Royal Bank of Canada’s (RBC) wealth management
unit posted a 10% rise in net income to C$185m ($174.6m) in the
third quarter of 2010 from C$168m in the year-ago period.

RBC, Canada’s largest lender by assets has
turned its fortunes around from the second quarter of 2010 when
wealth net income stood at C$90m, down 20 percent over the
year. 

Up until a year ago, RBC’s international
wealth business had grown profits by a compound annual growth rate
of 30 percent over the past five years.  But the global
recession has dented this heady rise.

Total assets under management (AuM) stood at
C$251.1bn in the third quarter, which includes its wealth
management arm, and total assets under administration were
C$501bn.

The bank said a favourable accounting impact
related to foreign currency translation and higher average
fee-based assets contributed to the income rise.

Revenue from RBC wealth management’s
sub-divisions (Canadian, US and international wealth management and
global asset management) totalled C$1bn.

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Last month, the chief executive of RBC’s
international wealth management division, Michael Lagopoulos, told
PBI that Latin America and Asia are two regions that the
wealth business is giving special attention.

He said the Canadian bank was closing in on
acquisitions in the respective regions and has been prompted by the
sell-off of international wealth businesses within banks that
received state support.

“The point of governments stepping in to save
those banks was to save their local depositors, not to have them be
the best Swiss bank in the world, or the best trustee in the
Channel Islands,” Lagopoulos said.

RBC’s most recent acquisition was Mourant
Private Wealth in February 2009.