RBC Wealth Management’s U.S. wealth management business saw a significant increase in revenue in the firm’s fiscal third quarter that ended in July, despite assets and advisor ranks changing little from the prior quarter.
Assets under advisement in the U.S. wealth management business inched up to $533.6 billion by the end of July, up from $530.4 billion the unit had at the of the prior fiscal quarter but still down from the $553.3 million the unit had at the end of July last year, according to RBC’s latest quarterly earnings report.
The company had 5,622 client-facing advisors across all of its wealth management units at the end of the July, which was one fewer than at the end of April but up from 5,522 RBC had at the end of July last year, the company says.
Revenues in the firm’s U.S. wealth management unit, however, rose to $1.47 billion in the latest quarter, up 5% from 1.40 billion reported in the prior quarter and up 14% from $1.29 billion reported for the fiscal third quarter of 2021, according to the report.
The company attributes the year-over-year growth mainly “to higher net interest income driven by average volume growth of 16% in loans and 6% in deposits as well as higher interest rates, which also drove higher revenue from sweep deposits.”