RBC’s Investor & Treasury Services business reported net income of $92 million increased $20 million or 28% in the third quarter of 2013, compared to the prior year, largely due to improved business performance in Investor Services and continued benefits from the bank’s ongoing focus on efficiency management activities.
Compared to the prior quarter, net income decreased $12 million or 12% due to lower securities lending as the prior quarter was favorably impacted by seasonally higher securities lending.
Total Q3 revenue increased $32 million or 8%, mainly reflecting an increase in custodial fees due to higher average fee-based client assets. Higher foreign exchange revenue as a result of increased transaction volumes, and higher revenue on client custodial deposits also contributed to the increase. These factors were partially offset by lower funding and liquidity revenue, largely in Europe, mainly as a result of the unfavorable impact of widening credit spreads.
Non-interest expense increased $8 million or 3%, reflecting the unfavorable impact of a stronger Euro against the Canadian dollar, higher infrastructure costs and the reversal of a U.K. bank levy in the prior year. These factors were mostly offset by the continued benefits from our ongoing focus on efficiency management activities.
Net income decreased $12 million or 12% in Q3 2013 versus Q2 2013, largely due to lower securities lending as the prior quarter was favorably impacted by seasonally higher securities lending.
RBC Reports Increase in Investor Services Net Income
RBC’s Investor & Treasury Services business reported net income of $92 million increased $20 million or 28% in the third quarter of 2013, compared to the prior year.
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