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February 26, 2015updated 04 Apr 2017 1:45pm

RBC wealth arm Q1 income drops 2%

The wealth management business of Royal Bank of Canada (RBC) has posted a net income of C$230m for the first quarter ended 31 January 2015, down C$5m or 2% compared to same period last year.

By Verdict Staff

The wealth management business of Royal Bank of Canada (RBC) has posted a net income of C$230m for the first quarter ended 31 January 2015, down C$5m or 2% compared to same period last year.

The bank attributed the fall in the income to higher earnings from growth in average fee-based client assets were more than offset by additional restructuring costs of C$42m (C$27m after-tax) related to our US and international wealth management businesses.

Compared to the prior quarter, the wealth management arm’s net income was down C$55m or 19% mainly due to mainly due to higher costs in support of business growth and additional restructuring costs.

Overall, the banking group reported net income of C$2.45bn for the quarter, up C$364m or 17% from the prior year.

RBC president and CEO Dave McKay said: "We delivered a record first quarter, with earnings of over $2.4 billion, reflecting the strength of our franchise and our commitment to serving our clients.

"Looking ahead, we are confident that our diversified business model, with our strong risk and cost management capabilities, positions us well to navigate macroeconomic headwinds in Canada and continue to capitalize on opportunities created by the changing environment," he added.

 

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