Royal Bank of Canada Reports Fourth Quarter and Record 2016 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, 2016 and related notes prepared in accordance with International Financial Reporting Standards (IFRS). Our 2016 Annual Report (which includes our audited annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2016 Annual Information Form and our Supplementary Financial Information are available on our website at: http://www.rbc.com/investorrelations.

TORONTO, Nov. 30, 2016 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $10,458 million for the year ended October 31, 2016, up $432 million or 4% from a year ago. Results were driven by strong results in Wealth Management, which includes City National Bank (City National), and higher earnings in Insurance, which includes the Q3/16 gain on the sale of our home and auto insurance manufacturing business. Solid results in Personal & Commercial Banking and record earnings in Investor & Treasury Services also contributed to the increase. These factors were partially offset by lower earnings in Capital Markets. Our performance also benefited from our ongoing efficiency management activities. In addition, our provision for credit losses (PCL) ratio of 0.29% was up 5 basis points (bps) primarily as a result of the low oil price environment.

As of October 31, 2016, our capital position was strong, with a Basel III Common Equity Tier 1 (CET1) of 10.8%. In 2016, we increased our quarterly dividend twice, for an annual dividend increase of 5%.

"We reported record earnings of $10.5 billion in 2016, driven by the strength of our diversified business model which is focused on our clients and their success. I'm pleased with our performance, which also reflects the successful integration of City National and our commitment to cost and risk management discipline," said Dave McKay, RBC President and CEO. "Looking ahead, while the industry faces headwinds and an accelerating pace of change, we believe we are well positioned to deliver long-term shareholder value by leveraging innovation, our values-based culture which supports strong client relationships, and prudent capital and risk management."

2016 compared to 2015

• Net income of $10,458 million (up 4% from $10,026 million)
• Diluted earnings per share (EPS) of $6.78 (up $0.05 from $6.73)
• Return on common equity (ROE)⁽¹⁾ of 16.3% (down from 18.6%)
• Basel III CET1 ratio of 10.8% (up from 10.6%)

2016 Business Segment Performance

• 4% earnings growth in Personal & Commercial Banking, largely reflecting solid volume growth across most businesses partially offset by lower spreads, higher fee-based revenue in Canadian Banking, and higher earnings in the Caribbean. These factors were partially offset by higher costs in support of business growth and higher PCL in Canada. In Canadian Banking, we continued to improve our efficiency ratio to 43.4%, reflecting the benefits of our prudent cost management;
• 41% earnings growth in Wealth Management, primarily reflecting the inclusion of our acquisition of City National, lower restructuring costs related to our International Wealth Management business, and benefits from our efficiency management activities;
• 27% earnings growth in Insurance. Excluding the gain on sale of our home and auto insurance manufacturing business, earnings were down 6%⁽²⁾ mainly due to lower earnings from new U.K. annuity contracts and the reduction in earnings from the sale of our home and auto insurance manufacturing business;
• 10% earnings growth in Investor & Treasury Services primarily due to higher funding and liquidity earnings, and higher client deposit spreads; and
• 2% lower earnings in Capital Markets, driven by higher PCL, and lower results in our Global Markets and Corporate and Investment Banking businesses, partially offset by lower variable compensation and the favourable impact of foreign exchange translation.

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¹ ROE 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.
² Results and measures excluding the gain on the sale of our home and auto insurance manufacturing business are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP section on page 11 of this Earnings Release.

Q4 2016 compared to Q4 2015	Q4 2016 compared to Q3 2016
Net income of $2,543 million (down 2% from $2,593 million) Diluted EPS of $1.65 (down $0.09 from $1.74) ROE of 15.5% (down from 17.9%)	Net income of $2,543 million (down 12% from $2,895 million) Diluted EPS of $1.65 (down $0.23 from $1.88) ROE of 15.5% (down from 18.0%)
	Excluding specified item: Q4 2016 compared to Q3 2016
	Net income of $2,543 million^(3) (down 4% from $2,660 million) Diluted EPS of $1.65^(3) (down $0.07 from $1.72)

Q4 2016 Performance

Earnings of $2,543 million were down $50 million or 2% from a year ago, as the prior year benefited from a lower effective tax rate reflecting favourable income tax adjustments mainly in Corporate Support and Capital Markets. This was mostly offset by strong earnings in Wealth Management, largely reflecting the inclusion of City National, and record earnings in Investor & Treasury Services. Results in Personal & Commercial Banking and Insurance were relatively flat.

Earnings were down $352 million, or 12% from last quarter. Excluding the Q3/16 after-tax gain of $235 million from the sale of our home and auto insurance manufacturing business, earnings were down $117 million or 4%⁽³⁾ due to lower earnings in Capital Markets and Personal & Commercial Banking which were partially offset by strong earnings in Insurance and Investor & Treasury Services, and higher earnings in Wealth Management.

Q4 2016 Business Segment Performance

Personal & Commercial Banking net income of $1,275 million was up $5 million from a year ago. Canadian Banking net income was $1,246 million, up $19 million or 2% from a year ago, mainly reflecting solid volume growth across most businesses partially offset by lower spreads, and higher fee-based revenue. These factors were partially offset by higher PCL, higher technology spend and higher costs in support of business growth. Caribbean & U.S. Banking net income of $29 million was down $14 million or 33% from a year ago largely due to higher costs in support of business growth partially offset by higher fee-based revenue.

Compared to last quarter, Personal & Commercial Banking net income was down $47 million or 4%. Canadian Banking net income was down $38 million or 3%, mainly driven by higher initiatives and technology spend, and seasonally higher marketing costs. These factors were partially offset by volume growth across most businesses and fee-based revenue growth primarily attributable to higher mutual fund distribution fees. Caribbean & U.S. Banking net income was down $9 million.

Wealth Management net income of $396 million was up $141 million or 55% from a year ago, largely reflecting the inclusion of City National, which contributed $89 million to net income, lower restructuring costs and higher earnings due to growth in average fee-based client assets. Excluding amortization of intangibles and integration costs of $29 million ($49 million before-tax) and $9 million ($16 million before-tax) respectively, City National contributed $127 million⁽⁴⁾ to net income.

Compared to last quarter, net income was up $8 million or 2%, primarily driven by higher earnings from growth in average fee-based client assets and a higher contribution from City National.

Insurance net income of $228 million was up $3 million or 1% from a year ago, mainly reflecting higher earnings from new U.K. annuity contracts. These factors were partially offset by lower results due to the sale of our home and auto insurance manufacturing business, as noted above, and the impact of foreign exchange translation.

Compared to last quarter, net income was down $136 million or 37%. Excluding the Q3/16 gain from the sale of our home and auto insurance manufacturing business, as noted above, net income increased $99 million⁽³⁾, mainly due to favourable actuarial adjustments reflecting management actions and assumption changes, and growth in International insurance, including earnings from new U.K. annuity contracts.

Investor & Treasury Services net income of $174 million was up $86 million from a year ago, largely due to higher funding and liquidity earnings reflecting tightening credit spreads and favourable interest rate movements, and higher client deposit spreads. These factors were partially offset by higher staff costs, a higher effective tax rate and increased investment in technology initiatives.

Compared to last quarter, net income was up $17 million or 11%, primarily due to higher funding and liquidity earnings reflecting tightening credit spreads and favourable interest rate movements.

Capital Markets net income of $482 million was down $73 million or 13% from a year ago, as the prior year benefited from a lower effective tax rate reflecting income tax adjustments related to the prior periods. In the current quarter, higher results in our Corporate and Investment Banking and Global Markets businesses were partially offset by higher variable compensation on improved results.

Compared to last quarter, net income was down $153 million or 24%, mainly due to lower trading revenue and lower equity origination activity. These factors were partially offset by increased loan syndication revenue largely in the U.S.

Corporate Support net loss was $12 million largely reflecting net unfavourable tax adjustments, partially offset by asset/liability management activities. Net income last quarter was $29 million, largely reflecting asset/liability management activities.

Capital – As at October 31, 2016, Basel III CET1 ratio was 10.8%, up 30 bps compared to last quarter largely due to internal capital generation.

Credit Quality – Total PCL of $358 million was up $83 million or 30% from a year ago, largely due to Canadian Banking, Wealth Management reflecting the inclusion of City National, and Capital Markets. PCL was up $40 million or 13% compared to last quarter, largely due to higher PCL in Capital Markets, Personal & Commercial Banking and Wealth Management. Our PCL ratio of 0.27% increased 4 bps from a year ago and 3 bps compared to last quarter.

Total gross impaired loans (GIL) of $3,903 million were up $1,618 million from a year ago largely due to higher impaired oil and gas loans in Capital Markets and the inclusion of City National. GIL was up $187 million from last quarter due to higher impaired loans in Capital Markets. Our GIL ratio of 0.73% increased 26 bps from a year ago and 3 bps compared to last quarter.

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³ Results and measures excluding the gain on the sale of our home and auto insurance manufacturing business are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP section on page 11 of this Earnings Release.
⁴ City National results excluding amortization of intangibles and integration costs is a non-GAAP measure that we believe provides readers with a better understanding of management's perspective on our performance. For further information, including a reconciliation, refer to the Key performance and non-GAAP 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
(Millions of Canadian dollars, except per share, number of and percentage amounts)				October 31			July 31			October 31			October 31				October 31
				2016			2016			2015			2016				2015
	Total revenue		$	9,265		$	10,255		$	8,019		$	38,405			$	35,321
	Provision for credit losses (PCL)			358			318			275			1,546				1,097
	Insurance policyholder benefits, claims and acquisition expense (PBCAE)			397			1,210			292			3,424				2,963
	Non-interest expense			5,198			5,091			4,647			20,136				18,638
	Net income before income taxes			3,312			3,636			2,805			13,299				12,623
Net income			$	2,543		$	2,895		$	2,593		$	10,458			$	10,026
Segments - net income
	Personal & Commercial Banking		$	1,275		$	1,322		$	1,270		$	5,184			$	5,006
	Wealth Management			396			388			255			1,473				1,041
	Insurance			228			364			225			900				706
	Investor & Treasury Services			174			157			88			613				556
	Capital Markets			482			635			555			2,270				2,319
	Corporate Support			(12)			29			200			18				398
Net income			$	2,543		$	2,895		$	2,593		$	10,458			$	10,026
Selected information
	Earnings per share (EPS)	- basic	$	1.66		$	1.88		$	1.74		$	6.80			$	6.75
		- diluted		1.65			1.88			1.74			6.78				6.73
	Return on common equity (ROE) ^(1), (2)			15.5	%		18.0	%		17.9	%		16.3	%			18.6	%
	Net interest margin (on average earning assets)^(3)			1.70	%		1.69	%		1.67	%		1.70	%			1.71	%
	Total PCL as a % of average net loans and acceptances			0.27	%		0.24	%		0.23	%		0.29	%			0.24	%
	PCL on impaired loans as a % of average net loans and acceptances			0.27	%		0.24	%		0.23	%		0.28	%			0.24	%
	Gross impaired loans (GIL) as a % of loans and acceptances^(4)			0.73	%		0.70	%		0.47	%		0.73	%			0.47	%
	Liquidity coverage ratio^(5)			127	%		126	%		127	%		127	%			127	%
Capital ratios and Leverage ratio^(6)
	Common Equity Tier 1 (CET1) ratio			10.8	%		10.5	%		10.6	%		10.8	%			10.6	%
	Tier 1 capital ratio			12.3	%		12.1	%		12.2	%		12.3	%			12.2	%
	Total capital ratio			14.4	%		14.2	%		14.0	%		14.4	%			14.0	%
	Leverage ratio			4.4	%		4.2	%		4.3	%		4.4	%			4.3	%
Selected balance sheet and other information
	Total assets		$	1,180,258		$	1,198,875		$	1,074,208		$	1,180,258			$	1,074,208
	Securities			236,093			233,998			215,508			236,093				215,508
	Loans (net of allowance for loan losses)			521,604			515,820			472,223			521,604				472,223
	Derivative related assets			118,944			130,462			105,626			118,944				105,626
	Deposits			757,589			754,415			697,227			757,589				697,227
	Common equity			64,304			62,541			57,048			64,304				57,048
	Average common equity ^(1)			63,100			61,800			55,800			62,200				52,300
	Total capital risk-weighted assets			449,712			445,114			413,957			449,712				413,957
	Assets under management (AUM)^(7)			586,300			575,000			498,400			586,300				498,400
	Assets under administration (AUA)^(7), (8)			5,058,900			4,823,700			4,683,100			5,058,900				4,683,100
Common share information
	Shares outstanding (000s)	- average basic		1,483,869			1,485,915			1,443,992			1,485,876			1,442,935
		- average diluted		1,491,872			1,494,126			1,450,405			1,494,137			1,449,509
		- end of period		1,485,394			1,485,085			1,443,423			1,485,394			1,443,423
	Dividends declared per share		$	0.83		$	0.81		$	0.79		$	3.24			$	3.08
	Dividend yield^(9)			4.0	%		4.1	%		4.3	%		4.3	%			4.1	%
	Common share price (RY on TSX)^(10)		$	83.80		$	79.59		$	74.77		$	83.80			$	74.77
	Book value per share		$	43.32		$	42.15		$	39.51		$	43.32			$	39.51
	Market capitalization (TSX)^(10)			124,476			118,198			107,925			124,476				107,925
Business information (number of)
	Employees (full-time equivalent) (FTE)			75,510			76,941			72,839			75,510				72,839
	Bank branches			1,419			1,422			1,355			1,419				1,355
	Automated teller machines (ATMs)			4,905			4,901			4,816			4,905				4,816
Period average US$ equivalent of C$1.00^(11)			$	0.757		$	0.768		$	0.758		$	0.755			$	0.797
Period-end US$ equivalent of C$1.00			$	0.746		$	0.766		$	0.765		$	0.746			$	0.765

(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 2016 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 2016 Supplementary Financial Information and our 2016 Annual Report for additional information.
(3)	Net interest margin (on average earning assets) is calculated as net interest income divided by average earning assets. Average amounts are calculated using methods intended to approximate the average of the daily balances for the period.
(4)	GIL includes $418 million (July 31, 2016 – $508 million, October 31, 2015 - n.a) related to the acquired credit impaired (ACI) loans portfolio from our acquisition of City National, with over 80% covered by loss-sharing agreements with the Federal Deposit Insurance Corporation. ACI loans added 8 bps to our 2016 GIL ratio (July 31, 2016 – 10 bps, October 31, 2015 – n.a). For further details, refer to Notes 2 and 5 of our 2016 Annual Report.
(5)	LCR is a regulatory measure under the Basel III Framework, and is calculated using the Liquidity Adequacy Requirements guideline. Effective in the second quarter of 2015, LCR was adopted prospectively. For further details, refer to the Liquidity and funding risk section of our 2016 Annual Report.
(6)	Capital and Leverage ratios presented above are on an "all-in" basis. The Leverage ratio is a regulatory measure under the Basel III Framework effective the first quarter of 2015.
(7)	Represents period-end spot balances.
(8)	AUA are beneficially owned by clients and are reported based on the nature of the administrative services provided. AUA includes $18.6 billion and $9.6 billion of securitized residential mortgages and credit card loans, respectively (July 31, 2016 – $18.8 billion and $9.4 billion; October 31, 2015 – $21.0 billion and $8.0 billion). Prior period figures have been revised from those previously disclosed.
(9)	Defined as dividends per common share divided by the average of the high and low share price in the relevant period.
(10)	Based on TSX closing market price at period-end.
(11)	Average amounts are calculated using month-end spot rates for the period.

Personal & Commercial Banking
		As at or for the three months ended
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)			October 31 2016			July 31 2016			October 31 2015
	Net interest income	$	2,640		$	2,598		$	2,569
	Non-interest income		1,144			1,137			1,080
Total revenue			3,784			3,735			3,649
	PCL		288			271			240
	Non-interest expense		1,780			1,687			1,717
Net income before income taxes			1,716			1,777			1,692
Net income		$	1,275		$	1,322		$	1,270
Revenue by business
	Canadian Banking		3,532			3,499			3,409
	Caribbean & U.S. Banking		252			236			240
Selected balances and other information
	ROE		27.1%			28.0%			29.1%
	NIM ^(1)		2.69%			2.68%			2.70%
	Efficiency ratio ^(2)		47.0%			45.2%			47.1%
	Operating leverage		0.0%			0.6%			1.0%
	Average total assets	$	409,000		$	405,000		$	395,100
	Average total earning assets		391,000			386,000			377,300
	Average loans and acceptances		390,000			384,700			375,400
	Average deposits		329,700			321,300			307,000
	AUA ^(3)	$	239,600		$	235,300		$	223,500
	AUM		4,600			4,400			4,800
	Number of employees (FTE) ^(4)		33,896			34,828			35,211
	Effective income tax rate		25.7%			25.6%			24.9%
	Gross impaired loans as a % of average net loans and acceptances		0.42%			0.43%			0.48%
	PCL on impaired loans as a % of average net loans and acceptances		0.29%			0.28%			0.25%

(1)	Calculated as net interest income divided by average total earning assets.
(2)	Calculated as non-interest expense divided by total revenue.
(3)	AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at October 31, 2016 of $18.6 billion and $9.6 billion, respectively (July 31, 2016 – $18.8 billion and $9.4 billion; October 31, 2015 – $21.0 billion and $8.0 billion).
(4)	Amounts have been revised from those previously presented.

Q4 2016 vs. Q4 2015
Net income of $1,275 million increased $5 million compared to a year ago, primarily due to solid volume growth across most of our businesses partially offset by lower spreads in Canada, and higher fee-based revenue. These factors were largely offset by higher PCL, higher technology spend and higher costs in support of business growth. 

Total revenue increased $135 million or 4%, reflecting volume growth of 6% across most businesses in Canada partially offset by lower spreads, and higher fee-based revenue.

Net interest margin decreased 1 bp primarily due to the low interest rate environment.

PCL increased $48 million, with the PCL ratio increasing 4 bps, largely reflecting higher provisions in our Canadian personal and commercial lending portfolios and higher write-offs in our Canadian credit cards portfolio.

Non-interest expense increased $63 million or 4%, mainly due to higher technology spend and higher costs in support of business growth. These factors were partially offset by the continuing benefits from our efficiency management activities. 

Q4 2016 vs. Q3 2016
Net income decreased $47 million or 4% from the prior quarter, mainly driven by higher initiatives and technology spend, and seasonally higher marketing costs in support of business growth in Canadian Banking. These factors were partially offset by volume growth and higher fee-based revenue growth in Canadian Banking mainly attributable to strong mutual fund distribution fees reflecting higher average client fee-based assets due to strong net sales and capital appreciation.

Canadian Banking						Table 20
		As at or for the three months ended
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)			October 31 2016			July 31 2016			October 31 2015
	Net interest income	$	2,471		$	2,442		$	2,407
	Non-interest income		1,061			1,057			1,002
Total revenue			3,532			3,499			3,409
	PCL		276			265			228
	Non-interest expense		1,578			1,503			1,529
Net income before income taxes			1,678			1,731			1,652
Net income		$	1,246		$	1,284		$	1,227
Revenue by business
	Personal Financial Services	$	1,997		$	1,973		$	1,956
	Business Financial Services		811			814			774
	Cards and Payment Solutions		724			712			679
Selected balances and other information
	ROE		32.5%			33.4%			35.2%
	NIM^(1)		2.63%			2.63%			2.65%
	Efficiency ratio^(2)		44.7%			43.0%			44.9%
	Operating leverage		0.4%			1.4%			(1.5)%
	Average total assets	$	386,500		$	382,300		$	373,000
	Average total earning assets		374,300			368,900			360,200
	Average loans and acceptances		380,900			375,600			366,100
	Average deposits		311,400			302,700			288,800
	AUA ^(3)		231,400			227,400			213,700
	Number of employees (FTE) ^(4)		29,982			30,927			31,057
	Effective income tax rate		25.7%			25.8%			25.7%
	Gross impaired loans as a % of average net loans and acceptances		0.27%			0.28%			0.29%
	PCL on impaired loans as a % of average net loans and acceptances		0.29%			0.28%			0.25%

(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)	AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at October 31, 2016 of $18.6 billion and $9.6 billion, respectively (July 31, 2016 – $18.8 billion and $9.4 billion; October 31, 2015 – $21.0 billion and $8.0 billion).
(4)	Amounts have been revised from those previously presented.

Q4 2016 vs. Q4 2015
Net income increased $19 million or 2% compared to a year ago, primarily due to solid volume growth across most of our businesses partially offset by lower spreads, and higher fee-based revenue. These factors were partially offset by higher PCL, higher technology spend and higher costs in support of business growth.

Total revenue increased $123 million or 4%, mainly reflecting volume growth of 6% across most businesses partially offset by lower spreads, and higher fee-based revenue. Fee-based revenue growth is primarily due to higher transaction volumes driving card service revenue, and strong mutual fund distribution fees attributable to higher average client fee-based assets reflecting capital appreciation and strong net sales.

Net interest margin decreased 2 bps primarily due to the low interest rate environment.

PCL increased $48 million, with the PCL ratio increasing 4 bps, largely reflecting higher provisions in our personal and commercial lending portfolios and higher write-offs in our credit card portfolio.

Non-interest expense increased $49 million or 3%, mostly due to higher technology spend and increased costs in support of business growth, including marketing spend. These factors were partially offset by the continuing benefits from our efficiency management activities.

Q4 2016 vs. Q3 2016
Net income decreased $38 million or 3% from the prior quarter, mainly driven by higher initiatives and technology spend, and seasonally higher marketing costs in support of business growth. These factors were partially offset by volume growth across most businesses and fee-based revenue growth primarily attributable to higher mutual fund distribution fees reflecting higher average client fee-based assets due to strong net sales and capital appreciation.

Wealth Management
			As at or for the three months ended
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)					October 31 2016		July 31 2016		October 31 2015
	Net interest income			$	524	$	496	$	118
	Non-interest income
		Fee-based revenue			1,331		1,276		1,188
		Transactional and other revenue			432		463		347
Total revenue					2,287		2,235		1,653
	PCL				22		14		1
	Non-interest expense				1,736		1,717		1,317
Net income before income taxes					529		504		335
Net income				$	396	$	388	$	255
Revenue by business
	Canadian Wealth Management			$	648	$	606	$	583
	U.S. Wealth Management (including City National)				1,081		1,064		499
		U.S. Wealth Management (including City National) (US$ millions)			818		817		379
	International Wealth Management				102		107		124
	Global Asset Management				456		458		447
Selected balances and other information
	ROE				11.6%		11.4%		17.0%
	NIM^(1)				2.8%		2.9%		2.5%
	Pre-tax margin^(2)				23.1%		22.6%		20.3%
	Total assets			$	87,900	$	83,000	$	28,200
	Number of advisors^(3)				4,780		4,716		3,954
	Average total earning assets				73,800		68,800		19,000
	Average loans and acceptances				50,200		49,100		17,300
	Average deposits				91,300		85,200		37,300
	AUA - total^(4),(5)				875,300		850,200		823,700
		- U.S. Wealth Management (including City National)^(4),(5)			394,200		389,600		356,800
		- U.S. Wealth Management (including City National) (US$ millions)^(4),(5)			293,900		298,500		272,900
	AUM^(4)				580,700		569,700		492,800
	Average AUA^(5)				864,400		842,500		820,100
	Average AUM				578,700		559,300		491,000
						For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items							Q4 2016 vs.	Q4 2016 vs.
(Millions of Canadian dollars, except percentage amounts)							Q4 2015	Q3 2016
Increase (decrease):
	Total revenue					$	(22)	$	2
	Non-interest expense						(22)		1
	Net income						2		2
Percentage change in average US$ equivalent of C$1.00							-%		(1)%
Percentage change in average British pound equivalent of C$1.00							20%		6%
Percentage change in average Euro equivalent of C$1.00							-%		(1)%

(1)	NIM is calculated as Net interest income divided by Average total earning assets.
(2)	Pre-tax margin is defined as net income before income taxes divided by total revenue.
(3)	Represents client-facing advisors across all our wealth management businesses.
(4)	Represents period-end spot balances.
(5)	Amounts have been revised from those previously presented.

Q4 2016 vs. Q4 2015
Net income increased $141 million or 55% from a year ago, largely reflecting the inclusion of City National, which contributed $89 million to net income. Lower restructuring costs, higher earnings due to growth in average fee-based client assets, increased net interest income, and higher transactional volumes reflecting favourable market conditions also contributed to the increase.

Total revenue increased $634 million or 38%, mainly due to the inclusion of City National, which contributed $543 million (US$411 million) to revenue. Growth in average fee-based client assets reflecting stronger markets, higher transactional volumes and net interest income also contributed to the increase. These factors were partly offset by the impact from foreign exchange translation.

PCL increased $21 million mainly related to provisions recorded in City National.

Non-interest expense increased $419 million or 32%, mainly due to the inclusion of City National, which increased expenses by $440 million, including $49 million related to the amortization of intangibles and $16 million related to integration costs, and higher variable compensation. These factors were partially offset by the impact from foreign exchange translation. In addition, the prior year also included restructuring costs largely related to our International Wealth Management business, including the sale of  Royal Bank of Canada (Suisse) SA.

Q4 2016 vs. Q3 2016
Net income increased $8 million or 2% from the prior quarter, primarily due to higher earnings from growth in average fee-based client assets and a higher contribution from City National. These factors were partially offset by a higher effective tax rate.

Insurance
			As at or for the three months ended
				October 31		July 31			October 31
(Millions of Canadian dollars, except percentage amounts)				2016		2016			2015
	Non-interest income
		Net earned premiums		$	698	$	764	$	933
		Investment income^(1)			(51)		921		(343)
		Fee income			176		133		127
	Total revenue				823		1,818		717
		Insurance policyholder benefits and claims^(1)			349		1,158		237
		Insurance policyholder acquisition expense			48		52		55
	Non-interest expense				155		151		158
Net income before income taxes					271		457		267
Net income				$	228	$	364	$	225
Revenue by business
	Canadian Insurance			$	295	$	1,437	$	295
	International Insurance				528		381		422
Selected balances and other information
	ROE				54.3%		75.7%		53.4%
	Premiums and deposits^(2)			$	1,065	$	1,131	$	1,309
	Fair value changes on investments backing policyholder liabilities^(1)				(172)		543		(462)
						For the three months ended
Estimated impact of U.S. dollar and British pound translation on key income statement items						Q4 2016 vs.		Q4 2016 vs.
(Millions of Canadian dollars, except percentage amounts)						Q4 2015		Q3 2016
Increase (decrease):
		Total revenue				$	(58)	$	(19)
		PBCAE					(48)		(14)
		Non-interest expense					-		-
		Net income					(12)		(5)
Percentage change in average US$ equivalent of C$1.00							-%		(1)%
Percentage change in average British pound equivalent of C$1.00							20%		6%

(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.

On July 1, 2016, we completed the sale of RBC General Insurance Company to Aviva Canada Inc. (Aviva) as previously announced on January 21, 2016. The transaction involved the sale of our home and auto insurance manufacturing business and included a 15-year strategic distribution agreement between RBC Insurance and Aviva. As a result of the transaction, we recorded a gain of $287 million ($235 million after-tax) in the third quarter of 2016.

Q4 2016 vs. Q4 2015
Net income increased $3 million or 1% from a year ago, mainly reflecting higher earnings from new U.K. annuity contracts and growth in International insurance. These factors were partially offset by lower results due to the sale of our home and auto insurance manufacturing business, as noted above, and the impact from foreign exchange translation.

Total revenue increased $106 million or 15%, mainly due the change in fair value of investments backing our policyholder liabilities, largely offset in PBCAE, and business growth in International insurance. These factors were partly offset by lower premiums reflecting the impact of the sale of our home and auto insurance manufacturing business and the impact from foreign exchange translation.

PBCAE increased $105 million or 36%, largely reflecting the change in fair value of investments backing our policyholder liabilities, largely offset in revenue, and growth mainly in International insurance. These factors were partially offset by lower costs due to the sale of our home and auto insurance manufacturing business, as noted above, and the impact from foreign exchange translation.

Non-interest expense decreased $3 million or 2%, primarily due to lower costs as a result of the sale of our home and auto insurance manufacturing business, as noted above, and efficiency management activities, which were partially offset by higher costs to support business growth.

Q4 2016 vs. Q3 2016
Net income decreased $136 million or 37% from the prior quarter. Excluding the after-tax gain of $235 million from the sale of our home and auto insurance manufacturing business, as noted above, net income increased $99 million or 77%⁽¹⁾, mainly due to favourable actuarial adjustments reflecting management actions and assumption changes and growth in International insurance, including earnings from new U.K. annuity contracts.

(1)	Results and measures excluding the gain on the sale of our home and auto insurance manufacturing business are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP section on page 11 of this Earnings Release.

Investor & Treasury Services
			As at or for the three months ended
(Millions of Canadian dollars, except percentage amounts)			October 31 2016				July 31 2016		October 31 2015
	Net interest income		$	214		$	195	$	220
	Non-interest income			390			382		228
Total revenue				604			577		448
	Non-interest expense			376			368		342
Net income before income taxes				228			209		106
Net income			$	174		$	157	$	88
Selected balances and other information
	ROE			21.0%			18.2%		10.9%
	Average Deposits			124,400			123,200		149,500
		Client deposits		50,900			53,000		56,500
		Wholesale funding deposits		73,500			70,200		93,000
	AUA^(1)			3,929,400			3,724,300		3,620,300
	Average AUA			3,886,900			3,699,300		3,783,700

(1)  Represents period-end spot balances.

Q4 2016 vs. Q4 2015
Net income increased $86 million or 98% from a year ago, largely due to higher funding and liquidity earnings reflecting tightening credit spreads and favourable interest rate movements, and higher client deposit spreads. These factors were partially offset by higher staff costs, a higher effective tax rate, and increased investment in technology initiatives.

Total revenue increased $156 million or 35%, mainly related to higher funding and liquidity revenue reflecting tightening credit spreads and favourable interest rate movements, and increased revenue on higher client deposit spreads.

Non-interest expense increased $34 million or 10%, largely reflecting higher staff costs and increased investment in technology initiatives.

Q4 2016 vs. Q3 2016
Net income increased $17 million or 11% from last quarter, mainly due to higher funding and liquidity earnings reflecting tightening credit spreads and favourable interest rate movements.

Capital Markets
			As at or for the three months ended
(Millions of Canadian dollars, except percentage amounts)			October 31 2016		July 31 2016		October 31 2015
	Net interest income^(1)	$	857	$	892	$	1,098
	Non-interest income ^(1)		1,036		1,195		639
Total revenue^(1)			1,893		2,087		1,737
	PCL		51		33		36
	Non-interest expense		1,151		1,160		1,072
Net income before income taxes			691		894		629
Net income		$	482	$	635	$	555
Revenue by business
	Corporate and Investment Banking	$	976	$	956	$	847
	Global Markets		978		1,148		935
	Other		(61)		(17)		(45)
Selected balances and other information
	ROE		10.4%		14.2%		12.3%
	Average total assets	$	496,700	$	514,500	$	500,200
	Average trading securities		105,300		104,600		111,900
	Average loans and acceptances		85,500		87,400		85,900
	Average deposits		59,200		61,600		63,200
	PCL on impaired loans as a % of average net loans and acceptances		0.24 %		0.15 %		0.17 %
				For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items				Q4 2016 vs		Q4 2016 vs
(Millions of Canadian dollars, except percentage amounts)				Q4 2015		Q3 2016
Increase (decrease):
	Total revenue			$	(12)	$	16
	Non-interest expense				(37)		(3)
	Net income				17		12
Percentage change in average US$ equivalent of C$1.00					-%		(1)%
Percentage change in average British pound equivalent of C$1.00					20%		6%
Percentage change in average Euro equivalent of C$1.00					-%		(1)%

(1)	The taxable equivalent basis (teb) adjustment for the three months ended October 31, 2016 was $116 million (July 31, 2016 – $267 million, October 31, 2015 – $213 million).

Q4 2016 vs. Q4 2015
Net income decreased $73 million or 13% from a year ago, as the prior year benefited from a lower effective tax rate reflecting income tax adjustments related to the prior periods. In the current quarter, higher results in our Corporate and Investment Banking and Global Markets businesses were partially offset by higher variable compensation on improved results.

Total revenue increased $156 million or 9%, mainly due to higher fixed income trading revenue primarily in the U.S., as well as strong debt and equity origination activity and increased loan syndication revenue largely in the U.S. These factors were partially offset by lower equity trading revenue across most regions and lower lending revenue largely in the U.S.

PCL increased $15 million or 42%, mainly due to higher provisions, net of recoveries, in the energy sector.

Non-interest expense increased $79 million or 7%, mainly driven by higher variable compensation on improved results, partially offset by the impact from foreign exchange translation and lower litigation provisions.

Q4 2016 vs. Q3 2016
Net income decreased $153 million or 24% from the prior quarter mainly due to lower fixed income and equity trading revenue largely in Europe and the U.S., and higher capital taxes. Lower equity origination activity in Canada and lower foreign exchange trading revenue across all regions further contributed to the decrease. These factors were partly offset by increased loan syndication revenue largely in the U.S.

Corporate Support
		As at or for the three months ended
			October 31			July 31		October 31
(Millions of Canadian dollars)			2016			2016		2015
	Net interest income (loss)^(1)	$	(48)		$	(58)	$	(205)
	Non-interest income (loss)^(1)		(78)			(139)		20
Total revenue ^(1)			(126)			(197)		(185)
	PCL		(1)			-		(2)
	Non-interest expense		(2)			8		41
Net income (loss) before income taxes			(123)			(205)		(224)
	Income (recoveries) taxes ^(1)		(111)			(234)		(424)
Net income ^(2)		$	(12)		$	29	$	200

(1)	Teb adjusted.
(2)	Net income reflects income attributable to both shareholders and Non-Controlling Interest (NCI). Net income attributable to NCI for the three months ended October 31, 2016 was $9 million (July 31, 2016 – $7 million; October 31, 2015 – $25 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.

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 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, 2016 was $115 million compared to $267 million in the prior quarter and $213 million in the prior year period. For further discussion, refer to the How we measure and report our business segments section of our 2016 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 2016
Net loss was $12 million largely reflecting net unfavourable tax adjustments, partially offset by asset/liability management activities.

Q3 2016
Net income was $29 million mainly reflecting asset/liability management activities.

Q4 2015
Net income was $200 million primarily reflecting favourable tax adjustments and asset/liability management activities. The fourth quarter of 2015 also included transaction costs of $29 million ($23 million after-tax) related to our acquisition of City National.

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 2016 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, 2016																October 31, 2016
			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		$	1,252	$	381	$	226	$	170	$	461	$	(32)	$	2,458		$	10,111
Total average common equity ^(1) (2)			$	18,350	$	13,000	$	1,650	$	3,200	$	17,600	$	9,300	$	63,100		$	62,200
ROE ^(3)			27.1%		11.6%		54.3%		21.0%		10.4%		n.m.		15.5%			16.3%

(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.
(3)	ROE is based on actual balances before rounding.
n.m.	not meaningful.

Non-GAAP Measures
Results and measures excluding the items outlined below are non-GAAP measures:

• A gain of $287 million ($235 million after-tax) in Q3 2016 from the sale of RBC General Insurance Company to Aviva; and
• $49 million ($29 million after-tax) of amortization of intangibles and $16 million ($9 million after-tax) of integration costs in Q4 2016 related to our acquisition of City National.

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 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 2016 Annual Report.

Insurance net income, excluding specified items
	For the three months ended July 31, 2016							For the twelve months ended October 31, 2016
(Millions of Canadian dollars)	Reported		RBC General Insurance Company		Adjusted			Reported		RBC General Insurance Company		Adjusted
Net income	$	364	$	235	$	129		$	900	$	235	$	665

Consolidated Balance Sheets
		October 31			July 31	October 31
(Millions of Canadian dollars)			2016^(1)		2016^(2)		2015^(1)
Assets
Cash and due from banks		$	14,929	$	19,501	$	12,452
Interest-bearing deposits with banks			27,851		22,008		22,690
Securities
	Trading		151,292		157,446		158,703
	Available-for-sale		84,801		76,552		56,805
			236,093		233,998		215,508
Assets purchased under reverse repurchase agreements and securities borrowed			186,302		200,430		174,723
Loans
	Retail		369,470		364,476		348,183
	Wholesale		154,369		153,521		126,069
			523,839		517,997		474,252
	Allowance for loan losses		(2,235)		(2,177)		(2,029)
			521,604		515,820		472,223
Segregated fund net assets			981		933		830
Other
	Customers' liability under acceptances		12,843		13,152		13,453
	Derivatives		118,944		130,462		105,626
	Premises and equipment, net		2,836		2,872		2,728
	Goodwill		11,156		11,254		9,289
	Other intangibles		4,648		4,605		2,814
	Other assets		42,071		43,840		41,872
			192,498		206,185		175,782
Total assets		$	1,180,258	$	1,198,875	$	1,074,208
Liabilities
Deposits
	Personal	$	250,550	$	250,128	$	220,566
	Business and government		488,007		480,896		455,578
	Bank		19,032		23,391		21,083
			757,589		754,415		697,227
Segregated fund net liabilities			981		933		830
Other
	Acceptances		12,843		13,152		13,453
	Obligations related to securities sold short		50,369		46,679		47,658
	Obligations related to assets sold under repurchase agreements and securities loaned		103,441		118,283		83,288
	Derivatives		116,550		128,533		107,860
	Insurance claims and policy benefit liabilities		9,164		9,305		9,110
	Other liabilities		47,947		47,974		43,476
			340,314		363,926		304,845
Subordinated debentures			9,762		9,765		7,362
Total liabilities		$	1,108,646	$	1,129,039	$	1,010,264
Equity attributable to shareholders
	Preferred shares		6,713		6,712		5,098
	Common shares (shares issued - 1,484,234,375, 1,483,611,362 and 1,443,954,789)		17,859		17,775		14,611
	Retained earnings		41,519		40,424		37,811
	Other components of equity		4,926		4,342		4,626
			71,017		69,253		62,146
Non-controlling interests			595		583		1,798
Total equity			71,612		69,836		63,944
Total liabilities and equity		$	1,180,258	$	1,198,875	$	1,074,208

(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)		2016^(1)		2016^(1)		2015^(1)			2016^(2)		2015^(2)
Interest income
	Loans	$	4,574	$	4,494	$	4,203		$	17,876	$	16,882
	Securities		1,091		1,180		1,159			4,593		4,519
	Assets purchased under reverse repurchase agreements and securities borrowed		502		464		333			1,816		1,251
	Deposits and other		44		46		20			167		77
			6,211		6,184		5,715			24,452		22,729
Interest expense
	Deposits and other		1,421		1,385		1,375			5,467		5,723
	Other liabilities		538		612		486			2,227		1,995
	Subordinated debentures		65		64		54			227		240
			2,024		2,061		1,915			7,921		7,958
Net interest income			4,187		4,123		3,800			16,531		14,771
Non-interest income
	Insurance premiums, investment and fee income		824		1,534		717			4,868		4,436
	Trading revenue		119		311		(203)			701		552
	Investment management and custodial fees		1,102		1,053		942			4,240		3,778
	Mutual fund revenue		745		728		731			2,887		2,881
	Securities brokerage commissions		350		352		352			1,429		1,436
	Service charges		447		443		404			1,756		1,592
	Underwriting and other advisory fees		509		524		350			1,876		1,885
	Foreign exchange revenue, other than trading		217		189		222			964		814
	Card service revenue		220		227		193			889		798
	Credit fees		384		285		308			1,239		1,184
	Net gain on available-for-sale securities		2		7		34			76		145
	Share of profit in joint ventures and associates		44		44		40			176		149
	Other		115		435		129			773		900
			5,078		6,132		4,219			21,874		20,550
Total revenue			9,265		10,255		8,019			38,405		35,321
Provision for credit losses			358		318		275			1,546		1,097
Insurance policyholder benefits, claims and acquisition expense			397		1,210		292			3,424		2,963
Non-interest expense
	Human resources		3,032		3,079		2,682			12,201		11,583
	Equipment		378		346		342			1,438		1,277
	Occupancy		406		387		368			1,568		1,410
	Communications		278		240		253			945		888
	Professional fees		312		279		307			1,078		932
	Amortization of other intangibles		257		250		180			970		712
	Other		535		510		515			1,936		1,836
			5,198		5,091		4,647			20,136		18,638
Income before income taxes			3,312		3,636		2,805			13,299		12,623
Income taxes			769		741		212			2,841		2,597
Net income		$	2,543	$	2,895	$	2,593		$	10,458	$	10,026
Net income attributable to:
	Shareholders	$	2,533	$	2,886	$	2,569		$	10,405	$	9,925
	Non-controlling interests		10		9		24			53		101
		$	2,543	$	2,895	$	2,593		$	10,458	$	10,026
Basic earnings per share (in dollars)		$	1.66	$	1.88	$	1.74		$	6.80	$	6.75
Diluted earnings per share (in dollars)			1.65		1.88		1.74			6.78		6.73
Dividends per common share (in dollars)			0.83		0.81		0.79			3.24		3.08

(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)				2016^(1)			2016^(1)		2015^(1)			2016^(2)		2015^(2)
Net income			$	2,543		$	2,895	$	2,593		$	10,458	$	10,026
Other comprehensive income (loss), net of taxes
Items that will be reclassified subsequently to income:
	Net change in unrealized gains (losses) on available-for-sale securities
		Net unrealized gains (losses) on available-for-sale securities		(92)			96		(176)			73		(76)
		Reclassification of net losses (gains) on available-for-sale securities to income		-			5		(12)			(48)		(41)
				(92)			101		(188)			25		(117)
	Foreign currency translation adjustments
		Unrealized foreign currency translation gains (losses)		979			1,301		(97)			147		5,885
		Net foreign currency translation gains (losses) from hedging activities		(305)			(426)		57			113		(3,223)
		Reclassification of losses (gains) on foreign currency translation to income		-			-		(42)			-		(224)
		Reclassification of losses (gains) on net investment hedging activities to income		-			-		42			-		111
				674			875		(40)			260		2,549
	Net change in cash flow hedges
		Net gains (losses) on derivatives designated as cash flow hedges		(56)			(120)		41			(35)		(541)
		Reclassification of losses (gains) on derivatives designated as cash flow hedges to income		60			50		54			52		330
				4			(70)		95			17		(211)
Items that will not be reclassified subsequently to income:
	Remeasurements of employee benefit plans			25			(432)		456			(1,077)		582
	Net fair value change due to credit risk on financial liabilities designated as at fair value
		through profit or loss		(90)			(87)		189			(322)		350
				(65)			(519)		645			(1,399)		932
Total other comprehensive income (loss), net of taxes				521			387		512			(1,097)		3,153
Total comprehensive income			$	3,064		$	3,282	$	3,105		$	9,361	$	13,179
Total comprehensive income attributable to:
	Shareholders		$	3,052		$	3,270	$	3,080		$	9,306	$	13,065
	Non-controlling interests			12			12		25			55		114
			$	3,064		$	3,282	$	3,105		$	9,361	$	13,179

(1)  Derived from unaudited financial statements.

(2)  Derived from audited financial statements.

Consolidated Statements of Changes in Equity
												Other components of equity
						Treasury		Treasury				Available-		Foreign		Cash		Total other		Equity
		Preferred		Common		shares -		shares -		Retained		for-sale		currency		flow		components		attributable		Non-
																				to		controlling		Total
(Millions of Canadian dollars)		shares		shares		preferred		common		earnings		securities		translation		hedges		of equity		shareholders		interests		equity
Balance at November 1, 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 (loss), net of taxes		-		-		-		-		(295)		85		1,205		(80)		1,210		915		-		915
Balance at October 31, 2014 ^(1)		$	4,075	$	14,511	$	-	$	71	$	31,615	$	432	$	1,891	$	95	$	2,418	$	52,690	$	1,813	$	54,503
Changes in equity
	Issues of share capital		1,350		62		-		-		(21)		-		-		-		-		1,391		-		1,391
	Preferred shares redeemed		(325)		-		-		-		-		-		-		-		-		(325)		-		(325)
	Sales of treasury shares		-		-		117		6,098		-		-		-		-		-		6,215		-		6,215
	Purchases of treasury shares		-		-		(119)		(6,131)		-		-		-		-		-		(6,250)		-		(6,250)
	Share-based compensation awards		-		-		-		-		(1)		-		-		-		-		(1)		-		(1)
	Dividends on common shares		-		-		-		-		(4,443)		-		-		-		-		(4,443)		-		(4,443)
	Dividends on preferred shares and other		-		-		-		-		(191)		-		-		-		-		(191)		(92)		(283)
	Other		-		-		-		-		(5)		-		-		-		-		(5)		(37)		(42)
	Net income		-		-		-		-		9,925		-		-		-		-		9,925		101		10,026
	Total other comprehensive income (loss), net of taxes		-		-		-		-		932		(117)		2,536		(211)		2,208		3,140		13		3,153
Balance at October 31, 2015 ^(1)		$	5,100	$	14,573	$	(2)	$	38	$	37,811	$	315	$	4,427	$	(116)	$	4,626	$	62,146	$	1,798	$	63,944
Changes in equity
	Issues of share capital		1,855		3,422		-		-		(16)		-		-		-		-		5,261		-		5,261
	Common shares purchased for cancellation		-		(56)		-		-		(306)		-		-		-		-		(362)		-		(362)
	Preferred shares purchased for cancellation		(242)		-		-		-		(22)		-		-		-		-		(264)		-		(264)
	Redemption of trust capital securities		-		-		-		-		-		-		-		-		-		-		(1,200)		(1,200)
	Sales of treasury shares		-		-		172		4,973		-		-		-		-		-		5,145		-		5,145
	Purchases of treasury shares		-		-		(170)		(5,091)		-		-		-		-		-		(5,261)		-		(5,261)
	Share-based compensation awards		-		-		-		-		(54)		-		-		-		-		(54)		-		(54)
	Dividends on common shares		-		-		-		-		(4,817)		-		-		-		-		(4,817)		-		(4,817)
	Dividends on preferred shares and other		-		-		-		-		(294)		-		-		-		-		(294)		(63)		(357)
	Other		-		-		-		-		211		-		-		-		-		211		5		216
	Net income		-		-		-		-		10,405		-		-		-		-		10,405		53		10,458
	Total other comprehensive income (loss), net of taxes		-		-		-		-		(1,399)		25		258		17		300		(1,099)		2		(1,097)
Balance at October 31, 2016 ^(1)		$	6,713	$	17,939	$	-	$	(80)	$	41,519	$	340	$	4,685	$	(99)	$	4,926	$	71,017	$	595	$	71,612

(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, 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 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 systematic risks and other risks discussed in the Risk management and Overview of other risks sections of our 2016 Annual Report; global uncertainty, the Brexit vote to have the United Kingdom leave the European Union, weak oil and gas prices, cyber risk, anti-money laundering, exposure to more volatile sectors, such as lending related to commercial real estate and leveraged financing, technological innovation and new fintech entrants, increasing complexity of regulation, data management, litigation and administrative penalties; 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 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 2016 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 2016 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 2016 Annual Report to Shareholders on our website at rbc.com/investorrelations.

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for Wednesday November 30, 2016 at 8:00 a.m. (EDT) and will feature a presentation about our third quarter 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], passcode 9527507#). Please call between 7:50 a.m. and 7:55 a.m. (EDT).

Management's comments on results will be posted on RBC website shortly following the call. A recording will be available by 5:00 p.m. (EST) from November 30, 2016 until February 27, 2016 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone [phone] or 800-408-3053, passcode 7448996#).

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, insurance, investor services and capital markets products and services on a global basis. We have over 80,000 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 36 other countries. For more information, please visit rbc.com.‎ RBC helps communities prosper, supporting a broad range of community initiatives through donations, community investments and employee volunteer activities. For more information please see: http://www.rbc.com/community-sustainability/

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

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