Fourth-quarter net income at the wealth management arm of Royal Bank of Canada - a bank with a presence in Asia - held broadly flat; the bank's CEO is to step down.

Fourth quarter net income of $205 million at RBC Wealth Management was “relatively flat”
year-on-year and down 13 per cent from
$236 million in this year's previous quarter.

(In RBC's case, its fourth quarter relates to the three months to the
end of October, as opposed to the conventional calendar points adopted
by most banks.)

The Canadian firm - which has operations around the world in regions including Asia - attributed the quarterly decline to higher
average fee-based client assets that were “more than offset by higher PCL and a
higher effective tax rate.” Compared to the fourth quarter of 2012, net income is down
slightly from $207 million, according to the firm’s latest earnings release.

Total revenue increased $154 million, or 12 per cent, which
the firm said was mainly due to higher average fee-based client assets,
reflecting net sales, capital appreciation and the “favorable impact” of a
weaker Canadian dollar.

Non-interest expense, meanwhile, rose 12 per cent. This was
primarily a result of higher variable compensation, driven by higher revenue, increased
staff levels and infrastructure investments, RBC said.

Broken down, revenue at RBC’s US and international wealth
management business was $560 million at end-October 2013, up from $545 million
and $515 million on the previous quarter and year-on-year respectively.

For the group as a whole, RBC reported “record net income”
of $8.4 billion for the year ended October 31, 2013, up $890 million or 12 per
cent from the prior year. These results were driven by earnings in personal and commercial
banking, wealth management and capital markets, as well as higher earnings in investor
and treasury services, the firm said.

Meanwhile, net income for the fourth quarter was $2.1 billion, up 11 per cent from the prior year. This reflects “strong
growth” in capital markets and personal and commercial banking, on top of higher
earnings in investor and treasury services.

CEO

Royal Bank of Canada chief executive Gordon Nixon will step down next year after a period of 13 years in the job. Nixon will be replaced by the firm's retail banking head, Dave McKay. Reports said his move had not been a surprise, although the timing was sooner than some commentators had expected.

Nixon's period at the helm of RBC has coincided with turbulent times in global financial markets, a period through which the Canadian lender has emerged with its reputation enhanced, having avoided some of the worst of the problems to have hit its peers in the US and Europe.