The wealth management arm of Royal Bank of Canada (RBC) has posted a net income of C$303m for first quarter ended 31 January 2016, up C$73m or 32% compared to the year ago quarter.
This rise in income largely reflects the inclusion of our acquisition of City National, which contributed C$53m to net income, after amortization of intangibles and acquisition and integration costs as noted above.
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The bank said that the results also reflect lower restructuring costs of C$19m (C$18m after-tax) related to our International Wealth Management business and higher earnings from growth in fee-based client assets in Canadian wealth management and global asset management.
Net income increased $48m or 19% compared to the last quarter due to the inclusion of acquisition of City National.
Overall, the banking group reported net income of C$2.44bn for the first quarter of 2016, flat compared to the prior year.
RBC President and CEO Dave McKay said: "Within the context of a challenging macro environment, we delivered solid earnings of $2.4 billion this quarter, and I’m pleased to announce a 3% increase to our quarterly dividend.
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By GlobalData"In today’s environment, I’m confident that RBC’s diversified business model and disciplined risk and cost management approach position us well to continue to support our clients and deliver long-term value to our shareholders."
