RBC’s asset servicing arm sees quarterly profit double
Earnings for RBC’s Investor & Treasury Services business spiked in the three months to January as interest rate and FX volatility boosted client activity.
The asset servicing division, which offers custody and securities lending, reported quarterly net income of $214m on Friday, 50% higher compared to last year’s November-January.
Earnings also outstripped the previous quarter by $40m, or 23%.
Volatile rates and FX led to higher funding and liquidity earnings, the Toronto-based bank said.
Higher spreads on client deposits added to the gains.
The firm’s Capital Markets unit also enjoyed the three month financial first quarter, with net income rising 16% to $662m compared to a year ago.
Wealth Management earnings climbed by $127m to $430m - up 42% from a year ago.
Both divisions helped RBC’s overall profit surge by 24% to a record $3bn.
“Overall, RBC had a great start to the year,” said Dave McKay, president and chief executive, in a conference call with analysts.
On Friday, the bank moved Jennifer Tory to the role of chief administrative officer, where she will report to McKay.
She will take over some of the duties that formerly belonged to Janice Fukakusa, who recently retired as the bank’s chief financial officer.
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