Wealth Management Net Income Drops At RBC

Editorial Staff

29 February 2024

Royal Bank of Canada has said that net income in its wealth management business dropped to C$606 million in the three months to 31 January. A rise in noninterest expenses and a dip in net interest income – in US dollars – affected the bottom-line result for the wealth arm.

Within the wealth segments, Canadian revenue rose to C$1.77 billion from C$1.111 billion; US wealth management , rose to C$2.158 billion from $2.128 billion; and international wealth management revenue rose to C$317 million from $288 million.

Total assets under management stood at C$1.41 trillion at the end of January this year.

At a group-wide level, RBC, which is listed in Toronto and New York, reported net income of C$3.6 billion for the quarter, rising 14 per cent from the prior year, which included the C$1,050 million impact of the Canada Recovery Dividend and other tax related adjustments.

RBC said figures also reflected the impact of specified items relating to the planned acquisition of HSBC Bank Canada , including transaction and integration costs , and management of closing capital volatility .

“Results benefitted from higher net interest income driven by solid volume growth, as well as higher fee-based client assets reflecting market appreciation and net sales in wealth management,” RBC said.

The bank said it had a Common Equity Tier 1 ratio of 14.9 per cent.