The wealth management unit of Royal Bank of Canada (RBC) has reported a net income C$235 million for the quarter ended 31 January 2014, up C$6 million or 3% compared to last year.
The bank attributed the rise in the income mainly to higher average fee-based client assets resulting from capital appreciation and strong net sales.
"Our results were unfavourably impacted this quarter by additional PCL related to the same accounts that impacted the fourth quarter of 2013," the bank said in a statement. These accounts are now fully provisioned, the statement added.
Compared to the prior quarter, wealth management unit’s net income was up C$33 million or 16%, mainly due to higher average fee-based client assets, semi-annual performance fees, and lower PCL.
Overall, RBC group reported net income of C$2.09 billion for the quarter, up C$45 million or 2% from the prior year and relatively flat from last quarter.
The bank also announced an increase to its quarterly dividend of C$0.04 or 6%, to C$0.71 per share.