The wealth management arm of Royal Bank of Canada (RBC) has posted a net income of C$386m for the second quarter of fiscal 2016, a rise of 42% compared to a year ago.
The bank said that the rise in income reflected the inclusion of City National purchase that contributed C$66m to net income; C$108 m excluding amortisation of intangibles of C$29m after-tax and C$13m of after-tax integration costs.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The result also benefits from the bank’s efficiency management activities, lower PCL and lower restructuring costs related to international wealth management unit, the bank added.
The wealth unit’s net income increased 27% compared to the last quarter, driven by benefits from its efficiency management activities and lower variable compensation due to lower revenue.
Overall, the Canadian banking group reported net income of C$2.57bn for the second quarter of fiscal 2016, up 3% from C$2.50bn in the prior year.
RBC president and CEO Dave McKay said: "We delivered a solid quarter, with earnings of over $2.5 billion, reflecting underlying strength across our businesses. I’m very pleased with our performance in the first half of the year with earnings of over $5 billion, particularly in the context of a challenging operating environment.
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 GlobalData"Underpinned by our culture and commitment to putting clients first, RBC continues to be well positioned going forward given the strength of our diversified business model, our prudent risk management and our ability to effectively manage costs."
