RBC's Wealth Arm Reports Stronger Net Income

Editorial Staff

25 February 2022

Royal Bank of Canada yesterday reported that its wealth management arm logged net income of C$795 million in the three months to January 31, rising 24 per cent on the same period a year ago, mainly caused by higher average fee-based client assets.

The Toronto-listed bank, which operates wealth management businesses in Canada, the US, the UK and parts of Asia, said the rise in assets was caused by rising markets and net sales. Results were also affected by a partial release of a legal provision taken in US wealth management in the prior quarter.

Higher net interest income driven by strong, double-digit average volume growth more than offset lower spreads. These factors were partially offset by higher variable compensation and higher staff-related costs, RBC said in a statement.

Compared with the previous quarter, net income increased by C$237 million or 42 per cent because RBC released a portion of a legal provision that was taken in US wealth management in the prior quarter.

Across the wider RBC group, it reported net income of C$4.1 billion for the quarter ended January 31, 2022, up by 6 per cent from the prior year. The lender had a Common Equity Tier 1 ratio of 13.5 per cent.