*

RBC's wealth management income triples, aided by higher

fees

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National Bank earnings rise due to wealth management and

stock

market gains

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RBC sets aside more funds for potential loan losses amid

consumer strain

By Nivedita Balu, Arasu Kannagi Basil

Dec 4 (Reuters) - Royal Bank of Canada ( RY ), the

country's top bank by market value, reported fourth-quarter

profit above analyst expectations helped by its acquisition of

HSBC's ( HSBC ) domestic business this year and strength at its wealth

management division.

National Bank, the smallest of Canada's six large

banks which together control over 90% of the domestic market,

also reported earnings above estimates helped by a rise in

income at its wealth management arm.

The wealth management business has been a big focus for

Canadian banks as more high-net-worth clients and others are

increasingly opting for services and advice to secure their

financial future.

RBC's wealth management division, which includes U.S.

subsidiary City National, was a bright spot with net income

rising more than threefold to C$969 million and recording a

recovery loan loss provisions of C$25 million, largely helped by

higher fees and as it recovers from impaired losses from a year

ago.

At National Bank, the unit's adjusted earnings rose 17% to

C$219 million also benefiting from higher fees and a rise in

stock markets.

The $10 billion acquisition of HSBC's ( HSBC ) Canadian operation

helped RBC grow its retail business, adding about 780,000

clients to its retail and commercial business and expanding its

mortgage and corporate loan books.

Jefferies analyst John Aiken noted that RBC's "bigger than

anticipated" quarterly dividend increase of 6 Canadian cents, or

a 4% increase to C$1.48 per share, signaled its confidence in

the integration of HSBC Canada.

RBC also rejigged its leadership earlier this year and made

changes to its business segments as the lender positions itself

for the next phase of growth while absorbing HSBC's ( HSBC ) domestic

operations.

Still, RBC set aside more funds than expected for possible

souring loans in the fourth quarter, highlighting the strain on

consumers who are struggling to pay their mortgages and credit

card bills despite a series of central bank rate cuts.

Provision for credit losses came in at C$840 million

($597.27 million) in the three months ended October 31, compared

with C$720 million a year ago. Analysts had forecast C$831.7

million, according to LSEG data.

The bank's adjusted net income rose 17.7% to C$4.44 billion.

On a per share basis, RBC earned C$3.07, 6 Canadian cents higher

than the analysts' average estimate.

National Bank reported adjusted earnings of C$2.58 per

share, a cent more than expectations.

($1 = 1.4064 Canadian dollars)