Supplementary Financial Information Q 009 For the period ended July, 009 (UNAUDITED) For further information, please contact: Marcia Moffat Vice-President & Head, Investor Relations (46) 955-780 marcia.moffat@rbc.com Bill Anderson Director, Investor Relations (46) 955-7804 william.anderson@rbc.com Josie Merenda Director, Investor Relations (46) 955-7809 josie.merenda@rbc.com www.rbc.com/investorrelations
Table of Contents Page Page Notes to Users Capital 9 Capital - Basel II Key performance and Non-GAAP measures 0 Capital - Basel I Glossary Risk-adjusted assets - Basel II Risk-adjusted assets - Basel I 4 Financial Highlights Regulatory capital generation - Basel II and Basel I 4 Economic capital Consolidated Results 4 Financial asset securitizations - capital charges 6 Statements of income 4 Securitization subject to early amortization - seller's interest 6 Revenue from trading activities 4 Loans managed 7 Non-interest expense 8 Defined operating leverage Credit Quality 8 Goodwill 5 Loans and acceptances 6 Gross impaired loans Segment Details 8 Provision for credit losses 9 Canadian Banking 9 Allowance for credit losses 0 Wealth Management Credit quality ratios Insurance International Banking Credit Risk Exposure Capital Markets Credit risk exposure by geography and portfolio 4 Corporate Support Exposure covered by credit risk mitigation 4 Discontinued Operations Credit exposure by residual contractual maturity Credit exposure of portfolios under the standardized approach On- and Off-Balance Sheet by risk weight 5 Balance sheets (period-end balances) 4 Retail credit exposure by portfolio and risk category 6 Selected average balance sheet items 4 Wholesale credit exposure by portfolio and risk rating 6 Assets under administration and management 6 Statements of comprehensive income 5 Fair value of derivative instruments 7 Statements of changes in shareholders' equity 5 Derivative-related credit risk 8 Loan securitization 5 Realized gains and losses on available-for-sale securities 8 Our financial asset securitizations 5 Banking book equity exposures 6 Calculation of ROE and RORC
Notes to Users The financial information in this document is in Canadian dollars and is based on unaudited interim financial statements prepared in accordance with Canadian generally accepted accounting principles (GAAP), unless otherwise noted. This document is not audited and should be read in conjunction with our Q 009 Report to Shareholders, our 008 Annual Report to Shareholders and the Glossary on page of this document. Certain comparative amounts have been reclassified to conform to the current period's presentation. Significant reporting changes made to this document in Q/09 Provision for credit losses (PCL) - Wholesale - Business information We reclassified certain PCL in our Wholesale - Business portfolio - Other sector reported in Q/09 to Non-bank financial services to better reflect the client's sector classification. There was no impact to Total PCL as a result of this reclassification. Significant reporting changes made to this document in Q/09 None Significant reporting changes made to this document in Q/09 Capital Markets - business realignment We realigned Capital Markets into two main businesses. Capital Markets Sales and Trading includes agency sales, products trading and proprietary trading businesses. Corporate and Investment Banking provides advisory services to clients from origination, structuring and advising to distribution, and manages our private equity, conduits and securitization business. It also includes our Global Credit, Global Financial Institutions and Research businesses. Impact of Goodwill and Other Intangible Assets accounting standard On November, 008, we adopted Canadian Institute of Chartered Accountants Handbook section 064, Goodwill and Other Intangible Assets. As a result of adopting Section 064, we have reclassified $805 million of software from Premises and equipment to Other intangibles on our Consolidated Balance Sheets and corresponding depreciation of $5 million from Non-interest expense - Equipment to Non-interest expense - Amortization of other intangibles on our Consolidated Statements of Income. Amounts for prior periods have also been reclassified. Accounting adjustments We identified the following errors pertaining to prior periods: an under accrual of $90 million ($6 million after-tax) of our card points liability; a $6 million ( $4 million after-tax) over capitalization of software development costs; and a $5 million understatement of income taxes. These errors are not material to the periods to which they relate. However, as correcting the errors in the current quarter would have materially distorted net income for the quarter, we have corrected them by decreasing opening retaining earnings for the quarter ended January, 007 by $0 million. See pages 5 and 7 for impact on Balance Sheets and Statements of Changes in Shareholders' Equity. --
Key performance and Non-GAAP measures Management measures and evaluates the performance of our consolidated operations and each of our segments based on a number of different measures including net income and non-gaap measures. For details, refer to How we measure and report our business segments in our Q 009 Report to Shareholders and our 008 Annual Report to Shareholders. We also include non-gaap cash basis financial measures in this document which we believe provides investors with supplemental information that may be useful in comparing to other financial institutions. However, readers are cautioned that the following non-gaap financial measures do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies. Performance measures Risk capital Risk capital includes credit, market (trading and non-trading), insurance-specific, operational, business and fixed assets risk capital. Attributed capital (Economic capital) An estimate of the amount of equity capital required to underpin risks. It is calculated by estimating the level of capital that is necessary to support our various businesses, given their risks, consistent with our desired solvency standard and credit ratings. Unattributed capital Unattributed capital represents common equity in excess of common equity attributed to our business segments and is reported in the Corporate Support segment. Average risk capital Calculated using methods intended to approximate the average of the daily risk capital balances for the period. Return on risk capital (RORC) Net income available to common shareholders divided by average risk capital. Refer to page 6 for the business segments' RORC calculation. Business segment RORC is calculated as net income available to common shareholders divided by average risk capital for the period. Return on equity (ROE) Business segment return on equity is calculated as net income available to common shareholders divided by Average attributed capital for the period and using methods that are intended to approximate the average of the daily balances for the period. Corporate Support also includes average unattributed capital. Refer to page 6 for calculation of ROE. Non-GAAP measures Cash basis measures Cash basis measures such as cash net income, cash diluted earnings per share (EPS) and cash ROE are calculated by adding back to net income the after-tax amount on the amortization of other intangibles and the goodwill impairment. These non-cash charges do not deplete our cash reserves. Defined operating leverage Our defined operating leverage is defined as the difference between revenue growth rate (as adjusted) and non-interest expense growth rate (as adjusted). Revenue is based on a taxable equivalent basis, excluding consolidated variable interest entities (VIEs) and Insurance revenue. Our revenue in 007 excludes accounting adjustments related to the financial instruments accounting standards. Non-interest expense excludes Insurance expense. Economic profit Economic profit is net income available to common shareholders excluding the after-tax effect of amortization of other intangibles, less a capital charge for use of attributed capital. Glossary Assets-to-capital multiple Total assets plus specified off-balance sheet items, as defined by the Office of the Superintendent of Financial Institutions Canada (OSFI), dividend by total regulatory capital. Assets under administration (AUA) Assets administered by us, which are beneficially owned by clients. Services provided in respect of assets under administration are of an administrative nature, including safekeeping, collecting investment income, settling purchase and sale transactions, and record keeping. Assets under management (AUM) Assets managed by us, which are beneficially owned by clients. Services provided in respect of assets under management include the selection of investments and the provision of investment advice. We have assets under management that are also administered by us and included in assets under administration. Goodwill and intangibles Represents our net investment in goodwill and intangibles. Gross-adjusted assets (GAA) GAA are used in the calculation of the Assets-to-Capital multiple. They represent our total assets including specified off-balance sheet items and net of prescribed deductions. Off balance sheet items for this calculation are direct credit substitutes, including letters of credit and guarantees, transaction-related contingencies, trade-related contingencies and sale and repurchase agreements. Taxable equivalent basis (teb) Income from certain tax-advantaged sources are reported on a taxable equivalent basis (teb). Under this approach, revenue from tax-advantaged sources are grossed up, which currently includes only our Canadian taxable corporate dividends recorded in Net interest income, to their tax equivalent value with a corresponding offset recorded in the provision for income taxes. We record teb adjustments in Capital Markets and record elimination adjustments in Corporate Support thereby generating the same after-tax net income as reported under GAAP. See the How we measure and report our business segments section in our 008 Annual report. Ratios Capital ratios The percentage of risk-adjusted assets supported by capital, using the guidelines of the OSFI based on standards issued by the Bank for International Settlements and GAAP financial information. Efficiency ratio Non-interest expense as a percentage of total revenue. Return on assets Net income divided by average assets. Return on common equity (ROE) Net income available to common shareholders divided by average common equity for the period. Refer to page 6 for ROE calculation. Tangible common equity / Tier common capital ratio Tier capital less qualifying other non-controlling interest in subsidiaries, less Innovative Tier capital instruments less preferred shares (both net of treasury shares) divided by risk-adjusted assets. This ratio is calculated consistent with a stress testing measure used by the U.S. Federal Reserve for U.S. banks in determining capital adequacy under certain adverse scenarios except that our calculation of tangible common equity / Tier common capital ratio is based on the Basel II methodology as detailed in our 008 Annual Report. For more details, refer to the Key performance and non-gaap measures section of our Q 009 Report to Shareholders. Total trading revenue Total trading revenue is comprised of trading related revenue recorded in Net interest income and Non-interest income. --
Glossary continued Calculations Average balances (assets, loans and acceptances, and deposits) Calculated using methods intended to approximate the average of the daily balances for the period. Average common equity Calculated using methods intended to approximate the average of the daily balances for the period. For the business segments, calculated using methods intended to approximate the average of the daily attributed capital for the period. Average earning assets The average carrying value of deposits with banks, securities, assets purchased under reverse repurchase agreements and certain securities borrowed, and loans based on daily balances for the period. Capital charge Calculated by multiplying the cost of capital by the amount of average common equity. The cost of capital is a proxy for the after-tax return that we estimate to be required by shareholders for the use of their capital. The cost of capital is regularly reviewed and adjusted from time to time based on prevailing market conditions. Market capitalization End of period common shares outstanding multiplied by the closing common share price on the Toronto Stock Exchange. Dividend yield Dividends per common share divided by the average of the high and low share prices in the relevant period. Net interest margin (average assets) Net interest income divided by average assets. Net interest margin (average earning assets) Net interest income divided by average earning assets. Net write-offs Gross write-offs less recoveries of amounts previously written off. Risk-adjusted assets - Basel I Used in the calculation of risk-based capital ratios as defined by guidelines issued by OSFI. The face value of is discounted using risk-weighted factors in order to reflect a comparable risk per dollar among all types of assets. The risk inherent in off-balance sheet instruments is also recognized, first by determining a credit equivalent and then by applying appropriate risk-weighting factors. Specific and general market risk-adjusted assets are added to the calculation of the Balance Sheet and off-balance sheet risk-adjusted assets to obtain the total risk-adjusted assets. Risk-adjusted assets - Basel II Used in the calculation of risk-based capital ratios as defined by guidelines issued by OSFI based on Basel II, effective November, 007. A majority of our credit risk portfolios use the AIRB Approach and the remainder use a Standardized Approach for the calculation of Risk-adjusted assets (RAA) based on the total exposure, i.e. exposure at default, and counterparty risk weights. For market risk RAA measurement, we use internal models approach for products with regulatory approval and a standardized approach for products to be approved. For Operational risk, we use the Standardized Approach. In addition, Basel II requires a transitional capital floor adjustment. For more details, refer to our 008 Annual Report and Q 009 Report to Shareholders. --
FINANCIAL HIGHLIGHTS (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 SELECTED INCOME STATEMENT INFORMATION Total revenue 7,8 6,76 6,94 5,069 5,9 4,954 5,647 5,65 5,480,55 6,5,58,46 0,67 Provision for credit losses (PCL) 770 974 747 69 4 49 9 6 78,49 976,595 79 49 Insurance policyholder benefits, claims and acquisition expense,5 958,076 (86) 55 548 66 67 4,87,77,6,7,509 Non-interest expense (NIE),755,575,6,989,7,970,0,09,65 0,95 9,6,5,47,495 Goodwill impairment charge -,000 - - - - - - -,000 - - - - Net income (loss) from continuing operations,56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,757 Net loss from discontinued operations - - - - - - - - - - - - - (9) Net Income (loss),56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,78 Net income (loss) available to common shareholders,488 (05),0,09,5 905,,00,69,95,6 4,454 5,404 4,668 PROFITABILITY MEASURES Total Earnings (loss) per share (EPS) - basic $.06 ($0.07) $0.74 $0.8 $0.9 $0.70 $0.96 $.0 $.07 $.7 $.60 $.4 $4.4 $.65 - diluted $.05 ($0.07) $0.7 $0.8 $0.9 $0.70 $0.95 $.0 $.06 $.70 $.57 $.8 $4.9 $.59 Return on common equity (ROE) 9.5 % (.4)%.8% 6.% 9.5% 5.7%.5%.% 4.5% 0.7% 8.8% 8.% 4.7%.5% Return on risk capital (RORC).4 % (.)%.5% 6.%.% 6.0% 5.6% 5.8% 6.9% 7.0% 0.9% 9.6% 7.4% 6.7% Return on assets 0.9 % (0.0)% 0.56% 0.66% 0.78% 0.58% 0.79% 0.88% 0.94% 0.49% 0.7% 0.70% 0.95% 0.94% Return on risk-adjusted assets.55 % (0.08)%.5%.60%.00%.5%.05%.%.% 0.98%.85%.78%.%.% Efficiency ratio 48.0% 5.9% 5.% 59.0% 55.% 60.0% 55.% 55.% 57.8% 50.9% 56.7% 57.% 55.5% 55.7% Continuing Operations Earnings (loss) per share (EPS) - basic $.06 ($0.07) $0.74 $0.8 $0.9 $0.70 $0.96 $.0 $.07 $.7 $.60 $.4 $4.4 $.67 - diluted $.05 ($0.07) $0.7 $0.8 $0.9 $0.70 $0.95 $.0 $.06 $.70 $.57 $.8 $4.9 $.6 Return on common equity (ROE) 9.5 % (.4)%.8% 6.% 9.5% 5.7%.5%.% 4.5% 0.7% 8.8% 8.% 4.7%.% Return on risk capital (RORC).4 % (.)%.5% 6.%.% 6.0% 5.6% 5.8% 6.9% 7.0% 0.9% 9.6% 7.4% 7.0% Discontinued Operations Earnings (loss) per share (EPS) - basic - - - - - - - - - - - - - ($0.0) - diluted - - - - - - - - - - - - - ($0.0) CASH BASIS MEASURES Net income (loss),56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,78 After-tax effect of amortization of other intangibles and goodwill impairment 4,04 5 7 6 7,5 85 87 7 Cash Net income,60 99,04,57,98 955,67,46,47,699,50 4,677 5,579 4,799 Cash Diluted EPS.07 0.66 0.77 0.84 0.95 0.7 0.97.0.08.5.6.47 4.6.65 Cash ROE 9.0%.% 4.% 6.4% 9.7% 6.0%.5%.% 4.7% 5.% 9.% 8.% 4.9%.7% ECONOMIC PROFIT Net income (loss),56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,78 After-tax effect of amortization of other intangibles and goodwill impairment 4,04 5 7 6 7,5 85 87 7 Capital charge (9) (869) (846) (705) (66) (60) (59) (584) (58) (,66) (,85) (,558) (,74) (,050) Economic Profit 69 4 58 45 67 54 676 76 84,07,667,9,05,749 KEY RATIOS Diluted EPS growth 4. % (0.0)% (.)% (9.8)% (.)% (8.6)% (6.7)% 5.% 7.8% (.9)% (9.)% (9.)% 6.7% 9.7% Diluted EPS growth - continuing operations 4. % (0.0)% (.)% (9.8)% (.)% (8.6)% (6.7)% 5.% 6.5% (.9)% (9.)% (9.)% 6.% 8.% Revenue growth. % 6.5 %.9 % (9.7)% 7.9 % (.6)% (0.9)% 5.0% 5.% 0.4 % (.0)% (.9)% 8.8% 7.6% NIE growth 4.8 % 0.4 % 6. % (.4)%.4 % (5.7)%.7 % 4.7% 0.6 % 7.0 % (0.)% (.0)% 8.5%.% Defined operating leverage 8.6 % 0.7 % (.4)% 9.5 % 0.6 % (5.9)% (0.)%.0%.% 5.6 % (.8)%.0 %.6 %.5 % Specific PCL to average net loans and acceptances 0.99 %.06 % 0.80 % 0.65 % 0.47 % 0.54 % 0.44 % 0.4% 0.9% 0.95 % 0.48 % 0.5 % 0.% 0.% Net interest margin (average assets).78 %.7 %.57 %.59 %.4 %.7 %.6 %.%.%.68 %.9 %.44 %.%.5% Non-interest income as % of total revenue 6.9 % 56.0 % 57.6 % 46.6 % 6. % 55.4 % 6. % 64.4% 64.% 58.7 % 59.7 % 56.6 % 65.7% 67.% Effective tax rate.0 % 04.7 % 9. % 7.7 % 5. % 4.4 %. % 5.7% 9.5% 0.4 %. %.8 % 9.8%.6% SELECTED BALANCE SHEET INFORMATION Average loans and acceptances 84,00 90,00 94,900 89,800 74,000 64,00 55,400 44,00 6,500 89,800 64,500 70,900,500 06,00 Total assets 659,94 680, 7,76 7,859 66,79 67,47 6,76 600,46 604,58 659,94 66,79 7,859 600,46 56,780 Average assets 665,400 7,00 74,600 677,00 64,900 654,800 66,00 597,500 588,800 706,600 64,00 650,00 58,000 50,00 Average earning assets 509,600 54,800 59,00 545,00 58,000 50,00 58,700 506,600 507,00 54,500 55,600 50,500 499,00 44,00 Deposits 404,708 4,87 4,850 48,575 409,09 99,45 94,46 65,05 76,5 404,708 409,09 48,575 65,05 4,5 Common equity 0,80 9,654 0,6 7,980 6,57,6,86,75,80 0,80 6,57 7,980,75,075 Average common equity 0,00 0,400 9,050 7,000 5,50,400,600,00,00 9,850,850 4,650,850 9,900 Average risk capital 8,800 8,950 8,700 6,500 5,750 4,50,650 4,400 4,700 8,800 4,550 5,050 4,450,750 INTEREST RATE SENSITIVITY Before tax impact of % increase in rates on: Net interest income risk 5 8 70 45 5 9 5 54 8 5 5 45 54 87 Economic value of equity (405) (440) (50) (508) (480) (575) (496) (440) (07) (405) (480) (508) (440) (496) Before tax impact of % decrease in rates on: Net interest income risk (0) (48) (5) (90) (57) (5) (87) () (40) (0) (57) (90) () (5) Economic value of equity 5 5 96 448 97 489 86 09 0 5 97 448 09 75 Defined in the "Key performance and Non-GAAP measures" section. Excludes the impact of the financial instruments accounting standards related to Insurance. -4-
FINANCIAL HIGHLIGHTS continued (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 CAPITAL MEASURES Tier capital ratio - Basel II.9%.4% 0.6% 9.0% 9.4% 9.5% 9.7% - -.9% 9.4% 9.0% - - - Basel I.% 0.% 9.6% 8.% 8.7% 8.8% 9.% 9.4% 9.%.% 8.7% 8.% 9.4% 9.6% Total capital ratio - Basel II 4.4%.%.5%.0%.6%.4%.% - - 4.4%.6%.0% - - - Basel I.6%.%.6% 0.5%.0% 0.9%.0%.5%.%.6%.0% 0.5%.5%.9% Assets-to-capital multiple - Basel II 6.X 6.X 7.5X 0.X 9.5X 0.X.X - - 6.X 9.5X 0.X - - - Basel I 6.X 6.5X 7.4X 0.0X 9.4X 9.9X.0X 0.0X 0.5X 6.X 9.4X 0.0X 0.0X 9.7X Tangible common equity (Tier common capital) ratio - Basel II 9.% 7.9% 7.5% 6.5% 6.9% 7.0% 7.% 9.% 6.9% 6.5% Risk-adjusted assets ($ billions) - Basel II 4.0 65.6 7.6 78.6 54. 49. 4. - - 4.0 54. 78.6 - - - Basel I 9.4 0.0 09.0. 8. 7.6 60.0 47.6 50. 9.4 8.. 47.6.7 Gross-adjusted assets ($ billions) - Basel II 596. 605. 64.4 65.4 606.6 600. 597.8 - - 596. 606.6 65.4 - - - Basel I 597.5 605.0 66.6 65.4 605.6 595.5 597.6 569.7 58.5 597.5 605.6 65.4 569.7 55.7 SHARE INFORMATION First preferred shares outstanding (000s) - end of period Non-cumulative series N - - - -,000,000,000,000,000 -,000 -,000,000 Non-cumulative series O - - - - - - - - - - - - - 6,000 Non-cumulative series W,000,000,000,000,000,000,000,000,000,000,000,000,000,000 Non-cumulative series AA,000,000,000,000,000,000,000,000,000,000,000,000,000,000 Non-cumulative series AB,000,000,000,000,000,000,000,000,000,000,000,000,000,000 Non-cumulative series AC 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 - Non-cumulative series AD 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 - Non-cumulative series AE 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 - Non-cumulative series AF 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 - Non-cumulative series AG 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 - Non-cumulative series AH 8,500 8,500 8,500 8,500 8,500 8,500 - - - 8,500 8,500 8,500 - - Non-cumulative series AJ 6,000 6,000 6,000 6,000 - - - - - 6,000-6,000 - - Non-cumulative series AL,000,000,000 - - - - - -,000 - - - - Non-cumulative series AN 9,000 9,000 9,000 - - - - - - 9,000 - - - - Non-cumulative series AP,000,000,000 - - - - - -,000 - - - - Non-cumulative series AR 4,000 4,000 4,000 - - - - - - 4,000 - - - - Non-cumulative series AT,000,000 - - - - - - -,000 - - Non-cumulative series AV 6,000 6,000 - - - - - - - 6,000 - - Non-cumulative series AX,000,000 - - - - - - -,000 - - Common shares outstanding (000s) - end of period,4,5,408,9,406,97,4,60,8,08,94,084,76,65,76,60,75,780,4,5,8,08,4,60,76,60,80,890 - average (basic),408,687,405,77,66,868,7,75,,9,87,45,7,86,7,005,7,9,9,64,94,946,05,706,7,85,79,956 - average (diluted),4,80,47,08,79,9,5,588,40,9,98,069,86,595,87,44,88,7,406,404,08,87,9,744,89,4,99,785 Treasury shares held - preferred (000s) 0 94 76 60 489 90 49 0 489 60 49 94 - common (000s),,60,805,58,09,8,6,444,744,,09,58,444 5,486 Shares repurchased (000s) - - - - - -,0 00,000 -,0,0,845 8,9 ($ MM) - - - - - - 55 5 58-55 55 646 844 Stock options outstanding (000s) 0,67,668,848,77 4,754 5,98 7,086 6,6 7,47 0,67 4,754,77 6,6,4 Stock options exercisable (000s) 5,599 7,58 8,479 7,47 0,8,75,68,94,78 5,599 0,8 7,47,94 6,98 COMMON SHARE PERFORMANCE Book value per share $.84 $.08 $.6 $0.90 $9.7 $8.8 $7.94 $7.49 $7.58 $.84 $9.7 $0.90 $7.49 $6.5 Common share price (RY on TSX) 4 - High (intraday) $5.55 $4.74 $48.0 $5.50 $5. $5.76 $55.84 $57.00 $6.08 $5.55 $55.84 $55.84 $6.08 $5.49 - Low (intraday) $4. $5.5 $8.05 $9.05 $9.5 $4.8 $45.5 $50.50 $5.90 $5.5 $9.5 $9.05 $49.50 $4.9 - Close, end of period $5.8 $4.0 $0.4 $46.84 $47.5 $48.0 $50.65 $56.04 $54.09 $5.8 $47.5 $46.84 $56.04 $49.80 Market capitalization (TSX) ($ MM) 7,49 59,575 4,786 6,85 6,5 6,4 64,66 7,5 69,007 7,49 6,5 6,85 7,5 6,788 P/E ratio (4-quarters trailing earnings) 5 0. 7.7 9.6.9..9.7.4. 0...9.4.9 Market price to book value.5.0.4.4.40.6.8.0.08.5.40.4.0.0 DIVIDEND INFORMATION 6 Dividends declared per share $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.46 $.50 $.50 $.00 $.8 $.44 Dividend yield 4.% 5.8% 5.% 4.4% 4.4% 4.% 4.0%.7%.% 5.% 4.% 4.%.%.% Dividend payout ratio 47% n.m. 69% 6% 54% 7% 5% 49% 4% 88% 58% 59% 4% 40% Common dividends ($ MM) 705 704 70 670 669 647 68 67 587,,954,64,,847 Preferred dividends ($ MM) 7 55 4 7 7 4 4 6 69 74 0 88 60 OTHER INFORMATION Number of employees (full time equivalent) Canada 49,70 49,70 50,79 49,999 50,486 49,8 49,048 48,607 49,070 49,70 50,486 49,999 48,607 46,4 US,8,49,8,45,464,08,489,66,95,8,464,45,66 0,056 Other 9,85 9,960 9,99 9,87 9,8 4,448 4,68 4,545 4,54 9,85 9,8 9,87 4,545 4,4 Total 7,66 7,479 7,46 7, 7,77 66,748 64,905 64,85 65,57 7,66 7,77 7, 64,85 60,59 Number of bank branches Canada,90,87,79,74,60,5,50,46,,90,60,74,46,7 US 44 44 440 49 44 450 49 50 48 44 44 49 50 8 Other 8 8 8 8 7 45 45 45 44 8 7 8 45 44 Total,759,756,747,74,79,648,544,54,54,759,79,74,54,44 Number of automated teller machines (ATM) 5,046 5,0 4,984 4,964 4,897 4,64 4,547 4,49 4,77 5,046 4,897 4,964 4,49 4, Commencing Q/08, capital ratios and risk-adjusted assets are calculated using guidelines issued by OSFI under the new Basel II framework. Comparative amounts are calculated using guidelines issued by the OSFI under the Basel I framework. Basel I and Basel II are not directly comparable. Effective Q/08, the OSFI amended the treatment of the general allowance in the calculation of the Assets-to-capital multiple under Basel II. Comparative ratios have not been revised. Risk-adjusted assets for Q/07 was revised in Q/07 to reflect a $56 million adjustment related to equity derivative contracts. 4 Common shares outstanding at end of period includes Treasury shares (shares acquired and held by subsidiaries for reasons other than cancellation). Average common shares outstanding excludes Treasury shares. 5 Closing share price divided by diluted earnings per share. 6 Calculated using number of common shares outstanding, except as noted. 7 Bank branches which provide banking services directly to clients. n.m. not meaningful -5-
STATEMENTS OF INCOME (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Net interest income Interest income 4,895 5,0 5,99 6,68 5,90 6,75 6,79 6,78 6,745 6,044 9,076 5,44 6,547,04 Interest expense,95,4,998,559,609 4,66 4,650 4,78 4,780 7,47,45 5,984 8,845 5,408 Total,980,976,94,709,0,09,4,998,965 8,897 6,65 9,60 7,70 6,796 Non-interest income Accounts 0 08 0 84 6 40 4 49 47 9 745,09 986 97 Other payment services 86 86 85 87 86 8 8 8 80 57 5 8 7 99 Service charges 87 94 87 7 49 4 0 7,68 996,67,0,6 Insurance premiums, investment and fee income,575,,46 857 800 84 887 590 4,5,498,609,5,48 Investment management and custodial fees 9 84 49 449 450 47 4 4 40,95,0,759,579,0 Mutual fund revenue 5 7 87 44 85 75 7 85 97,74,56,47,4 Trading revenue 947 70 (6) (56) 59 (0) 6 68 55,54 8 (408),999,574 Securities brokerage commissions 7 55 90 45 09 4 68,0 987,77,5,4 Underwriting and other advisory fees 99 99 5 4 6 6 0 09 7 6 875,7,04 Foreign exchange revenue, other than trading 6 9 67 65 66 49 66 9 8 459 48 646 5 48 Card service revenue 85 64 8 8 7 4 59 4 65 567 466 648 49 496 Credit fees 5 4 99 84 08 74 7 97 9 45 9 4 Securitization revenue 79 465 48 7 0 66 9 4 99 90 46 6 57 Net (loss) gain on available-for-sale securities (5) (95) (70) (7) (6) (89) (0) (4) 4 (590) (45) (67) 6 - Net gain on investment securities - - - - - - - - - - - - - 88 Other 8 (50) 55 655 89 4 4 65 40 66 874,59,04 7 Total 4,84,785 4,000,60,6,745,506,67,55,68 9,86, 4,760,84 Total revenue 7,8 6,76 6,94 5,069 5,9 4,954 5,647 5,65 5,480,55 6,5,58,46 0,67 Provision for credit losses 770 974 747 69 4 49 9 6 78,49 976,595 79 49 Insurance policyholder benefits, claims and acquisition expense,5 958,076 (86) 55 548 66 67 4,87,77,6,7,509 Non-interest expense,755,575,6,989,7,970,0,09,65 0,95 9,6,5,47,495 Goodwill impairment charge -,000 - - - - - - -,000 - - - - Income taxes 449 66 48 48 44 56 4 55 49,5 94,69,9,40 Non-controlling interest in net income of subsidiaries 5 8 5 () 49 0 4 50 78 8 8 4 44 Net income (loss) from continuing operations,56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,757 Net loss from discontinued operations - - - - - - - - - - - - - (9) Net income (loss),56 (50),05,0,6 98,45,4,95,564,45 4,555 5,49 4,78 Preferred dividends (7) (55) (4) (7) (7) () (4) (4) (6) (69) (74) (0) (88) (60) Net income (loss) available to common shareholders,488 (05),0,09,5 905,,00,69,95,6 4,454 5,404 4,668 Revenue from Trading Activities Total Trading revenue Net interest income 66 744 744 468 6 4 6 (7) (),49 50 998 (0) (59) Non-interest income 947 70 (6) (56) 59 (0) 6 68 55,54 8 (408),999,574 Total,608,447 68 (58) 85 (6) 4 6 50,67 648 590,779,05 Trading revenue by product Interest rate and credit,,04 6 (78) 06 (7) 50 (46) 88,9 (8) (59) 640,74 Equities 60 60 99 (97) 70 70 97 54 99 46 65 784 56 Foreign exchange and commodities 6 44 8 7 09 06 5 0 78 56 67 584 55 00 Total,608,447 68 (58) 85 (6) 4 6 50,67 648 590,779,05 Trading revenue (teb) by product Interest rate and credit,,04 6 (78) 06 (7) 50 (46) 88,9 (8) (59) 640,74 Equities 475 6 59 (96) 54 59 5 0,97 765 669,07 766 Foreign exchange and commodities 6 44 8 7 09 06 5 0 78 56 67 584 55 00 Total (teb),7,550 678 4 469 8 454 74 597,95 95 994,0,40 In Q4/07, Non-interest income - Other includes a $6 million gain related to the Visa Inc. restructuring. Includes precious metals. -6-
NON-INTEREST EXPENSE (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Human resources Salaries,04,05,045,064 966 94 89 898 899,,78,845,54,9 Variable compensation,040 8 867 65 76 55 766 65 755,79,064,689,975,87 Acquisition retention compensation 4 5 4 6 9 0 Benefits related 8 5 07 8 86 96 9 64 9 90 874,55,40,077 Stock-based compensation () (5) 66 (0) 44 4 49 44 50 97 77 94 69 Total Human resources,57,89,90,954,0,800,99,89,99 6,86 5,85 7,779 7,860 7,68 Equipment Depreciation 66 6 6 64 54 5 48 48 46 9 55 9 8 7 Computer rental and maintenance 90 0 87 97 65 6 67 68 57 580 494 69 66 609 Office equipment rental and maintenance 6 7 6 9 4 6 5 7 7 9 5 4 8 8 Total Equipment 6 7 55 70 0 0 790 664 94 847 809 Occupancy Premises rent 07 08 87 0 00 99 0 8 7 00 87 8 8 Premises repairs and maintenance 86 9 84 4 78 78 67 76 69 6 7 70 Depreciation 5 5 4 8 5 5 0 77 99 89 85 Property taxes 9 6 6 8 6 4 6 87 77 0 97 9 Total Occupancy 60 67 5 49 4 6 00 778 677 96 89 79 Communications Telecommunications 5 55 50 5 46 50 48 48 49 56 44 97 94 86 Postage and courier 0 8 7 0 6 7 5 9 8 0 96 Marketing and public relations 84 9 64 0 8 75 67 0 87 9 4 6 Stationery and printing 7 6 5 9 6 0 6 5 78 69 98 9 9 Total Communications 9 0 70 0 80 78 6 0 86 565 59 749 7 687 Professional fees 5 69 7 4 57 4 89 9 56 50 546 Outsourced item processing 75 8 7 05 77 8 77 75 77 9 6 4 08 98 Amortization of other intangibles Computer software 66 65 5 64 57 5 48 44 4 84 57 6 48 Other 47 5 57 45 9 9 4 5 55 90 5 96 76 Total Amortization of other intangibles 6 0 09 96 8 70 68 66 9 47 56 58 4 Other Business and capital taxes 47 44 6 9 0 5 49 4 04 0 5 4 Travel and relocation 4 6 47 4 4 5 4 4 0 0 57 58 4 Employee training 8 9 8 9 7 5 45 54 4 Donations 6 0 0 7 4 6 5 5 5 45 Other 58 5 (90) 96 6 6 79 9 740 50 0 70 56 Total Other 6 4 49 (97) 00 49 5 0 0,06 80 704,08 87 Total non-interest expense,755,575,6,989,7,970,0,09,65 0,95 9,6,5,47,495 Stock-based compensation includes the cost of stock options, stock appreciation rights, performance deferred shares, deferred compensation plans and the impact of related economic hedges. Comparative information has been reclassified as a result of adopting CICA Handbook Section 064. In Q4/08, Other includes reduction of the Enron-related litigation provision of $54 million. -7-
DEFINED OPERATING LEVERAGE (C$ MM, except percentage amounts) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Total revenue 7,8 6,76 6,94 5,069 5,9 4,954 5,647 5,65 5,480,55 6,5,58,46 0,67 Add: teb adjustment 7 0 60 0 86 90 7 79 90 08 40 Less: Revenue related to VIEs 7 (9) (55) 7 (5) 5 () (0) 7 (48) (7) Insurance revenue,575,9,46 858 80 840 887 590 4,50,499,60,9,48 Impact of the financial instruments accounting standards (5) 8 - Total revenue (adjusted) 6,7 5,68 5,684 5,5 5, 4,58 4,94 4,85 4,9 7,685 4,5 9,40 9,488 7,509 Non-interest expense,755,575,6,989,7,970,0,09,65 0,95 9,6,5,47,495 Less: Insurance related non-interest expense 5 8 4 54 45 4 5 7 7 44 4 576 57 57 Non-interest expense (adjusted),60,47,48,85,7,88,985,956,08 0,58 8,940,775,96 0,978 Defined operating leverage (compared to prior year) 8.6 % 0.7 % (.4)% 9.5 % 0.6 % (5.9)% (0.)%.0%. % 5.6 % (.8)%.0 %.6%.5% GOODWILL (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Opening balance 8,89 9,948 9,977 8,859 6,65 4,897 4,75 5,055 5,098 9,977 4,75 4,75 4,04 4,0 Goodwill acquired - 9 5 59,6,70-60 4,90 4,06 906 86 Goodwill impairment charge - (,000) - - - - - - - (,000) - - - - Other adjustments (506) (48) (44) 959 6 () 45 (05) (0) (698) 04,6 (458) 5 Closing balance 8, 8,89 9,948 9,977 8,859 6,65 4,897 4,75 5,055 8, 8,859 9,977 4,75 4,04 Defined in the "Key performance and Non-GAAP measures" section. Excludes the impact of the financial instruments accounting standards related to Insurance. Other adjustments primarily include the impact of foreign exchange translations on foreign currency-denominated goodwill. -8-
CANADIAN BANKING (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Income Statement Net interest income,740,678,78,70,694,66,687,64,605 5,6 5,07 6,78 6,5 5,86 Non-interest income 74 69 747 748 749 650 7 94 7,8,0,868,976,5 Total revenue,48,7,465,449,44,86,408,566,7 7,7 7,7 9,586 9,9 8,48 Provision for credit losses (PCL) 40 5 70 5 04 4 4 90 96 64 867 788 604 Non-interest expense,69,7,76,0,86,56,96,,9,56,58 4,758 4,748 4,50 Other 0 68 8 44 0 5 5 894 97,99,48,0 Net income 669 58 696 676 709 604 67 797 596,946,986,66,545,4 Total Revenue by business Personal Financial Services,9,80,96,,5,08,,99,84,95,99 5,5 5,08 4,6 Business Financial Services 68 596 65 60 607 584 60 609 585,89,8,44,0,4 Cards and Payment Solutions 54 495 554 496 485 94 455 658 448,57,4,80,946,586 Total,48,7,465,449,44,86,408,566,7 7,7 7,7 9,586 9,9 8,48 Financial ratios Return on equity (ROE) 4.9%.9% 8.9% 7.7% 40.4% 5.8% 8.5% 4.7%.% 5.6% 8.% 8.% 4.9%.% Return on risk capital (RORC) 47.% 4.7% 5.8% 50.8% 54.% 49.5% 54.% 57.6% 44.4% 47.6% 5.6% 5.% 48.% 44.6% Net interest margin (average earning assets).7%.78%.8%.89%.95%.00%.08%.0%.5%.77%.0%.98%.7%.% Efficiency ratio 47.% 49.4% 47.7% 49.8% 48.5% 50.6% 49.7% 47.6% 5.6% 48.% 49.6% 49.6% 50.9% 54.0% Operating leverage.0 %.4 % 4.0 % (4.4)% 8.%.0% 4. % 0.6 % (0.9)%.% 5.%.6% 6.5% 4.4% Average balances Total assets 6,600 54,800 49,600 4,00 4,700 8,00 5,000 6,700 09,00 55,400 9,00,00 07,500 87,600 Total earning assets 54,400 47,400 4,00 4,00 8,00,800 8,00 09,900 0,00 48,000,700 5,600 00,400 80,500 Loans and acceptances 5,700 45,900 4,000 5,500 8,000 0,600 5,800 09,00 0,600 46,500,500 5,000 99,00 79,000 Residential mortgages 4,400 9,800 8,800 6,00,600 7,00 4,400 9,900 4,400 40,00 7,700 9,800,00 00,800 Personal 54,500 5,000 48,400 46,500 44,600 4,600 4,00 40,00 9,00 5,00 4,800 4,700 8,700 4,600 Credit cards,400,400,800,700,400,00,00,700,00,500,00,400,00 9,900 Small business,800,800,700,800,700,700,600,500,00,800,700,700,400,00 Total Retail,00 06,000 0,700 98,00 9,00 84,700 80,500 74,400 67,00 06,900 85,500 88,600 65,500 47,500 Wholesale 9,600 9,900 9,00 7,00 6,700 5,900 5,00 4,800 4,00 9,600 6,000 6,400,700,400 Deposits 74,00 7,400 68,700 59,400 54,900 5,800 5,900 50,00 47,00 7,400 5,500 55,000 47,00 9,00 Attributed capital 7,400 7,00 7,000 7,050 6,900 6,800 6,900 7,50 7,50 7,50 6,850 6,900 7,00 6,500 Risk capital 5,450 5,50 5,50 5,50 5,50 4,900 4,900 5,450 5,50 5,50 5,000 5,050 5,50 4,700 Credit quality Gross impaired loans / Average net loans and acceptances 0.48% 0.48% 0.6% 0.4% 0.% 0.4% 0.% 0.% 0.% 0.49% 0.% 0.6% 0.5% 0.% PCL / Average net loans and acceptances 0.54% 0.59% 0.44% 0.8% 0.6% 0.4% 0.9% 0.40% 0.7% 0.5% 0.9% 0.9% 0.9% 0.4% Net write-offs / Average net loans and acceptances 0.5% 0.50% 0.8% 0.40% 0.40% 0.4% 0.40% 0.9% 0.5% 0.47% 0.40% 0.40% 0.8% 0.5% Business information Assets under administration 0,800,000,800 09,500,700 4,00 5,600 0,00 5,600 0,800,700 09,500 0,00 0,00 Other earnings measures Net income 669 58 696 676 709 604 67 797 596,946,986,66,545,4 After-tax effect of amortization of other intangibles 4 5 4 7 7 6 Cash Net income 67 58 698 679 70 606 674 799 597,95,990,669,55,0 Capital charge (5) (98) (0) (87) (8) (75) (8) (94) (9) (66) (59) (76) (758) (685) Economic Profit 456 84 495 49 57 4 49 605 406,5,45,94,794,445 Reported results include securitized residential mortgage and credit card loans and related amounts for income and provision for credit losses. The average securitized residential mortgage and credit card loans included as at July, 009 were $7 billion and $4 billion, respectively. Securitized residential mortgages and credit card loans are included in Total assets, Total earning assets, Loans and acceptances, Residential mortgage, Credit cards and AUA to better reflect how the assets are managed. Includes income taxes and non-controlling interest in net income of subsidiaries. As at Q/09, average personal secured loans was $9,000 million and average personal unsecured loans was $5,500 million. 4 Excludes the amortization of computer software intangibles. -9-
WEALTH MANAGEMENT (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Income Statement Net interest income 84 00 8 0 09 06 5 468 47 97 Fee-based revenue 58 55 59 596 599 54 59 58 545,58,680,76,09,745 Transactional and other revenue 406 76 0 96 0 5 0 9 55, 947,4,456,45 Total revenue,08 99 997,05,09 990 95 986,006,006,96,987,99,487 Provision for credit losses (PCL) - - - - - - - - Non-interest expense 777 87 87 860 758 7 688 7 747,4,78,08,90,6 Business realignment charges - - - - - - - - - - - - - Other 7 48 4 49 74 76 84 74 8 6 4 8 7 68 Net income 68 6 8 6 86 8 8 80 77 4 549 665 76 604 Total Revenue by business Canadian Wealth Management 6 0 5 69 8 59 6 69 69 96,05,474,460,90 U.S. & International Wealth Management 5 544 5 48 45 490 445 479 49,587,86,869,988,7 Global Asset Management 6 45 50 7 85 4 45 8 44 456 47 644 544 465 Total,08 99 997,05,09 990 95 986,006,006,96,987,99,487 Financial ratios Return on equity (ROE) 6.5%.%.%.%.0% 4.8% 5.5%.7% 9.4%.7% 8.6%.%.4% 7.8% Return on risk capital (RORC) 59.% 4.% 4.8% 4.8% 69.5% 7.4% 76.7% 6.4% 58.6% 47.8% 7.7% 64.9% 65.% 59.% Average balances Total assets,00,800 7,800 6,00 7,00 8,00 6,000 7,400 5,700 0,600 7,00 6,900 6,600 5,00 Loans and acceptances 5,600 5,700 6,000 5,900 5,00 4,900 4,600 4,400 4,500 5,800 4,900 5,00 4,600 4,400 Deposits,600,600,800 8,00 7,00 6,900 5,00 4,000 4,600,000 6,400 6,900 4,900,00 Attributed capital,800,950,950,650,450,00,000,50,50,900,550,800,00,50 Risk capital,050,50,50,050,050,000 950,50,00,00,000,000,50,050 Credit quality Gross impaired loans / Average net loans and acceptances 0.0% 0.0% 0.0% 0.0% 0.06% 0.06% 0.07% 0.05% 0.00% 0.0% 0.06% 0.0% 0.04% 0.00% PCL / Average net loans and acceptances 0.00% 0.00% 0.00% 0.00% 0.08% 0.00% 0.00% 0.09% 0.00% 0.00% 0.0% 0.0% 0.0% 0.0% Net write-offs / Average net loans and acceptances 0.00% 0.00% 0.00% 0.% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.04% 0.00% 0.0% Business information Assets under administration Canadian Wealth Management 70,00 57,900 5,400 60,700 79,000 80,600 77,00 8,000 80,900 70,00 79,000 60,700 8,000 68,600 U.S. & International Wealth Management,00,700,00 4,400 0,00 00,900 07,400 05,500 4,00,00 0,00 4,400 05,500 07,900 Total 49,00 48,600 464,600 495,00 509,00 48,500 484,700 488,500 505,00 49,00 509,00 495,00 488,500 476,500 Assets under management Canadian Wealth Management,700,000,500,000 4,800,900,00,00,00,700 4,800,000,00 7,500 U.S. & International Wealth Management 0,000 7,900 8,400 9,500,500 0,600,00 0,00 0,700 0,000,500 9,500 0,00 9,700 Global Asset Management 96,000 9,700 8,00 80,00 97,400 9,00,00 8,800 7,600 96,000 97,400 80,00 8,800 05,600 Total 9,700,600,00,600 4,700 7,800 64,700 6,00 59,600 9,700 4,700,600 6,00 4,800 Other earnings measures Net income 68 6 8 6 86 8 8 80 77 4 549 665 76 604 After-tax effect of amortization of other intangibles 9 5 4 5 5 6 6 4 0 Cash Net income 79 9 40 5 0 86 86 85 8 458 57 698 784 64 Capital charge (0) () (4) (97) (9) (54) (5) (58) (6) (6) (98) (95) (4) (6) Economic Profit 69 7 6 8 0 7 0 75 40 54 98 (US$ MM) Revenue by business U.S. & International Wealth Management 479 49 47 44 445 488 445 48 46,5,78,8,86,5 Business information Assets under administration U.S. & International Wealth Management 98,00 7,00 54,600 77,600,500 98,800 06,00,00 0,900 98,00,500 77,600,00 74,00 Includes income taxes and non-controlling interest in net income of subsidiaries. Q/09 Global Asset Management - AUM excludes $.8 billion in assets held by clients of Phillips, Hager & North Investment Management Ltd. for which we earn either a nominal or no management fee. Excludes the amortization of computer software intangibles. -0-
INSURANCE (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Income Statement Net earned premiums 986,005 800 75 76 689 66 66 660,79,,864,59,595 Investment income 5 7 488 (697) 49 6 7 0 (97),8 9 (458) 40 55 Fee income 67 5 58 56 48 49 5 49 7 76 48 04 97 8 Total revenue,575,9,46 858 80 840 887 590 4,50,499,60,9,48 Insurance policyholder benefits, claims and acquisition expense (PBCAE),5 958,076 (86) 55 548 66 67 4,87,77,6,7,509 Non-interest expense 5 8 4 54 45 4 5 7 7 44 4 576 57 57 Other 0 0 7 (6) 7-7 57 0 4 40 0 Net income 67 59 7 04 89 0 0 9 0 89 44 0 Total Revenue by business Reinsurance & Other 54 44 0 89 0 7 8 6,000 775,064 859 744 Canadian Life and Health 558 48 54 (97) 4 00 55 5,448 976 779,6,7 Property & Casualty 75 88 76 8 54 74 6 9 4 59 489 67 60 576 U.S. Life 488 49 6 (9) 5 47 6 77 86,6 59 40 596 80 Total,575,9,46 858 80 840 887 590 4,50,499,60,9,48 Financial ratios Return on equity (ROE) 48.0%.4%.7% 0.% 44.6% 4.%.7% 9.% 8.7% 8.5% 7.0%.8%.% 0.5% Return on risk capital (RORC) 55.4% 9.% 8.%.0% 50.% 8.% 6.0%.%.9% 44.5% 4.6% 7.% 4.7%.8% Average balances Total assets,000,000,600,800,600,700,400,00,400,900,600,600,500,600 Attributed capital,50,50,00,50,00,50,00,50,400,50,00,50,400,450 Risk capital,00,50,50,000,00,00 950,00,50,50,050,050,50,50 Additional information Premiums and deposits, 4,67,5,080,004,04 898 945 860 889,58,857,86,460,406 Reinsurance & Other 467 467 458 405 45 4 69 7 4,9 95,55,5, Canadian Life and Health 4 06 0 0 07 4 86 85 940 8,7,46,069 Property & Casualty 9 65 6 70 66 55 56 6 54 59 477 647 604 57 U.S. Life 9 97 4 08 9 94 96 95 6 7,46 9 459 6 Insurance policyholder benefits and claims,097 789 9 (0) 4 74 47 506 89,808,59,09,588,99 Insurance policyholder acquisition expense 56 69 54 44 40 74 44 54 479 458 60 585 570 Insurance claims and policy benefit liabilities 8,56 8,00 7,880 7,85 7,608 7,556 7,558 7,8 7,5 8,56 7,608 7,85 7,8 7,7 Fair value changes on investments backing policyholder liabilities 5 8 9 4 (748) (74) (58) 0 78 () 688 () (870) (08) 6 Business information Assets under management 00 00 00 400 00 00 00 00 00 00 00 400 00 00 Other earnings measures Net income 67 59 7 04 89 0 0 9 0 89 44 0 After-tax effect of amortization of other intangibles 6 - - - - - - - - - - - - - - Cash Net income 67 59 7 04 89 0 0 9 0 89 44 0 Capital charge (9) (9) (7) (0) () () (9) (7) (7) (5) (9) () (47) (5) Economic Profit 8 74 75 9 05 7 60 65 66 77 7 66 95 49 Premium and deposits equals net earned premiums excluding the cost of premiums to other institutions for reinsurance coverage, plus segregated fund deposits. Investment income can experience volatility arising from quarterly fluctuation in the fair value of held-for-trading assets. The investments which support actuarial liabilities are predominantly designated as held-for-trading, and consequently changes in fair values of these assets are recorded in investment income in the consolidated statements of income. Changes in fair values of these assets are largely offset by changes in the fair value of the actuarial liabilities. Includes income taxes and non-controlling interest in net income of subsidiaries. 4 Premiums and deposits include premiums on risk-based insurance and annuity products, and deposits on individual and group segregated fund deposits, consistent with insurance industry practices. 5 Includes revenue impact of the change in fair value on investments backing policyholder liabilities is reflected in Investment income and largely offset in PBCAE. 6 Excludes the amortization of computer software intangibles. --
INTERNATIONAL BANKING (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Income Statement Net interest income 4 459 45 47 47 98 48 9 6,4 89,0,0 940 Non-interest income 0 6 5 5 66 7 6 59 57 76 77 884 688 Total revenue 65 685 567 47 580 564 485 455 5,905,69,0,95,68 Provision for credit losses (PCL) 0 89 00 98 7 9 7 7 7 79 99 497 09 5 Non-interest expense 577 68 595 585 485 48 78 6 89,790,9,876,48,6 Goodwill impairment charge -,000 - - - - - - -,000 - - - - Other (59) (96) (84) (05) (6) 7 5 () 9 (9) (4) (9) 8 6 Net (loss) income (95) (,6) (44) (06) (6) 8 87 (,65) 5 (5) 4 6 Total Revenue by business Banking 476 507 74 8 4 49 75 69 0,57 965,46,56,070 RBC Dexia IS 77 78 9 9 9 5 0 86 0 548 664 855 759 558 Total 65 685 567 47 580 564 485 455 5,905,69,0,95,68 Financial ratios Return on equity (ROE) (6.)% (5.)% (7.)% (.4)% (.6)%.0%.5%.% 9.0% (.)%.% (.4)% 6.9% 0.6% Return on risk capital (RORC) (4.)% (4.6)% (0.)% (4.9)% (.8)% 6.% 6.4%.8% 5.5% (60.0)%.5% (8.)%.7% 6.% Net interest margin (average earning assets) 4.88%.67%.40%.78%.7%.50%.4%.40%.58%.64%.56%.6%.57%.7% Average balances Total assets 60,000 67,00 68,900 65,000 5,600 47,00 40,00 9,400 4,00 65,00 46,700 5,00 9,700,600 Total earning assets 4 40,00 46,000 46,800 4,000,400 0,400 5,00 4,800 6,500 44,00 9,700,800 6,00,00 Loans and acceptances,800 7,500 7,400,900 8,000 5,000,000 0,500,800 5,900 4,700 7,000,00 8,500 Deposits 49,500 54,500 54,00 5,800 4,500 40,700 5,00 4,500 5,00 5,700 9,400 4,500 4,00 8,700 Attributed capital 7,050 8,800 8,550 7,450 5,600 4,550,50,00,650 8,00 4,450 5,00,50,400 Risk capital,50,50,050,450,00,50,750,900,00,50,050,50,950,600 Credit quality Gross impaired loans / Average net loans and acceptances 5 6.70% 6.06% 5.65% 4.76%.98%.5%.6%.97%.05% 6.% 4.5% 5.97%.8%.0% PCL / Average net loans and acceptances.78%.6%.%.%.95%.48%.5%.9% 0.8%.68%.6%.84% 0.49% 0.4% Net write-offs / Average net loans and acceptances.8%.8%.44%.94%.% 0.85% 0.0% 0.5% 0.5%.% 0.79%.6% 0.0% 0.5% Business information Assets under administration - RBC 6 7,400 8,700 0,600,00 9,400 - - - - 7,400 9,400,00 - - - RBC Dexia IS 7,97,500,05,00,,400,585,000,80,900,697,000,9,000,7,00,84,400,97,500,80,900,585,000,7,00,4,00 Assets under management - RBC 6,800,600,700,900,400 - - - -,800,400,900 - - Other earnings measures Net (loss) income (95) (,6) (44) (06) (6) 8 87 (,65) 5 (5) 4 6 After-tax effect of amortization of other intangibles and goodwill impairment 8 6,09 8 5 0 9 6 5 4,08 55 80 57 4 Cash Net (loss) income (69) (97) (6) (8) 4 57 47 6 0 (8) 08 (7) 99 04 Capital charge (04) (47) (47) (97) (47) (8) (8) (88) (95) (698) (48) (545) (5) (5) Economic Profit (7) (44) (6) (78) (4) (6) (6) (5) 6 (980) (40) (68) (5) 5 (US$ MM) Revenue by business Banking 47 408 05 6 8 46 75 68 8,40 959,,059 945 Includes income taxes and non-controlling interest in net income of subsidiaries. Includes U.S. and Caribbean banking businesses. RBTT Financial Group (RBTT) results are reported on a one-month lag basis. On January, 006, we combined our Institutional & Investor Services (IIS) business with the institutional investor service business of Dexia Banque Internationale à Luxembourg (Dexia), forming a joint venture, RBC Dexia Investor Services (RBC Dexia IS). RBC Dexia IS results are reported on a one-month lag basis. 4 Calculated based on Banking information. 5 The calculation of gross impaired loans / average net loans and acceptances for Q/08, Q/08, Q4/07 and 007 have been revised to exclude certain foreclosed assets. 6 AUA - RBC and AUM - RBC represent the AUA and AUM, respectively, of RBTT reported on a one-month lag. 7 AUA - RBC Dexia IS represents the total AUA of the joint venture, of which we have a 50% ownership interest, reported on a one-month lag. 8 Excludes the amortization of computer software intangibles. --
CAPITAL MARKETS (C$ MM) Q/09 Q/09 Q/09 Q4/08 Q/08 Q/08 Q/08 Q4/07 Q/07 009 008 008 007 006 Income Statement Net interest income (teb) 970,04 9 648 45 4 8 75,906,9,89 6 Non-interest income,44 55 487 54 68 59 84 596 98,8,554,096,766 4,005 Total revenue (teb),4,566,409,90, 480, 89,58 5,089,745,95 4,89 4,6 Provision for (recovery of) credit losses (PCL) 77 45 60 77 0 58 8 () (7) 48 06 8 () (5) Non-interest expense,085 86 89 4 77 546 74 584 69,80,997,,769,60 Business realignment charges - - - - - - - - - - - - - () Other 90 75 405 7 (7) 66 5 598 56 46 50 94 Net income 56 40 5 584 69 04 86 60,07 586,70,9,55 Total Revenue (teb) Total Revenue,4,566,409,90, 480, 89,58 5,089,745,95 4,89 4,6 Revenue related to VIEs offset in Non-controlling interest 7 (9) (55) 7 (5) 5 () (0) 7 (48) (7) Total revenue excluding VIEs,,559,48,45,6 495,7 80,45 5,09,78,98 4,58 4,4 Total Revenue by business Capital Markets Sales and Trading,768,50 89 446 58 56 64 7 64,909,78,84,45,47 Corporate and Investment Banking 46 6 58 744 55 4 49 448 544,80,67,,96,664 Total,4,566,409,90, 480, 89,58 5,089,745,95 4,89 4,6 Financial ratios Return on equity (ROE) 6.% 9.9% 0.4% 4.6% 7.7% 0.7%.9% 5.4% 9.% 8.8% 4.6% 0.5% 6.6%.5% Return on risk capital (RORC) 9.9%.%.0% 40.5% 0.8% 0.8% 9.% 9.% 5.9%.8% 7.5% 4.5%.5% 8.7% Average balances Total assets,00 6,800 94,00 4,800 7,900 5,400 9,00 9,400 7,00 59,700 9,400 40,00,00 60,600 Trading securities 8,600 8,000,800,600 8,700 4,700 44,800 46,400 54,00 9,800 4,400 40,00 5,900,00 Loans and acceptances 5,900 4,600 46,00 4,900 7,900 6,800 6,600,600 8,00 4,600 7,00 8,00 9,000,00 Deposits 95,000,600,700 5,000,00 7,00 7,00,500 4,700,800,800,600 5,700 08,00 Attributed capital 8,50 8,50 8,00 6,650 5,900 4,800 4,950 4,650 4,800 8,50 5,50 5,600 4,800 4,50 Risk capital 7,00 7,50 7,050 5,650 5,050,900 4,00,750,900 7,00 4,50 4,700,900,450 Credit quality Gross impaired loans / Average net loans and acceptances. %.8 %.0 %.9 % 0.79 % 0.84 % 0.7 % 0.05 % 0.07 %.8 % 0.8 %.0 % 0.06 % 0.8 % PCL / Average net loans and acceptances.96 %.40 %.7 % 0.7 % 0. % 0.64 % 0.0 % (0.0)% (0.0)%.55 % 0.8 % 0.48 % (0.08)% (0.5)% Net write-offs / Average net loans and acceptances.55 % 0.8 %.8 % 0.07 % 0.8 % 0. % (0.0)% (0.0)% (0.0)%.6 % 0.0 % 0.09 % (0.08)% (0.4)% Business information Assets under administration 4,800 5,400 5,900 7,500 6,400 7,000 6,900 6,400 6,800 4,800 6,400 7,500 6,400 4,700 Other earnings measures Net income 56 40 5 584 69 04 86 60,07 586,70,9,55 After-tax effect of amortization of other intangibles 9 - - - - - Cash Net income 56 4 4 584 7 04 86 60,8 588,7,9,56 Capital charge (9) (4) (5) (75) (57) (4) () () (7) (708) (4) (587) (50) (447) Economic Profit 4 87 () 409 4 () 7 6 50 76 585 790 909 Includes income taxes and non-controlling interest in net income of subsidiaries. Excludes the amortization of computer software intangibles. --