The wealth management unit of Royal Bank of Canada (RBC) has reported net income of C$430m for the first quarter of 2017, a 42% surge compared to C$303m in the prior year.

The banking group said that the increase in income mainly reflected higher net interest income on volume growth, and higher earnings due to growth in average fee-based client assets and increased transaction revenue.

Overall, the banking group posted net income of C$3.02bn for the first quarter of fiscal year 2017, a 24% increase from C$2.44bn a year ago. Excluding the C$212m gain on sale of the US operations of Moneris Solutions, net income increased 15% year-on-year to C$2.81bn.

RBC president and CEO Dave McKay said: “RBC reported earnings of $3 billion for the first quarter reflecting strength across our businesses as we continued to invest in growth. We remain committed to returning capital to our shareholders and I’m pleased to announce a 5% increase to our quarterly dividend.

“As the operating landscape evolves, we are focused on our strategy of building a digitally-enabled relationship bank to meet the changing expectations of our clients.”