Sept 1 (Reuters) - Canadian banks have made wealth management a major focus in recent years as they compete for the savings and investments of retiring baby boomers in North America and try to tap growing wealth abroad.
Below are highlights of the quarterly results for the banks’ wealth management units for the quarter ended July 31.
- RBC (RY.TO) Wealth Management
Quarterly profit fell 3 percent to C$179 million ($183 million) from a year earlier due to comparison with a year-before quarter in which accounting and tax adjustments increased earnings extraordinarily. [ID:nN1E77P044]
Excluding the adjustments, net income was up 22 percent, mainly due to higher average fee-based client assets.
Revenue was up 11 percent at C$1.16 billion.
Assets under management (AUM) were C$310.2 billion, up from C$251.1 billion a year earlier.
Assets under administration (AUA) were C$525.3 billion, up from C$501 billion a year earlier.
- Toronto Dominion Bank (TD.TO) Global Wealth
Quarterly profit rose 26 percent from a year earlier to C$147 million, mainly driven by fee-based revenue from higher client assets, as well as increased net interest margin.
Net income including TD’s investment in U.S. retail brokerage TD Ameritrade (AMTD.O) was up 9 percent at C$195 million.
Revenue at TD’s Global Wealth unit, derived from TD’s online brokerage, advice-based businesses, and asset management services, was up 12 percent at C$689 million.
AUM were C$191 billion, compared with C$174 billion a year earlier.
AUA were C$242 billion, up from C$211 billion.
- Bank of Montreal (BMO.TO) Private Client Group
Quarterly income rose 14 percent to C$120 million as new client assets and earnings from a recent U.S. acquisition helped offset weakness in brokerage volumes and a drop in insurance earnings. [ID:nN1E77M0DD]
Revenue rose 13 percent to C$617 million.
AUM were C$155.3 billion, up from C$105.4 billion a year earlier.
AUA were at C$378.2 billion, up from C$253.6 billion.
- Bank of Nova Scotia (BNS.TO) Global Wealth Management
Quarterly profit rose 12 percent to C$256 million from a year earlier, largely driven by Scotiabank’s acquisition of Canadian asset manager DundeeWealth. [ID:nN1E77T0L4]
Revenue was up 43 pct at C$818 million.
AUM were C$105 billion versus year-before C$50 billion.
AUA were C$276 billion versus year-before C$185 billion.
- CIBC (CM.TO) Wealth Management
Quarterly profit rose 12 percent to C$68 million, due to higher fee-based revenue and commissions from new-issue and equity-trading activity. [ID:nN1E77U0OS]
In July, CIBC said it was buying a minority stake in U.S. asset manager American Century Investments for $848 million, broadening its geographic reach and expanding its asset management offerings, which fall under its wealth management unit.
Revenue was up 12 percent at C$404 million, mainly due to higher fee-based and commission revenue from new issue and equity trading activity.
AUM were C$81.2 billion, up from C$73.4 billion a year earlier.
AUA were C$207.8 billion, up from C$190.2 billion.
- National Bank of Canada (NA.TO) Wealth Management
Quarterly earnings rose 28 percent to C$37 million, helped by higher asset levels and a rise in fee-based and transaction revenues. [ID:nN1E77O06I]
National closed a deal during the quarter to buy the 82 percent of Winnipeg-based wealth manager Wellington West that it did not already own for about C$273 million on July 15.
Revenue at the unit rose 11 percent to C$208 million.
AUM were C$57 billion, up from C$50 billion a year earlier.
AUA were C$187 billion, up from C$175 billion.
$1=$0.98 Canadian Reporting by John McCrank; editing by Peter Galloway