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RBC’s asset servicing arm sees quarterly profit double
24 February 2017
Division sees profit double on back of higher interest rate and FX volatility
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
Earnings also outstripped the previous quarter by $40m, or
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
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.