* Q3 net income up 5 pct at C$2.8 billion
* EPS excluding one-off items C$1.89 vs f'cast C$1.87 (Adds details of divisional performance)
TORONTO, Aug 23 (Reuters) - Royal Bank of Canada RY.TO on Wednesday reported a 5 percent increase in underlying third-quarter net income, helped by double-digit earnings growth at its wealth management business which offset a weaker showing in capital markets.
Net income excluding one-off items such as the cost of integrating U.S.-based City National, bought in November 2015, rose to C$2.8 billion ($2.2 billion) for the quarter to June 30.
Earnings per share, excluding one-off items, reached C$1.89. Analysts had on average forecast earnings of C$1.87 per share, according to Thomson Reuters I/B/E/S data.
Canada's biggest lender said net income at its wealth management division increased by 25 percent to C$486 million, including a first-time contribution from City National.
Net income from its capital markets business fell 4 percent to C$611 million. ($1 = 1.2571 Canadian dollars)