Net income at Royal Bank of Canada climbed 17 per cent year-on-year in Q3 2016, propelled by strong performance at its wealth management business, among other factors.

RBC Wealth Management has today reported that net income soared by 36 per cent to C$388 million at the end of this year’s third quarter.

The increase largely reflects the inclusion of City National, which contributed C$82 million to net income, as well as benefits from the firm’s efficiency management activities, it said in its earnings statement. Excluding amortization of intangibles and integration costs of C$29 million and C$12 million after tax respectively, City National contributed C$123 million to net income.

RBC finalized its acquisition of City National Bank in November last year. Here is an interview with John Taft, who was chief executive of RBC Wealth Management at the time, on what the deal means for RBC and how City National will operate going forward.

Meanwhile, in June 2016 Dave McKay, president and CEO of RBC, said the acquisition gave the bank an “enormous opportunity” to grow in the US, according to Reuters. For RBC, the US offers opportunities to expand its wealth management and capital markets businesses at a faster rate than its home country of Canada, the report added (see more here).

Compared to the previous quarter, wealth management net income was up by C$2 million, or 1 per cent.

As a group, RBC reported record net income of C$2.9 billion for Q3 2016, up by C$420 million, or 17 per cent, from a year ago and up by C$322 million, or 13 per cent, from last quarter. The firm noted that excluding an after tax gain of C$235 million from the sale of RBC General Insurance Company to Aviva Canada, net income was up 7 per cent from the prior year.

Results reflect strong earnings in wealth management, as well as in capital markets and personal and commercial banking, the firm said.

“RBC had a record third quarter, delivering reported earnings of over C$2.8 billion and $7.9 billion for the first nine months of the year…” McKay said.

“Our strong capital position enabled us to repurchase C$292 million of common shares in the third quarter and I’m pleased to announce a 2 per cent increase to our quarterly dividend [to C$0.83 per share].”