TORONTO, Sept. 29, 2023 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) commented on recent intercompany sales of certain debt securities by its City National Bank subsidiary ("City National"). These sales were part of the management of City National's securities portfolios.
This transaction will result in the recognition of realized losses at City National, which will be eliminated at the Royal Bank of Canada consolidated level. These realized losses will be reflected in City National's regulatory Report of Condition and Income (the "Call Report") for the three-month period ended September 30, 2023.
City National has reinvested most of the proceeds of this intercompany transaction in new securities for its liquidity and investment portfolio, which should benefit net interest margins.
In addition, an intercompany capital injection has been made into the City National subsidiary, further strengthening the capital and liquidity position of the subsidiary balance sheet, while also being used to pay down higher cost borrowing.
RBC will release its fourth quarter financial results and host an earnings conference call on November 30, 2023. Conference call and audio webcast details will be announced closer to this date.
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This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this press release may include, but are not limited to, statements with respect to the anticipated impact of certain intercompany transactions. The forward-looking information contained in this press release is presented for the purpose of assisting the holders of our securities and financial analysts in understanding RBC's expected financial position as at and for the period ended on the dates presented, and may not be appropriate for other purposes. Forward looking statements are typically identified by words such as "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could" or "would".
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SOURCE Royal Bank of Canada
Asim Imran, Vice President, Investor Relations, [email protected]; Gillian McArdle, Senior Director, Corporate Communications, [email protected]
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