All amounts are in
Canadian dollars and are based on financial statements presented in
compliance with International Accounting Standard 34 Interim
Financial Reporting, unless otherwise noted. Effective November
1, 2023, we adopted IFRS 17 Insurance Contracts (IFRS 17).
Comparative amounts have been restated from those previously
presented. Our Q2 2024 Report to Shareholders and
Supplementary Financial Information are available at
http://www.rbc.com/investorrelations and on
https://www.sedarplus.com/.
|
Net income
$4.0 Billion
Up 7% YoY
|
Diluted
EPS1
$2.74
Up 5% YoY
|
Total
PCL2
$920 Million
PCL on loans ratio3
up 4 bps4
QoQ
|
ROE5
14.5%
Down 40 bps YoY
|
CET1
ratio6
12.8%
Above regulatory requirements
|
Adjusted net
income7
$4.2 Billion
Up 11% YoY
|
Adjusted diluted
EPS7
$2.92
Up 9% YoY
|
Total
ACL8
$6.1 Billion
ACL on loans ratio9
down 2 bps QoQ
|
Adjusted
ROE7
15.5%
Up 20 bps YoY
|
LCR10
128%
Down from 132% last quarter
|
TORONTO, May 30, 2024
/CNW/ - Royal Bank of Canada11 (TSX: RY) (NYSE: RY) today
reported net income of $4.0 billion
for the quarter ended April 30, 2024,
up $270 million or 7% from the prior
year. Diluted EPS was $2.74, up 5%
over the same period. Record earnings in Capital Markets as well as
higher results in Personal & Commercial Banking, Wealth
Management and Insurance were partially offset by lower results in
Corporate Support. Adjusted net income7 and
adjusted diluted EPS7 of $4.2
billion and $2.92 were up 11%
and 9%, respectively, from the prior year.
On March 28, 2024, we completed
the acquisition of HSBC Bank Canada (HSBC Canada). The inclusion of
HSBC Canada results12 decreased net income by
$51 million, reflecting $200 million ($145
million after-tax) of initial PCL on purchased performing
financial assets.
Total PCL increased $320 million
from a year ago. The PCL on loans ratio of 41 bps increased 11 bps
from the prior year. The PCL on impaired loans ratio13
was 30 bps, up 9 bps from the prior year as provisions continue to
trend upwards, reflecting the impact of higher interest rates and
rising unemployment.
Results also reflected the impact of specified items relating to
the acquisition of HSBC Canada (HSBC Canada transaction).
Transaction and integration costs ($358
million before-tax and $282
million after-tax) had an unfavourable impact, while
management of closing capital volatility ($155 million before-tax and $112 million after-tax) benefitted the
results.
Pre-provision, pre-tax earnings7 of $5.8 billion were up $801
million or 16% from last year, mainly due to higher revenue
in our Capital Markets business, higher net interest income
reflecting higher spreads and solid volume growth, and higher
fee-based client assets reflecting market appreciation and net
sales. These factors were partially offset by higher expenses
driven by higher variable compensation and continued investments in
our franchises.
Compared to last quarter, net income was up 10%, reflecting
higher results in Wealth Management, Corporate Support and Capital
Markets, partially offset by lower results in Insurance and
Personal & Commercial Banking. The prior quarter included an
unfavourable impact from the specified item relating to the
management of closing capital volatility ($286 million before-tax and $207 million after-tax) as well as the cost of
the Federal Deposit Insurance Corporation (FDIC) special assessment
($159 million before-tax and
$115 million after-tax). Adjusted net
income7 was up 3% over the same period. Pre-provision,
pre-tax earnings7 were up 13% on higher revenue and
well-controlled expenses.
We maintained a strong capital position, with a CET1
ratio6 of 12.8%, down 210 bps from the prior quarter,
largely reflecting the impact from closing the HSBC Canada
transaction.
Today, we declared a quarterly dividend of $1.42 per share reflecting an increase of
$0.04 or 3%.
"This quarter marked a pivotal milestone in RBC's long-term
growth story as we completed our acquisition of HSBC Bank Canada,
welcoming thousands of colleagues and clients from across the
country. This historic acquisition, along with our solid results
driven by our strong balance sheet, expense control and volume
growth across our premium franchises, shows that RBC has the right
strategy in place to continue building the bank of the future and
our position as a global competitor. We're confident in our ability
to build on this momentum and keep delivering sustainable,
long-term value to our clients, communities and
shareholders."
– Dave
McKay, President and Chief Executive Officer of Royal Bank
of Canada
|
________________________________________________
|
1 Earnings per share
(EPS).
2 Provision for credit losses (PCL).
3 PCL on loans ratio is calculated as PCL on loans as a percentage
of average net loans and acceptances.
4 Basis points (bps).
5 Return on equity (ROE) is calculated as net income available to
common shareholders divided by average common equity. For further
information, refer to the Key performance and non-GAAP measures
section on pages 4 to 5 of this Earnings Release.
6 This ratio is calculated by dividing Common Equity Tier 1 (CET1)
by risk-weighted assets (RWA), in accordance with Office of the
Superintendent of Financial Institutions' (OSFI) Basel III Capital
Adequacy Requirements (CAR) guideline.
7 These are non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 4 to 5 of this Earnings Release.
8 Allowance for credit losses (ACL).
9 ACL on loans ratio is calculated as ACL on loans as a percentage
of total loans and acceptances.
10 The liquidity coverage ratio (LCR) is calculated in accordance
with OSFI's Liquidity Adequacy Requirements (LAR) guideline. For
further details, refer to the Liquidity and funding risk section of
our Q2 2024 Report to Shareholders.
11 When we say "we", "us", "our", "the bank" or "RBC", we mean
Royal Bank of Canada and its subsidiaries, as applicable.
12 HSBC Canada results reflect revenue, PCL, non-interest expenses
and income taxes associated with the acquired operations and
clients, which include the acquired assets, assumed liabilities and
employees with the exception of assets and liabilities relating to
treasury and liquidity management activities. For further details,
refer to the Key corporate events section of our Q2 2024 Report to
Shareholders.
13 PCL on impaired loans ratio is calculated as PCL on impaired
loans as a percentage of average net loans and
acceptances
|
|
Q2 2024
Compared to
Q2 2023
|
Reported:
• Net income of $3,950 million
• Diluted EPS of $2.74
• ROE of 14.5%
• CET1 ratio14 of 12.8%
|
↑ 7%
↑ 5%
↓ 40 bps
↓ 90 bps
|
Adjusted15:
• Net income of $4,198 million
• Diluted EPS of $2.92
• ROE of 15.5%
|
↑ 11%
↑ 9%
↑ 20 bps
|
Q2 2024
Compared to
Q1 2024
|
• Net income of $3,950 million
• Diluted EPS of $2.74
• ROE of 14.5%
• CET1 ratio14 of 12.8%
|
↑ 10%
↑ 10%
↑ 140 bps
↓ 210 bps
|
• Net income of $4,198 million
• Diluted EPS of $2.92
• ROE of 15.5%
|
↑ 3%
↑ 2%
↑ 60 bps
|
YTD 2024
Compared to
YTD 2023
|
• Net income of $7,532 million
• Diluted EPS of $5.25
• ROE of 13.8%
|
↑ 11%
↑ 9%
↑ 10 bps
|
• Net income of $8,264 million
• Diluted EPS of $5.77
• ROE of 15.2%
|
↑ 3%
↑ 1%
↓ 110 bps
|
_________________________________________________________
14 This ratio is calculated by dividing CET1 by RWA, in
accordance with OSFI's Basel III CAR guideline.
15 These are non-GAAP measures. For further information,
including a reconciliation, refer to the Key performance and
non-GAAP measures section on pages 4 to 5 of this Earnings
Release.
|
Personal & Commercial Banking
Net income of $2,051 million
increased $136 million or 7% from a
year ago. The inclusion of HSBC Canada results decreased net income
by $61 million, primarily
attributable to $131 million
(after-tax) of initial PCL on the performing loans purchased
in the HSBC Canada transaction. Excluding HSBC Canada results, net
income increased $197 million or 10%,
primarily driven by higher net interest income reflecting higher
spreads and average volume growth of 9% in deposits and 6% in loans
in Canadian Banking, partially offset by higher PCL.
Compared to last quarter, net income decreased $10 million. The inclusion of HSBC Canada results
decreased net income by $61 million,
as noted above. Excluding HSBC Canada results, net income increased
$51 million or 2%, primarily driven
by lower PCL reflecting favourable changes to our macroeconomic
forecast. In net interest income, higher spreads in Canadian
Banking were largely offset by the impact of two less days in the
current quarter.
Wealth Management
Net income of $769 million
increased $50 million or 7% from a
year ago, primarily due to higher fee-based client assets
reflecting market appreciation and net sales, which also drove
higher variable compensation.
Compared to last quarter, net income increased $163 million or 27%, as the prior quarter
included $115 million ($159 million before-tax) relating to the cost of
the FDIC special assessment. Higher fee-based client assets,
reflecting market appreciation and net sales, also contributed
to the increase.
Insurance
Net income of $177 million
increased $7 million or 4% from a
year ago, largely due to higher insurance investment result from
favourable investment-related experience. The results in the prior
period are not fully comparable as we were not managing our asset
and liability portfolios under IFRS 17.
Compared to last quarter, net income decreased $43 million or 20%, primarily due to lower
insurance investment result as the prior quarter benefitted from
the repositioning of our portfolio for the transition to IFRS 17.
This factor was partially offset by higher insurance service result
from improved claims experience in disability and life retrocession
products.
Capital Markets
Net income of $1,262 million
increased $300 million or 31% from a
year ago, primarily driven by higher revenue in Corporate
& Investment Banking, mainly due to higher M&A activity,
loan syndication activity, as well as equity and debt origination
across most regions. Higher Global Markets revenue, largely due to
higher debt and equity origination across all regions and higher
fixed income trading revenue in North
America, also contributed to the increase. These factors
were partially offset by higher compensation on increased
results.
Compared to last quarter, net income increased $108 million or 9%, mainly due to higher equity
and debt origination, as well as higher M&A activity across all
regions. The impact of fair value changes in our legacy U.S.
portfolios and higher loan syndication activity across most regions
also contributed to the increase. These factors were partially
offset by lower fixed income trading revenue across most regions
and higher taxes.
Corporate Support
Net loss was $309 million for the
current quarter, primarily due to the after-tax impact of the HSBC
Canada transaction and integration costs of $282 million, partially offset by the after-tax
impact of management of closing capital volatility related to the
HSBC Canada transaction of $112
million, both of which are treated as specified items.
Unallocated costs also contributed to the net loss.
Net loss was $459 million in the
prior quarter, primarily due to the after-tax impact of the HSBC
Canada transaction and integration costs of $218 million and the after-tax impact of
management of closing capital volatility related to the HSBC Canada
transaction of $207 million, both of
which are treated as specified items.
Net loss was $86 million in the
prior year, primarily due to residual unallocated items, as well as
the after-tax impact of the HSBC Canada transaction and integration
costs of $43 million, which is
treated as a specified item.
Capital, Liquidity and Credit Quality
Capital – As at April 30,
2024, our CET1 ratio16 was 12.8%, down 210 bps
from last quarter, primarily reflecting the impact of the HSBC
Canada transaction and RWA growth (excluding FX), partially offset
by net internal capital generation and share issuances under the
Dividend reinvestment plan (DRIP).
Liquidity – For the quarter ended April 30, 2024, the average LCR17 was
128%, which translates into a surplus of approximately $83 billion, compared to 132% and a surplus of
approximately $94 billion in the
prior quarter. Average LCR17 decreased from the prior
quarter due to the HSBC Canada transaction and a change in
securities mix, relating to both on-balance sheet securities and
securities financing transactions. Loan growth also contributed to
the decrease. These factors were partially offset by retail deposit
growth. Average LCR for the current quarter reflects outflows
associated with the HSBC Canada transaction 30 days prior to
close.
The Net Stable Funding Ratio18 (NSFR) as at
April 30, 2024 was 111%, which
translates into a surplus of approximately $105 billion, compared to 113% and a surplus of
approximately $112 billion in the
prior quarter. NSFR decreased compared to the previous quarter
primarily due to higher funding requirements on loans.
________________________________________________________
16 This ratio is calculated by dividing CET1 by RWA, in accordance
with OSFI's Basel III CAR guideline.
17 The LCR is calculated in accordance with OSFI's LAR guideline.
For further details, refer to the Liquidity and funding risk
section of our Q2 2024 Report to Shareholders.
18 The NSFR is calculated in accordance with OSFI's LAR guideline.
For further details, refer to the Liquidity and funding risk
section of our Q2 2024 Report to Shareholders.
|
Credit Quality
Q2 2024 vs. Q2 2023
Total PCL of $920 million increased $320 million or 53% from a year ago, mainly
reflecting higher provisions in Personal & Commercial Banking.
The PCL on loans ratio of 41 bps increased 11 bps. The PCL on
impaired loans ratio of 30 bps increased 9 bps.
PCL on performing loans of $244
million increased $71 million
or 41%, mainly reflecting $193
million of initial PCL on the performing loans purchased in
the HSBC Canada transaction. This was partially offset by
favourable changes to our macroeconomic forecast in Personal &
Commercial Banking, as well as lower provisions in Capital Markets
and releases of provisions in Wealth Management.
PCL on impaired loans of $672
million increased $231 million
or 52%, primarily due to higher provisions in our Canadian Banking
retail and commercial portfolios.
Q2 2024 vs. Q1 2024
Total PCL increased
$107 million or 13% from last quarter, mainly reflecting
higher provisions in Personal & Commercial Banking, partially
offset by lower provisions in Capital Markets. The PCL on loans
ratio increased 4 bps. The PCL on impaired loans ratio decreased 1
bp.
PCL on performing loans increased $111
million or 83%, mainly reflecting $193 million of initial PCL on the performing
loans purchased in the HSBC Canada transaction. This was partially
offset by favourable changes to our macroeconomic forecast in
Personal & Commercial Banking.
PCL on impaired loans decreased $13 million or 2%, mainly due to lower
provisions in Capital Markets, partially offset by higher
provisions in Personal & Commercial Banking and Wealth
Management.
Key Performance and Non-GAAP Measures
Performance measures
We measure and evaluate the
performance of our consolidated operations and each business
segment using a number of financial metrics, such as net income and
ROE. Certain financial metrics, including ROE, 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.
Non-GAAP measures
We believe that certain non-GAAP
measures (including non-GAAP ratios) are more reflective of our
ongoing operating results and provide readers with a better
understanding of management's perspective on our performance. These
measures enhance the comparability of our financial performance for
the three and six months ended April 30,
2024 with the corresponding periods in the prior year and
the three months ended January 31,
2024. Non-GAAP measures do not have a standardized meaning
under GAAP and may not be comparable to similar measures disclosed
by other financial institutions.
The following discussion describes the non-GAAP measures we use
in evaluating our operating results.
Pre-provision, pre-tax
earnings19
Pre-provision,
pre-tax earnings is calculated as income (Q2 2024: $3,950 million; Q1 2024: $3,582 million; Q2 2023: $3,680 million; YTD 2024: $7,532 million; YTD 2023: $6,813 million) before income taxes (Q2 2024:
$976 million; Q1 2024: $766 million; Q2 2023: $765 million; YTD 2024: $1,742 million; YTD 2023: $2,868 million) and PCL (Q2 2024: $920 million; Q1 2024: $813 million; Q2 2023: $600 million; YTD 2024: $1,733 million; YTD 2023: $1,132 million). We use pre-provision, pre-tax
earnings to assess our ability to generate sustained earnings
growth outside of credit losses, which are impacted by the cyclical
nature of the credit cycle.
___________________________________________________
19 Prior period amounts have been restated from those
previously presented as part of the adoption of IFRS 17, effective
November 1, 2023. Refer to Note 2 of our Condensed Financial
Statements for further details on these changes.
|
Adjusted results
We believe that providing
adjusted results as well as certain measures and ratios excluding
the impact of the specified items discussed below and amortization
of acquisition-related intangibles enhances comparability with
prior periods and enables readers to better assess trends in the
underlying businesses.
Our results for all reported periods were adjusted for the
following specified item:
- HSBC Canada transaction and integration costs.
Our results for the three and six months ended April 30, 2024 and the three months ended
January 31, 2024 were adjusted for
the following specified item:
- Management of closing capital volatility related to the HSBC
Canada transaction. For further details, refer to the Key corporate
events section of our Q2 2024 Report to Shareholders.
Our results for the six months ended April 30, 2023 were adjusted for the following
specified item:
- Canada Recovery Dividend (CRD) and other tax related
adjustments: reflects the impact of the CRD and the 1.5% increase
in the Canadian corporate tax rate applicable to fiscal 2022, net
of deferred tax adjustments, which were announced in the Government
of Canada's 2022 budget and
enacted in the first quarter of 2023.
The following table provides a reconciliation of our reported
results to our adjusted results and illustrates the calculation of
adjusted measures presented. The adjusted results and measures
presented below are non-GAAP measures or ratios.
Consolidated results, reported and adjusted
|
|
As at or for the three
months ended
|
|
As at or for the six
months ended
|
(Millions of Canadian
dollars, except per share, number of
|
|
|
April
30
|
|
|
January
31
|
|
April
30
|
|
|
|
April
30
|
|
|
April
30
|
|
and percentage
amounts)
|
|
|
2024
|
|
|
2024
|
|
2023 (1)
|
|
|
|
2024
|
|
|
2023 (1)
|
|
Total
revenue
|
|
$
|
14,154
|
|
$
|
13,485
|
$
|
12,445
|
|
|
$
|
27,639
|
|
$
|
25,802
|
|
|
PCL
|
|
|
920
|
|
|
813
|
|
600
|
|
|
|
1,733
|
|
|
1,132
|
|
|
Non-interest
expense
|
|
|
8,308
|
|
|
8,324
|
|
7,400
|
|
|
|
16,632
|
|
|
14,989
|
|
|
Income before income
taxes
|
|
|
4,926
|
|
|
4,348
|
|
4,445
|
|
|
|
9,274
|
|
|
9,681
|
|
|
Income taxes
|
|
|
976
|
|
|
766
|
|
765
|
|
|
|
1,742
|
|
|
2,868
|
|
Net
income
|
|
$
|
3,950
|
|
$
|
3,582
|
$
|
3,680
|
|
|
$
|
7,532
|
|
$
|
6,813
|
|
Net income available to
common shareholders
|
|
$
|
3,881
|
|
$
|
3,522
|
$
|
3,612
|
|
|
$
|
7,403
|
|
$
|
6,699
|
|
Average number of
common shares (thousands)
|
|
|
1,412,651
|
|
|
1,406,324
|
|
1,388,388
|
|
|
|
1,409,452
|
|
|
1,385,525
|
|
Basic earnings per
share (in dollars)
|
|
$
|
2.75
|
|
$
|
2.50
|
$
|
2.60
|
|
|
$
|
5.25
|
|
$
|
4.83
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,414,166
|
|
|
1,407,641
|
|
1,390,149
|
|
|
|
1,410,842
|
|
|
1,387,295
|
|
Diluted earnings per
share (in dollars)
|
|
$
|
2.74
|
|
$
|
2.50
|
$
|
2.60
|
|
|
$
|
5.25
|
|
$
|
4.83
|
|
ROE (2)
|
|
|
14.5 %
|
|
|
13.1 %
|
|
14.9 %
|
|
|
|
13.8 %
|
|
|
13.7 %
|
|
Effective income tax
rate
|
|
|
19.8 %
|
|
|
17.6 %
|
|
17.2 %
|
|
|
|
18.8 %
|
|
|
29.6 %
|
|
Total adjusting
items impacting net income (before-tax)
|
|
$
|
309
|
|
$
|
631
|
$
|
138
|
|
|
$
|
940
|
|
$
|
235
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3), (4)
|
|
|
358
|
|
|
265
|
|
56
|
|
|
|
623
|
|
|
67
|
|
|
Specified item:
Management of closing capital volatility related to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC Canada
transaction (3), (5)
|
|
|
(155)
|
|
|
286
|
|
-
|
|
|
|
131
|
|
|
-
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
106
|
|
|
80
|
|
82
|
|
|
|
186
|
|
|
168
|
|
Total income taxes
for adjusting items impacting net income
|
|
$
|
61
|
|
$
|
147
|
$
|
29
|
|
|
$
|
208
|
|
$
|
(1,003)
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
|
76
|
|
|
47
|
|
13
|
|
|
|
123
|
|
|
16
|
|
|
Specified item:
Management of closing capital volatility related to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC Canada
transaction (3), (5)
|
|
|
(43)
|
|
|
79
|
|
-
|
|
|
|
36
|
|
|
-
|
|
|
Specified item: CRD and
other tax related adjustments (3),
(7)
|
|
|
-
|
|
|
-
|
|
-
|
|
|
|
-
|
|
|
(1,050)
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
28
|
|
|
21
|
|
16
|
|
|
|
49
|
|
|
31
|
|
Adjusted results
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes - adjusted
|
|
$
|
5,235
|
|
$
|
4,979
|
$
|
4,583
|
|
|
$
|
10,214
|
|
$
|
9,916
|
|
|
Income taxes -
adjusted
|
|
|
1,037
|
|
|
913
|
|
794
|
|
|
|
1,950
|
|
|
1,865
|
|
Net income -
adjusted (8)
|
|
$
|
4,198
|
|
$
|
4,066
|
$
|
3,789
|
|
|
$
|
8,264
|
|
$
|
8,051
|
|
Net income available to
common shareholders - adjusted (8)
|
|
$
|
4,129
|
|
$
|
4,006
|
$
|
3,721
|
|
|
$
|
8,135
|
|
$
|
7,937
|
|
Average number of
common shares (thousands)
|
|
|
1,412,651
|
|
|
1,406,324
|
|
1,388,388
|
|
|
|
1,409,452
|
|
|
1,385,525
|
|
Basic earnings per
share (in dollars) - adjusted (8)
|
|
$
|
2.92
|
|
$
|
2.85
|
$
|
2.68
|
|
|
$
|
5.77
|
|
$
|
5.73
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,414,166
|
|
|
1,407,641
|
|
1,390,149
|
|
|
|
1,410,842
|
|
|
1,387,295
|
|
Diluted earnings per
share (in dollars) - adjusted (8)
|
|
$
|
2.92
|
|
$
|
2.85
|
$
|
2.68
|
|
|
$
|
5.77
|
|
$
|
5.72
|
|
ROE - adjusted
(8)
|
|
|
15.5 %
|
|
|
14.9 %
|
|
15.3 %
|
|
|
|
15.2 %
|
|
|
16.3 %
|
|
Adjusted effective
income tax rate (8)
|
|
|
19.8 %
|
|
|
18.3 %
|
|
17.3 %
|
|
|
|
19.1 %
|
|
|
18.8 %
|
|
(1)
|
Amounts have been
restated from those previously presented as part of the adoption of
IFRS 17, effective November 1, 2023. Refer to Note 2 of our
Condensed Financial Statements for further details on these
changes.
|
(2)
|
ROE is calculated as
net income available to common shareholders divided by average
common equity. ROE is based on actual balances of average common
equity before rounding.
|
(3)
|
These amounts have been
recognized in Corporate Support.
|
(4)
|
Beginning the first
quarter of 2024, we included management of closing capital
volatility related to the HSBC Canada transaction as a specified
item for non-GAAP measures and non-GAAP ratios. For further
details, refer to the Key corporate events section of our Q2 2024
Report to Shareholders.
|
(5)
|
Represents the impact
of amortization of acquisition-related intangibles (excluding
amortization of software), and any goodwill impairment.
|
(6)
|
The impact of the CRD
and other tax related adjustments does not include $0.2 billion
recognized in other comprehensive income.
|
(7)
|
As at April 30, 2024,
the cumulative HSBC Canada transaction and integration costs
(before-tax) incurred were $1 billion and it is currently estimated
that an additional $0.5 billion will be incurred, for a total of
approximately $1.5 billion.
|
(8)
|
See the Glossary
section of our interim Management's Discussion and Analysis dated
May 29, 2024, for the three and six month periods ended April 30,
2024, available at https://www.sedarplus.com/, for an explanation
of the composition of these measures. Such explanation is
incorporated by reference hereto.
|
|
|
Additional information about ROE and other key performance and
non-GAAP measures and ratios can be found under the Key performance
and non-GAAP measures section of our Q2 2024 Report to
Shareholders.
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 document, in other filings with Canadian regulators or the
SEC, in reports to shareholders, and in other communications. In
addition, our representatives may communicate forward-looking
statements orally to analysts, investors, the media and others.
Forward-looking statements in this document include, but are not
limited to, statements relating to our financial performance
objectives, vision and strategic goals and the expected impacts of
the HSBC Canada transaction, including transaction and integration
costs, and includes statements made by our President and Chief
Executive Officer. The forward-looking statements contained in this
document represent the views of management and are 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,
strategic goals and priorities and anticipated financial
performance, and may not be appropriate for other purposes.
Forward-looking statements are typically identified by words such
as "believe", "expect", "suggest", "seek", "foresee", "forecast",
"schedule", "anticipate", "intend", "estimate", "goal", "commit",
"target", "objective", "plan", "outlook", "timeline" and "project"
and similar expressions of future or conditional verbs such as
"will", "may", "might", "should", "could", "can" or "would" or
negative or grammatical variations thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, 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, that our financial performance,
environmental & social or other objectives, vision and
strategic goals will not be achieved, and that our actual results
may differ materially from such predictions, forecasts,
projections, expectations or conclusions.
We caution readers not to place undue reliance on our
forward-looking 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, but are not limited to: credit,
market, liquidity and funding, insurance, operational, regulatory
compliance (which could lead to us being subject to various legal
and regulatory proceedings, the potential outcome of which could
include regulatory restrictions, penalties and fines), strategic,
reputation, legal and regulatory environment, competitive, model,
systemic risks and other risks discussed in the risk sections of
our annual report for the fiscal year ended October 31, 2023 (the 2023 Annual Report) and the
Risk management section of our Q2 2024 Report to Shareholders,
including business and economic conditions in the geographic
regions in which we operate, Canadian housing and household
indebtedness, information technology, cyber and third-party risks,
geopolitical uncertainty, environmental and social risk (including
climate change), digital disruption and innovation, privacy and
data related risks, regulatory changes, culture and conduct risks,
the effects of changes in government fiscal, monetary and other
policies, tax risk and transparency, and our ability to anticipate
and successfully manage risks arising from all of the foregoing
factors. Additional factors that could cause actual results to
differ materially from the expectations in such forward-looking
statements can be found in the risk sections of our 2023 Annual
Report and the Risk management section of our Q2 2024 Report to
Shareholders, as may be updated by subsequent quarterly
reports.
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, as well as the inherent uncertainty of
forward-looking statements. Material economic assumptions
underlying the forward-looking statements contained in this
document are set out in the Economic, market and regulatory review
and outlook section and for each business segment under the
Strategic priorities and Outlook sections in our 2023 Annual
Report, as updated by the Economic, market and regulatory review
and outlook section of our Q2 2024 Report to Shareholders. Such
sections may be updated by subsequent quarterly reports.
Assumptions about the duration and complexity of technological
builds, and estimates of costs required for post-close synergy
impacts were considered in the estimation of transaction and
integration costs. Except as required by law, we do not undertake
to update any forward-looking statement, whether written or oral,
that may be made from time to time by us or on our
behalf.
Additional information about these and other factors can be
found in the risk sections of our 2023 Annual Report and the Risk
management section of our Q2 2024 Report to Shareholders, as may be
updated by subsequent quarterly reports. Information contained in
or otherwise accessible through the websites mentioned does not
form part of this document. All references in this document 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 Q2 2024 Report to Shareholders at
rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our
quarterly conference call is scheduled for May 30, 2024 at 8:30 a.m.
(EDT) and will feature a presentation about our second
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
rbc.com/investorrelations/quarterly-financial-statements.html or
by telephone (416-340-2217 or 866-696-5910, passcode 4255087#).
Please call between 8:20 a.m. and 8:25 a.m.
(EDT).
Management's comments on results will be posted
on our website shortly following the call. A recording will be
available by 5:00 p.m. (EDT) from
May 30, 2024 until August 27, 2024
at rbc.com/investorrelations/quarterly-financial-statements.html
or by telephone (905-694-9451 or 800-408-3053, passcode
7294886#).
ABOUT RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 98,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank and one of the largest in the world, based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our more
than 18 million clients in Canada,
the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
® Registered Trademarks of Royal Bank of Canada.
SOURCE Royal Bank of Canada