The wealth management unit of Royal Bank of Canada (RBC) has posted a net income of C$597m ($470.4m) for the first quarter of fiscal 2018, a surge of 39% compared to C$430m ($338.8m) reported a year ago.
The bank attributed the increase in income to higher average fee-based assets, rise in net interest income, and a lower effective tax rate reflecting benefits from the change in US tax rule.
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The bank booked a C$178m charge in relation to the tax overhaul.
Overall, the banking group reported net income of C$3.01bn for the first quarter of fiscal 2018, flat compared to the previous year.
The group’s CET1 ratio was 11% as at 31 January 2018, unchanged from last year.
RBC president and CEO Dave McKay said: “Strong client activity and volume growth across most businesses drove our first quarter earnings of $3bn while we absorbed the write-down related to the U.S. Tax Reform. We invested in our businesses to support clients, and repurchased over $920 million of common shares. In addition, I am pleased to announce a 3% increase to our quarterly dividend.”
