Mutual Fund Sales Boosts RBCs Profits

Mutual fund sales and investment-banking fees boosted the Royal Bank of Canada’s first-quarter profits to a record high, according to Bloomberg. The bank raised its dividend 15 %, the most in at least a decade.

Net income rose 28% to $1.27 billion for the period ending Jan. 31, the bank said in a statement.

The Toronto-based company’s mutual fund revenue increased 36% to a record from last year, as industry sales grew to a decade high in January on higher stock prices. RBC also profited from record mergers in Canada last year and higher sales of new stock and bonds.

“The results were tremendous,” said Ian Nakamoto, director of research at MacDougall MacDougall & MacTier. “I don’t think there’s any doubt that they’re leaders in Canada in terms of banking.”

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