Royal Bank of Canada released third-quarter earnings Thursday, Aug. 26, reporting strong results in its wealth management division.
The wealth management division reported net income of $174 million, up 10% from last year. Income increased $89 million over last quarter.
Several factors affected the increase, primarily a favorable accounting impact related to foreign currency translation on some available-for-sale securities. A favorable income tax adjustment and higher average fee-based assets also contributed to the rise in income.
Earlier this year, RBC Wealth Management launched a new custodian business, RBC Advisor Services, as part of the division’s ongoing expansion in the United States.
In July, RBC Wealth Management was ranked one of the world’s top 10 largest wealth managers by Scorpio Partnership‘s Global Private Banking KPI Benchmark 2010.
“We are pleased to be recognized as the 7th largest global wealth manager in an independent survey, reflecting both our comprehensive offering of investment management solutions and our global reach,” Gordon M. Nixon, RBC president and CEO, said in a press release. “We continue to leverage our market leadership position in Canada while continuing to invest and grow our presence internationally.”
The insurance division also posted strong results. While falling 8% from last year, earnings rose $43 million since the second quarter to $144 million.