and Investment Banking due to lower global investment banking fee pools.
RBC group net income up 4% in 2019
RBC reported net income of $9.76bn for the year ended 31 October 2019, a $333m increase or 4%, compared to $9.42bn the previous year.
The bank’s diluted earnings per share grew by 5%.
Royal Bank of Canada reported total revenue of $34.8bn for 2019, compared to $32.2bn for the previous year.
The Canadian banking giant said that the results indicated strong earnings growth in Personal & Commercial Banking and Wealth Management.
RBC said that it achieved the growth as the bank continued to use its scale and client value proposition to drive client-driven volumes.
RBC, one of the largest in the world based on market capitalisation, serves 17 million clients globally.