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* Profit driven by loan growth, wealth management
* Capital markets income falls on bonds, investment banking
* Results top estimates
TORONTO, Aug 29 (Reuters) - Royal Bank of Canada reported a 3 percent rise in quarterly profit on Thursday, topping analysts' estimates, as higher consumer loan volumes and wealth management fees more than offset a drop in fixed-income trading revenue.
The bank, Canada's largest, also raised its quarterly dividend by 6 percent to 67 Canadian cents per share.
Toronto-based RBC earned C$2.30 billion ($2.19 billion), or C$1.52 a share, in the third quarter ended July 31, compared with C$2.24 billion, or C$1.47 a share, a year earlier.
Excluding a C$90 million favorable income tax adjustment, the profit was C$1.48 a share, it said. Analysts on average had expected C$1.38, according to Thomson Reuters I/B/E/S.
Earnings at RBC's retail bank climbed 7 percent to C$1.2 billion, helped by higher lending volumes and by the acquisition of Ally Financial Inc's Canadian auto finance and deposit arm in February.
The US$4.1 billion deal nearly doubled the bank's commercial auto lending business.
Income from wealth management, a segment the bank has been expanding in recent years, jumped 51 percent to C$236 million.
Weighing on the results was the bank's capital markets wing, whose income slid 10 percent to C$388 million on lower investment banking activities and a drop in fixed-income trading revenue. RBC attributed the decline in part to market concerns ahead of the planned phase-out of U.S. quantitative easing.