Net income generated by
National Bank of Canada’s wealth management arm totaled $33 million in the fourth quarter of 2010, up $7 million or 27 per cent from $26 million in the same quarter last year.

Total revenues were $195 million compared to $191 million in the fourth
quarter of 2009. Assets under management and administration increased during the fourth quarter of 2010, generating growth in trust service and  mutual fund revenues. Operating expenses fell by $2 million to stand at
$151 million.

For fiscal 2010 net income for wealth management totaled $112 million
compared to $113 million in the same period of 2009. Total revenues for the
segment stood at $769 million, as against $757 million in the same period of 2009, primarily due to other income, which was up $31 million or 5 per cent.

The bank said the increase was due to robust brokerage activities and
mutual fund revenues and was tempered by a narrower net interest margin on deposits.

Operating expenses increased $16 million to stand at $604 million. An increase in salaries and variable compensation was due to higher revenues from retail securities brokerage commissions, as brokerage activity rebounded.

Family Wealth Report previously reported that Private Wealth
1859 acquired the private wealth management customer service division of
Montrusco Bolton Investments in September. The wealth manager was launched as a
subsidiary of National Bank Financial Group, the bank’s parent, a year ago to
target high net worth investors.