RBC Wealth Management has poached a “flagship team” of financial advisors from UBS, RBC says. But strong fourth-quarter growth in the unit failed to offset falling profits and revenue in other units, with RBC posting its first quarterly profit drop since the beginning of last year.
Roger Stephens and Daniel Rothenberg will be opening RBC’s first branch in the downtown Los Angeles business district as managing directors, according to a press release from RBC.
The team, which also includes senior business associate Michelle Hadi, senior financial associate Grace Kim, senior registered client associate Robin Kim and investment associate Akiva Glazerson, previously managed around $7.5 billion at UBS, RBC says.
“We are excited to come to a firm that has a smaller, more focused group of people where we feel we can really make a difference,” Rothenberg says in the press release. “RBC has a boutique feel across the board, which gives us the flexibility to run our business the way we want.”
Stephens joined the financial services industry in 1991 and came to UBS in 2000, leaving for Morgan Stanley in 2006 and returning to UBS in 2010, according to his BrokerCheck profile.
Rothenberg joined the industry in 2006, registering with Morgan Stanley, and also came to UBS in 2010, according to BrokerCheck.
RBC says that the new Los Angeles office will enable “greater synergy” with City National, which RBC acquired in 2016. Over the past two years, RBC recruited 35 advisors throughout California, according to the press release.
Over the past few weeks, RBC also added several advisors from Merrill Lynch and Stifel Financial but lost advisors to Raymond James. RBC now has more than 1,900 financial advisors overseeing $384 billion from 170 locations in 42 states, the company says.
The City National acquisition has helped boost RBC’s wealth management revenue, the company says in its fourth-quarter earnings report.
Profit in the unit rose to $553 million, a 32% increase year over year, according to the report. Nonetheless, the company had a 1% drop in overall net income, which was $2.4 billion in the fourth quarter, the company says.