Royal Bank of Canada notched record net income in the latest quarter, thanks to strong growth in its wealth management, capital markets and commercial banking operations.

Royal Bank said its third-quarter income rose to 6.02 billion Canadian dollars (US$4.34 billion), or C$4.23 a share, from C$5.41 billion, or C$3.75 a share, a year earlier.

Excluding certain items, adjusted per-share earnings came in at C$4.28 for the three months to July 31, beating the C$4.07 expected by analysts polled by FactSet.

Total revenue increased 9.1% to C$18.54 billion, where analysts were expecting C$18.2 billion.

Royal Bank's wealth-management arm was buoyed by higher fee-based revenue, reflecting the strength in financial markets during the period, while revenue in its capital markets segment was driven by strength across corporate and investment banking and global markets activity. Net interest income was lifted by average volume growth in personal banking, commercial banking and wealth management, the lender said.

The rise in earnings for the quarter came despite an increase in the Toronto-based bank's provision for credit losses, which rose to C$1 billion in the latest quarter from C$912 million the quarter before and C$881 million a year earlier. That was roughly in line with what analysts were expecting, and mainly reflected higher provisions in capital markets and personal banking but lower provisions in commercial banking.

For loans considered impaired, the provision increased to C$979 million for the quarter. The provision for loans still in good standing was C$21 million, following a C$28 million reversal a year prior.

Household spending in Canada has remained relatively resilient, helping underpin an economy that has shown signs of rebounding following back-to-back quarterly contractions. Exports have also begun to recover as businesses adapt to the U.S. administration's approach to trade policy and use of tariffs. Still, the housing market--despite picking up in recent months--is expected to remain sluggish this year.

Royal Bank's capital position remains solid, with a common equity Tier 1 ratio of 13.5%, steady from the prior quarter and well above the at least 11% of risk-weighted assets that Canada's banking regulator requires from the country's big lenders.

Royal Bank and Bank of Montreal earlier this month agreed to sell jointly owned commerce platform Moneris Solutions to technology investor Francisco Partners for about C$2 billion, which Royal Bank has estimated will result in an after-tax gain of C$475 million and result in a marginally positive impact on its CET1 capital ratio.