* Q3 profit at wealth unit down 3 pct at C$179 mln
* Adjusted profit up 22 pct
* Revenue up 11 pct at C$1.16 bln
* Firm had 4,236 client facing financial advisers
* AUM at C$310.2 billion, AUA at C$525.3 bln
TORONTO, Aug 26 (Reuters) - Quarterly profit at Royal Bank of Canada’s (RY.TO) wealth management unit fell 3 percent due to accounting and tax adjustments in the year-before quarter.
Canada’s biggest bank said on Friday that net income at its wealth management unit was C$179 million ($183 million) in its fiscal third quarter, down from C$185 million a year earlier.
Excluding the adjustments, net income was up 22 percent, mainly due to higher average fee-based client assets.
RBC, ranked by UK-based Scorpio Partners as the No. 6 global wealth manager by assets, said its revenue was up 11 percent from a year earlier at C$1.16 billion.
By business line, revenue at the Canadian wealth management operations was up 14 percent at C$421 million, due mainly to higher fee-based assets resulting from capital appreciation and higher net sales. Higher transaction volumes also contributed to the increase, the bank said.
U.S. and international wealth management revenue fell 8 percent to C$452 million due to the accounting impact of US$25 million related to currency translation in the year-before period and to lower transaction volumes in the current quarter.
Revenue at RBC’s global asset management division rose 52 percent to C$282 million, due mainly to higher average fee-based client assets related to RBC’s acquisition of UK-based BlueBay Asset Management.
Non-interest expenses rose 13 percent, largely due to the BlueBay deal, and to higher variable compensation driven by a rise in commission-based revenue.
RBC had 4,236 client-facing financial advisers, nearly flat from the previous quarter, but down from 4,388 a year earlier.
The wealth management unit had C$310.2 billion in assets under management, up from C$308.3 billion in the previous quarter and from C$251.1 billion a year earlier.
Assets under administration were C$525.3 billion, down from C$537.9 billion in the second quarter, but up from C$501 billion a year earlier.
RBC’s overall profit from continuing operations in its third quarter was C$1.57 billion, or C$1.04 a share, up 13 percent from C$1.38 billion, or 92 Canadian cents, a year earlier.
The results missed analysts’ expectations, sending the company’s stock down 3.5 percent. [ID:nN1E77N0YI]
RBC was the third of Canada’s big six banks to report results this week. Bank of Montreal (BMO.TO) said on Tuesday that its wealth management profits rose 14 percent from a year earlier, while National Bank of Canada (NA.TO) said on Thursday that its wealth management earnings were up 28 percent. [ID:nN1E77O06I] [ID:nN1E77M0DD]
$1=$0.99 Canadian Reporting by John McCrank; editing by Peter Galloway