Royal Bank of Canada (RBC) has reported a 51% rise in its wealth management net income to C$236 million ($223 billion) for the third quarter of 2013, compared to the same period in 2012.
The bank said net income increased due to higher average fee-based client assets resulting from net sales and capital appreciation as well as contribution from higher transaction volumes.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Total provision for credit losses (PCL) declined 18% to C$267 million due to lower provisions in the bank’s Caribbean and Canadian banking portfolios reflecting improved credit quality, partially offset by higher provisions in wealth management.
Assets under management (AUM) at RBC’s wealth division grew 14% to C$373 billion in the third quarter 2013 from C$325 billion in the same quarter 2012.
However due to a strengthening US currency over the past three months, in dollar terms the AUM fell by over 3% from $366 billion in the first six months of 2013 to $354 billion for the third quarter.
Overall, the banking group’s net income increased 3% to C$2.3 billion for the quarter, compared to C$2.24 billion in the year ago period.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRBC president and CEO Gordon Nixon said, "We continue to deliver solid performance, with record earnings of over C$2.3 billion, as we leverage our strength, scale, and strong capital position to successfully execute on our disciplined growth strategy through a slow growth environment."
