Royal Bank of Canada Reports Fourth Quarter and Record 2014 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, 2014 and related notes prepared in accordance with International Financial Reporting Standards (IFRS). Our 2014 Annual Report (which includes our audited annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2014 Annual Information Form and our Supplementary Financial Information are available on our website at rbc.com/investorrelations.

TORONTO, Dec. 3, 2014 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $9.0 billion for the year ended October 31, 2014, up $662 million or 8% from last year, driven by record earnings across all of our business segments. Our performance also reflects positive operating leverage across most businesses, and solid credit quality with a provision for credit loss (PCL) ratio of 0.27%. Our capital position remains strong with a Basel III Common Equity Tier 1 ratio of 9.9% at the end of fiscal 2014.

"We delivered record earnings of $9.0 billion in 2014 with record results in each of our business segments," said Dave McKay, RBC President and CEO. "Looking ahead, while we anticipate industry headwinds to persist, we believe RBC is well positioned given the strength of our franchise as well as our commitment to delivering superior advice and a differentiated experience to our clients."

2014 compared to 2013				Excluding specified items^(2): 2014 compared to 2013
• Net income of $9,004 million (up 8% from $8,342 million) • Diluted earnings per share (EPS) of $6.00 (up $0.51 from $5.49) • Return on common equity (ROE)^(1) of 19.0% (down from 19.7%) • Basel III Common Equity Tier 1 (CET1) ratio of 9.9%				• Net income of $9,136 million (up 10% from $8,342 million) • Diluted EPS of $6.09 (up $0.60 from $5.49) • ROE of 19.3% (down from 19.7%)

2014 Performance

Earnings of $9.0 billion were up $662 million, or 8% from last year. Excluding specified items⁽²⁾, earnings were $9.1 billion, up $794 million or 10%⁽³⁾, driven by record results in all of our business segments. Key highlights include:

• 7% earnings growth in Canadian Banking, largely from solid volume growth and strong fee-based revenue growth;
• 22% earnings growth in Wealth Management, driven by higher revenue from growth in average fee-based client assets;
• 31% earnings growth in Insurance, largely due to lower net claims costs and favourable actuarial adjustments. A charge of $118 million after-tax reflecting a change in tax legislation in Canada was included in 2013 results;
• 30% earnings growth in Investor & Treasury Services, driven by the continued benefits of our efficiency management activities and growth in client deposits. A restructuring charge of $31 million after-tax was included in 2013 results;
• 21% earnings growth in Capital Markets, largely driven by strong equity markets, our continued focus on origination, lending and increased activity from client-driven strategies, as well as strong credit quality; and,
• Increased quarterly dividend twice during the year for a total increase of 12%.

Net income for the fourth quarter ended October 31, 2014 was $2.3 billion, up 11% from last year, driven by strong performance across our retail businesses and continued strength in Investor & Treasury Services.

"We delivered another strong quarter of earnings growth, demonstrating the strength of our retail businesses and capital position, as well as our continued focus on efficiency management activities," said Dave McKay, RBC President and CEO.

Q4 2014 compared to Q4 2013 •     Net income of $2,333 million(up 11% from $2,101 million) •     Diluted EPS of $1.57 (up $0.18 from $1.39) •     ROE of 19.0% (up from 18.8%)

Q4 2014 compared to Q3 2014 •     Net income of $2,333 million(down 2% from $2,378 million) •     Diluted EPS of $1.57 (down $0.02 from $1.59) •     ROE of 19.0% (down from 19.6%)

Q4 2014 Performance

Earnings of $2.3 billion were up $232 million or 11% from last year, driven by strong performance across all of our retail businesses, reflecting higher revenue in Wealth Management on increased average fee-based client assets, higher earnings in Canadian Banking reflecting strong fee-based revenue growth and solid volume growth of 5%, and lower net claims in Insurance. These factors were partially offset by lower earnings in Capital Markets, largely driven by lower trading revenue.

Earnings were down $45 million or 2% from last quarter. Earnings were down $85 million or 4%⁽³⁾ excluding the loss related to the sale of RBC Jamaica of $40 million (before and after-tax) last quarter, as solid revenue growth in our retail businesses was more than offset by lower trading results reflecting challenging market conditions in the latter half of the quarter compared to strong levels last quarter, a $105 million ($51 million after tax and compensation adjustments) charge reflecting the implementation of valuation adjustments related to funding costs on uncollateralized over-the-counter derivatives (FVA), as well as $75 million ($46 million after-tax and variable compensation) of lower revenue and costs associated with the exit of certain proprietary trading strategies in compliance with the Volcker Rule. Higher PCL in Capital Markets and Caribbean banking also contributed to the decrease.

_______________________

1	This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-GAAP measures section of our 2014 Annual Report.
2	Specified items for 2014 include a loss of $100 million (before- and after-tax) related to the sale of RBC Jamaica along with provisions of $40 million ($32 million after-tax) related to post-employment benefits and restructuring charges in the Caribbean. These are non-GAAP measures. For further information, including a reconciliation, please refer to the Key performance and non-GAAP measures section on page 11 of this Earnings Release.
3	These are non-GAAP measures. For further information, including a reconciliation, refer to the non-GAAP measures section on page 11 of this Earnings Release.

Q4 2014 Business Segment Performance

Personal & Commercial Banking net income of $1,151 million was up $81 million or 8% compared to last year. Canadian Banking net income was a record $1,210 million, up $123 million or 11%, driven by strong fee-based revenue growth, solid volume growth of 5% across most of our businesses, and favourable net cumulative accounting adjustments of $55 million ($40 million after-tax) in the quarter.

Compared to last quarter, Personal & Commercial Banking net income was up $13 million or 1%. Canadian Banking net income was up $25 million or 2%, reflecting favourable net cumulative accounting adjustments noted above and fee-based revenue growth. These factors were partly offset by higher marketing and infrastructure costs in support of business growth.

Wealth Management net income of $285 million was up $83 million or 41% compared to last year, mainly due to higher earnings from growth in average fee-based client assets in our Global Asset Management and Canadian Wealth Management businesses resulting from capital appreciation and net sales, along with lower PCL. Compared to last quarter, net income was flat as the positive impact of higher earnings from growth in average fee-based client assets was offset by restructuring costs of $27 million ($18 million after-tax) related to our U.S. and International Wealth Management businesses.

Insurance net income of $256 million increased $149 million from last year. Net income increased $31 million or 14%⁽¹⁾ excluding a charge last year of $118 million after-tax related to a change in tax legislation in Canada, mainly due to lower net claims costs and earnings from a new U.K. annuity contract. Compared to last quarter, net income increased $42 million or 20%, also reflecting lower net claims costs and earnings from a new U.K. annuity contract.

Investor & Treasury Services net income of $113 million increased $22 million or 24% compared to last year, largely due to higher net interest income from growth in client deposits and continuing benefits from our ongoing focus on efficiency management activities. Compared to last quarter, net income increased $3 million or 3%.

Capital Markets net income of $402 million decreased $67 million or 14% from last year, mainly due to lower trading results primarily reflecting a $105 million charge ($51 million after tax and compensation adjustments) from the implementation of FVA, $75 million ($46 million after-tax and variable compensation) in lower revenue and costs associated with the exit of certain proprietary trading strategies in compliance with the Volcker Rule, as well as challenging market conditions in the latter half of the quarter. Higher PCL also contributed to the decrease. These factors were partially offset by higher corporate and investment banking activities and lower variable compensation.

Compared to last quarter, net income decreased $239 million or 37% from a very strong third quarter, mainly due to lower trading results, lower investment banking activities, and higher PCL. These factors were partially offset by lower variable compensation, lower litigation provisions and related legal costs.

Corporate Support net income was $126 million largely reflecting gains on private equity investments related to the sale of a legacy portfolio and asset/liability management activities. Net income last year was $162 million mostly due to net favourable tax adjustments including a $124 million income tax adjustment which related to prior years.

Capital - As at October 31, 2014, Basel III CET1 ratio was 9.9%, up 40 basis points (bps) compared to last quarter, driven by solid internal capital generation and lower risk-weighted assets partially reflecting the exit of certain proprietary trading strategies in compliance with the Volcker Rule.

Credit Quality - Total PCL of $345 million increased $11 million or 3% from a year ago, and $62 million or 22% from last quarter, mainly due to higher PCL in Capital Markets and higher PCL in Caribbean Banking, primarily reflecting increased provisions on our impaired residential mortgages portfolio of $50 million. Our PCL ratio of 0.31% decreased 1 bp compared to last year and increased 5 bps compared to last quarter.

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1	These are non-GAAP measures. For further information, including a reconciliation, refer to the non-GAAP measures section on page 11 of this Earnings Release.

Selected financial and other highlights
			As at or 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, number of and percentage amounts)				2014			2014			2013			2014				2013
	Total revenue		$	8,382		$	8,990		$	7,919		$	34,108			$	30,682
	Provision for credit losses (PCL)			345			283			334			1,164				1,237
	Insurance policyholder benefits, claims and acquisition expense (PBCAE)			752			1,009			878			3,573				2,784
	Non-interest expense			4,340			4,602			4,151			17,661				16,214
	Net income before income taxes			2,945			3,096			2,556			11,710				10,447
Segments - net income (loss)
	Personal & Commercial Banking		$	1,151		$	1,138		$	1,070		$	4,475			$	4,380
	Wealth Management			285			285			202			1,083				886
	Insurance			256			214			107			781				595
	Investor & Treasury Services			113			110			91			441				339
	Capital Markets			402			641			469			2,055				1,700
	Corporate Support			126			(10)			162			169				442
Net income			$	2,333		$	2,378		$	2,101		$	9,004			$	8,342
Selected information
	Earnings per share (EPS)	- basic	$	1.57		$	1.59		$	1.40		$	6.03			$	5.53
		- diluted		1.57			1.59			1.39			6.00				5.49
	Return on common equity (ROE) ^(1) (2)			19.0	%		19.6	%		18.8	%		19.0	%			19.7	%
	PCL on impaired loans as a % of average net loans and acceptances			0.31	%		0.26	%		0.32	%		0.27	%			0.31	%
	Gross impaired loans (GIL) as a % of loans and acceptances			0.44	%		0.45	%		0.52	%		0.44	%			0.52	%
Capital ratios and multiples
	Common Equity Tier 1 (CET1) ratio			9.9	%		9.5	%		9.6	%		9.9	%			9.6	%
	Tier 1 capital ratio			11.4	%		11.2	%		11.7	%		11.4	%			11.7	%
	Total capital ratio			13.4	X		13.0	X		14.0	X		13.4	X			14.0	X
	Assets-to-capital multiple ^(3)			17.0	%		17.3	%		16.6	%		17.0	%			16.6	%
Selected balance sheet and other information
	Total assets		$	940,550		$	913,870		$	859,745		$	940,550			$	859,745
	Securities			199,148			199,114			182,710			199,148				182,710
	Loans (net of allowance for loan losses)			435,229			430,421			408,850			435,229				408,850
	Derivative related assets			87,402			72,823			74,822			87,402				74,822
	Deposits			614,100			601,691			563,079			614,100				563,079
	Common equity			48,615			46,965			43,064			48,615				43,064
	Average common equity^(1)			47,450			46,400			42,500			45,700				40,600
	Total capital risk-weighted assets			372,050			371,949			318,981			372,050				318,981
	Assets under management (AUM)			457,000			446,500			391,100			457,000				391,100
	Assets under administration (AUA)^(4)			4,647,000			4,472,300			4,050,900			4,647,000				4,050,900
Common share information
	Shares outstanding (000s)	- average basic		1,442,368			1,442,312			1,440,911			1,442,553				1,443,735
		- average diluted		1,449,342			1,449,455			1,462,728			1,452,003				1,466,529
		- end of period		1,442,233			1,441,536			1,441,056			1,442,233				1,441,056
	Dividends declared per share		$	0.75		$	0.71		$	0.67		$	2.84			$	2.53
	Dividend yield^(5)			3.8	%		3.7	%		4.0	%		3.8	%			4.0	%
	Common share price (RY on TSX)		$	80.01		$	80.47		$	70.02		$	80.01			$	70.02
	Market capitalization (TSX)			115,393			116,000			100,903			115,393				100,903
Business information from continuing operations (number of)
	Bank branches			1,366			1,364			1,372			1,366				1,372
	Automated teller machines (ATMs)			4,929			4,940			4,973			4,929				4,973
Period average US$ equivalent of C$1.00^(6)			$	0.900		$	0.925		$	0.960		$	0.914			$	0.977
Period-end US$ equivalent of C$1.00			$	0.887		$	0.917		$	0.959		$	0.887			$	0.959

(1)	Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes ROE and Average common equity. For further details, refer to the How we measure and report our business segments section of our 2014 Annual Report.
(2)	These measures do 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 Key performance and Non-GAAP Measures section of this Earnings Release, our Q4 2014 Supplementary Financial Information and our 2014 Annual Report for additional information.
(3)	Effective the first quarter of 2013, we calculate capital ratios and Assets-to-capital multiple using the Basel III framework. Capital ratios presented above are on an "all-in" basis. The CET1 ratio is a new regulatory measure under the Basel III framework. For further details, refer to the Capital Management section of our 2014 Annual Report.
(4)	Includes $31.2 billion (July 31, 2014 - $31.4 billion, October 31, 2013 - $32.6 billion) of securitized mortgages and credit card loans.
(5)	Defined as dividends per common share divided by the average of the high and low share price in the relevant period.
(6)	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)			2014			2014			2013
	Net interest income	$	2,447		$	2,475		$	2,405
	Non-interest income		1,104			987			903
Total revenue			3,551			3,462			3,308
	PCL		314			284			275
	Non-interest expense		1,686			1,632			1,602
Net income before income taxes			1,551			1,546			1,431
Net income		$	1,151		$	1,138		$	1,070
Revenue by business
	Canadian Banking		3,346			3,252			3,109
	Caribbean & U.S. Banking		205			210			199
Key ratios
	ROE		28.3%			29.4%			27.5%
	NIM (1)		2.71%			2.79%			2.76%
	Efficiency ratio (2)		47.5%			47.1%			48.4%
	Efficiency ratio adjusted (2), (3)		n.a.			46.0%			n.a.
	Operating leverage		2.1%			(0.2%)			(2.7)%
	Operating leverage adjusted (3)		n.a.			2.3%			n.a.
Selected average balance sheet information
	Total assets	$	375,000		$	369,400		$	362,600
	Total earning assets (4)		357,600			352,500			345,800
	Loans and acceptances (4)		358,000			352,400			345,200
	Deposits		285,200			279,100			268,200
	Attributed capital		16,000			15,100			15,100
	Risk capital		11,350			10,450			10,450
Other information
	AUA (5)	$	214,200		$	213,600		$	192,200
	AUM		4,000			3,800			3,400
	Number of employees (FTE)		36,174			36,944			38,011
	Effective tax rate		25.8%			26.4%			25.2%
Credit information
	Gross impaired loans as a % of average net loans and acceptances		0.53%			0.55%			0.54%
	PCL on impaired loans as a % of average net loans and acceptances		0.35%			0.32%			0.32%

						For the three months ended
Estimated impact of U.S. dollar and Trinidad & Tobago dollar (TTD) translation on key income statement items						Q4 2014 vs.						Q4 2014 vs.
(Millions of Canadian dollars, except percentage amounts)						Q4 2013						Q3 2014
Increase (decrease):
	Total revenue					$		10				$			5
	Non-interest expense							7							3
	Net income							1							1
Percentage change in average US$ equivalent of C$1.00								(6)%							(3)%
Percentage change in average TTD equivalent of C$1.00								(7)%							(3)%

 

(1)	Calculated as net interest income divided by average total earning assets.
(2)	Efficiency ratio is calculated as non-interest expense divided by Total revenue.
(3)	Measures have been adjusted by excluding the loss related to the sale of RBC Jamaica and are non-GAAP. For further details, refer to the Non-GAAP measures section on page 11 of this Earnings Release.
(4)	Average total earning assets and average loans and acceptances include average securitized residential mortgages and credit card loans for the three months ended October 31, 2014 of $54.5 billion and $8.0 billion, respectively (July 31, 2014 - $52.9 billion and $8.3 billion; October 31, 2013 - $53.9 billion and $7.2 billion).
(5)	AUA includes securitized residential mortgages and credit card loans as at October 31, 2014 of $23.2 billion and $8.0 billion respectively (July 31, 2014 - $23.1 billion and $8.3 billion; October 31, 2013 - $25.4 billion and $7.2 billion).

Q4 2014 vs. Q4 2013

Net income increased $81 million or 8% compared to last year, reflecting strong fee-based revenue growth, solid volume growth and favourable net cumulative accounting adjustments of $55 million ($40 million after-tax) in the quarter in Canadian Banking. These factors were partly offset by higher PCL in the Caribbean.

Total revenue increased $243 million or 7%, largely due to strong fee-based revenue growth, primarily attributable to higher mutual fund distribution fees and card services revenue, solid volume growth of 5% across most businesses in Canada and favourable net cumulative accounting adjustments.

Net interest margin decreased 5 bps, primarily due to a change in recording of certain loan fees in our business portfolio from Net interest income to Non-interest income as well as other accounting adjustments.

PCL increased $39 million, with the PCL ratio increasing 3 bps, largely reflecting increased provisions on our impaired residential mortgage portfolio of $50 million in the Caribbean, partly offset by lower provisions in our personal lending portfolios in Canada.

Non-interest expense increased $84 million or 5%, mostly due to higher marketing and infrastructure costs in support of business growth and higher variable compensation. These factors were partly offset by continuing benefits from our efficiency management activities, including the full integration of Ally Canada, as well as lower provisions related to post-employment benefits and restructuring charges in the Caribbean as last year included a provision of $40 million compared to a provision of $17 million this year related to restructuring charges.

Q4 2014 vs. Q3 2014

Net income increased $13 million or 1%. Excluding a loss of $40 million (before and after-tax) related to the closing of the sale of RBC Jamaica last quarter, net income decreased $27 million or 2%⁽¹⁾, as favourable net cumulative accounting adjustments noted above and fee-based revenue growth were more than offset by higher PCL in the Caribbean and a $17 million provision related to restructuring in the Caribbean.

Canadian 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)			2014				2014				2013
	Net interest income		$		2,305		$		2,331		$		2,265
	Non-interest income				1,041				921				844
Total revenue					3,346				3,252				3,109
	PCL				236				230				249
	Non-interest expense				1,479				1,426				1,398
Net income before income taxes					1,631				1,596				1,462
Net income			$		1,210		$		1,185		$		1,087
Revenue by business
	Personal Financial Services		$		1,843		$		1,857		$		1,776
	Business Financial Services				869				771				750
	Cards and Payment Solutions				634				624				583
Key ratios
	ROE				36.1%				37.7%				34.4%
	NIM (1)				2.66%				2.73%				2.70%
	Efficiency ratio (2)				44.2%				43.8%				45.0%
	Operating leverage				1.8%				1.7%				0.0%
Selected average balance sheet information
	Total assets		$		356,500		$		351,100		$		345,000
	Total earning assets (3)				343,400				339,000				333,200
	Loans and acceptances (3)				350,200				344,800				337,700
	Deposits				269,700				264,100				253,600
	Attributed capital				13,150				12,300				12,350
Other information
	AUA (4)				205,200				204,300				183,600
	Number of employees (FTE)				31,442				32,035				31,970
	Effective tax rate				25.8%				25.8%				25.6%
Credit information
	Gross impaired loans as a % of average net loans and acceptances				0.32%				0.33%				0.35%
	PCL on impaired loans as a % of average net loans and acceptances				0.27%				0.26%				0.29%

(1)	Calculated as net interest income divided by average total earning assets. For further discussion on NIM, see How we measure and report our business segments in our 2014 Annual Report.
(2)	Efficiency ratio is calculated as non-interest expense divided by total revenue.
(3)	Average total earning assets and average loans and acceptances include average securitized residential mortgages and credit card loans for the three months ended October 31, 2014 of $54.5 billion and $8.0 billion, respectively (July 31, 2014 - $52.9 billion and $8.3 billion; October 31, 2013 - $53.9 billion and $7.2 billion).
(4)	AUA includes securitized residential mortgages and credit card loans as at October 31, 2014 of $23.2 billion and $8.0 billion respectively (July 31, 2014 - $23.1 billion and $8.3 billion; October 31, 2013 - $25.4 billion and $7.2 billion).

Q4 2014 vs. Q4 2013

Net income increased $123 million or 11% compared to last year, driven by strong fee-based revenue growth, solid volume growth and favourable net cumulative accounting adjustments of $55 million ($40 million after-tax).

Total revenue increased $237 million or 8%, reflecting strong fee-based revenue growth, primarily attributable to higher mutual fund distribution fees and card services revenue, solid volume growth of 5% across most businesses and favourable net cumulative accounting adjustments noted above.

Net interest margin decreased 4 bps, primarily due to the change in recording of certain loan fees in our business portfolio from Net interest income to Non-interest income as well as other accounting adjustments.

PCL decreased $13 million, with the PCL ratio decreasing 2 bps, largely reflecting lower impairments in our personal lending portfolio, partially offset by higher write-offs in our credit cards portfolio.

Non-interest expense increased $81 million or 6%, compared to last year, mostly due to higher marketing and infrastructure costs in support of business growth and higher variable compensation, partly offset by continuing benefits from our efficiency management activities including the full integration of Ally Canada.

Q4 2014 vs. Q3 2014

Net income increased $25 million or 2%, reflecting favourable net cumulative accounting adjustments as noted above and fee-based revenue growth. These factors were partly offset by higher marketing and infrastructure costs in support of business growth.

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1 These are non-GAAP measures. For further information, including a reconciliation, refer to the non-GAAP measures section on page 11 of this Earnings Release.

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)				2014		2014		2013
	Net interest income		$	123	$	117	$	103
	Non-interest income
	Fee-based revenue			1,112		1,059		910
	Transactional and other revenue			404		409		402
Total revenue				1,639		1,585		1,415
	PCL			-		-		42
	Non-interest expense			1,245		1,191		1,089
Net income before income taxes				394		394		284
Net income			$	285	$	285	$	202
Revenue by business
	Canadian Wealth Management		$	583	$	555	$	493
	U.S. & International Wealth Management			630		609		583
	U.S. & International Wealth Management (US$ millions)			565		564		560
	Global Asset Management			426		421		339
Key ratios
	ROE			19.6%		20.3%		14.4%
	Pre-tax margin^(1)			24.0%		24.9%		20.1%
Selected average balance sheet information
	Total assets		$	26,800	$	25,800	$	22,900
	Loans and acceptances			16,800		15,900		13,400
	Deposits			37,900		35,900		33,200
	Attributed capital			5,650		5,450		5,350
Other information
	Revenue per advisor (000s)^(2)		$	1,030	$	986	$	890
	AUA - total^(3)			717,500		700,600		639,200
	- U.S. & International Wealth Management^(3)			432,400		419,500		387,800
	- U.S. & International Wealth Management (US$ millions)^(3)			383,700		384,400		371,900
	AUM^(3)			452,300		442,100		387,200
	Average AUA			714,000		694,600		628,000
	Average AUM			449,200		436,200		381,900
	Number of advisors^(4)			4,402		4,396		4,366

					For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items								Q4 2014 vs.					Q4 2014 vs.
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)							Q4 2013					Q3 2014
Increase (decrease):
	Total revenue						$	43				$	11
	Non-interest expense							38					9
	Net income							4					1
Percentage change in average US$ equivalent of C$1.00								(6)%					(3)%
Percentage change in average British pound equivalent of C$1.00								(8)%					1%
Percentage change in average Euro equivalent of C$1.00								(1)%					3%

(1)	Pre-tax margin is defined as net income before income taxes divided by total revenue.
(2)	Represents investment advisors and financial consultants of our Canadian and U.S. full-service wealth businesses.
(3)	Represents period-end spot balances.
(4)	Represents client-facing advisors across all our wealth management businesses.

Q4 2014 vs. Q4 2013

Net income increased $83 million or 41% from a year ago, mainly due to higher earnings from growth in average fee-based client assets primarily in our Global Asset Management and Canadian Wealth Management businesses, and lower PCL.

Total revenue increased $224 million or 16%, mainly due to higher revenue from growth in average fee-based client assets reflecting capital appreciation and strong net sales, and the impact of foreign exchange translation.

PCL was nil. Last year included provisions on a few accounts.

Non-interest expense increased $156 million or 14%, mainly due to higher variable compensation driven by higher revenue, increased costs in support of business growth, the impact of foreign exchange translation, and restructuring costs of $27 million ($18 million after-tax) related to our U.S. and International Wealth Management businesses.

Q4 2014 vs. Q3 2014

Net income was flat compared to last quarter as higher earnings from growth in average fee-based client assets reflecting capital appreciation and net sales were mostly offset by restructuring costs related to our U.S. and International Wealth Management businesses and lower transaction volumes. In addition, last quarter's results included semi-annual performance fees.

Insurance
		As at or for the three months ended
		October 31					July 31			October 31
(Millions of Canadian dollars, except percentage amounts)			2014				2014			2013
	Non-interest income
	Net earned premiums			$	940		$	923	$	926
	Investment income^(1)				159			381		92
	Fee income				75			79		82
	Total revenue				1,174			1,383		1,100
	Insurance policyholder benefits and claims^(1)				657			925		764
	Insurance policyholder acquisition expense				95			84		114
	Non-interest expense				149			143		143
Net income before income taxes					273			231		79
Net income				$	256		$	214	$	107
Revenue by business line
	Canadian Insurance			$	646		$	871	$	611
	International Insurance				528			512		489
Key ratios
	ROE				61.5%			53.2%		31.8%
Selected average balance sheet information
	Total assets			$	12,700		$	12,100	$	11,600
	Attributed capital				1,650			1,600		1,300
Other information
	Premiums and deposits^(2)			$	1,318		$	1,310	$	1,266
	Canadian Insurance				615			637		605
	International Insurance				703			673		661
	Insurance claims and policy benefit liabilities			$	8,564		$	8,473	$	8,034
	Fair value changes on investments backing policyholder liabilities^(1)				43			255		(28)
	Embedded value^(3)				6,239			6,175		6,302
	AUM				700			600		500

(1)	Investment income can experience volatility arising from fluctuation in the fair value 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 investment income 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 and claims.
(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.
(3)	Embedded value is defined as the sum of value of equity held in our Insurance segment and the value of in-force business policies (existing policies). For further details, refer to the Key performance and Non-GAAP Measures section of our 2014 Annual Report.

Q4 2014 vs. Q4 2013

Net income increased $149 million from a year ago. Net income increased $31 million or 14%⁽¹⁾ excluding a charge last year of $160 million ($118 million after-tax) as a result of new tax legislation in Canada, mainly due to lower net claims costs including a favourable cumulative adjustment related to outstanding claims in our life retrocession business and earnings from a new U.K. annuity contract. Our results last year included a favourable impact from interest and asset related activities on the Canadian life business and a gain on sale of our Canadian travel agency insurance business.

Total revenue increased $74 million or 7% as compared to last year, mainly due to the change in fair value of investments backing our policyholder liabilities resulting from the decrease in long-term interest rate, largely offset in PBCAE. Earnings from a new U.K. annuity contract also contributed to the increase. These factors were partially offset by the impact of the sale of our Canadian travel agency insurance business.

PBCAE decreased $126 million or 14%. Excluding a charge last year of $160 million related to new tax legislation in Canada as noted above, PBCAE increased $34 million or 5%, mostly due to the change in fair value of investments backing our policyholder liabilities, largely offset in revenue. These factors were partially offset by lower net claims costs including a favourable adjustment as noted above.

Non-interest expense increased $6 million or 4%, primarily due to higher costs in support of business growth, partially offset by continuing benefits from our efficiency management activities.

Q4 2014 vs. Q3 2014

Net income increased $42 million or 20% from last quarter mainly due to lower net claims costs including a favourable cumulative adjustment as noted above and earnings from a new U.K. annuity contract.

_______________________________

1   These are non-GAAP measures. For future information, including a reconciliation, refer to the non-GAAP measures section on page 11 of this Earnings Release.

Investor & Treasury Services
		As at or for the three months ended
		October 31				July 31		October 31
(Millions of Canadian dollars, except percentage amounts)		2014			2014			2013
	Net interest income	$	183		$	182	$	165
	Non-interest income		293			298		281
Total revenue			476			480		446
	Non-interest expense		321			330		324
Net income before income taxes			155			150		122
Net income		$	113		$	110	$	91
Key ratios
	ROE		19.5%			20.1%		17.9%
Selected average balance sheet information
	Total assets	$	100,300		$	91,200	$	82,000
	Deposits		112,700			110,200		102,800
	Client deposits		45,000			42,700		37,400
	Wholesale funding deposits		67,700			67,500		65,400
	Attributed capital		2,250			2,150		1,950
Other information
	AUA		3,702,800			3,546,100		3,208,800
	Average AUA		3,565,500			3,481,977		3,153,400

Q4 2014 vs. Q4 2013

Net income increased $22 million or 24%, largely reflecting higher net interest income from growth in client deposits, continuing benefits from our efficiency management activities and higher foreign exchange results in Investor Services.

Total revenue increased $30 million or 7%, mainly due to higher net interest income resulting from growth in client deposits, higher foreign exchange revenue, and higher funding and liquidity revenue mainly as a result of tightening credit spreads. These factors were partially offset by a decrease in custodial fees.

Non-interest expense decreased $3 million or 1%, primarily due to continuing benefits from our efficiency management activities, partially offset by the impact of foreign exchange translation.

Q4 2014 vs. Q3 2014

Net income increased $3 million or 3%, largely due to an increase in custodial fees and higher foreign exchange results in Investor Services, mostly offset by lower securities lending results as last quarter was favourably impacted by seasonally higher securities lending.

Capital Markets
		As at or for the three months ended
			October 31			July 31		October 31
(Millions of Canadian dollars, except percentage amounts)			2014			2014		2013
	Net interest income^(1)	$	877		$	999	$	694
	Non-interest income		622			1,186		989
Total revenue^(1)			1,499			2,185		1,683
	PCL		32			1		11
	Non-interest expense		899			1,269		960
Net income before income taxes			568			915		712
Net income		$	402		$	641	$	469
Revenue by business
	Corporate and Investment Banking	$	846		$	965	$	786
	Global Markets		650			1,220		888
	Other		3			-		9
Key ratios
	ROE		10.7%			16.9%		14.0%
	Total assets	$	416,900		$	391,500	$	358,500
	Average trading securities		105,400			103,200		98,900
	Average loans and acceptances		68,500			66,300		57,400
	Average deposits		51,500			49,000		40,800
	Attributed capital		14,450			14,650		12,800
Credit information
	Gross impaired loans as a % of average net loans and acceptances		0.07%			0.08%		0.40%
	PCL on impaired loans as a % of average net loans and acceptances		0.19%			0.01%		0.08%
					For the three months ended
					Q4 2014 vs		Q4 2014 vs
Estimated impact of U.S., British pound and Euro translation on key income statement items					Q4 2013		Q3 2014
Increase (decrease):
	Total revenue				$	73	$	34
	Non-interest expense					46		11
	Net income					13		14
Percentage change in average US$ equivalent of C$1.00						(6)%		(3)%
Percentage change in average British pound equivalent of C$1.00						(8)%		1%
Percentage change in average Euro equivalent of C$1.00						(1)%		3%

(1)	The teb adjustment for Q4 2014 was $101 million (Q3 2014 - $174 million, Q4 2013 - $122 million). For further discussion, refer to the How we measure and report our business segments section in our 2014 Annual Report.

Q4 2014 vs. Q4 2013

Net income decreased $67 million or 14% from last year, mainly due to lower trading results primarily reflecting a $105 million charge ($51 million after tax and compensation adjustments) reflecting the implementation of FVA, $75 million ($46 million after-tax and variable compensation) in lower trading revenue and costs associated with the exit of certain proprietary trading strategies in compliance with the Volcker Rule, as well as challenging market conditions in the latter half of the quarter, partially offset by lower variable compensation.

Total revenue decreased $184 million or 11% from last year, primarily due to lower trading revenue reflecting the factors noted above which was partially offset by higher corporate and investment banking revenue including the impact of foreign exchange translation.

PCL increased $21 million from last year, reflecting a provision on a single account.

Non-interest expense decreased $61 million or 6% from last year, mainly due to lower variable compensation. These factors were partially offset by the impact of foreign exchange translation, higher costs in support of business growth, and costs associated with the exit of certain proprietary trading strategies noted above.

Q4 2014 vs. Q3 2014

Net income decreased $239 million or 37% from the record results last quarter, mainly due to lower trading results reflecting challenging market conditions in the latter half of the quarter compared to strong levels last quarter, the implementation of FVA, and lower trading revenue and costs associated with the exit of certain proprietary trading strategies as noted above. Lower results in most investment banking businesses compared to strong levels last quarter, and higher PCL also contributed to the decrease. These factors were partially offset by lower variable compensation reflecting lower results and a lower compensation to revenue ratio, lower litigation provisions and related legal costs, and strong growth in M&A activity.

Corporate Support
		As at or for the three months ended
			October 31			July 31		October 31
(Millions of Canadian dollars)			2014			2014		2013
	Net interest (loss) income ^(1)	$	(70)		$	(126)	$	(16)
	Non-interest (loss) income		113			21		(17)
Total revenue			43			(105)		(33)
	PCL		(1)			(2)		6
	Non-interest expense		40			37		33
	Income (recoveries) taxes ^(1)		(122)			(130)		(234)
Net income (loss)^(2)		$	126		$	(10)	$	162

(1)	Teb adjusted.
(2)	Net income reflects income attributable to both shareholders and non-controlling interests (NCI). Net income attributable to NCI for the three months ended October 31, 2014 was $24 million (July 31, 2014 - $23 million; October 31, 2013 - $24 million).

Due to the nature of activities and consolidated 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.

Net interest income (loss) 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 recorded in Capital Markets. The amount deducted from net interest income (loss) was offset by an equivalent increase in income taxes (recoveries). The teb amount for the three months ended October 31, 2014 was $101 million as compared to $174 million last quarter and $94 million last year period. For further discussion, refer to the How we measure and report our business segments section of our 2014 Annual Report.

In addition to the teb impacts noted above, the following identifies the other material items affecting the reported results in each period.

Q4 2014

Net income was $126 million largely reflecting gains on private equity investments related to the sale of a legacy portfolio and asset/liability management activities.

Q3 2014

Net loss was $10 million largely reflecting net unfavourable tax adjustments, which was mostly offset by asset/liability management activities.

Q4 2013

Net income was $162 million largely reflecting net favourable tax adjustments including a $124 million income tax adjustment which related to prior years, and asset/liability management activities.

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 2014 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 return on equity (ROE). ROE does not have a standardized meaning under GAAP. We use ROE as a measure of return on the capital invested in our business. The following table provides a summary of our ROE calculations:

Calculation of Return on Equity
	For the three months ended																	For the year ended
^.		October 31, 2014																October 31, 2014
	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			$	1,143	$	280	$	254	$	111	$	389	$	95	$	2,272		$	8,697
Total average common equity^(1)(2)			$	16,000	$	5,650	$	1,650	$	2,250	$	14,450	$	7,450	$	47,450		$	45,700
ROE ^(1)				28.3%		19.6%		61.5%		19.5%		10.7%		n.m.		19.0%			19.0%

 

(1)	Average common equity represent rounded figures. ROE is based on actual balances before rounding.
(2)	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, do not have a standardized meaning under GAAP and may not be comparable with similar information disclosed by other financial institutions. Results and measures excluding specified items are non-GAAP measures. We believe that providing information excluding the items specified below is more reflective of our ongoing operating results, will provide readers with a better understanding of our performance and should enhance the comparability of our comparative periods. For further information refer to the Key Performance and non-GAAP measures section of our 2014 Annual Report.

Our results were impacted by the following specified items:

• In Q3 2014, a loss of $40 million (before and after-tax), which includes foreign currency translation, related to the closing of the sale of RBC Royal Bank (Jamaica) Limited and RBTT Securities Jamaica Limited (collectively "RBC Jamaica").
• In Q1 2014, a loss of $60 million (before and after-tax) also related to the sale of RBC Jamaica noted above, along with provisions related to post-employment benefits and restructuring charges in the Caribbean of $40 million ($32 million after-tax).
• In Q4 2013, a charge of $160 million ($118 million after-tax) as a result of new tax legislation in Canada in Insurance.

 

Non-GAAP measures - Consolidated
	For the twelve months ended October 31, 2014														For the three months ended July 31, 2014
(Millions of Canadian dollars, except per share and percentage amounts)			Reported			Loss related to sale of RBC Jamaica			Provision for post-employment benefits and restructuring charge in the Caribbean			Adjusted				Reported			Loss related to sale of RBC Jamaica			Adjusted
Net income		$	9,004		$	100		$	32		$	9,136			$	2,378		$	40		$	2,418
Basic earnings per share		$	6.03		$	0.07		$	0.02		$	6.12			$	1.59		$	0.03		$	1.62
Diluted earnings per share		$	6.00		$	0.07		$	0.02		$	6.09			$	1.59		$	0.03		$	1.62
ROE			19.0%									19.3%				19.6%						20.0%

 

 

Non-GAAP measures - Personal & Commercial Banking
		For the twelve months ended October 31, 2014														For the three months ended July 31, 2014
(Millions of Canadian dollars)			Reported			Loss related to sale of RBC Jamaica			Provision for post-employment benefits and restructuring charge in the Caribbean			Adjusted				Reported			Loss related to sale of RBC Jamaica			Adjusted
Net income		$	4,475		$	100		$	32		$	4,607			$	1,138		$	40		$	1,178

Non-GAAP measures - Insurance
		For the twelve months ended October 31, 2013											For the three months ended October 31, 2013
(Millions of Canadian dollars)			Reported			Charge related to certain individual life insurance policies				Adjusted			Reported				Charge related to certain individual life insurance policies			Adjusted
PBCAE		$	2,784		$	(160)			$	2,624			$	878		$	(160)		$	718
Net income		$	595		$	118			$	713			$	107		$	118		$	225

 

Consolidated Balance Sheets
				October 31			July 31			October 31
(Millions of Canadian dollars)				2014(1)			2014(2)			2013(1)
Assets
Cash and due from banks			$	17,421		$	16,297		$	15,550
Interest-bearing deposits with banks				8,399			5,383			9,039
Securities
	Trading			151,380			152,756			144,023
	Available-for-sale			47,768			46,358			38,687
				199,148			199,114			182,710
Assets purchased under reverse repurchase agreements and securities borrowed				135,580			135,205			117,517
Loans
	Retail			334,987			329,831			320,627
	Wholesale			102,236			102,516			90,182
				437,223			432,347			410,809
	Allowance for loan losses			(1,994)			(1,926)			(1,959)
				435,229			430,421			408,850
Investments for account of segregated fund holders				675			645			513
Other
	Customers' liability under acceptances			11,462			10,443			9,953
	Derivatives			87,402			72,823			74,822
	Premises and equipment, net			2,684			2,603			2,636
	Goodwill			8,647			8,568			8,332
	Other intangibles			2,775			2,782			2,777
	Investments in associates			295			306			247
	Prepaid pension benefit cost			138			179			161
	Other assets			30,695			29,101			26,638
				144,098			126,805			125,566
Total assets			$	940,550		$	913,870		$	859,745
Liabilities
Deposits
	Personal		$	209,217		$	204,427		$	194,943
	Business and government			386,660			377,635			354,593
	Bank			18,223			19,629			13,543
				614,100			601,691			563,079
Insurance and investment contracts for account of segregated fund holders				675			645			513
Other
	Acceptances			11,462			10,443			9,953
	Obligations related to securities sold short			50,345			52,054			47,128
	Obligations related to assets sold under repurchase agreements and securities loaned			64,331			65,423			60,416
	Derivatives			88,982			75,096			76,745
	Insurance claims and policy benefit liabilities			8,564			8,473			8,034
	Accrued pension and other post-employment benefit expense			2,420			2,205			2,027
	Other liabilities			37,309			37,533			34,947
				263,413			251,227			239,250
Subordinated debentures				7,859			6,810			7,443
Trust capital securities				-			-			-
Total liabilities			$	886,047		$	860,373		$	810,285
Equity attributable to shareholders
	Preferred shares			4,075			4,750			4,600
	Common shares (shares issued - 1,442,232,886, 1,441,535,962 and 1,441,055,616)			14,511			14,475			14,377
	Treasury shares	- preferred (shares held - (1,207), 57,070 and (46,641))		-			(1)			1
		- common (shares held - (891,733), (117,579) and (666,366))		71			10			41
	Retained earnings			31,615			30,526			27,438
	Other components of equity			2,418			1,954			1,208
				52,690			51,714			47,665
Non-controlling interests				1,813			1,783			1,795
Total equity				54,503			53,497			49,460
Total liabilities and equity			$	940,550		$	913,870		$	859,745

(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)		2014 ^(1)			2014 ^(1)		2013 ^(1)			2014 ^(2)		2013 ^(2)
Interest income
	Loans	$	4,269		$	4,318	$	4,173		$	16,979	$	16,354
	Securities		933			1,097		982			3,993		3,779
	Assets purchased under reverse repurchase agreements and securities borrowed		253			237		222			971		941
	Deposits with banks		21			21		14			76		74
			5,476			5,673		5,391			22,019		21,148
Interest expense
	Deposits and other		1,463			1,493		1,445			5,873		5,694
	Other liabilities		390			473		522			1,784		1,869
	Subordinated debentures		63			60		73			246		336
			1,916			2,026		2,040			7,903		7,899
Net interest income			3,560			3,647		3,351			14,116		13,249
Non-interest income
	Insurance premiums, investment and fee income		1,167			1,383		1,083			4,957		3,911
	Trading revenue		(153)			285		260			742		867
	Investment management and custodial fees		886			838		759			3,355		2,870
	Mutual fund revenue		691			671		576			2,621		2,201
	Securities brokerage commissions		347			340		334			1,379		1,337
	Service charges		386			380		368			1,494		1,437
	Underwriting and other advisory fees		428			552		394			1,809		1,569
	Foreign exchange revenue, other than trading		207			215		187			827		748
	Card service revenue		180			181		145			689		632
	Credit fees		239			317		320			1,080		1,092
	Net gain on available-for-sale securities		62			36		51			192		188
	Share of profit in joint ventures and associates		34			44		32			162		159
	Other		348			101		59			685		422
Non-interest income			4,822			5,343		4,568			19,992		17,433
Total revenue			8,382			8,990		7,919			34,108		30,682
Provision for credit losses			345			283		334			1,164		1,237
Insurance policyholder benefits, claims and acquisition expense			752			1,009		878			3,573		2,784
Non-interest expense
	Human resources		2,581			2,866		2,530			11,031		10,248
	Equipment		288			287		289			1,147		1,081
	Occupancy		333			350		324			1,330		1,235
	Communications		242			191		210			779		728
	Professional fees		263			178		222			763		753
	Outsourced item processing		58			59		60			246		250
	Amortization of other intangibles		176			171		147			666		566
	Impairment of other intangibles		6			2		10			8		10
	Impairment of investments in joint ventures and associates		(17)			5		-			-		20
	Other		410			493		359			1,691		1,323
			4,340			4,602		4,151			17,661		16,214
Income before income taxes from continuing operations			2,945			3,096		2,556			11,710		10,447
Income taxes			612			718		455			2,706		2,105
Net income from continuing operations			2,333			2,378		2,101			9,004		8,342
Net loss from discontinued operations			-			-		-			-		-
Net income		$	2,333		$	2,378	$	2,101		$	9,004	$	8,342
Net income attributable to:
	Shareholders	$	2,316		$	2,352	$	2,077		$	8,910	$	8,244
	Non-controlling interests		17			26		24			94		98
		$	2,333		$	2,378	$	2,101		$	9,004	$	8,342
Basic earnings per share (in dollars)		$	1.57		$	1.59	$	1.40		$	6.03	$	5.53
Diluted earnings per share (in dollars)			1.57			1.59		1.39			6.00		5.49
Dividends per common share (in dollars)			0.75			0.71		0.67			2.84		2.53

(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)							2014 (1)			2014 (1)			2013 (1)			2014 (2)			2013 (2)
Net income						$	2,333		$	2,378		$	2,101		$	9,004		$	8,342
Other comprehensive income (loss), net of taxes
Items that will be reclassified subsequently to income:
			Net change in unrealized gains on available-for-sale securities
				Net unrealized gains on available-for-sale securities			22			39			83			143			15
				Reclassification of net gains on available-for-sale securities to income			(16)			(7)			(7)			(58)			(87)
							6			32			76			85			(72)
			Foreign currency translation adjustments
				Unrealized foreign currency translation gains (losses)			924			(203)			732			2,743			1,402
				Net foreign currency translation (losses) gains from hedging activities			(470)			166			(496)			(1,585)			(912)
				Reclassification of losses on foreign currency translation to income			-			47			1			44			1
				Reclassification of (gains) losses on net investment hedging activities to income			-			-			(1)			3			(1)
							454			10			236			1,205			490
			Net change in cash flow hedges
				Net (losses) gains on derivatives designated as cash flow hedges			(32)			2			(140)			(108)			(11)
				Reclassification of losses (gains) on derivatives designated as cash flow hedges to income			36			(3)			(2)			28			(30)
							4			(1)			(142)			(80)			(41)
Items that will not be reclassified subsequently to income:
			Remeasurements of employee benefit plans				(152)			(178)			(75)			(236)			319
			Net fair value change due to credit risk on financial liabilities through profit or loss				51			(28)			-			(59)			-
Total other comprehensive income (loss), net of taxes							363			(165)			95			915			696
Total comprehensive income						$	2,696		$	2,213		$	2,196		$	9,919		$	9,038
Total comprehensive income attributable to:
			Shareholders			$	2,679		$	2,187		$	2,172		$	9,825		$	8,940
			Non-controlling interests				17			26			24			94			98
						$	2,696		$	2,213		$	2,196		$	9,919		$	9,038

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

Consolidated Statements of Changes in Equity
																Other components of equity
(Millions of Canadian dollars)						Preferred shares		Common shares		Treasury shares - preferred		Treasury shares - common		Retained earnings		Available- for-sale securities		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests		Total equity
Balance at November 1, 2011^(1)					$	4,813	$	14,010	$	-	$	8	$	20,084	$	259	$	71	$	160	$	490	$	39,405	$	1,758	$	41,163
Changes in equity
				Issues of share capital		-		313		-		-		-		-		-		-		-		313		-		313
				Sales of treasury shares		-		-		98		5,186		-		-		-		-		-		5,284		-		5,284
				Purchases of treasury shares		-		-		(97)		(5,164)		-		-		-		-		-		(5,261)		-		(5,261)
				Share-based compensation awards		-		-		-		-		(9)		-		-		-		-		(9)		-		(9)
				Dividends on common shares		-		-		-		-		(3,291)		-		-		-		-		(3,291)		-		(3,291)
				Dividends on preferred shares and other		-		-		-		-		(258)		-		-		-		-		(258)		(92)		(350)
				Other		-		-		-		-		5		-		-		-		-		5		(3)		2
				Net income		-		-		-		-		7,410		-		-		-		-		7,410		97		7,507
				Total other comprehensive income		-		-		-		-		(779)		160		125		56		341		(438)		1		(437)
Balance at October 31, 2012^(1)					$	4,813	$	14,323	$	1	$	30	$	23,162	$	419	$	196	$	216	$	831	$	43,160	$	1,761	$	44,921
Changes in equity
				Issues of share capital		-		121		-		-		-		-		-		-		-		121		-		121
				Common shares purchased for cancellation		-		(67)		-		-		(341)		-		-		-		-		(408)				(408)
				Preferred shares redeemed		(213)		-		-		-		(9)		-		-		-		-		(222)				(222)
				Sales of treasury shares		-		-		127		4,453		-		-		-		-		-		4,580		-		4,580
				Purchases of treasury shares		-		-		(127)		(4,442)		-		-		-		-		-		(4,569)		-		(4,569)
				Share-based compensation awards		-		-		-		-		(7)		-		-		-		-		(7)		-		(7)
				Dividends on common shares		-		-		-		-		(3,651)		-		-		-		-		(3,651)		-		(3,651)
				Dividends on preferred shares and other		-		-		-		-		(253)		-		-		-		-		(253)		(94)		(347)
				Other		-		-		-		-		(26)		-		-		-		-		(26)		30		4
				Net income		-		-		-		-		8,244		-		-		-		-		8,244		98		8,342
				Total other comprehensive income		-		-		-		-		319		(72)		490		(41)		377		696		-		696
Balance at October 31, 2013^(1)					$	4,600	$	14,377	$	1	$	41	$	27,438	$	347	$	686	$	175	$	1,208	$	47,665	$	1,795	$	49,460
Changes in equity
				Issues of share capital		1,000		150		-		-		(14)		-		-		-		-		1,136		-		1,136
				Common shares purchased for cancellation		-		(16)		-		-		(97)		-		-		-		-		(113)		-		(113)
				Preferred shares redeemed		(1,525)		-		-		-		-		-		-		-		-		(1,525)		-		(1,525)
				Sales of treasury shares		-		-		124		5,333		-		-		-		-		-		5,457		-		5,457
				Purchases of treasury shares		-		-		(125)		(5,303)		-		-		-		-		-		(5,428)		-		(5,428)
				Share-based compensation awards		-		-		-		-		(9)		-		-		-		-		(9)		-		(9)
				Dividends on common shares		-		-		-		-		(4,097)		-		-		-		-		(4,097)		-		(4,097)
				Dividends on preferred shares and other		-		-		-		-		(213)		-		-		-		-		(213)		(94)		(307)
				Other		-		-		-		-		(8)		-		-		-		-		(8)		18		10
				Net income		-		-		-		-		8,910		-		-		-		-		8,910		94		9,004
				Total other comprehensive income		-		-		-		-		(295)		85		1,205		(80)		1,210		915		-		915
Balance at October 31, 2014					$	4,075	$	14,511	$	-	$	71	$	31,615	$	432	$	1,891	$	95	$	2,418	$	52,690	$	1,813	$	54,503

(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 filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), in reports to shareholders and in other communications. Forward-looking statements include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, and include our 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,  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, regulatory compliance, operational, strategic, reputation, competitive and systematic risks and other risks discussed in the Risk management and Overview of other risks sections of our 2014 Annual Report; anti-money laundering; growth in wholesale credit; the high levels of Canadian household debt; cybersecurity; the business and economic conditions in Canada, the U.S. and certain other countries in which we operate; the effects of changes in government fiscal, monetary and other policies; tax risk and transparency; our ability to attract and retain employees; the accuracy and completeness of information concerning our clients and counterparties; the development and integration of our distribution networks; model, information technology, information management, social media, environmental and third party and outsourcing 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 Overview and outlook section and for each business segment under the heading Outlook and priorities in our 2014 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 management and Overview of other risks sections of our 2014 Annual Report to Shareholders.

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 Q4 2014 Earnings Release, quarterly results slides, Supplementary Financial Information and our 2014 Annual Report, 2014 Annual Information Form (AIF) and Annual Report on Form 40-F (Form 40-F) on our website at rbc.com/investorrelations. Shareholders may request a hard copy of our 2014 Annual Report, AIF and Form 40-F free of charge by contacting Investor Relations at [phone]. Our Form 40-F will be filed with the SEC.

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for Wednesday December 3^rd, 2014 at 8:00 a.m. (EST) and will feature a presentation about our fourth quarter and 2014 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: www.rbc.com/investorrelations/ir_events_presentations.html or by telephone        [phone] or 1-888-789-9572, passcode 1952784#). 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. Also, a recording will be available by 5:00 p.m. (EST) on December 3^rd, 2014 until February 24^th, 2015 at: www.rbc.com/investorrelations/ir_quarterly.html or by telephone [phone] or 1-800-408-3053, passcode 2308956#).

ABOUT RBC

Royal Bank of Canada is Canada's largest bank, and one of the largest banks in the world, based on market capitalization. We are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. We employ approximately 78,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 38 other countries. For more information, please visit rbc.com.

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: RBC

Media Relations Contacts
Tanis Feasby, Director, Financial Communications, [email protected], 416-955-5172 or 1-888-880-2173 (toll-free outside Toronto)
Sandra Nunes, Senior Manager, Financial Communications, [email protected], 416-974-1794 or 1-888-880-2173 (toll-free outside Toronto)

Investor Relations Contacts
Amy Cairncross, VP & Head, Investor Relations, [email protected], 416-955-7803
Lynda Gauthier, Director, Investor Relations, [email protected], 416-955-7808
Christopher Taylor, Associate Director, Investor Relations, [email protected], 416-955-7872