Royal Bank of Canada’s (RBC) wealth management
division reported a $36m year-on-year drop in net income to $156m
($157m) in the bank’s third quarter results.
The net income decline included the adverse
impact of $29m or $21m after-tax that was reserved for certain
regulatory and legal matters in the current quarter.
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PBI is currently awaiting a response from the
bank on what these matters were. However, it is understood that
this relates to a refund of taxes paid to the Canada Revenue
Agency.
Lower transaction values
Omitting this figure brings the wealth unit’s
net income to $177m, down $15m or 8%. The bank said that lower
transaction volumes reflecting continued investor uncertainty, were
partially offset by higher average fee-based client assets.
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By GlobalDataIt has not yet clear whether the arm’s
purchase of the Latin American, Caribbean and African private
banking business Coutts, Royal Bank of Scotland’s private banking
division, had a direct impact on these figures.
Decline due to decrease in
transactions
RBC said that compared to last quarter, net
income was down $56m or $35m excluding the aforementioned
regulatory and legal issues. The bank said that this was largely
due to the decrease in fair value of its U.S. stock-based
compensation plan and lower transaction volumes.
Lower market activity and other unfavourable
seasonal factors were also said to have contributed to the drop in
numbers.
