The Royal Bank (TSX:RY) is reporting record net income of $2.3 billion for the third quarter – an increase of three per cent, or $64 million, from the same period a year ago.

The country’s largest bank also reported diluted earnings per share of $1.52, an increase of five cents from the third quarter of 2012. On average, earnings per share were estimated at $1.38, according to a survey of analysts by Thomson Reuters.

Excluding specific items, including a $90 million tax adjustment, a $44 million restructuring charge and net favourable adjustments of $262 million, the bank says net income was $2.21 billion.

The bank says its results were driven by continued strength across most of its businesses, including record earnings in personal and commercial banking and wealth management.

Personal and commercial banking net income was a record $1.18 billion, up $78 million or seven per cent compared to last year, largely due to solid volume growth across all businesses in Canada.

The Royal Bank’s wealth management net income was a record $236 million, up $80 million or 51 per cent, mainly due to higher average fee-based client assets resulting from net sales and capital appreciation. Higher transaction volumes also contributed to the increase.

Insurance net income was down $19 million to $160 million as higher earnings from a new U.K. annuity contract in the quarter were mostly offset by higher claims costs. They include net claims of $14 million related to severe weather conditions in Alberta and Ontario.

“We continue to deliver solid performance, with record earnings of over $2.3 billion, as we leverage our strength, scale, and strong capital position to successfully execute on our disciplined growth strategy through a slow growth environment,” said bank president and CEO Gordon M. Nixon.

“Today we are also pleased to announce a six per cent increase in our quarterly dividend.”

Royal Bank is the country’s largest bank by assets and market capitalization and has 77,000 employees serving more than 18 million clients. The bank has operations across North America and in 52 other countries.

It operates under the RBC Bank banner in the U.S., with more than 400 branches throughout North Carolina, South Carolina, Virginia, Georgia, Florida and Alabama.

Royal Bank shares closed Wednesday at $64.49.