The recent acquisition of City National Bank by Royal Bank of Canada boosted the firm's earnings in wealth management in this year's first quarter, it announced today.

Toronto-headquartered Royal Bank of Canada has today reported net income of C$2.4 billion ($1.7 billion) for the first quarter ended January 31, 2016, flat from the prior year.

The results reflect higher earnings in wealth management, RBC said, which benefited from the inclusion of its acquisition of City National Bank in November 2015 (click here for an interview with RBC on the acquisition).

The City National acquisition contributed C$53 million to RBC's earnings – or C$107 million excluding the amortization of intangibles (C$31 million after tax) and C$23 million after tax factoring in acquisition and integration costs, it said.

Results also reflect “record earnings” in personal and commercial banking, RBC added, and higher earnings in investor and treasury services, offset by lower results in insurance and capital markets.

Compared to last quarter, net income decreased by C$146 million, or 6 per cent, reflecting the prior-quarter net favorable tax adjustments in corporate support. Higher earnings in wealth management, investor and treasury services, personal and commercial banking, and capital markets were also partially offset by lower earnings in insurance. The provision for credit loss ratio of 0.31 per cent increased 7 bps from the prior year, resulting from the low oil price environment.

Wealth management net income of C$303 million shot up C$73 million, or 32 per cent, from last year, largely reflecting – as previously noted – RBC's acquisition of City National. Wealth management results also reflect lower restructuring costs of C$19 million (C$18 million after tax) related to its international wealth management business, and higher earnings from growth in fee-based client assets - mainly in Canadian wealth management and global asset management, it said. Compared to last quarter, net income was up C$48 million, or 19 per cent.

“Within the context of a challenging macro environment, we delivered solid earnings of $2.4 billion this quarter, and I’m pleased to announce a 3 per cent increase to our quarterly dividend,” said Dave McKay, RBC's president and chief executive. “In today’s environment, I’m confident that RBC’s diversified business model and disciplined risk and cost management approach position us well to continue to support our clients and deliver long-term value to our shareholders.”

Significant developments at RBC this quarter have included the announcement that the head of RBC Wealth Management in the US, John Taft, is to retire on May 31. The firm has not yet named a successor.