Royal Bank of Canada’s wealth management division reported net income of $213 million for the quarter that ended Jan. 31, up $88 million from a year earlier, partly due to higher fee-based client assets and some accounting adjustments.
But, those increases were also offset by lower transaction volumes, according to the company’s earnings announcement Wednesday.
“Our wealth management business benefited from improved market conditions over last year, resulting in higher average free-based client assets and a return of investor confidence,” Gordon M. Nixon, RBC’s president and chief executive officer, said in a press release. “We continue to leverage our global capabilities to differentiate our product and service offerings to both individual and inspirational clients.”
The wealth management division is also appealing to advisors nationally. RBC has been on a recruiting tear lately, luring high-producing teams and advisors from a number of competitors including Stifel Nicolaus, Morgan Stanley Smith Barney [MS] and UBS [UBS].
RBC Wealth boosted its cash payouts by at least 1% for all advisors doing at least $400,000 in trailing-12 production. It also did not cut cash payouts on the lower end of the production spectrum.
The parent company, Royal Bank of Canada, reported that its quarterly earnings increased 35% to $1.45 billion from a year earlier. It cited “general improvement in market and economic conditions” as the main reason.