Royal Bank of Canada Reports Fourth Quarter and 2019 Results

All amounts are in Canadian dollars and are based on our audited Annual and unaudited Interim Consolidated Financial Statements for the year and quarter ended October 31, 2019 and related notes prepared in accordance with International Financial Reporting Standards (IFRS). Our 2019 Annual Report (which includes our audited Annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2019 Annual Information Form and our Supplementary Financial Information are available on our website at: http://www.rbc.com/investorrelations.

2019 Net Income $12.9 Billion Record earnings

2019 Diluted EPS^1 $8.75 Solid 5% growth YoY

2019 ROE^2 16.8% Balanced capital deployment

CET1 Ratio 12.1% Robust capital levels

TORONTO, Dec. 4, 2019 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $12,871 million for the year ended October 31, 2019, up $440 million or 4% from the prior year, with diluted EPS¹ growth of 5%. Results reflected strong earnings growth in Personal & Commercial Banking and Wealth Management as we continued to leverage our scale and unique client value proposition to drive strong client-driven volumes. Solid results in Insurance were mainly driven by the impact of new longevity reinsurance contracts. These were partially offset by lower earnings in Investor & Treasury Services, primarily due to lower funding and liquidity revenue and severance and related costs associated with repositioning of the business, and in Capital Markets, due to a challenging market environment. Our results also reflect an increase due to foreign exchange translation. Provisions for credit losses (PCL) ratio on loans of 31 basis points (bps) increased by 8 bps from the prior year and the PCL on impaired loans ratio was 27 bps.

Our capital position remained robust with a Common Equity Tier 1 (CET1) ratio of 12.1%, up 60 bps from the prior year. In addition, we increased our quarterly dividend twice during 2019, for an annual dividend increase of 8%. In 2019, we repurchased 10.3 million shares for $1 billion.

"Against a challenging macroeconomic environment, we delivered solid results in 2019 and maintained a leading return on equity, a testament to the strength of our diversified business model, and the power of our Purpose to engage employees on our journey to transform the bank for the future. We have been investing significantly in talent, technology and our trusted global brand to offer differentiated advice and experiences across our businesses, and believe this positions us well to continue delivering long-term sustainable value for our clients, communities and shareholders."

– Dave McKay, RBC President and Chief Executive Officer

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¹ Earnings per share (EPS). 

² Return on Equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key Performance and non-GAAP measures section on page 11 of this Earnings Release.

2019 Full Year Business Segment Performance

• 6% earnings growth in Personal & Commercial Banking, mainly due to average volume growth of 7% (average loan growth in Canadian Banking: +6% residential mortgages and +11% business loans; average deposits growth: +9% in both business and personal deposits) and higher spreads as higher interest rates more than offset the impact of competitive pricing pressures. These factors were partially offset by higher PCL. PCL on impaired loans ratio increased 4 bps, largely reflecting higher provisions on impaired loans in Canadian Banking. We generated positive operating leverage of 2.4%, while continuing to invest in the business to create more value for our >14 million Personal & Commercial Banking clients and build new client relationships. Higher staff-related costs were in part due to the addition of commercial account managers and investment advisors to deliver more advice and insights to our clients. We also continued our investments in technology, including in digital solutions for both our personal and business banking clients.
  
  
• 13% earnings growth in Wealth Management, mainly due to higher average fee-based client assets reflecting market appreciation and net sales benefiting from our scale, talent and infrastructure advantage, as well as higher net interest income driven by average volume growth at City National Bank, which continued to add both teams and offices in key locations such as New York City and Washington D.C. Net income also included a gain on the sale of the private debt business of BlueBay ($134 million after-tax). These factors were partially offset by increased costs in support of business growth, higher variable compensation commensurate with revenue growth and higher PCL.
  
  
• 4% earnings growth in Insurance, mainly due to the impact of new longevity reinsurance contracts, partially offset by higher claims costs.
  
  
• 36% lower earnings in Investor & Treasury Services, primarily due to lower funding and liquidity revenue driven by the short-term interest rate environment and lower gains from the disposition of certain securities, as well as severance and related costs ($83 million after-tax) associated with repositioning of the business. Lower revenue from our asset services business largely driven by secular industry trends, also contributed to the decrease.
  
  
• 4% lower earnings in Capital Markets, as Corporate and Investment Banking revenue saw headwinds from challenging market conditions driving lower industry-wide investment banking activity. Higher PCL and higher technology and related costs also contributed to the decrease. These factors were partially offset by a lower effective tax rate, largely reflecting changes in earnings mix, higher revenue in Global Markets and the impact of foreign exchange translation. Despite a challenging market environment, RBC Capital Markets^® continues to be well positioned as a premier global investment bank. We have been successful in winning more and higher quality mandates, increasing our ranking to top 10 in U.S. M&A advisory for announced transactions, our highest ranking achieved to date.

Q4 2019 Performance
Earnings of $3,206 million were down $44 million or 1% from a year ago, due to lower results in Investor & Treasury Services, Capital Markets, Insurance and Corporate Support. These were partially offset by higher earnings in Wealth Management and Personal & Commercial Banking.

Earnings were down $57 million or 2% from last quarter, due to lower earnings in Investor & Treasury Services, Capital Markets, Personal & Commercial Banking and Corporate Support. These were partially offset by higher earnings in Wealth Management and Insurance.

Q4 2019 compared to Q4 2018	•	Net income of $3,206 million	↓	1%
	•	Diluted EPS^1 of $2.18	↓	1%
	•	ROE^2 of 16.2%	↓	140 bps
	•	CET1 ratio of 12.1%	↑	60 bps
Q4 2019 compared to Q3 2019	•	Net income of $3,206 million	↓	2%
	•	Diluted EPS^1 of $2.18	↓	2%
	•	ROE^2 of 16.2%	↓	50 bps
	•	CET1 ratio of 12.1%	↑	20 bps

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¹ Earnings per share (EPS). 

² Return on Equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key Performance and non-GAAP measures section on page 11 of this Earnings Release.

Q4 2019 Business Segment Performance

Personal & Commercial Banking

Net income of $1,618 million increased $80 million or 5% from a year ago, mainly due to average volume growth of 6% in loans and 10% in deposits in Canadian Banking, benefiting from solid housing activity, our growing client-facing sales force as well as a favourable interest rate environment. These factors were partially offset by higher PCL. Total PCL increased $70 million or 22%. PCL on impaired loans ratio increased 4 bps, largely driven by higher provisions on impaired loans in Canadian Banking portfolios.

Compared to last quarter, net income decreased $46 million or 3%. Higher net interest income driven by average volume growth of 2%, partially offset by lower spreads, was more than offset by higher PCL and the timing of professional fees.

Wealth Management

Net income of $729 million increased $176 million or 32% from a year ago, mainly due to a gain on the sale of the private debt business of BlueBay ($134 million after-tax) as well as higher average fee-based client assets reflecting market appreciation and industry-leading net sales in Canada.

Compared to last quarter, net income increased $90 million or 14%, largely due to a gain on the sale of the private debt business of BlueBay and higher average fee-based client assets reflecting market appreciation and net sales. These factors were partially offset by a decrease in net interest income driven by lower spreads (mainly at City National Bank), increased costs in support of business growth and higher variable compensation commensurate with revenue growth.

Insurance

Net income of $282 million decreased $36 million or 11% from a year ago, primarily due to lower favourable reinsurance contract renegotiations and lower favourable annual actuarial assumption updates. Higher claims costs and lower favourable investment-related experience also contributed to the decrease. These factors were partially offset by the impact of new longevity reinsurance contracts.

Compared to last quarter, net income increased $78 million or 38%, primarily due to the impact of new longevity reinsurance contracts and favourable reinsurance contract renegotiations in the current quarter, partially offset by lower favourable investment-related experience.

Investor & Treasury Services

Net income of $45 million decreased $110 million or 71% from a year ago, primarily due to severance and related costs associated with repositioning of the business ($83 million after-tax), as well as lower funding and liquidity revenue driven by the short-term rate environment. Lower revenue from our asset services business due to reduced client activity and lower deposit margins also contributed to the decrease.

Compared to last quarter, net income decreased $73 million or 62%, mainly driven by severance and related costs associated with repositioning of the business.

Capital Markets

Net income of $584 million decreased $82 million or 12% from a year ago, largely driven by lower revenue in Corporate and Investment Banking, partly due to lower global investment banking fee pools and higher PCL. These factors were partially offset by a lower effective tax rate, largely reflecting changes in earnings mix. Global Markets generated higher revenue despite heightened market uncertainty.

Compared to last quarter, net income decreased $69 million or 11%, mainly due to lower M&A revenues, primarily in the U.S., lower equity origination, largely in the U.S. and Europe, as well as higher costs related to changes in the timing of deferred compensation. Lower fixed income trading, mainly in the U.S., and higher PCL also contributed to the decrease. These factors were partially offset by a lower effective tax rate, higher foreign exchange trading revenue, mainly in Europe, higher debt origination, largely in the U.S., and higher municipal banking activity.

Corporate Support

Net loss was $52 million in the current quarter, largely due to impact of an unfavourable accounting adjustment. Net loss was $15 million in the prior quarter, mainly due to net unfavourable tax adjustments, largely offset by asset/liability management activities. Net income was $20 million in the prior year, largely reflecting net favourable tax adjustments.

Capital and Credit Quality

Capital – As at October 31, 2019, Basel III CET1 ratio was 12.1%, up 20 bps from last quarter, mainly reflecting internal capital generation which was partially offset by higher risk-weighted assets due to continued business growth, and share buybacks. We continued to deliver a strong return of capital to shareholders with $2 billion returned to shareholders in the fourth quarter, including $474 million of net repurchases.

Credit Quality – Total PCL was $499 million. PCL on loans of $505 million increased $172 million or 52% from a year ago, due to higher provisions in Personal & Commercial Banking, Capital Markets and Wealth Management, as we returned to a more normalized level of credit losses towards the end of 2019. The PCL ratio on loans of 32 bps increased by 9 bps and the PCL on impaired loans ratio was 27 bps.

Total PCL in Personal & Commercial Banking increased $70 million or 22% from a year ago. PCL on impaired loans ratio increased 4 bps, largely driven by higher provisions on impaired loans in our Canadian Banking commercial portfolios and retail portfolios.

Total PCL in Wealth Management increased $30 million from a year ago. PCL on impaired loans ratio increased 17 bps, largely driven by higher provisions on impaired loans in U.S. Wealth Management (including City National), mainly in the consumer discretionary sector.

Total PCL in Capital Markets increased $46 million from a year ago. PCL on impaired loans ratio increased 17 bps, driven by higher provisions on impaired loans in the industrial products and oil & gas sectors.

Compared to last quarter, total PCL on loans increased $76 million or 18%, mainly due to higher provisions in Personal & Commercial Banking and Capital Markets. The PCL ratio on loans was up 5 bps and the PCL on impaired loans ratio was up 2 bps from last quarter.

PCL on loans in Personal & Commercial Banking increased $48 million from the prior quarter, reflecting higher provisions on performing loans largely in Canadian Banking, mainly driven by unfavourable changes in portfolio mix, partially offset by favourable changes in macroeconomic factors and model updates. Higher provisions on impaired loans in Canadian Banking, partially offset by lower provisions on impaired loans in Caribbean Banking, also contributed to the increase.

PCL on loans in Capital Markets increased $22 million from the prior quarter, driven by higher provisions on performing loans due to unfavourable changes in portfolio mix. Higher provisions on impaired loans also contributed to the increase.

Digitally Enabled Relationship Bank

90-day Active Mobile users increased 16% from a year ago to 4.5 million, resulting in a 20% increase in mobile sessions. Digital adoption increased to 52%.

In September 2019, RBC announced the launch of the RBC Insight Edge™ platform for its business banking clients across Canada. RBC Insight Edge™ is a first-of-its-kind Canadian platform that RBC advisors will use to provide clients with relevant insights about their industry performance, customers, and markets. RBC Insight Edge™ leverages the bank's expertise in information management and insight development which is safeguarded by rigorous privacy standards to help business owners and managers turn insights into actions that improve client loyalty and productivity and drive growth.

Selected financial and other highlights
			As at or for the three months ended							For the year ended
(Millions of Canadian dollars, except per share, number of and percentage amounts)				October 31 2019		July 31 2019		October 31 2018			October 31 2019		October 31 2018
	Total revenue		$	11,370	$	11,544	$	10,669		$	46,002	$	42,576
	Provision for credit losses (PCL)			499		425		353			1,864		1,307
	Insurance policyholder benefits, claims and acquisition expense (PBCAE)			654		1,046		494			4,085		2,676
	Non-interest expense			6,319		5,992		5,882			24,139		22,833
	Income before income taxes			3,898		4,081		3,940			15,914		15,760
Net income			$	3,206	$	3,263	$	3,250		$	12,871	$	12,431
Segments - net income
	Personal & Commercial Banking		$	1,618	$	1,664	$	1,538		$	6,402	$	6,028
	Wealth Management			729		639		553			2,550		2,265
	Insurance			282		204		318			806		775
	Investor & Treasury Services			45		118		155			475		741
	Capital Markets			584		653		666			2,666		2,777
	Corporate Support			(52)		(15)		20			(28)		(155)
Net income			$	3,206	$	3,263	$	3,250		$	12,871	$	12,431
Selected information
	Earnings per share (EPS)	- basic	$	2.19	$	2.23	$	2.21		$	8.78	$	8.39
		- diluted		2.18		2.22		2.20			8.75		8.36
	Return on common equity (ROE)  (1) (2)			16.2%		16.7%		17.6%			16.8%		17.6%
	Average common equity(1)		$	76,600	$	75,800	$	71,700		$	75,000	$	68,900
	Net interest margin (NIM) - on average earning assets, net (3)			1.60%		1.61%		1.65%			1.61%		1.64%
	PCL on loans as a % of average net loans and acceptances			0.32%		0.27%		0.23%			0.31%		0.23%
	PCL on performing loans as a % of average net loans and acceptances			0.05%		0.02%		0.03%			0.04%		0.03%
	PCL on impaired loans as a % of average net loans and acceptances			0.27%		0.25%		0.20%			0.27%		0.20%
	Gross impaired loans (GIL) as a % of loans and acceptances			0.46%		0.47%		0.37%			0.46%		0.37%
	Liquidity coverage ratio (LCR) (4)			127%		122%		123%			127%		123%
Capital ratios and Leverage ratio
	Common Equity Tier 1 (CET1) ratio			12.1%		11.9%		11.5%			12.1%		11.5%
	Tier 1 capital ratio			13.2%		13.0%		12.8%			13.2%		12.8%
	Total capital ratio			15.2%		15.0%		14.6%			15.2%		14.6%
	Leverage ratio			4.3%		4.4%		4.4%			4.3%		4.4%
Selected balance sheet and other information (5)
	Total assets		$	1,428,935	$	1,406,902	$	1,334,734		$	1,428,935	$	1,334,734
	Securities, net of applicable allowance			249,004		240,661		222,866			249,004		222,866
	Loans, net of allowance for loan losses			618,856		612,393		576,818			618,856		576,818
	Derivative related assets			101,560		98,774		94,039			101,560		94,039
	Deposits (3)			886,005		880,239		836,197			886,005		836,197
	Common equity			77,816		76,550		73,552			77,816		73,552
	Total capital risk-weighted assets			512,856		510,664		496,459			512,856		496,459
	Assets under management (AUM)			762,300		744,800		671,000			762,300		671,000
	Assets under administration (AUA) (6)			5,678,000		5,588,600		5,533,700			5,678,000		5,533,700
Common share information
	Shares outstanding (000s)	- average basic		1,432,685		1,434,276		1,440,207			1,434,779		1,443,894
		- average diluted		1,438,257		1,440,130		1,446,514			1,440,682		1,450,485
		- end of period		1,430,096		1,433,954		1,438,794			1,430,096		1,438,794
	Dividends declared per common share		$	1.05	$	1.02	$	0.98		$	4.07	$	3.77
	Dividend yield (7)			4.0%		3.9%		3.8%			4.1%		3.7%
	Common share price (RY on TSX) (8)		$	106.24	$	104.22	$	95.92		$	106.24	$	95.92
	Market capitalization (TSX) (8)			151,933		149,447		138,009			151,933		138,009
Business information (number of)
	Employees (full-time equivalent) (FTE)			82,801		84,087		81,870			82,801		81,870
	Bank branches			1,327		1,328		1,333			1,327		1,333
	Automated teller machines (ATMs)			4,600		4,586		4,537			4,600		4,537
Period average US$ equivalent of C$1.00 (9)			$	0.755	$	0.754	$	0.767		$	0.752	$	0.776
Period-end US$ equivalent of C$1.00			$	0.759	$	0.757	$	0.760		$	0.759	$	0.760

(1)	Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes Average common equity used in the calculation of ROE. For further details, refer to the Key performance and non-GAAP measures section of our 2019 Annual Report.
(2)	These measures may not have a standardized meaning under generally accepted accounting principles (GAAP) and may not be comparable to similar measures disclosed by other financial institutions. See the How we measure and report our business segments section and the Key performance and Non-GAAP Measures section of this Earnings Release, our Q4 2019 Supplementary Financial Information and our 2019 Annual Report for additional information.
(3)	Commencing Q4 2019, the interest component and the accrued interest payable recorded on certain deposits carried at Fair Value Through Profit and Loss (FVTPL) previously presented in trading revenue and deposits, respectively, are presented in net interest income and other liabilities respectively. Comparative amounts have been reclassified to conform with this presentation.
(4)	LCR is the average for the three months ended for each respective period and is calculated in accordance with the Office of the Superintendent of Financial Institutions' (OSFI) Liquidity Adequacy Requirements (LAR) guideline. For further details, refer to the Liquidity and funding risk section of our 2019 Annual Report.
(5)	Represents period-end spot balances.
(6)	AUA includes $15.5 billion and $8.1 billion (July 31, 2019 – $15.7 billion and $8.3 billion; October 31, 2018 – $16.7 billion and $9.6 billion) of securitized residential mortgages and credit card loans, respectively.
(7)	Defined as dividends per common share divided by the average of the high and low share price in the relevant period.
(8)	Based on TSX closing market price at period-end.
(9)	Average amounts are calculated using month-end spot rates for the period.

Personal & Commercial Banking
		As at or for the three months ended
		October 31		July 31		October 31
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)		2019		2019		2018
	Net interest income	$	3,238	$	3,221	$	3,067
	Non-interest income		1,330		1,325		1,297
Total revenue			4,568		4,546		4,364
	PCL on performing assets		50		15		25
	PCL on impaired assets		337		326		292
Total PCL			387		341		317
	Non-interest expense		2,007		1,959		1,987
Net income before income taxes			2,174		2,246		2,060
Net income		$	1,618	$	1,664	$	1,538
Revenue by business
	Canadian Banking		4,321		4,304		4,132
	Caribbean & U.S. Banking		247		242		232
Selected balances and other information
	ROE		27.0%		28.0%		26.7%
	NIM		2.82%		2.86%		2.82%
	Efficiency ratio (1)		43.9%		43.1%		45.5%
	Operating leverage		3.7%		3.5%		2.5%
	Average total assets	$	477,900	$	468,400	$	451,100
	Average total earning assets, net		456,100		447,200		431,500
	Average loans and acceptances, net		458,900		449,500		432,200
	Average deposits		405,200		396,300		368,700
	AUA (2) (3)		283,800		282,200		266,500
	Average AUA		281,800		280,600		274,900
	AUM (3)		5,000		4,900		4,700
	PCL on impaired loans as a % of average net loans and acceptances		0.29%		0.29%		0.25%
Other selected information - Canadian Banking
	Net income	$	1,555	$	1,609	$	1,463
	NIM		2.76%		2.80%		2.77%
	Efficiency ratio (1)		42.0%		41.5%		43.8%
	Operating leverage		4.3%		1.7%		2.3%

(1)	Calculated as non-interest expense divided by total revenue.
(2)	AUA includes $15.5 billion and $8.1 billion (July 31, 2019 – $15.7 billion and $8.3 billion; October 31, 2018 – $16.7 billion and $9.6 billion) of securitized residential mortgages and credit card loans, respectively.
(3)	Represents period-end spot balances.

Q4 2019 vs. Q4 2018
Net income of $1,618 million increased $80 million or 5% compared to the prior year, largely reflecting average volume growth of 8%, partially offset by higher PCL.

Total revenue increased $204 million or 5%, mainly due to average volume growth of 6% in loans and 10% in deposits in Canadian Banking.

Net interest margin was flat compared to prior year, as higher interest rates were offset by the impact of competitive pricing pressures.

Total PCL increased $70 million or 22%. PCL on impaired loans ratio increased 4 bps, largely driven by higher provisions on impaired loans in our Canadian Banking portfolios. For further details on PCL, refer to Credit quality in the Q4 2019 Business Segment Performance section on page 3 of this Earnings Release.  

Non-interest expense increased $20 million or 1%, primarily attributable to an increase in staff-related costs, partially offset by lower marketing costs.

Q4 2019 vs. Q3 2019
Net income decreased $46 million or 3% from the prior quarter. Higher net interest income driven by average volume growth of 2%, partially offset by lower spreads, was more than offset by higher PCL and the timing of professional fees.

Wealth Management
		As at or for the three months ended
		October 31		July 31		October 31
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)		2019		2019		2018
	Net interest income	$	745	$	773	$	679
	Non-interest income
	Fee-based revenue		1,786		1,740		1,662
	Transactional and other revenue		656		516		399
Total revenue			3,187		3,029		2,740
	PCL on performing assets		(1)		10		(3)
	PCL on impaired assets		35		17		7
Total PCL			34		27		4
	Non-interest expense		2,262		2,183		2,061
Net income before income taxes			891		819		675
Net income		$	729	$	639	$	553
Revenue by business
	Canadian Wealth Management	$	823	$	821	$	796
	U.S. Wealth Management (including City National)		1,556		1,546		1,345
	U.S. Wealth Management (including City National) (US$ millions)		1,175		1,168		1,031
	Global Asset Management		713		567		513
	International Wealth Management		95		95		86
Selected balances and other information
	ROE		19.5%		17.2%		15.9%
	NIM		3.30%		3.59%		3.49%
	Pre-tax margin (1)		28.0%		27.0%		24.6%
	Average total assets	$	103,900	$	99,700	$	91,300
	Average total earning assets, net		89,500		85,500		77,100
	Average loans and acceptances, net		66,700		64,400		57,800
	Average deposits		100,700		95,300		91,800
	AUA - total (2)		1,062,200		1,050,800		970,500
	- U.S. Wealth Management (including City National) (2)		543,300		538,800		483,000
	- U.S. Wealth Management (including City National) (US$ millions) (2)		412,600		408,100		367,100
	AUM (2)		755,700		738,300		664,900
	Average AUA		1,055,700		1,039,700		988,900
	Average AUM		753,300		729,300		679,900
	PCL on impaired loans as a % of average net loans and acceptances		0.21%		0.11%		0.04%
	Number of advisors (3)		5,296		5,222		5,042

(1)	Pre-tax margin is defined as net income before income taxes divided by total revenue.
(2)	Represents period-end spot balances.
(3)	Represents client-facing advisors across all our wealth management businesses.

Q4 2019 vs. Q4 2018
Net income increased $176 million or 32% from the prior year, mainly due to a gain on the sale of the private debt business of BlueBay of $134 million (after-tax) and higher average fee-based client assets.

Total revenue increased $447 million or 16%, mainly due to a gain on the sale of the private debt business of BlueBay of $151 million, higher average fee-based client assets reflecting market appreciation and net sales, and the change in the fair value of the hedges related to our U.S. share-based compensation plans, which was largely offset in non-interest expense. Higher net interest income driven by average loan growth of 15%, partially offset by lower spreads, also contributed to the increase.

Total PCL increased $30 million. PCL on impaired loans ratio increased 17 bps, largely driven by higher provisions on impaired loans in U.S. Wealth Management (including City National), mainly in one sector. For further details on PCL, refer to Credit quality in the Q4 2019 Business Segment Performance section on page 3 of this Earnings Release.

Non-interest expense increased $201 million or 10%, primarily due to the change in the fair value our U.S. share-based compensation plans, which was largely offset in revenue, increased costs in support of business growth, largely reflecting higher staff-related costs, and higher variable compensation commensurate with revenue growth.

Q4 2019 vs. Q3 2019
Net income increased $90 million or 14% from the prior quarter, largely due to a gain on the sale of the private debt business of BlueBay of $134 million (after-tax) and higher average fee-based client assets reflecting market appreciation and net sales. These factors were partially offset by a decrease in net interest income driven by lower spreads, increased costs in support of business growth and higher variable compensation commensurate with revenue growth.

Insurance
		As at or for the three months ended
		October 31		July 31		October 31
(Millions of Canadian dollars, except percentage amounts)		2019		2019		2018
	Non-interest income
	Net earned premiums	$	944	$	914	$	1,222
	Investment income (1)		168		505		(230)
	Fee income		41		44		47
	Total revenue		1,153		1,463		1,039
	Insurance policyholder benefits and claims (1)		572		971		416
	Insurance policyholder acquisition expense		82		75		78
	Non-interest expense		153		149		159
Net income before income taxes			346		268		386
Net income		$	282	$	204	$	318
Revenue by business
	Canadian Insurance	$	609	$	991	$	536
	International Insurance		544		472		503
Selected balances and other information
	ROE		50.3%		39.2%		57.2%
	Premiums and deposits (2)	$	1,105	$	1,079	$	1,374
	Fair value changes on investments backing policyholder liabilities (1)		(28)		385		(342)

(1)	Investment income can experience volatility arising from fluctuation of fair value through profit or loss (FVTPL) assets. The investments which support actuarial liabilities are predominantly fixed income assets designated as FVTPL. Consequently, changes in the fair values of these assets are recorded in the Consolidated Statements of Income and are largely offset by changes in the fair value of the actuarial liabilities, the impact of which is reflected in Insurance policyholder benefits, claims and acquisition expense.
(2)	Premiums and deposits include premiums on risk-based insurance and annuity products, and individual and group segregated fund deposits, consistent with insurance industry practices.

Q4 2019 vs. Q4 2018
Net income decreased $36 million or 11% from a year ago, primarily due to lower favourable reinsurance contract renegotiations and lower favourable annual actuarial assumption updates. Higher claims costs and lower favourable investment-related experience also contributed to the decrease. These factors were partially offset by the impact of new longevity reinsurance contracts.

Total revenue increased $114 million or 11%, largely due to the change in fair value of investments backing our policyholder liabilities, which is largely offset in PBCAE as indicated below and realized investment gains. Business growth, largely in longevity reinsurance, also contributed to the increase. These factors were partially offset by lower group annuity sales, which is largely offset in PBCAE as indicated below.

PBCAE increased $160 million or 32%, mainly due to the change in fair value of investments backing our policyholder liabilities, lower favourable investment-related experience, business growth and lower favourable reinsurance contract negotiations. Lower favourable annual actuarial assumption updates, largely related to unfavourable mortality, morbidity and commission experience, partially offset by favourable economic assumptions, and higher claims costs also contributed to the increase. These factors were partially offset by lower group annuity sales and the favourable impact of new longevity reinsurance contracts.

Non-interest expense decreased $6 million or 4%, driven by cost management initiatives.                                                                 

Q4 2019 vs. Q3 2019
Net income increased $78 million or 38% from the prior quarter, primarily due to the impact of new longevity reinsurance contracts and favourable reinsurance contract renegotiations in the current quarter, partially offset by lower favourable investment-related experience.

Investor & Treasury Services
		As at or for the three months ended
		October 31		July 31		October 31
(Millions of Canadian dollars, except percentage amounts)		2019		2019			2018
	Net interest income	$	37	$	(16)	$	19
	Non-interest income		529		577		605
Total revenue			566		561		624
	PCL		(1)		1		-
	Non-interest expense		508		411		421
Net income before income taxes			59		149		203
Net income		$	45	$	118	$	155
Selected balances and other information
	ROE		4.8%		13.2%		19.2%
	Average deposits	$	175,200	$	179,300	$	163,600
	Average client deposits		57,600		60,100		59,200
	Average wholesale funding deposits		117,600		119,200		104,400
	AUA ^(1)		4,318,100		4,242,100		4,283,100
	Average AUA		4,296,300		4,290,900		4,295,200

(1)	Represents period-end spot balances.

Q4 2019 vs. Q4 2018
Net income decreased $110 million or 71% from a year ago, primarily due to severance and related costs, as well as lower funding and liquidity revenue.

Total revenue decreased $58 million or 9%, mainly reflecting lower funding and liquidity revenue, primarily driven by the short-term rate environment and lower gains from the disposition of certain securities, as well as lower revenue from our asset services business due to reduced client activity. Lower client deposit revenue, largely driven by margin compression reflecting spread tightening, also contributed to the decrease.

Non-interest expense increased $87 million or 21%, largely driven by severance and related costs associated with repositioning of the business.

Q4 2019 vs. Q3 2019
Net income decreased $73 million or 62% from last quarter, mainly driven by severance and related costs associated with repositioning of the business.

Capital Markets
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars, except percentage amounts)			2019		2019		2018
	Net interest income (1), (2)	$	1,063	$	1,018	$	885
	Non-interest income (1), (2)		924		1,016		1,171
Total revenue (1)			1,987		2,034		2,056
	PCL on performing assets		18		3		17
	PCL on impaired assets		60		53		15
Total PCL			78		56		32
	Non-interest expense		1,308		1,269		1,244
Net income before income taxes			601		709		780
Net income		$	584	$	653	$	666
Revenue by business
	Corporate and Investment Banking	$	934	$	962	$	1,087
	Global Markets		1,095		1,106		1,035
	Other		(42)		(34)		(66)
Selected balances and other information
	ROE		10.0%		11.1%		11.8%
	Average total assets	$	696,100	$	676,700	$	591,700
	Average trading securities		103,800		101,400		88,000
	Average loans and acceptances, net		98,100		101,100		90,700
	Average deposits(2)		76,800		75,900		73,700
	PCL on impaired loans as a % of average net loans and acceptances		0.24%		0.21%		0.07%

(1)	The taxable equivalent basis (teb) adjustment for the three months ended October 31, 2019 was $112 million (July 31, 2019 – $111 million, October 31, 2018 - $142 million).
(2)	Commencing Q4 2019, the interest component and the accrued interest payable recorded on certain deposits carried at FVTPL previously presented in trading revenue and deposits, respectively, are presented in net interest income and other liabilities respectively. Comparative amounts have been reclassified to conform with this presentation.

Q4 2019 vs. Q4 2018
Net income decreased $82 million or 12% from a year ago, largely driven by lower revenue in Corporate and Investment Banking and higher PCL. These factors were partially offset by a lower effective tax rate largely reflecting changes in earnings mix, as well as higher revenue in Global Markets.

Total revenue decreased $69 million or 3%, mainly due to lower M&A activity across all regions and lower equity trading revenue primarily in the U.S. These factors were partially offset by higher fixed income trading revenue, largely in North America.

Total PCL increased $46 million. PCL on impaired loans ratio increased 17 bps, driven by higher provisions on impaired loans in a couple of sectors. For further details on PCL, refer to Credit quality in the Q4 2019 Business Segment Performance section on page 3 of this Earnings Release.

Non-interest expense increased $64 million or 5%, mainly driven by higher costs related to changes in the timing of deferred compensation and higher technology and related costs.

Q4 2019 vs. Q3 2019
Net income decreased $69 million or 11% from the prior quarter, mainly due to lower M&A revenues, primarily in the U.S., lower equity origination, largely in the U.S. and Europe, as well as higher costs related to changes in the timing of deferred compensation. Lower fixed income trading, mainly in the U.S. and higher PCL also contributed to the decrease. These factors were partially offset by a lower effective tax rate, higher foreign exchange trading revenue, mainly in Europe, higher debt origination, largely in the U.S., and higher municipal banking activity.

Corporate Support
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars)			2019		2019		2018
	Net interest income (loss) (1)	$	28	$	22	$	17
	Non-interest income (loss) (1)		(119)		(111)		(171)
Total revenue (1)			(91)		(89)		(154)
	PCL		1		-		-
	Non-interest expense		81		21		10
Net income (loss) before income taxes (1)			(173)		(110)		(164)
	Income (recoveries) taxes (1)		(121)		(95)		(184)
Net income (2)		$	(52)	$	(15)	$	20

(1)	Teb adjusted.
(2)	Net income (loss) reflects income attributable to both shareholders and Non-Controlling Interests (NCI). Net income attributable to NCI for the three months ended October 31, 2019 was $(1) million (July 31, 2019 – $(1) million; October 31, 2018 – $(1) million).

Due to the nature of activities and consolidation adjustments reported in this segment, we believe that a comparative period analysis is not relevant. The following identifies material items affecting the reported results in each period.

Total revenue and income taxes (recoveries) in each period in Corporate Support include the deduction of the teb adjustments related to the gross-up of income from Canadian taxable corporate dividends and the U.S. tax credit investment business recorded in Capital Markets. The amount deducted from revenue was offset by an equivalent increase in income taxes (recoveries).

The teb amount for the three months ended October 31, 2019 was $112 million, $111 million in the prior quarter and $142 million last year. For further discussion, refer to the How we measure and report our business segments section of our 2019 Annual Report.

The following identifies the material items, other than the teb impacts noted previously, affecting the reported results in each period.

Q4 2019
Net loss was $52 million in the current quarter, largely due to impact of an unfavourable accounting adjustment.

Q3 2019
Net loss was $15 million in the prior quarter, mainly due to net unfavourable tax adjustments, largely offset by asset/liability management activities.

Q4 2018
Net income was $20 million in the prior year, largely reflecting net unfavourable tax adjustments. 

Key performance and non-GAAP measures

Additional information about these and other key performance and non-GAAP measures can be found under the Key performance and non-GAAP measures section of our 2019 Annual Report.

Return on Equity
We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics, such as net income and ROE. ROE does not have a standardized meaning under GAAP. We use ROE as a measure of return on total capital invested in our business. The following table provides a summary of our ROE calculations:

Calculation of ROE
		For the three months ended								For the year ended
		October 31, 2019								October 31, 2019
		Personal &						Investor &
(Millions of Canadian dollars, except		Commercial		Wealth				Treasury		Capital		Corporate
percentage amounts)		Banking		Management		Insurance		Services		Markets		Support		Total		Total
Net income available to common
	shareholders	$	1,593	$	717	$	280	$	41	$	565	$	(59)	$	3,137	$	12,591
Total average common equity (1) (2)		$	23,400	$	14,600	$	2,200	$	3,450	$	22,350	$	10,600	$	76,600	$	75,000
ROE  (3)		27.0%		19.5%		50.3%		4.8%		10.0%		n.m.		16.2%		16.8%

(1)	Total average common equity represents rounded figures.
(2)	The amounts for the segments are referred to as attributed capital.
(3)	ROE is based on actual balances of average common equity before rounding.
n.m.	not meaningful

Non-GAAP Measures
There were no specified items for the three months ended October 31, 2019, July 31, 2019 and October 31, 2018 as well as for the years ended October 31, 2019 and October 31, 2018.

Given the nature and purpose of our management reporting framework, we use and report certain non-GAAP financial measures, which are not defined, do not have a standardized meaning under GAAP, and may not be comparable with similar information disclosed by other financial institutions. We believe that excluding these specified items from our results is more reflective of our ongoing operating results, will provide readers with a better understanding of management's perspective on our performance, and enhance the comparability of our comparative periods. For further information, refer to the Key performance and non-GAAP measures section of our 2019 Annual Report.

Consolidated Balance Sheets
		As at
			October 31		July 31	October 31
(Millions of Canadian dollars)			2019 (1)		2019 (2)		2018 (1)
Assets
Cash and due from banks		$	26,310	$	26,863	$	30,209
Interest-bearing deposits with banks			38,345		31,553		36,471
Securities
	Trading		146,534		140,421		128,258
	Investment, net of applicable allowance		102,470		100,240		94,608
			249,004		240,661		222,866
Assets purchased under reverse repurchase agreements and securities borrowed			306,961		309,640		294,602
Loans
	Retail		426,086		416,583		399,452
	Wholesale		195,870		198,941		180,278
			621,956		615,524		579,730
	Allowance for loan losses		(3,100)		(3,131)		(2,912)
			618,856		612,393		576,818
Segregated fund net assets			1,663		1,602		1,368
Other
	Customers' liability under acceptances		18,062		17,101		15,641
	Derivatives		101,560		98,774		94,039
	Premises and equipment		3,191		3,058		2,832
	Goodwill		11,236		11,115		11,137
	Other intangibles		4,674		4,735		4,687
	Other assets		49,073		49,407		44,064
			187,796		184,190		172,400
Total assets		$	1,428,935	$	1,406,902	$	1,334,734
Liabilities and equity
Deposits
	Personal	$	294,732	$	287,929	$	270,154
	Business and government		565,482		562,371		533,522
	Bank		25,791		29,939		32,521
			886,005		880,239		836,197
Segregated fund net liabilities			1,663		1,602		1,368
Other
	Acceptances		18,091		17,124		15,662
	Obligations related to securities sold short		35,069		33,602		32,247
	Obligations related to assets sold under repurchase agreements and securities loaned		226,586		220,027		206,814
	Derivatives		98,543		96,857		90,238
	Insurance claims and policy benefit liabilities		11,401		11,480		10,000
	Other liabilities		58,137		53,799		53,122
			447,827		432,889		408,083
Subordinated debentures			9,815		9,818		9,131
Total liabilities			1,345,310		1,324,548		1,254,779
Equity attributable to shareholders
	Preferred shares		5,707		5,705		6,309
	Common shares		17,587		17,593		17,617
	Retained earnings		55,981		54,692		51,112
	Other components of equity		4,248		4,265		4,823
			83,523		82,255		79,861
Non-controlling interests			102		99		94
Total equity			83,625		82,354		79,955
Total liabilities and equity		$	1,428,935	$	1,406,902	$	1,334,734

(1)	Derived from audited financial statements.
(2)	Derived from unaudited financial statements.

Consolidated Statements of Income
			For the three months ended						For the year ended
			October 31	July 31		October 31			October 31		October 31
(Millions of Canadian dollars, except per share amounts)			2019 (1)	2019 (1)		2018 (1)			2019 (2)		2018 (2)
Interest and dividend income
	Loans	$	6,186	$	6,394	$	5,733		$	24,863	$	21,249
	Securities		1,659		1,770		1,434			6,827		5,670
	Assets purchased under reverse repurchase agreements and securities borrowed		2,268		2,353		1,642			8,960		5,536
	Deposits and other		329		93		181			683		566
			10,442		10,610		8,990			41,333		33,021
Interest expense
	Deposits and other		3,175		3,284		2,825			12,988		9,842
	Other liabilities		2,066		2,218		1,411			8,231		4,905
	Subordinated debentures		90		90		87			365		322
			5,331		5,592		4,323			21,584		15,069
Net interest income			5,111		5,018		4,667			19,749		17,952
Non-interest income
	Insurance premiums, investment and fee income		1,153		1,463		1,039			5,710		4,279
	Trading revenue		116		170		185			995		1,150
	Investment management and custodial fees		1,477		1,440		1,387			5,748		5,377
	Mutual fund revenue		932		924		896			3,628		3,551
	Securities brokerage commissions		323		324		349			1,305		1,372
	Service charges		493		480		459			1,907		1,800
	Underwriting and other advisory fees		428		488		514			1,815		2,053
	Foreign exchange revenue, other than trading		242		252		267			986		1,098
	Card service revenue		252		272		264			1,072		1,054
	Credit fees		344		322		371			1,269		1,394
	Net gains on investment securities		16		26		33			125		147
	Share of profit (loss) in joint ventures and associates		26		21		8			76		21
	Other		457		344		230			1,617		1,328
			6,259		6,526		6,002			26,253		24,624
Total revenue			11,370		11,544		10,669			46,002		42,576
Provision for credit losses			499		425		353			1,864		1,307
Insurance policyholder benefits, claims and acquisition expense			654		1,046		494			4,085		2,676
Non-interest expense
	Human resources		3,720		3,615		3,429			14,600		13,776
	Equipment		452		449		419			1,777		1,593
	Occupancy		424		409		400			1,635		1,558
	Communications		296		281		316			1,090		1,049
	Professional fees		382		328		418			1,305		1,379
	Amortization of other intangibles		309		299		279			1,197		1,077
	Other		736		611		621			2,535		2,401
			6,319		5,992		5,882			24,139		22,833
Income before income taxes			3,898		4,081		3,940			15,914		15,760
Income taxes			692		818		690			3,043		3,329
Net income		$	3,206	$	3,263	$	3,250		$	12,871	$	12,431
Net income attributable to:
	Shareholders	$	3,201	$	3,263	$	3,247		$	12,860	$	12,400
	Non-controlling interests		5		-		3			11		31
		$	3,206	$	3,263	$	3,250		$	12,871	$	12,431
Basic earnings per share (in dollars)		$	2.19	$	2.23	$	2.21		$	8.78	$	8.39
Diluted earnings per share (in dollars)			2.18		2.22		2.20			8.75		8.36
Dividends per common share (in dollars)			1.05		1.02		0.98			4.07		3.77

(1)	Derived from unaudited financial statements.
(2)	Derived from audited financial statements.

Consolidated Statements of Comprehensive Income
					For the three months ended							For the year ended
				October 31		July 31		October 31			October 31		October 31
(Millions of Canadian dollars)				2019 (1)		2019 (1)		2018 (1)			2019 (2)		2018 (2)
Net income				$	3,206	$	3,263	$	3,250		$	12,871	$	12,431
Other comprehensive income (loss), net of taxes
Items that will be reclassified subsequently to income:
	Net change in unrealized gains (losses) on debt securities and loans at fair value
		through other comprehensive income
		Net unrealized gains (losses) on debt securities and loans at fair value through other
		comprehensive income			(26)		79		(75)			192		(70)
		Provision for credit losses recognized in income			(2)		(2)		(24)			(14)		(9)
		Reclassification of net losses (gains) on debt securities and loans at fair value through other
		comprehensive income to income			(58)		(15)		(18)			(133)		(94)
					(86)		62		(117)			45		(173)
	Foreign currency translation adjustments
		Unrealized foreign currency translation gains (losses)			180		(1,246)		453			65		840
		Net foreign currency translation gains (losses) from hedging activities			(121)		590		(107)			5		(237)
		Reclassification of losses (gains) on foreign currency translation to income			-		-		-			2		-
		Reclassification of losses (gains) on net investment hedging activities to income			(1)		-		-			1		-
					58		(656)		346			73		603
	Net change in cash flow hedges
		Net gains (losses) on derivatives designated as cash flow hedges			57		(118)		(12)			(559)		150
		Reclassification of losses (gains) on derivatives designated as cash flow hedges to income			(47)		11		88			(135)		107
					10		(107)		76			(694)		257
Items that will not be reclassified subsequently to income:
	Remeasurements of employee benefit plans				125		(581)		127			(942)		724
	Net fair value change due to credit risk on financial liabilities designated as at fair value
		through profit or loss			(41)		118		10			51		123
	Net gains (losses) on equity securities designated at fair value through other comprehensive
		income			(2)		(10)		(3)			25		(2)
					82		(473)		134			(866)		845
Total other comprehensive income (loss), net of taxes					64		(1,174)		439			(1,442)		1,532
Total comprehensive income (loss)				$	3,270	$	2,089	$	3,689		$	11,429	$	13,963
Total comprehensive income attributable to:
	Shareholders			$	3,266	$	2,090	$	3,686		$	11,419	$	13,931
	Non-controlling interests				4		(1)		3			10		32
				$	3,270	$	2,089	$	3,689		$	11,429	$	13,963

(1)	Derived from unaudited financial statements.
(2)	Derived from audited financial statements.

Consolidated Statements of Changes in Equity
		For the three months ended October 31, 2019 (1)
												Other components of equity
(Millions of Canadian dollars)		Preferred shares		Common shares		Treasury shares - preferred		Treasury shares - common		Retained earnings		FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests		Total equity
Balance at beginning of period		$	5,706	$	17,652	$	(1)	$	(59)	$	54,692	$	119	$	4,162	$	(16)	$	4,265	$	82,255	$	99	$	82,354
Changes in equity
	Issues of share capital		-		49		-		-		-		-		-		-		-		49		-		49
	Common shares purchased for cancellation		-		(56)		-		-		(418)		-		-		-		-		(474)		-		(474)
	Redemption of preferred shares		-		-		-		-		-		-		-		-		-		-		-		-
	Sales of treasury shares		-		-		37		1,500		-		-		-		-		-		1,537		-		1,537
	Purchases of treasury shares		-		-		(35)		(1,499)		-		-		-		-		-		(1,534)		-		(1,534)
	Share-based compensation awards		-		-		-		-		(8)		-		-		-		-		(8)		-		(8)
	Dividends on common shares		-		-		-		-		(1,503)		-		-		-		-		(1,503)		-		(1,503)
	Dividends on preferred shares and other		-		-		-		-		(64)		-		-		-		-		(64)		(1)		(65)
	Other		-		-		-		-		(1)		-		-		-		-		(1)		-		(1)
	Net income		-		-		-		-		3,201		-		-		-		-		3,201		5		3,206
	Total other comprehensive income (loss), net of taxes		-		-		-		-		82		(86)		59		10		(17)		65		(1)		64
Balance at end of period		$	5,706	$	17,645	$	1	$	(58)	$	55,981	$	33	$	4,221	$	(6)	$	4,248	$	83,523	$	102	$	83,625
		For the three months ended October 31, 2018 (1)
												Other components of equity
(Millions of Canadian dollars)		Preferred shares		Common shares		Treasury shares - preferred		Treasury shares - common		Retained earnings		FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests		Total equity
Balance at beginning of period		$	6,306	$	17,642	$	-	$	(109)	$	49,424	$	105	$	3,801	$	612	$	4,518	$	77,781	$	91	$	77,872
Changes in equity
	Issues of share capital		-		23		-		-		-		-		-		-		-		23		-		23
	Common shares purchased for cancellation		-		(30)		-		-		(217)		-		-		-		-		(247)		-		(247)
	Redemption of preferred shares		-		-		-		-		-		-		-		-		-		-		-		-
	Sales of treasury shares		-		-		57		1,418		-		-		-		-		-		1,475		-		1,475
	Purchases of treasury shares		-		-		(54)		(1,327)		-		-		-		-		-		(1,381)		-		(1,381)
	Share-based compensation awards		-		-		-		-		(4)		-		-		-		-		(4)		-		(4)
	Dividends on common shares		-		-		-		-		(1,412)		-		-		-		-		(1,412)		-		(1,412)
	Dividends on preferred shares and other		-		-		-		-		(71)		-		-		-		-		(71)		-		(71)
	Other		-		-		-		-		11		-		-		-		-		11		-		11
	Net income		-		-		-		-		3,247		-		-		-		-		3,247		3		3,250
	Total other comprehensive income (loss), net of taxes		-		-		-		-		134		(117)		346		76		305		439		-		439
Balance at end of period		$	6,306	$	17,635	$	3	$	(18)	$	51,112	$	(12)	$	4,147	$	688	$	4,823	$	79,861	$	94	$	79,955

(1)	Derived from unaudited financial statements.

		For the year ended October 31, 2019 (1)
												Other components of equity
(Millions of Canadian dollars)			Preferred shares		Common shares		Treasury shares - preferred		Treasury shares - common		Retained earnings		FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests		Total equity
Balance at beginning of period		$	6,306	$	17,635	$	3	$	(18)	$	51,112	$	(12)	$	4,147	$	688	$	4,823	$	79,861	$	94	$	79,955
Transition adjustment			-		-		-		-		(94)		-		-		-		-		(94)		-		(94)
Adjusted balance at beginning of period		$	6,306	$	17,635	$	3	$	(18)	$	51,018	$	(12)	$	4,147	$	688	$	4,823	$	79,767	$	94	$	79,861
Changes in equity
	Issues of share capital		350		136		-		-		-		-		-		-		-		486		-		486
	Common shares purchased for cancellation		-		(126)		-		-		(904)		-		-		-		-		(1,030)		-		(1,030)
	Redemption of preferred shares		(950)		-		-		-		-		-		-		-		-		(950)		-		(950)
	Sales of treasury shares		-		-		182		5,340		-		-		-		-		-		5,522		-		5,522
	Purchases of treasury shares		-		-		(184)		(5,380)		-		-		-		-		-		(5,564)		-		(5,564)
	Share-based compensation awards		-		-		-		-		(23)		-		-		-		-		(23)		-		(23)
	Dividends on common shares		-		-		-		-		(5,840)		-		-		-		-		(5,840)		-		(5,840)
	Dividends on preferred shares and other		-		-		-		-		(269)		-		-		-		-		(269)		(2)		(271)
	Other		-		-		-		-		5		-		-		-		-		5		-		5
	Net income		-		-		-		-		12,860		-		-		-		-		12,860		11		12,871
	Total other comprehensive income (loss), net of taxes		-		-		-		-		(866)		45		74		(694)		(575)		(1,441)		(1)		(1,442)
Balance at end of period		$	5,706	$	17,645	$	1	$	(58)	$	55,981	$	33	$	4,221	$	(6)	$	4,248	$	83,523	$	102	$	83,625
		For the year ended October 31, 2018 (1)
												Other components of equity
(Millions of Canadian dollars)		Preferred shares		Common shares		Treasury shares - preferred		Treasury shares - common		Retained earnings		FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests		Total equity
Balance at beginning of period		$	6,413	$	17,730	$	-	$	(27)	$	44,801	$	299	$	3,545	$	431	$	4,275	$	73,192	$	599	$	73,791
Changes in equity
	Issues of share capital		-		92		-		-		-		-		-		-		-		92		-		92
	Common shares purchased for cancellation		-		(187)		-		-		(1,335)		-		-		-		-		(1,522)		-		(1,522)
	Redemption of preferred shares		(107)		-		-		-		2		-		-		-		-		(105)		-		(105)
	Redemption of trust capital securities		-		-		-		-		-		-		-		-		-		-		(500)		(500)
	Sales of treasury shares		-		-		259		5,479		-		-		-		-		-		5,738		-		5,738
	Purchases of treasury shares		-		-		(256)		(5,470)		-		-		-		-		-		(5,726)		-		(5,726)
	Share-based compensation awards		-		-		-		-		(10)		-		-		-		-		(10)		-		(10)
	Dividends on common shares		-		-		-		-		(5,442)		-		-		-		-		(5,442)		-		(5,442)
	Dividends on preferred shares and other		-		-		-		-		(285)		-		-		-		-		(285)		(37)		(322)
	Other		-		-		-		-		136		(138)		-		-		(138)		(2)		-		(2)
	Net income		-		-		-		-		12,400		-		-		-		-		12,400		31		12,431
	Total other comprehensive income (loss), net of taxes		-		-		-		-		845		(173)		602		257		686		1,531		1		1,532
Balance at end of period		$	6,306	$	17,635	$	3	$	(18)	$	51,112	$	(12)	$	4,147	$	688	$	4,823	$	79,861	$	94	$	79,955

(1) Derived from audited 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 United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. We may make forward-looking statements in this Earnings Release, in other filings with Canadian regulators or the SEC, in other reports to shareholders, and in other communications. Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, and include our President and Chief Executive Officer's statements. The forward-looking information contained in this Earnings Release is presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, 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", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "should", "could" or "would".

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 financial performance objectives, vision and strategic goals 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, liquidity and funding, insurance, operational, regulatory compliance, strategic, reputation, legal and regulatory environment, competitive and systemic risks and other risks discussed in the risk sections of our annual report for the fiscal year ended October 31, 2019 (the 2019 Annual Report); including information technology and cyber risk, privacy, data and third party related risk, geopolitical uncertainty, Canadian housing and household indebtedness, regulatory changes, digital disruption and innovation, climate change, the business and economic conditions in the geographic regions in which we operate, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and environmental and social risk.

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. Material economic assumptions underlying the forward looking-statements contained in this Earnings Release are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2019 Annual Report. 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 sections of our 2019 Annual Report.

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 2019 Annual Report at rbc.com/investorrelations.

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for December 4, 2019 at 8:00 a.m. (EST) and will feature a presentation about our fourth quarter and 2019 results by RBC executives. It will be followed by a question and answer period with analysts.

Interested parties can access the call live on a listen-only basis at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone [phone], passcode 3486214#). Please call between 7:50 a.m. and 7:55 a.m. (EST).

Management's comments on results will be posted on our website shortly following the call. A recording will be available by 5:00 p.m. (EST) from December 4, 2019 until February 20, 2020 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone [phone] or 800-408-3053, passcode 5654710#).

ABOUT RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 85,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.‎

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.  

Trademarks used in this earnings release include the LION & GLOBE Symbol, ROYAL BANK OF CANADA and RBC which are trademarks of Royal Bank of Canada used by Royal Bank of Canada and/or by its subsidiaries under license. All other trademarks mentioned in this earnings release, which are not the property of Royal Bank of Canada, are owned by their respective holders.

SOURCE Royal Bank of Canada

Media Relations Contact: Gillian McArdle, Senior Director, Communications, Group Risk Management and Finance, [email protected], 416-842-4231; Investor Relations Contacts: Nadine Ahn, SVP Wholesale Finance and Investor Relations, [email protected], 416-974-3355; Asim Imran, Senior Director, Investor Relations, [email protected], 416-955-7804; Jennifer Nugent, Senior Director, Investor Relations, [email protected], 416-955-7805

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