Royal Bank of Canada reports fourth quarter and 2009 results
All amounts are in Canadian dollars unless otherwise noted and are based
on our unaudited Interim Consolidated Financial Statements and related
notes prepared in accordance with Canadian generally accepted accounting
principles (GAAP). Our 2009 Annual Report to Shareholders (which includes
our audited annual Consolidated Financial Statements and accompanying
Management's Discussion & Analysis), our Annual Information Form and our
supplementary financial information are available on our website at
rbc.com/investorrelations.
Fourth quarter 2009 compared to fourth quarter 2008
- Net income of $1,237 million (up from $1,120 million)
- Diluted earnings per share (EPS) of $0.82 (up from $0.81)
- ROE of 14.7% (down from 16.1%)
- Tier 1 capital ratio of 13.0%
2009 compared to 2008
- Net income of $3,858 million (down from $4,555 million)
- Cash net income of $5,034 million (up from $4,677 million)(1)
- Diluted EPS of $2.57 (down from $3.38)
- Cash diluted EPS of $3.40 (down from $3.47)(1)
- ROE of 11.9% (down from 18.1%)
- Cash ROE of 15.2% (down from 18.3%)(1)
- Losses related to available-for-sale (AFS) securities of $150 million
(EPS of $0.11)
- General provision for credit losses (PCL) of $104 million (EPS of
$0.07)
- Provision related to the restructuring of certain Caribbean banking
mutual funds of $39 million (EPS of $0.03)
These results reflect strong performances from Canadian Banking, Capital Markets, Wealth Management, and Insurance. We continued to have volume growth in Canadian Banking and we had very strong operating leverage driving earnings growth of 6%. Our Capital Markets business delivered strong results in the quarter and our Wealth Management businesses benefitted from the more favourable market conditions. Specific PCL remained elevated reflecting the economic environment but was stable compared to last quarter.
Our 2009 cash net income(1) was
Today we announced a first quarter 2010 quarterly common share dividend of
"RBC stands apart as a globally significant, strong and stable institution at the end of a very challenging year. Our results through 2009 underscore the value of our diversified business model, ongoing cost discipline and client first approach to doing business," said Gordon M. Nixon, RBC President and CEO. "Looking forward, our robust capital base and solid financial profile should enable RBC to continue to extend our broad-based leadership position in
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(1) We compute "cash" measures for 2009 by excluding the goodwill
impairment charge in Q2 2009 and the after-tax impact of amortization
of other intangibles from net income. We believe cash measures
provide readers with a better understanding of management's
perspective on our performance. For Q4 2009, we exclude specific
items as noted above from current quarter net income. These are
non-GAAP financial measures. See page 14 of this release for more
information including reconciliations.
Fourth Quarter 2009 Business Segment Performance
Canadian Banking net income was
"Canadian Banking performed extremely well throughout 2009 and generated double-digit volume growth of 11% and an efficiency ratio of 47.8%. These results highlight our ability to extend our leadership position and profitably grow market share by focusing on effectively managing costs, simplifying the way we do business and delivering a superior client experience. This strong performance was muted by the low interest rate environment and elevated cost of funding which are fully reflected in our results," Nixon said.
Wealth Management net income was
"With our strategic acquisitions over the past few years and our record growth in the number of client facing advisors to over 4,500 worldwide, our Wealth Management business has never been in a better position to build momentum as asset values and investor confidence begin to return to the market," Nixon said.
Insurance net income was
"Insurance remains a strong contributor to our diversified earnings stream by offering a full suite of solutions for our clients. We are focused on building on our capabilities and streamlining all of our processes to ensure clients find it easy to do business with us," Nixon said.
International Banking net loss of
"We are working hard to address the challenges in our U.S. banking operations by improving our operating model and building efficiencies to ensure that we are well positioned when the environment improves," Nixon said.
Capital Markets net income was
"It was an outstanding year for our Capital Markets business. Our investments are paying off and our strong brand has helped us attract new business and acquire high-quality talent from our global competitors. Our diverse platform coupled with the consistent financial strength of RBC are distinct competitive advantages that we are leveraging to deepen existing relationships and establish new client relationships," Nixon said.
Capital Ratios
The Tier 1 capital ratio of 13.0% increased 10 basis points (bps) from last quarter mainly due to internal capital generation. The Total capital ratio of 14.2% was down 20 bps from last quarter largely due to higher regulatory capital deductions.
"Our capital ratios remain at historically high levels and provide us with a competitive advantage along with substantial flexibility. We have tremendous opportunities to invest in our existing businesses and toward other opportunities consistent with our strategy," Nixon said.
For additional information including our 2009 financial performance, economic and market review, and progress on medium-term objectives, please refer to our 2009 Annual Report to Shareholders, beginning on page 8.
SELECTED FINANCIAL AND OTHER HIGHLIGHTS
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CONSOLIDATED RESULTS
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Selected financial highlights
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(C$ millions, As at or for the
except per share, three months ended For the year ended
number of and --------------------------------- ---------------------
percentage October 31 July 31 October 31 October 31 October 31
amounts) 2009 2009 2008 2009 2008
--------------------------------------------------- ---------------------
Total revenue $ 7,459 $ 7,823 $ 5,069 $ 29,106 $ 21,582
Provision for
credit losses
(PCL) 883 770 619 3,413 1,595
Insurance
policyholder
benefits, claims
and acquisition
expense (PBCAE) 1,322 1,253 (86) 4,609 1,631
Non-interest
expense 3,606 3,755 2,989 14,558 12,351
Goodwill
impairment charge - - - 1,000 -
Net income before
income taxes and
non-controlling
interest in
subsidiaries 1,648 2,045 1,547 5,526 6,005
Net income $ 1,237 $ 1,561 $ 1,120 $ 3,858 $ 4,555
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Segments - net
income (loss)
Canadian Banking $ 717 $ 669 $ 676 $ 2,663 $ 2,662
Wealth Management 161 168 116 583 665
Insurance 104 167 59 496 389
International
Banking (125) (95) (206) (1,446) (153)
Capital Markets 561 562 584 1,768 1,170
Corporate Support (181) 90 (109) (206) (178)
Net income $ 1,237 $ 1,561 $ 1,120 $ 3,858 $ 4,555
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Selected information
Earnings per
share (EPS) -
basic $ .83 $ 1.06 $ .82 $ 2.59 $ 3.41
Earnings per
share (EPS) -
diluted $ .82 $ 1.05 $ .81 $ 2.57 $ 3.38
Return on common
equity (ROE)(1) 14.7% 19.4% 16.1% 11.9% 18.1%
Return on risk
capital (RORC)(2) 26.0% 31.4% 26.3% 19.5% 29.6%
Net interest
margin (NIM)(3) 1.73% 1.73% 1.54% 1.65% 1.39%
Specific PCL as a
percentage of
average net loans
and acceptances 1.00% .98% .65% 0.97% .53%
Gross impaired
loans (GIL) as a
percentage of
loans and
acceptances 1.86% 1.77% .96% 1.86% .96%
Capital ratios and
multiples
Tier 1 capital
ratio 13.0% 12.9% 9.0% 13.0% 9.0%
Total capital
ratio 14.2% 14.4% 11.0% 14.2% 11.0%
Assets-to-capital
multiple 16.3X 16.3X 20.1X 16.3X 20.1X
Tangible common
equity (Tier 1
common capital)
ratio(4) 9.2% 9.1% 6.5% 9.2% 6.5%
Selected balance
sheet and other
information
Total assets $ 654,989 $ 660,133 $ 723,859 $ 654,989 $ 723,859
Securities 186,272 182,792 171,134 186,272 171,134
Retail loans(5) 205,224 198,999 195,455 205,224 195,455
Wholesale
loans(5) 78,927 81,140 96,300 78,927 96,300
Derivative-
related assets 92,173 101,086 136,134 92,173 136,134
Deposits 398,304 404,708 438,575 398,304 438,575
Average common
equity(1) 31,600 30,400 27,000 30,450 24,650
Average risk
capital(2) 17,900 18,800 16,500 18,600 15,050
Risk-adjusted
assets 244,837 243,009 278,579 244,837 278,579
Assets under
management (AUM) 249,700 243,700 226,900 249,700 226,900
Assets under
administration
(AUA)
- RBC 648,800 634,300 623,300 648,800 623,300
- RBC Dexia
IS(6) 2,484,400 2,197,500 2,585,000 2,484,400 2,585,000
Common share
information
Shares
outstanding
(000s)
- average
basic 1,413,644 1,408,687 1,337,753 1,398,675 1,305,706
- average
diluted 1,428,409 1,422,810 1,353,588 1,412,126 1,319,744
- end of
period 1,417,610 1,412,235 1,341,260 1,417,610 1,341,260
Dividends
declared per
share $ .50 $ .50 $ .50 $ 2.00 $ 2.00
Dividend yield(7) 3.7% 4.3% 4.4% 4.8% 4.2%
Common share
price (RY on
TSX) - close,
end of period $ 54.80 $ 51.28 $ 46.84 $ 54.80 $ 46.84
Market
capitalization
(TSX) 77,685 72,419 62,825 77,685 62,825
Business information
(number of)
Employees
(full-time
equivalent) 71,186 72,366 73,323 71,186 73,323
Bank branches 1,761 1,759 1,741 1,761 1,741
Automated teller
machines (ATM) 5,030 5,046 4,964 5,030 4,964
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Period average US$
equivalent of
C$1.00(8) $ .924 $ .900 $ .901 $ .858 $ .969
Period-end US$
equivalent of
C$1.00 .924 .928 .830 .924 .830
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(1) Average common equity and return on common equity (ROE) are
calculated using methods intended to approximate the average of the
daily balances for the period.
(2) Average amounts are calculated using methods intended to approximate
the average of the daily balances for the period. For further
discussion on Average risk capital and Return on risk capital (RORC),
refer to the Key performance and non-GAAP measures section.
(3) Net interest margin (NIM) is calculated as Net interest income
divided by Average assets. Average assets are calculated using
methods intended to approximate the average of the daily balances for
the period.
(4) For further discussion, refer to the Key performance and non-GAAP
measures section on page 61 of our 2009 Annual Report to
Shareholders.
(5) Retail and wholesale loans do not include allowance for loan losses.
(6) Assets under administration (AUA) - RBC Dexia IS represents the total
AUA of the joint venture, of which we have a 50% ownership interest,
reported on a one-month lag.
(7) Defined as dividends per common share divided by the average of the
high and low share price in the relevant period.
(8) Average amounts are calculated using month-end spot rates for the
period.
BUSINESS SEGMENT RESULTS
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CANADIAN BANKING
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As at or for the three months ended
-------------------------------------
(C$ millions, except percentage October 31 July 31 October 31
amounts) 2009 2009 2008
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Net interest income $ 1,811 $ 1,740 $ 1,701
Non-interest income 762 741 748
Total revenue $ 2,573 $ 2,481 $ 2,449
PCL $ 314 $ 340 $ 225
Non-interest expense 1,213 1,169 1,220
Net income before income taxes
and non-controlling interest in
subsidiaries $ 1,046 $ 972 $ 1,004
Net income $ 717 $ 669 $ 676
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Revenue by business
Personal Financial Services $ 1,390 $ 1,339 $ 1,323
Business Financial Services 628 618 630
Cards and Payment Solutions 555 524 496
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Selected average balances and
other information
ROE 37.0% 34.9% 37.7%
RORC 50.5% 47.3% 50.8%
NIM(1) 2.74% 2.71% 2.89%
Specific PCL as a percentage of
average net loans and acceptances .48% .54% .38%
Operating leverage 5.6% 3.0% (4.4)%
Average total earning assets(2) $ 262,200 $ 254,400 $ 234,200
Average loans and acceptances(2) 258,800 251,700 235,500
Average deposits 176,200 174,100 159,400
AUA 133,800 130,800 109,500
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(1) NIM is calculated as Net interest income divided by Average total
earning assets.
(2) Average total earning assets, and Average loans and acceptances
include average securitized residential mortgage and credit card
loans for the three months ended October 31, 2009, of $37 billion and
$4 billion, respectively (July 31, 2009 - $37 billion and $4 billion;
October 31, 2008 - $22 billion and $4 billion).
Q4 2009 vs. Q4 2008
Net income increased
Total revenue increased
PCL increased
Non-interest expense decreased
Q4 2009 vs. Q3 2009
Net income increased
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WEALTH MANAGEMENT
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As at or for the three months ended
-------------------------------------
(C$ millions, except percentage October 31 July 31 October 31
amounts) 2009 2009 2008
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Net interest income $ 85 $ 84 $ 133
Non-interest income
Fee-based revenue 572 528 596
Transactional and other revenue 417 406 296
Total revenue $ 1,074 $ 1,018 $ 1,025
Non-interest expense $ 841 $ 777 $ 860
Net income before income taxes
and non-controlling interest
in subsidiaries $ 233 $ 241 $ 165
Net income $ 161 $ 168 $ 116
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Revenue by business
Canadian Wealth Management $ 360 $ 326 $ 369
U.S. & International Wealth
Management 545 531 483
U.S. & International Wealth
Management (US$ millions) 504 479 434
Global Asset Management 169 161 173
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Selected other information
ROE 15.8% 16.5% 12.3%
RORC 53.3% 59.2% 42.8%
Pre-tax margin(1) 21.7% 23.7% 16.1%
Number of advisors(2) 4,504 4,528 4,346
AUA - Total $ 502,300 $ 491,300 $ 495,100
AUA - U.S. & International
Wealth Management (US$ millions) 303,300 298,100 277,600
AUM 245,700 239,700 222,600
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For the three
months ended
-----------------------
Q4 2009 Q4 2009
vs. vs.
Impact of US$ translation on selected items Q3 2009 Q4 2008
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Increased (decreased) total revenue $ (12) $ (12)
Increased (decreased) non-interest expense (10) (11)
Increased (decreased) net income (1) (1)
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Percentage change in average US$ equivalent
of C$1.00 3% 3%
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(1) Pre-tax margin is defined as net income before income taxes and
non-controlling interest in subsidiaries divided by total revenue.
(2) Includes client-facing advisors across all our wealth management
businesses.
Q4 2009 vs. Q4 2008
Net income of
Total revenue increased
Non-interest expense decreased
Q4 2009 vs. Q3 2009
Net income decreased
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INSURANCE
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As at or for the three months ended
-------------------------------------
(C$ millions, except percentage October 31 July 31 October 31
amounts) 2009 2009 2008
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Non-interest income
Net earned premiums $ 1,098 $ 986 $ 752
Investment income(1) 396 522 (697)
Fee income 71 67 56
Total revenue $ 1,565 $ 1,575 $ 111
Insurance policyholder benefits
and claims(1) $ 1,167 $ 1,097 $ (230)
Insurance policyholder
acquisition expense 155 156 144
Non-interest expense 145 135 154
Net income before income taxes
and non-controlling interest
in subsidiaries $ 98 $ 187 $ 43
Net income $ 104 $ 167 $ 59
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Revenue by business
Canadian Insurance $ 677 $ 726 $ (60)
U.S. Insurance 489 495 (118)
International & Other Insurance 399 354 289
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Selected other information
ROE 32.3% 48.0% 20.1%
RORC 37.7% 55.4% 23.0%
Premiums and deposits(2) $ 1,388 $ 1,267 $ 1,004
Fair value changes on investments
backing policyholder liabilities(1) 229 338 (748)
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(1) Investment income can experience volatility arising from quarterly
fluctuation in the fair value of held-for-trading (HFT) assets. The
investments which support actuarial liabilities are predominantly
fixed income assets designated as HFT, and consequently changes in
fair values of these assets are recorded in investment income in the
consolidated statements of income. Changes in the fair values of
these assets are largely offset by changes in the fair value of the
actuarial liabilities.
(2) Premiums and deposits include premiums on risk-based insurance and
annuity products, and deposits on individual and group segregated
fund deposits, consistent with insurance industry practices.
Q4 2009 vs. Q4 2008
Net income of
Total revenue increased
PBCAE increased
Non-interest expense was down
Q4 2009 vs. Q3 2009
Net income decreased by
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INTERNATIONAL BANKING
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As at or for the three months ended
-------------------------------------
(C$ millions, except percentage October 31 July 31 October 31
amounts) 2009 2009 2008
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Net interest income $ 391 $ 423 $ 437
Non-interest income 193 230 35
Total revenue $ 584 $ 653 $ 472
PCL $ 229 $ 230 $ 198
Non-interest expense 556 577 585
Net loss before income taxes
and non-controlling interest
in subsidiaries $ (201) $ (154) $ (311)
Net loss $ (125) $ (95) $ (206)
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Revenue by business
Banking(1) $ 422 $ 476 $ 281
RBC Dexia IS(1) 162 177 191
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Selected average balances and
other information
ROE (8.3)% (6.3)% (11.4)%
RORC (19.4)% (14.2)% (34.9)%
Specific PCL as a percentage of
average net loans and acceptances 2.80% 2.69% 2.32%
Average loans and acceptances $ 32,400 $ 33,900 $ 33,900
Average deposits 48,200 49,500 51,800
AUA - RBC(2) 7,700 7,400 11,200
- RBC Dexia IS 2,484,400 2,197,500 2,585,000
AUM - RBC(2) 3,800 3,800 3,900
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For the three
months ended
-----------------------
Q4 2009 Q4 2009
Impact of US$ and Euro translation vs. vs.
on selected items Q3 2009 Q4 2008
-------------------------------------------------------------------------
Increased (decreased) total revenue $ (7) $ -
Increased (decreased) PCL (5) (9)
Increased (decreased) non-interest expense (6) (4)
Increased (decreased) net income 3 8
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Percentage change in average US$ equivalent
of C$1.00 3% 3%
Percentage change in average Euro equivalent
of C$1.00 -% (3)%
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(1) RBC Dexia IS and RBTT results are reported on a one-month lag.
(2) These represent the AUA and AUM of RBTT on a one-month lag.
Q4 2009 vs. Q4 2008
Net loss of
Total revenue increased
PCL of
Non-interest expense decreased
Q4 2009 vs. Q3 2009
Net loss of
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CAPITAL MARKETS
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As at or for the three months ended
-------------------------------------
(C$ millions, except percentage October 31 July 31 October 31
amounts) 2009 2009 2008
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Net interest income(1) $ 721 $ 890 $ 568
Non-interest income 1,113 1,224 622
Total revenue(1) $ 1,834 $ 2,114 $ 1,190
PCL $ 220 $ 177 $ 77
Non-interest expense 826 1,085 124
Net income before income taxes and
non-controlling interest in
subsidiaries(1) $ 788 $ 852 $ 989
Net income $ 561 $ 562 $ 584
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Revenue by business
Capital Markets Sales and Trading $ 1,338 $ 1,768 $ 446
Corporate and Investment Banking 496 346 744
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Selected average balances and other
information
ROE 27.9% 26.1% 34.6%
RORC 32.2% 29.9% 40.5%
Average trading securities $ 124,700 $ 118,600 $ 133,600
Specific PCL as a percentage of
average net loans and acceptances 2.63% 1.96% .73%
Average loans and acceptances 33,200 35,900 41,900
Average deposits 91,300 95,000 135,000
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For the three
months ended
-----------------------
Q4 2009 Q4 2009
Impact of US$ and British pound translation on vs. vs.
selected items Q3 2009 Q4 2008
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Increased (decreased) total revenue $ (32) $ (24)
Increased (decreased) non-interest expense (20) (30)
Increased (decreased) net income (6) 5
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Percentage change in average US$ equivalent
of C$1.00 3% 3%
Percentage change in average British pound
equivalent of C$1.00 4% 9%
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(1) Taxable equivalent basis. For further discussion, refer to the How we
measure and report our business segments section on page 16 of our
2009 Annual Report to Shareholders.
Q4 2009 vs. Q4 2008
Net income of
Total revenue of
PCL increased
Non-interest expense increased
Q4 2009 vs. Q3 2009
Net income was flat from the prior quarter mainly reflecting lower trading results, specifically in our U.S.-based equity, global fixed income and money markets trading businesses reflecting reduced market volatility and tightening of bid/ask and credit spreads. Offsetting these factors were total market environment-related gains, as compared to losses of
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CORPORATE SUPPORT
-------------------------------------------------------------------------
As at or for the three months ended
-------------------------------------
October 31 July 31 October 31
(C$ millions) 2009 2009 2008
-------------------------------------------------------------------------
Net interest income(1) $ (132) $ (237) $ (210)
Non-interest income (39) 219 32
Total revenue(1) $ (171) $ (18) $ (178)
PCL(2) 120 23 119
Non-interest expense 25 12 46
Net loss before income taxes and
non-controlling interest in
subsidiaries(1) $ (316) $ (53) $ (343)
Net income (loss) $ (181) $ 90 $ (109)
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Securitization
Total securitizations sold and
outstanding(3) $ 32,685 $ 32,155 $ 19,316
New securitization activity in the
period(4) 1,430 2,330 1,877
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(1) Taxable equivalent basis. For further discussion, refer to the How we
measure and report our business segments section on page 16 of our
2009 Annual Report to Shareholders. These amounts included the
elimination of the adjustments related to the gross-up of income from
Canadian taxable corporate dividends recorded in Capital Markets. The
amount for the three months ended October 31, 2009 was $76 million
(July 31, 2009 - $127 million, October 31, 2008 - $102 million).
(2) PCL in Corporate Support comprises the general provision and an
adjustment related to PCL on securitized credit card loans managed by
Canadian Banking. For further information, refer to the How we
measure and report our business segments section on page 16 of our
2009 Annual Report to Shareholders.
(3) Total securitizations sold and outstanding comprises credit card
loans and residential mortgages.
(4) New securitization activity comprises Canadian residential mortgages
and credit card loans securitized and sold in the year. For further
details, refer to Note 5 to our Consolidated Financial Statements on
page 99 of our 2009 Annual Report to Shareholders. This amount does
not include Canadian residential mortgage and commercial mortgage
securitization activity of Capital Markets.
Q4 2009
Net loss of
Q3 2009
Net income was
Q4 2008
Net loss of
CREDIT QUALITY PERFORMANCE
-------------------------------------------------------------------------
Provision for credit losses
-------------------------------------------------------------------------
For the three months ended
----------------------------
October 31 July 31
(C$ millions) 2009 2009
-------------------------------------------------------------------------
Canadian Banking $ 314 $ 340
International Banking 229 230
Capital Markets 220 177
Corporate Support(2) 120 23
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Canada(1)
Residential mortgages $ 1 $ 5
Personal 125 125
Credit cards 108 107
Small business 13 14
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Retail 247 251
Wholesale 77 193
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Specific PCL 324 444
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United States(1)
Retail 64 56
Wholesale 297 189
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Specific PCL 361 245
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Other International(1)
Retail 9 6
Wholesale 33 14
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Specific PCL 42 20
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Total specific PCL 727 709
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General provision(2) 156 61
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Total PCL(1) $ 883 $ 770
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(1) Geographic information is based on residence of borrower.
(2) PCL in Corporate Support is comprised of the general provision and an
adjustment related to PCL on securitized credit card loans managed by
Canadian Banking. For further information, refer to the How we
measure and report our business segments section on page 16 of our
2009 Annual Report to Shareholders.
Q4 2009 vs. Q3 2009
Total PCL increased
Specific PCL in Canadian Banking decreased
Specific PCL in International Banking of
Specific PCL in Capital Markets was up
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Gross impaired loans
-------------------------------------------------------------------------
As at
------------------------
October 31 July 31
(C$ millions) 2009 2009
-------------------------------------------------------------------------
Canadian Banking(2) $ 1,253 $ 1,204
International Banking(2) 3,149 3,030
Capital Markets(2) 915 757
Corporate Support(2) 140 140
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Canada(1)
Retail $ 673 $ 643
Wholesale 839 716
-------------------------------------------------------------------------
United States(1)
Retail 227 265
Wholesale 3,194 3,002
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Other International(1)
Retail 209 202
Wholesale 315 304
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Total GIL $ 5,457 $ 5,132
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(1) Geographic information is based on residence of borrower.
(2) Segments with significant GIL have been presented in the table above.
Corporate Support includes an amount related to the reclassification
of securities to loans.
Q4 2009 vs. Q3 2009
Total gross impaired loans (GIL) increased
GIL in Canadian Banking increased
GIL in International Banking increased
GIL in Capital Markets increased
Reclassification of Debt Securities to Loans
During 2009, we reclassified certain available-for-sale and held-for-trading debt securities to loans in accordance with the amendments to Canadian Institute of Chartered Accountants (CICA) section 3855. These securities, primarily Non-agency U.S. MBS, that were reclassified were deemed to be in non-active markets and where management has the intention not to sell them in the foreseeable future. For 2009, the impact of the reclassification increased net income by
In the first quarter the impact of these changes increased net income by
In the second and third quarter there was no impact to net income or PCL and the increase in GIL reflects the reclassification in the first quarter.
In the fourth quarter, the impact of these changes increased net income by
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Reclassification of debt securities to loans
-------------------------------------------------------------------------
2009
----------------------------------
Impact of reclassification
----------------------------------
Pre- Post-
reclassi- reclassi- Increase
fication fication (decrease)
-------------------------------------------------------------------------
Gross impaired loans (C$ millions) $ 4,319 $ 5,457 $ 1,138
GIL as a % of loans and acceptances 148 bps 186 bps 38 bps
Total coverage ratio (Total ACL as a %
of GIL) 72% 61% (11)%
Specific PCL as a % of average net
loans and acceptances - 2009 95 bps 97 bps 2 bps
Specific PCL as a % of average net
loans and acceptances - Q4/09 96 bps 100 bps 4 bps
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LOSSES RELATED TO AVAILABLE-FOR-SALE SECURITIES
Losses related to AFS securities in the quarter were
During 2009, we reclassified certain available-for-sale securities to loans in accordance with the amendments to CICA Section 3855. In the fourth quarter, the impact of the reclassification increased PCL by
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Losses related to AFS securities
-------------------------------------------------------------------------
For the three months ended
----------------------------
October 31
(C$ millions) 2009
-------------------------------------------------------------------------
Revenue impacts
Related to market environment $ (187)
Other AFS securities (not included in market environment) (17)
-------------------------------------------------------------------------
$ (204)
Income tax and compensation adjustments 70
-------------------------------------------------------------------------
Revenue impacts, net of income taxes
and related compensation adjustments $ (134)
-------------------------------------------------------------------------
Impact of reclassification of AFS securities (CICA
Section 3855)
Provision for credit losses (PCL) $ (28)
Income tax recoveries 12
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Reclassification impacts, net of income taxes $ (16)
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Total after-tax and related compensation adjustments $ (150)
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KEY PERFORMANCE AND NON-GAAP MEASURES
Additional information about our annual key performance and non-GAAP measures can be found under the "Key performance and non-GAAP measures" section on page 61 of our 2009 Annual Report to Shareholders.
Return on Equity and Return on Risk Capital
We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics such as net income, return on equity (ROE) and return on risk capital (RORC). We use ROE and RORC, at both the consolidated and segment levels, as measures of return on total capital invested in our businesses. The business segment ROE and RORC measures are viewed as useful measures for supporting investment and resource allocation decisions because they adjust for certain items that may affect comparability between business segments and certain competitors. RORC does not have standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions.
Our consolidated ROE calculation is based on net income available to common shareholders divided by total average common equity for the period. Business segment ROE calculations are based on net income available to common shareholders divided by average attributed capital for the period. For each segment, average attributed capital, or Economic Capital, includes attributed risk capital required to underpin various risks as described in the Capital Management section and amounts invested in goodwill and intangibles(1).
RORC is used to measure returns on capital required to support the risks related to ongoing operations. Our RORC calculations are based on net income available to common shareholders divided by attributed risk capital (which excludes goodwill and intangibles and unattributed capital).
The attribution of capital and risk capital involves the use of assumptions, judgments and methodologies that are regularly reviewed and revised by management as necessary. Changes to such assumptions, judgments and methodologies can have a material effect on the segment ROE and RORC information that we report. Other companies that disclose information on similar attributions and related return measures may use different assumptions, judgments and methodologies.
See our 2009 Annual Report to Shareholders for further information. The following table provides a summary of our ROE and RORC calculations.
-------------------------------------------------------------------------
For the three months ended
-------------------------------------------------------------------------
October 31
2009
(C$ millions, ----------------------------------------------------------
except Inter-
percentage Canadian Wealth national Capital
amounts)(1) Banking Management Insurance Banking Markets
-------------------------------------------------------------------------
Net income
available to
common
shareholders $ 702 $ 153 $ 101 $ (138) $ 545
-------------------------------------------------------------------------
Average risk
capital(2) $ 5,500 $ 1,150 $ 1,050 $ 2,850 $ 6,700
add:
Under/(over)
attribution
of capital - - - - -
Goodwill and
intangible
capital(3) 2,000 2,700 200 3,800 1,050
-------------------------------------------------------------------------
Average
equity(4) $ 7,500 $ 3,850 $ 1,250 $ 6,650 $ 7,750
-------------------------------------------------------------------------
ROE 37.0% 15.8% 32.3% (8.3)% 27.9%
RORC 50.5% 53.3% 37.7% (19.4)% 32.2%
-------------------------------------------------------------------------
-------------------------------------------------------------
For the three For the three
months ended months ended
------------------------------------- ----------------------
October 31 July 31 October 31
2009 2009 2008
(C$ millions, ----------------------- ----------------------
except
percentage Corporate
amounts)(1) Support Total Total Total(2)
------------------------------------- ----------------------
Net income
available to
common
shareholders $ (190) $ 1,173 $ 1,488 $ 1,093
------------------------------------- ----------------------
Average risk
capital(2) $ 1,250 $ 18,500 $ 18,800 $ 16,500
add: Under/
(over)
attribution
of capital 3,350 3,350 1,150 50
Goodwill and
intangible
capital(3) - 9,750 10,450 10,550
------------------------------------- ----------------------
Average
equity(4) $ 4,600 $ 31,600 $ 30,400 $ 27,100
-------------------------------------------------------------
ROE n.m. 14.7% 19.4% 16.1%
RORC n.m. 26.0% 31.4% 26.3%
--------------------------------------------------------------
(1) Average risk capital, Goodwill and intangible capital, and Average
common equity represent rounded figures. ROE and RORC are annualized
measures based on actual balances before rounding. These are
calculated using methods intended to approximate the average of the
daily balances for the period.
(2) Average risk capital includes Credit, Market (trading and non-
trading), Operational and Business and fixed assets, and Insurance
risk capital. For further details, refer to the Capital management
section on page 48 of our 2009 Annual Report to Shareholders.
(3) Corporate Support includes average software intangible assets as
certain software was reclassified to intangible assets, with the
adoption of CICA handbook Section 3064 effective in the first quarter
of 2009. For further details, refer to the Accounting and control
matters section on page 63 of our 2009 Annual Report to Shareholders.
(4) The amounts for the segments are referred to as attributed capital or
Economic Capital.
n.m. not meaningful
Non-GAAP measures
Given the nature and purpose of our management reporting framework, we use and report certain non-GAAP financial measures, which are not defined nor do they have a standardized meaning under GAAP. As a result, these reported amounts and related ratios are not necessarily comparable with similar information disclosed by other financial institutions.
Cash Measures
We believe that excluding the goodwill impairment charge in Q2 2009 and the after-tax impact of amortization of other intangibles from net income will provide readers with a better understanding of management's perspective on our performance. The calculation of these measures can be found in the following table and may also enhance the comparability of our financial performance with the corresponding prior periods.
-------------------------------------------------------------------------
(C$ millions,
except per For the three months ended For the year ended
share and ---------------------------------- -----------------------
percentage October 31 July 31 October 31 October 31 October 31
amounts) 2009 2009 2008 2009 2008
-------------------------------------------------------------------------
Net income $ 1,237 $ 1,561 $ 1,120 $ 3,858 $ 4,555
add:
Goodwill
impairment
charge - - - 1,000 -
After-tax
effect of
amortization
of other
intangibles(1) 41 41 37 176 122
-------------------------------------------------------------------------
Cash net
income $ 1,278 $ 1,602 $ 1,157 $ 5,034 $ 4,677
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted
earnings per
share(2) $ .82 $ 1.05 .81 $ 2.57 $ 3.38
add:
Impact of
goodwill
impairment
charge - - - .71 -
After-tax
effect of
amortization
of other
intangibles(1) .03 .03 .03 .12 .09
-------------------------------------------------------------------------
Cash diluted
earnings per
share(2) $ .85 $ 1.07 .84 $ 3.40 $ 3.47
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ROE(2) 14.7% 19.4% 16.1% 11.9% 18.1%
Cash ROE(2) 14.5% 19.0% 16.4% 15.2% 18.3%
-------------------------------------------------------------------------
(1) Excludes the amortization of computer software intangibles.
(2) Based on actual balances before rounding.
Net income and EPS excluding certain items
We believe that excluding the items noted below from current quarter net income which were incurred, will provide readers with a better understanding of management's perspective on our Q4 2009 performance.
-------------------------------------------------------------------------
(C$ millions, except per For the three months ended October 31, 2009
share and percentage -----------------------------------------------
amounts) Revenue PCL Net income Diluted EPS
-------------------------------------------------------------------------
Amounts as reported $ 7,459 $ 883 $ 1,237 $ .82
Add:
Related to market
environment(1) 187 - 123 .09
Other AFS portfolios
(other than market
environment)(1) 17 - 11 .01
Reclassification - PCL
related to Section
3855(1) 28 16 .01
-------------------------------------------------------------------------
Losses related to AFS
securities $ 204 $ 28 $ 150 $ .11
General PCL - 156 104 .07
Provision related to
restructuring certain
Caribbean mutual funds 52 - 39 .03
-------------------------------------------------------------------------
Total excluding items
impacting net income $ 7,715 $ 1,067 $ 1,530 $ 1.03
-------------------------------------------------------------------------
(1) Refer to Losses on AFS securities on page 12 for further information.
-------------------------------------------------------------------------
Consolidated Balance Sheets
-------------------------------------------------------------------------
October 31 July 31 October 31
2009 2009 2008
(C$ millions) (1),(2) (2),(4) (1),(2),(3)
-------------------------------------------------------------------------
Assets
Cash and due from banks $ 8,353 $ 7,966 $ 11,086
-------------------------------------------------------------------------
Interest-bearing deposits with banks 8,923 8,647 20,041
-------------------------------------------------------------------------
Securities
Trading 140,062 135,769 122,508
Available-for-sale 46,210 47,023 48,626
-------------------------------------------------------------------------
186,272 182,792 171,134
-------------------------------------------------------------------------
Assets purchased under reverse
repurchase agreements and securities
borrowed 41,580 43,652 44,818
-------------------------------------------------------------------------
Loans
Retail 205,224 198,999 195,455
Wholesale 78,927 81,140 96,300
-------------------------------------------------------------------------
284,151 280,139 291,755
Allowance for loan losses (3,188) (2,987) (2,215)
-------------------------------------------------------------------------
280,963 277,152 289,540
-------------------------------------------------------------------------
Other
Customers' liability under acceptances 9,024 9,155 11,285
Derivatives 92,173 101,086 136,134
Premises and equipment, net(5) 2,367 2,312 2,471
Goodwill 8,368 8,313 9,977
Other intangibles(5) 2,033 2,038 2,042
Other assets 14,933 17,020 25,331
-------------------------------------------------------------------------
128,898 139,924 187,240
-------------------------------------------------------------------------
$ 654,989 $ 660,133 $ 723,859
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and shareholders' equity
Deposits
Personal $ 152,328 $ 148,670 $ 139,036
Business and government 220,772 224,081 269,994
Bank 25,204 31,957 29,545
-------------------------------------------------------------------------
398,304 404,708 438,575
-------------------------------------------------------------------------
Other
Acceptances 9,024 9,155 11,285
Obligations related to securities
sold short 41,359 40,701 27,507
Obligations related to assets sold
under repurchase agreements and
securities loaned 35,150 30,423 32,053
Derivatives 84,390 91,963 128,705
Insurance claims and policy benefit
liabilities 8,922 8,255 7,385
Other liabilities 31,007 29,105 35,809
-------------------------------------------------------------------------
209,852 209,602 242,744
-------------------------------------------------------------------------
Subordinated debentures 6,461 6,486 8,131
-------------------------------------------------------------------------
Trust capital securities 1,395 1,395 1,400
-------------------------------------------------------------------------
Non-controlling interest in subsidiaries 2,071 2,135 2,371
-------------------------------------------------------------------------
Shareholders' equity
Preferred shares 4,813 4,813 2,663
Common shares (shares issued -
1,417,609,720; 1,412,234,729; and
1,341,260,229) 13,075 12,864 10,384
Contributed surplus 246 238 242
Treasury shares
- preferred (shares held - 64,600;
29,800; and 259,700) (2) (1) (5)
- common (shares held - 2,126,699;
2,113,099; and 2,258,047) (95) (97) (104)
Retained earnings 20,585 20,120 19,816
Accumulated other comprehensive
(loss) income (1,716) (2,130) (2,358)
-------------------------------------------------------------------------
36,906 35,807 30,638
-------------------------------------------------------------------------
$ 654,989 $ 660,133 $ 723,859
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Opening retained earnings as at November 1, 2006 has been restated.
Refer to 'Accounting adjustments' in Note 1 to our 2009 Annual
Consolidated Financial Statements.
(2) Opening retained earnings as at November 1, 2008 has been restated
due to the implementation of amendments to CICA Section 3855. Refer
to Note 1 to our 2009 Annual Consolidated Financial Statements.
(3) Derived from audited financial statements.
(4) Unaudited.
(5) Comparative information has been reclassified as a result of adopting
CICA Handbook Section 3064. Refer to Note 1 to our 2009 Annual
Consolidated Financial Statements.
-------------------------------------------------------------------------
Consolidated Statements of Income
-------------------------------------------------------------------------
For the three months ended(1) For they year ended(2)
-------------------------------- ----------------------
October 31 July 31 October 31 October 31 October 31
(C$ millions) 2009 2009 2008 2009 2008
--------------------------------------------------- ---------------------
Interest income
Loans $ 3,350 $ 3,259 $ 3,843 $ 13,504 $ 14,983
Securities 1,276 1,367 1,631 5,946 6,662
Assets purchased
under reverse
repurchase
agreements and
securities
borrowed 126 170 586 931 2,889
Deposits with
banks 14 19 128 162 498
--------------------------------------------------- ---------------------
4,766 4,815 6,188 20,543 25,032
--------------------------------------------------- ---------------------
Interest expense
Deposits 1,288 1,424 2,792 6,762 12,158
Other liabilities 516 420 666 1,925 3,472
Subordinated
debentures 86 71 101 350 354
--------------------------------------------------- ---------------------
1,890 1,915 3,559 9,037 15,984
--------------------------------------------------- ---------------------
Net interest income 2,876 2,900 2,629 11,506 9,048
--------------------------------------------------- ---------------------
Non-interest income
Insurance premiums,
investment and fee
income 1,565 1,575 111 5,718 2,609
Trading revenue 910 1,027 (446) 2,671 (96)
Investment
management and
custodial fees 424 392 449 1,619 1,759
Mutual fund
revenue 320 335 387 1,293 1,561
Securities
brokerage
commissions 345 337 390 1,358 1,377
Service charges 388 387 371 1,556 1,367
Underwriting and
other advisory
fees 339 299 253 1,050 875
Foreign exchange
revenue, other
than trading 179 163 165 638 646
Card service
revenue 165 185 182 732 648
Credit fees 133 151 124 530 415
Securitization
revenue 177 179 171 1,169 461
Net loss on
available-for
-sale securities (192) (125) (372) (630) (617)
Other (170) 18 655 (104) 1,529
--------------------------------------------------- ---------------------
Non-interest
income 4,583 4,923 2,440 17,600 12,534
--------------------------------------------------- ---------------------
Total revenue 7,459 7,823 5,069 29,106 21,582
--------------------------------------------------- ---------------------
Provision for
credit losses 883 770 619 3,413 1,595
--------------------------------------------------- ---------------------
Insurance
policyholder
benefits, claims
and acquisition
expense 1,322 1,253 (86) 4,609 1,631
--------------------------------------------------- ---------------------
Non-interest
expense
Human resources 2,142 2,357 1,954 8,978 7,779
Equipment(3) 235 262 270 1,025 934
Occupancy 267 260 249 1,045 926
Communications 196 192 230 761 749
Professional
fees 170 133 169 559 562
Outsourced item
processing 72 75 105 301 341
Amortization of
other
intangibles(3) 123 113 109 462 356
Other 401 363 (97) 1,427 704
--------------------------------------------------- ---------------------
3,606 3,755 2,989 14,558 12,351
--------------------------------------------------- ---------------------
Goodwill impairment
charge - - - 1,000 -
--------------------------------------------------- ---------------------
Income before
income taxes 1,648 2,045 1,547 5,526 6,005
Income taxes 389 449 428 1,568 1,369
--------------------------------------------------- ---------------------
Net income before
non-controlling
interest 1,259 1,596 1,119 3,958 4,636
Non-controlling
interest in net
income of
subsidiaries 22 35 (1) 100 81
--------------------------------------------------- ---------------------
Net income $ 1,237 $ 1,561 $ 1,120 $ 3,858 $ 4,555
--------------------------------------------------- ---------------------
--------------------------------------------------- ---------------------
Preferred
dividends (64) (73) (27) (233) (101)
--------------------------------------------------- ---------------------
Net income
available to
common
shareholders $ 1,173 $ 1,488 $ 1,093 $ 3,625 $ 4,454
--------------------------------------------------- ---------------------
--------------------------------------------------- ---------------------
Average number
of common
shares (in
thousands) 1,413,644 1,408,687 1,337,753 1,398,675 1,305,706
Basic earnings
per share (in
dollars) $ .83 $ 1.06 $ .82 $ 2.59 $ 3.41
Average number
of diluted
common shares
(in thousands) 1,428,409 1,422,810 1,353,588 1,412,126 1,319,744
Diluted earnings
per share $ .82 $ 1.05 $ .81 $ 2.57 $ 3.38
--------------------------------------------------- ---------------------
Dividends per
share (in
dollars) $ .50 $ .50 $ .50 $ 2.00 $ 2.00
--------------------------------------------------- ---------------------
(1) Unaudited.
(2) Derived from audited financial statements.
(3) Comparative information has been reclassified as a result of adopting
CICA Handbook Section 3064. Refer to Note 1 to our 2009 Annual
Consolidated Financial Statements.
-------------------------------------------------------------------------
Consolidated Statements of Comprehensive Income
-------------------------------------------------------------------------
For the three months ended(1) For they year ended(2)
-------------------------------- ----------------------
October 31 July 31 October 31 October 31 October 31
(C$ millions) 2009 2009 2008 2009 2008
-------------------------------------------------------------------------
Comprehensive
income
Net income $ 1,237 $ 1,561 $ 1,120 $ 3,858 $ 4,555
Other
comprehensive
income, net of
taxes
Net unrealized
gains (losses)
on available-
for-sale
securities 309 603 (923) 662 (1,376)
Reclassification
of losses on
available-for-
sale securities
to income 134 74 252 330 373
-------------------------------------------------------------------------
Net change in
unrealized
gains (losses)
on available-for-
sale securities 443 677 (671) 992 (1,003)
-------------------------------------------------------------------------
Unrealized
foreign currency
translation
gains (losses) 103 (2,444) 3,581 (2,973) 5,080
Reclassification
of losses (gains)
on foreign
currency
translation to
income - 1 - 2 (3)
Net foreign
currency
translation
(losses) gains
from hedging
activities (124) 1,929 (1,678) 2,399 (2,672)
-------------------------------------------------------------------------
Foreign currency
translation
adjustments (21) (514) 1,903 (572) 2,405
-------------------------------------------------------------------------
Net gains
(losses) on
derivatives
designated as
cash flow hedges 5 116 (125) 156 (603)
Reclassification
of (gains)
losses on
derivatives
designated as
cash flow hedges
to income (13) (13) 36 (38) 49
-------------------------------------------------------------------------
Net change in
cash flow hedges (8) 103 (89) 118 (554)
-------------------------------------------------------------------------
Other
comprehensive
income (loss) 414 266 1,143 538 848
-------------------------------------------------------------------------
Total comprehensive
income $ 1,651 $ 1,827 $ 2,263 $ 4,396 $ 5,403
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statements of Changes in Shareholders' Equity
-------------------------------------------------------------------------
October 31 July 31 October 31 October 31 October 31
(C$ millions) 2009(3) 2009(3) 2008(3) 2009(3) 2008(3)
-------------------------------------------------------------------------
Preferred shares
Balance at
beginning of
period $ 4,813 $ 4,813 $ 2,263 $ 2,663 $ 2,050
Issued - - 400 2,150 613
-------------------------------------------------------------------------
Balance at end
of period 4,813 4,813 2,663 4,813 2,663
-------------------------------------------------------------------------
Common shares
Balance at
beginning of
period 12,864 12,730 10,308 10,384 7,300
Issued 211 134 76 2,691 3,090
Purchased for
cancellation - - - - (6)
-------------------------------------------------------------------------
Balance at end
of period 13,075 12,864 10,384 13,075 10,384
-------------------------------------------------------------------------
Contributed
surplus
Balance at
beginning of
period 238 239 251 242 235
Renounced stock
appreciation
rights (2) (2) (3) (7) (5)
Stock-based
compensation
awards - (3) 4 (11) 14
Other 10 4 (10) 22 (2)
-------------------------------------------------------------------------
Balance at end
of period 246 238 242 246 242
-------------------------------------------------------------------------
Treasury shares
- preferred
Balance at
beginning of
period (1) (2) (10) (5) (6)
Sales 3 3 10 13 23
Purchases (4) (2) (5) (10) (22)
-------------------------------------------------------------------------
Balance at end
of period (2) (1) (5) (2) (5)
-------------------------------------------------------------------------
Treasury shares
- common
Balance at
beginning of
period (97) (78) (98) (104) (101)
Sales 5 15 - 59 51
Purchases (3) (34) (6) (50) (54)
-------------------------------------------------------------------------
Balance at end
of period (95) (97) (104) (95) (104)
-------------------------------------------------------------------------
Retained earnings
Balance at
beginning of
period(3) 20,120 19,352 19,397 19,816 18,047
Transition
adjustment -
Financial
instruments(4) - - - 66 -
Net income 1,237 1,561 1,120 3,858 4,555
Preferred share
dividends (64) (73) (27) (233) (101)
Common share
dividends (708) (705) (670) (2,819) (2,624)
Premium paid on
common shares
purchased for
cancellation - - - - (49)
Issuance costs
and other - (15) (4) (103) (12)
-------------------------------------------------------------------------
Balance at end
of period 20,585 20,120 19,816 20,585 19,816
-------------------------------------------------------------------------
Accumulated other
comprehensive
(loss) income
Transition
adjustment -
Financial
instruments 59 59 (45) 59 (45)
Unrealized
gains and
losses on
available-for-
sale securities (76) (519) (1,068) (76) (1,068)
Unrealized
foreign
currency
translation
gains and
losses, net of
hedging
activities (1,374) (1,353) (802) (1,374) (802)
Gains and losses
on derivatives
designated as
cash flow hedges (325) (317) (443) (325) (443)
-------------------------------------------------------------------------
Balance at end
of period (1,716) (2,130) (2,358) (1,716) (2,358)
-------------------------------------------------------------------------
Retained earnings
and Accumulated
other comprehensive
income 18,869 17,990 17,458 18,869 17,458
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders'
equity at end of
period $ 36,906 $ 35,807 $ 30,638 $ 36,906 $ 30,638
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Unaudited.
(2) Derived from audited financial statements.
(3) Opening retained earnings as at November 1, 2006 has been restated.
Refer to 'Accounting adjustments' in Note 1 to our 2009 Annual
Consolidated Financial Statements.
(4) Opening retained earnings as at November 1, 2008 has been restated
due to the implementation of amendments to CICA Section 3855. Refer
to Note 1 to our 2009 Annual Consolidated Financial Statements.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the
By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our objectives, strategic goals and priorities will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors - many of which are beyond our control and the effects of which can be difficult to predict - include: credit, market, operational, liquidity and funding risks, and other risks discussed in the Risk, capital and liquidity management, and Overview of other risks sections of our 2009 Management's Discussion and Analysis; general business, economic and financial market conditions, including the ongoing impact from the market environment, the lack of liquidity in certain markets, the level of activity and volatility of the capital markets and including recessionary conditions in
We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.
Additional information about these and other factors can be found in the Risk, capital and liquidity management and Overview of other risks sections of our 2009 Management's Discussion and Analysis.
Information contained in or otherwise accessible through the websites mentioned does not form part of this earnings release. All references in this earnings release to websites are inactive textual references and are for your information only.
ACCESS TO QUARTERLY RESULTS MATERIALS
Interested investors, the media and others may review this quarterly earnings release, quarterly results slides, supplementary financial information and our 2009 Annual Report to Shareholders, Annual Report on Form 40-F (Form 40-F) and Annual Information Form on our website at rbc.com/investorrelations. Shareholders may request a hard copy of our 2009 Annual Report and 2009 Form 40-F free of charge by contacting Investor Relations at (416) 955-7802. Our 2009 Form 40-F will be filed with the SEC.
Quarterly conference call and webcast presentation
Our conference call is scheduled for
Interested parties can access the call live on a listen-only basis at: www.rbc.com/investorrelations/ir_events_presentations.html or by telephone (416-695-7806 or 1-888-789-9572, passcode 4720565 followed by the number sign). Please call between
Management's comments on results will be posted on our website shortly following the call. Also, a recording will be available by
ABOUT RBC
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