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Aug 28 (Reuters) - Royal Bank of Canada ( RY ) reported

a rise in third-quarter profit on Wednesday, as the country's

largest lender benefited from the acquisition of HSBC Canada and

robust performance in its capital markets business.

The inclusion of HSBC Canada's results boosted net income by

C$239 million, RBC said.

Dealmaking activity is on a resurgence as expectations

of a soft landing have given corporate executives the confidence

to push ahead with acquisitions and sell stocks and bonds to

raise capital.

RBC's capital markets business recorded a 23% jump in

net income to C$1.17 billion ($869.2 million).

The bank took on billions of dollars in loans after it

completed the purchase of HSBC Canada in March, the largest

acquisition in its history.

The bank's adjusted net income rose to C$4.73 billion, or

C$3.26 per share, in the three months ended July 31, from C$4.01

billion, or C$2.83 per share, a year earlier.

($1 = 1.3457 Canadian dollars)