Net income at Royal Bank of Canada climbed 17 per cent year-on-year in its third quarter, propelled by strong performance at its wealth management business, among other factors.

RBC Wealth Management has reported that net income soared by 36 per cent to C$388 million ($300 million) at the end of its third quarter.

The increase largely reflects the inclusion of City National, which contributed C$82 million to net income, as well as benefits from the firm’s efficiency management activities, it said in its earnings statement. Excluding amortisation of intangibles and integration costs of C$29 million and C$12 million after tax respectively, City National contributed C$123 million to net income.

RBC finalised its acquisition of City National Bank in November last year. In June 2016 Dave McKay, president and CEO of RBC, said the acquisition gave the bank an “enormous opportunity” to grow in the US, according to Reuters. For RBC, the US offers opportunities to expand its wealth management and capital markets businesses at a faster rate than its home country of Canada, the report added.

Compared to the previous quarter, wealth management net income was up by C$2 million, or 1 per cent.

As a group, RBC reported record net income of C$2.9 billion for Q3 2016, up by C$420 million, or 17 per cent, from a year ago and up by C$322 million, or 13 per cent, from last quarter. The firm noted that excluding an after tax gain of C$235 million from the sale of RBC General Insurance Company to Aviva Canada, net income was up 7 per cent from the prior year.

Results reflect strong earnings in wealth management, as well as in capital markets and personal and commercial banking, the firm said.

“RBC had a record third quarter, delivering reported earnings of over C$2.8 billion and $7.9 billion for the first nine months of the year,” McKay said.

“Our strong capital position enabled us to repurchase C$292 million of common shares in the third quarter and I’m pleased to announce a 2 per cent increase to our quarterly dividend [to C$0.83 per share].”   

In recent Asia-based appointments at RBC Wealth Management, the firm promoted Ignatius Chong, its market head for Greater China, to the new role of managing director, head of private wealth for Greater China, earlier this month. In June, the Asian wealth management business was brought under the leadership of the bank’s international head of wealth management, Stuart Rutledge, following the retirement of Barend Janssens.