The wealth arm of Royal Bank of Scotland Group (RBS) has reported a total income of £271 million (US$435.49 million) for the third quarter of 2013, a decline of 7.2% compared with £292 million (US$468.01 million) a year ago.

Within the wealth division, Private banking and Investments units contributed £222 million and £49 million respectively to the division’s total income.

For the quarter ended 30 September 2013, the wealth division’s net interest income declined by 9% £169 million from £185 million a year ago reflecting lower spreads on a number of deposit products. Noninterest income was 5% lower as market volatility led to a decrease in investment income.

Income from net fees and commissions in the latest quarter totalled £90 million compared to £94 million in third quarter of 2012.

The division’s operating profit was down 5% to £60 million with lower income only partially offset by reduced expenses and impairment losses.

The wealth division’s return on equity was 13.1% against 13.8% in the previous year quarter. Expenses fell by 5% due to reduced headcount and continued management of the cost base.

The bank in a statement said that client assets and liabilities managed by the division were flat. Lending was stable while deposits declined by 2% as a result of repricing activity in third quarter of 2013.

The division’s assets under management (AuM) increased by 3% due to net inflows of £1 billion primarily in the international business.

Overall, RBS group reported pre-tax loss of £634 million third-quarter compared with pre-tax loss of £1.37 billion a year ago.