Supplementary Financial Information Q 007 For the period ended January 3st, 007 (UNAUDITED) For further information, please contact: Marcia Moffat Head, Investor Relations (46) 955-7803 marcia.moffat@rbc.com Dave Mun Senior Manager, Investor Relations (46) 955-7808 dave.mun@rbc.com www.rbc.com/investorrelations
Table of Contents Page Page Notes to Users Capital 6 Capital Glossary 7 Risk-adjusted assets 3 Financial Highlights Credit Quality 8 Loans and acceptances Consolidated Results 9 Impaired loans 5 Statements of income Provision for credit losses 5 Revenue from trading activities Allowance for credit losses 6 Non-interest expense 3 Credit quality ratios 7 Other earnings measures and Operating leverage Other Items Segment Details 4 Goodwill 8 RBC Canadian Personal and Business 4 Business realignment charges 9 RBC US and International Personal and Business 4 Securities market value surplus 0 RBC Capital Markets Corporate Support 5 ROE and RORC Reconciliation Discontinued Operations 6 U.S. GAAP Reconciliation On- and Off-Balance Sheet Balance sheets (period-end balances) 3 Selected average balance sheet items 3 Assets under administration and management 4 Statements of Changes in Shareholders' Equity 5 Loan securitization
Notes to Users The financial information in this document is in Canadian dollars and based on 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 unaudited Interim Consolidated Financial Statements and accompanying Management's Discussion & Analysis for the quarter ended January 3, 007, Q 007 Report to Shareholders, Q 007 Quarterly Results slides, our 006 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 presentations. Significant reporting changes made to this document in Q/07 Impact of new financial instruments accounting standards On November, 006, we adopted three new accounting standards that were issued by the Canadian Institute of Chartered Accountants (CICA) related to financial instruments. These new standards, which have been applied prospectively, changed how we recognize and measure certain financial assets, financial liabilities and non-financial derivatives (financial instruments). For further details, refer to the Impact of the new financial instruments accounting standards section and Note of our unaudited Interim Consolidated Financial Statements in our Q 007 Report to Shareholders. As a result of implementing the new financial instrument accounting standards, certain financial instruments have been classified on a prospective basis within Securities from investment to trading. This resulted in financial instruments that had been measured on an amortized cost basis are now being accounted for on a fair value basis. Net interest income reclassification Within RBC Canadian Personal and Business, certain amounts related to trustee services have been reclassified from Non-interest income - Investment management and custodial fees to Net interest income to better reflect their nature. The comparative amounts reflect the change. Non-GAAP financial 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 including segment return on equity (ROE), return on risk capital (RORC) and economic profit. For details, refer to How we measure and report our business segments in our Q 007 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 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. 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 of amortization of goodwill and other intangibles. These non-cash charges do not deplete our cash reserves. Risk capital Risk capital includes credit, market (trading and non-trading), insurance-specific, operational, business and fixed assets risk capital. Attributed capital Attributed capital includes risk capital plus the net amounts of goodwill and intangibles capital. Average risk capital Calculated using methods intended to approximate the average of the daily risk capital balances for the period. Operating leverage Return on risk capital (RORC) Return on equity (ROE) Net income available to common shareholders divided by attributed risk capital. Refer to page 5 Business segment return on equity is calculated as net income available to common shareholders for RORC reconciliation. Business segment return on risk capital is calculated as net income divided by average attributed equity for the period. Corporate Support also includes average available to common shareholders divided by average attributed risk capital for the period. unattributed equity. Refer to page 5 for reconciliation. Unattributed common equity Unattributed common equity represents common equity in excess of common equity attributed to our three business segments and is reported in the Corporate Support segment. Economic profit Economic profit is net income available to common shareholders excluding the after-tax effect of amortization of goodwill and intangibles, less a capital charge for use of attributed equity. Our operating leverage is defined as the difference between revenue growth rate (as adjusted) and noninterest expense growth rate (as adjusted). Revenue is based on a taxable equivalent basis, excluding consolidated variable interest entities (VIEs), accounting adjustments related to the new financial instruments accounting standards and Global Insurance-related revenue. Non-interest expense excludes Global Insurance-related expense. --
Glossary Capital ratios The percentage of risk-adjusted assets supported by capital, using the guidelines of the Office of the Superintendent of Financial Institutions Canada (OSFI) based on standards issued by the Bank for International Settlements and Canadian GAAP financial information. Goodwill and intangibles Represents our net investment in goodwill and intangibles. 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 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 RBC Capital Markets and record elimination adjustments in Corporate Support thereby generating the same after-tax net income as reported under GAAP. Total trading revenue Total trading revenue is comprised of trading related revenue recorded in Net interest income and Noninterest income. Calculations Average balances (assets, loans and acceptance, and deposits) Calculated using methods intended to approximate the average of the daily balances for the period. Average common equity Calculated as the average of the month-end common equity balances for the period. For the operating 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. Market capitalization End of period common shares outstanding multiplied by the closing common share price on the Toronto Stock Exchange. 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 Used in the calculation of risk-based capital ratios as defined by guidelines issued by the OSFI. The face value of assets is discounted using risk-weighting 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 amount, and then by applying appropriate risk-weighting factors. Ratios 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 5 for ROE reconciliation. --
FINANCIAL HIGHLIGHTS (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 SELECTED INCOME STATEMENT INFORMATION Total revenue 5,698 5,349 5,06 5, 4,960 4,796 4,99 4,686 4,773 0,637 9,84 7,80 Provision for credit losses (PCL) 6 59 99 4 47 03 8 6 08 49 455 346 Insurance policyholder benefits, claims and acquisition expense 56 6 67 69 65 740 68 6 58,509,65,4 Non-interest expense (NIE) 3,067,955,86,98,75 3,30,73,66,654,495,357 0,833 Net income from continuing operations,494,63,94,8,7 543,00 96 977 4,757 3,437 3,03 Net income (loss) from discontinued operations - () (7) (0) () () () (9) (9) (50) (0) Net Income,494,6,77,8,7 5 979 907 979 4,78 3,387,803 Net income available to common shareholders,478,36,64,07,6 55 968 895 97 4,668 3,349,77 PROFITABILITY MEASURES Total Earnings per share (EPS) - basic $.6 $0.97 $0.9 $0.86 $0.90 $0.40 $0.75 $0.70 $0.76 $3.65 $.6 $.4 - diluted $.4 $0.96 $0.90 $0.85 $0.89 $0.39 $0.74 $0.69 $0.75 $3.59 $.57 $. Return on common equity (ROE) 7.3% 3.9% 3.% 3.0% 3.9% 0.6% 0.0% 9.9%.9% 3.5% 8.0% 5.6% Return on risk capital (RORC) 4.6% 37.3% 35.7% 35.7% 37.9% 7.3% 33.4% 3.4% 34.6% 36.7% 9.3% 4.6% Return on assets.06% 0.95% 0.9% 0.93% 0.97% 0.44% 0.85% 0.85% 0.9% 0.94% 0.76% 0.67% Return on risk-adjusted assets.45%.4%.4%.7%.8%.05%.04%.96%.07%.%.77%.56% Efficiency ratio 53.8% 55.% 55.0% 57.% 55.5% 69.0% 55.4% 56.8% 55.6% 55.7% 59.% 60.9% Continuing Operations Earnings per share (EPS) - basic $.6 $0.97 $0.9 $0.87 $0.90 $0.4 $0.77 $0.7 $0.76 $3.67 $.65 $.3 - diluted $.4 $0.96 $0.9 $0.86 $0.89 $0.4 $0.76 $0.70 $0.75 $3.6 $.6 $.8 Return on common equity (ROE) 7.3% 3.6% 3.%.9% 3.6% 0.9% 0.% 9.9%.6% 3.3% 8.% 6.8% Return on risk capital (RORC) 4.6% 37.3% 36.% 36.% 38.0% 8.% 34.% 3.7% 34.5% 37.0% 9.7% 6.5% Discontinued Operations Earnings per share (EPS) - basic - $0.00 ($0.0) ($0.0) $0.00 ($0.0) ($0.0) ($0.0) $0.00 ($0.0) ($0.04) ($0.7) - diluted - $0.00 ($0.0) ($0.0) $0.00 ($0.0) ($0.0) ($0.0) $0.00 ($0.0) ($0.04) ($0.7) KEY RATIOS Diluted EPS growth 8.% 46.%.6% 3.% 8.7% 0.0% 3.%.% 7. % 39.7%.8% (4.)% Diluted EPS growth - continuing operations 8.% 34.% 9.7%.9% 8.7 % (.)% 3.0%.8% 5.0 % 38.3% 4.5% 4.% Revenue growth 4.9%.5% 5.6% 9.3% 3.9% 4.9% 9.3% 5.5%.5% 7.6% 7.8% 4.8% NIE growth.5% (0.7)% 4.7% 0.0% 3.7%.%. % (0.8)% (3.)%.% 4.8% 6.6% Operating leverage 5.8% 3.% 3.3% 4.3% (0.6)% 7. % 6.6 % 3.6 %.6 %.5 % 7.5 % (4.6)% Specific PCL to average loans and acceptances 3 0.9% 0.9% 0.8% 0.6% 0.0% 0.0% 0.8% 0.4% 0.% 0.3% 0.% 0.30% Net interest margin (average assets).33%.3%.38%.34%.39%.49%.45%.57%.59%.35%.53%.53% Non-interest income as % of total revenue 67.% 67.6% 66.% 68.4% 66.% 63.% 66.3% 64.4% 64.4% 67.% 64.6% 63.9% Effective tax rate.3%.% 3.5% 4.0%.0% 4.9% 8.3% 7.5% 3.0%.6% 7.% 9.8% SELECTED BALANCE SHEET INFORMATION Average loans and acceptances,900 5,00 09,300 0,900 98,700 94,500 87,800 8,500 79,400 06,00 86,00 7,900 Total assets 57,65 536,780 53,969 50,893 487,874 469,5 463,35 434,873 44,09 536,780 469,5 46, Average assets 558,900 55,500 509,500 493,800 480,000 469,600 456,600 436,300 45,500 50,300 447,00 4,400 Average earning assets 483,300 455,900 437,300 48,00 44,800 398,800 387,900 368,00 360,00 434,00 378,900 353,000 Deposits 365,606 343,53 334,70 3,787 34,87 306,860 304,497 83,49 80,00 343,53 306,860 70,959 Common equity,86,075 0,90 9,756 9,538 9,49 9,40 8,974 8,,075 9,49 7,37 Average common equity,450 0,500 0,050 9,700 9,300 9,350 9,50 8,400 7,600 9,900 8,600 7,800 Average risk capital 4,00 3,50,950,700,50,800,500,350,50,750,450,300 INTEREST RATE SENSITIVITY 4 Before tax impact of % increase in rates on: Net interest income using simulation 83 87 93 03 07 06 6 87 68 87 06 70 Economic value of equity (508) (496) (454) (45) (376) (435) (493) (390) (40) (496) (435) (4) Before tax impact of % decrease in rates on: Net interest income using simulation (43) (53) (73) (83) (88) (8) (37) (6) (44) (53) (8) (50) Economic value of equity 377 375 335 73 40 9 348 39 38 375 9 5 Before tax impact of % increase in rates on: Net interest income using simulation 48 47 65 63 88 6 85 3 79 47 6 07 Economic value of equity (,078) (,044) (946) (873) (789) (90) (,060) (868) (865) (,044) (90) (88) Before tax impact of % decrease in rates on: Net interest income using simulation (87) (39) (357) (387) (407) (365) (308) (369) (344) (39) (365) (34) Economic value of equity 680 658 588 44 385 46 63 45 53 658 46 405 These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion. Growth rates are calculated based on earnings from continuing operations in the same period a year ago. 3 A $5 million transfer of the specific allowance to the general allowance during Q/05 decreased this ratio by 0.% or 0.03% for fiscal 005. 4 Incorporates management assumptions based on empirical research on consumer behaviour relating to the exercise of embedded options and on the rate paid on liabilities not linked to market rates. All interest rate measures are based upon our current exposures at a specific time. The exposures change continually as a result of day-to-day business activities and our risk management initiatives. -3-
FINANCIAL HIGHLIGHTS continued (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 CAPITAL MEASURES Tier capital ratio 9.% 9.6% 9.6% 9.5% 9.5% 9.6% 9.7% 9.5% 9.% 9.6% 9.6% 8.9% Total capital ratio.%.9%.4%.5%.8% 3.% 3.4%.8%.7%.9% 3.%.4% Risk-adjusted assets ($ billions) 4.3 3.7 8.5.0 04. 97.0 90.9 90. 87.3 3.7 97.0 83.4 SHARE INFORMATION First preferred shares outstanding (000s) - end of period Non-cumulative series N,000,000,000,000,000,000,000,000,000,000,000,000 Non-cumulative series O - 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 US$ Non-cumulative series P - - - - - - 4,000 4,000 4,000 - - 4,000 Non-cumulative series S - - 0,000 0,000 0,000 0,000 0,000 0,000 0,000-0,000 0,000 Non-cumulative series W,000,000,000,000,000,000,000,000,000,000,000 - Non-cumulative series AA,000,000,000,000 - - - - -,000 - - Non-cumulative series AB,000,000,000 - - - - - -,000 - - Non-cumulative series AC 8,000 - - - - - - - - - - - Non-cumulative series AD 0,000 - - - - - - - - - - - Non-cumulative series AE 0,000 - - - - - - - - - - - Common shares outstanding (000s) - end of period,75,950,80,890,8,79,86,064,90,983,93,50,94,476,9,80,89,648,80,890,93,50,89,496 - average (basic),74,354,74,697,79,300,8,694,84,333,88,48,86,04,8,685,77,36,79,956,83,433,93,465 - average (diluted),93,085,93,864,97,340,30,645,304,378,308,339,306,047,303,60,98,36,99,785,304,680,3,06 Treasury shares held - preferred (000s) 4 94,760 3 8 9 - - - 94 9 - - common (000s) 3,08 5,486 5,56 5,5 6,4 7,053 7,037 7,364 0,88 5,486 7,053 9,76 Shares repurchased (000s) 7,645,830 5,465 6,53 4,403 3,900 - -,0 8,9 5,9 9,03 ($ MM) 44 90 53 308 93 63 - - 63 844 6 89 Stock options outstanding (000s) 3,6 3,43 33,748 34,69 36,96 36,48 39,50 4,0 44,497 3,43 36,48 44,744 Stock options exercisable (000s) 6,54 6,98 8,40 9,40 30,858 8,863 3,870 33,465 36,630 6,98 8,863 3,80 COMMON SHARE PERFORMANCE Book value per share $7.7 $6.5 $5.90 $5.43 $5. $4.89 $5.08 $4.76 $4.6 $6.5 $4.89 $3.57 Common share price (RY on TSX) - High (intraday) $55.96 $5.44 $48.6 $5.49 $46.50 $43.34 $39.85 $37.63 $3.0 $5.49 $43.34 $3.95 - Low (intraday) $49.50 $45.64 $43.5 $44.4 $4.9 $37.0 $36.76 $3.38 $30.45 $4.9 $30.45 $9.0 - Close, end of period $54.60 $49.80 $46.03 $47.84 $44.54 $4.67 $38.70 $37.48 $3.55 $49.80 $4.67 $3.70 Market capitalization (TSX) ($ MM) 69,667 63,788 58,977 6,55 57,494 53,894 50,096 48,448 40,688 63,788 53,894 40,877 P/E ratio (4-quarters trailing earnings) 3 3.7 3.5 5. 6.7 6. 5.7 4.9 4.4 3.8.9 4.4 4.7 Market price to book value 3.8 3.0.89 3.0.93.80.57.54.3 3.0.80.34 DIVIDEND INFORMATION 4 Dividends declared per share $0.40 $0.40 $0.36 $0.36 $0.3 $0.3 $0.3 $0.8 $0.8 $.44 $.8 $.0 Dividend yield 3.0% 3.3% 3.% 3.0%.9% 3.% 3.% 3.% 3.5% 3.% 3.% 3.3% Dividend payout ratio 35% 4% 40% 4% 35% 80% 4% 39% 36% 40% 45% 47% Common dividends ($ MM) 5 5 46 463 4 44 393 353 35,847,5,303 Preferred dividends ($ MM) 6 6 3 0 8 60 4 3 OTHER INFORMATION Number of employees (full time equivalent) Canada 47,940 46,66 46,803 45,396 45,65 46,40 46,8 46,047 46,880 46,66 46,40 46,386 US 0,576 0,056 9,994 9,84 9,85 9,684 9,73 9,787 9,80 0,056 9,684 0,84 Other 4,39 4,4 4,078 3,968 3,963 3,97 4,08 3,969 3,986 4,4 3,97 3,803 Total 6,755 60,858 60,875 59,06 59,49 60,0 60,67 59,803 60,667 60,858 60,0 6,003 Number of bank branches 5 Canada,0,7,09,05,05,04,0,0,0,7,04,098 US 303 8 77 75 73 73 73 70 68 8 73 75 Other 44 44 44 44 43 4 4 4 4 44 4 4 Total,467,443,430,44,4,49,47,44,4,443,49,45 Number of automated banking machines (ABM) 4,73 4,3 4,97 4,7 4,68 4,77 4,3 4,367 4,400 4,3 4,77 4,43 Calculated using guidelines issued by the OSFI. 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. 3 Average of high and low common share price for the period divided by diluted earnings per share. 4 Calculated using number of common share outstanding, except as noted. 5 Bank branches which provide banking services directly to clients. -4-
STATEMENTS OF INCOME (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Net interest income Interest income 6,444 6,0 5,849 5,57 4,978 4,63 4,89 4,00 3,960,04 6,98 3,887 Interest expense 4,577 4,389 4,083 3,640 3,96,869,66,43,6 5,408 0,88 7,468 Total,867,73,766,67,68,763,663,668,699 6,796 6,793 6,49 Non-interest income Accounts 40 47 9 8 3 3 7 07 97 868 8 Other payment services 78 79 77 7 7 74 7 69 70 99 85 77 Service charges 38 36 306 90 94 306 89 8 77,6,53,089 Insurance premiums, investment and fee income 80 863 8 806 858 798 886 83 773 3,348 3,70,870 Trading revenue 803 60 683 74 547 308 45 373 46,574,594,563 Investment management and custodial fees 370 345 3 36 308 334 307 305 86,30,3,05 Mutual fund revenue 354 337 38 36 6 59 45 33 5,4 96 850 Securities brokerage commissions 33 96 9 347 309 300 74 307 8,43,63,66 Underwriting and other advisory fees 88 93 53 59 9 33 5 66 76,04,06 98 Card service revenue 49 47 58 46 45 5 58 7 4 496 579 555 Foreign exchange revenue, other than trading 06 8 8 96 8 09 88 9 438 407 33 Securitization revenue 9 86 6 6 49 83 65 5 86 57 85 00 Credit fees 60 63 66 56 56 48 46 4 5 4 87 98 Gain on sale of investment account securities 48 6 39 33 5 5 88 85 0 Other 85 0 34 97 8 5 08 07 373 448 58 Total 3,83 3,68 3,440 3,505 3,78 3,033 3,66 3,08 3,074 3,84,39,383 Total revenue 5,698 5,349 5,06 5, 4,960 4,796 4,99 4,686 4,773 0,637 9,84 7,80 Provision for credit losses 6 59 99 4 47 03 8 6 08 49 455 346 Insurance policyholder benefits, claims and acquisition expense 56 6 67 69 65 740 68 6 58,509,65,4 Non-interest expense 3,067,955,86,98,75 3,30,73,66,654,495,357 0,833 Business realignment charges - - - - - 40-45 77 Income taxes 435 34 38 348 33 90 39 353 443,403,78,87 Non-controlling interest in net income of subsidiaries 4 9 44 (5) 6 (30) (6) 6 7 44 (3) Net income from continuing operations,494,63,94,8,7 543,00 96 977 4,757 3,437 3,03 Net Income (loss) from discontinued operations - () (7) (0) () () () (9) (9) (50) (0) Net income,494,6,77,8,7 5 979 907 979 4,78 3,387,803 Preferred dividends (6) (6) (3) () (0) () () () (8) (60) (4) (3) Net gain on redemption of preferred shares - - - - - 4 - - - - 4 - Net income available to common shareholders,478,36,64,07,6 55 968 895 97 4,668 3,349,77 Revenue from Trading Activities Total Trading revenue Net interest income (5) (73) (46) (38) (8) 3 (76) 39 45 (539) 86 Non-interest income 803 60 683 74 547 308 45 373 46,574,594,563 Total 65 447 537 586 465 3 376 4 506,035,65,849 Trading revenue by product Fixed income and money markets 375 55 9 364 64 33 5 68 73,74,05,044 Equity 0 30 7 35 5 46 97 7 4 56 355 57 Foreign exchange contracts 76 6 75 87 76 4 8 73 9 300 35 78 Total 65 447 537 586 465 3 376 4 506,035,65,849 Includes commodity and precious metals. -5-
NON-INTEREST EXPENSE (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Human resources Salaries 890 853 83 797 78 78 799 768 806 3,64 3,55 3,99 Variable compensation 79 698 76 75 66 580 587 56 580,87,309,83 Acquisition retention compensation 4-5 4 6 5 3 0 36 Benefits related 90 4 7 83 80 5 69 83 79,077,083,059 Stock-based compensation 58 35 8 38 68 8 56 77 8 69 69 4 Total Human resources,033,89,848,870,793,67,75,696,698 7,340 6,736 6,70 Equipment Depreciation 8 84 8 78 77 80 8 8 80 30 34 94 Computer rental and maintenance 56 66 45 5 47 53 55 48 36 609 59 557 Office equipment rental and maintenance 6 7 7 7 7 0 0 8 44 55 Total Equipment 44 57 33 36 3 45 47 40 8 957 960 906 Occupancy Premises rent 95 7 89 9 85 86 84 86 85 38 34 370 Premises repairs and maintenance 6 64 60 55 54 58 54 6 5 33 5 8 Depreciation 0 3 3 85 90 93 Property taxes 6 3 8 0 9 93 84 Total Occupancy 98 5 96 89 8 90 88 9 80 79 749 765 Communications Telecommunications 48 46 48 46 46 5 5 48 54 86 04 43 Postage and courier 4 3 5 5 3 4 3 5 5 96 97 99 Marketing and public relations 64 05 74 79 55 76 57 58 50 33 4 30 Stationery and printing 0 6 3 3 4 9 90 00 Total Communications 56 00 68 73 46 74 55 5 5 687 63 67 Professional fees 4 76 59 56 37 70 3 3 4 68 59 474 Outsourced item processing 74 75 70 80 73 73 73 78 7 98 96 94 Amortization of other intangibles 0 0 4 () 6 6 9 76 50 69 Other Business and capital taxes 3 39 4 48 9 54 4 4 73 53 Travel and relocation 34 4 37 3 3 40 36 30 30 43 36 40 Employee training 4 9 9 9 8 8 43 37 39 Donations 5 8 0 3 0 9 45 43 4 Other 89 89 4 80 79 74 0 37,06 578 Total Other 99 7 67 04 75 83 06 75 9 77,405 95 Total non-interest expense 3,067,955,86,98,75 3,30,73,66,654,495,357 0,833 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. Q4/05 includes $9 million for recognition of RBC's claims against the Enron Corp. (Enron) bankruptcy estate. It also includes a provision for Enron litigation-related matters of $59 million. Q3/05 includes $3 million to settle MegaClaims lawsuit brought by Enron against us and a number of other financial institutions. -6-
OTHER EARNINGS MEASURES (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Specified Items Income tax reduction - - - - 70 - - - - 70 - - Agreement termination fee - - - 33 - - - - - 33 - - General allowance reversal - - - - 33 - - - - 33-3 Net gain on the exchange of NYSE seats for NYX shares - - - 3 - - - - - 3 - - Amounts related to the transfer of IIS to RBC Dexia IS - - - - (9) - - - - (9) - - Credit card customer loyalty reward program liability - - - (47) - - - - - (47) - - Hurricane-related charges - - - - (6) (03) - - - (6) (03) - Enron litigation-related charges - - - - - (36) - - - - (36) - Business realignment charges - - - - - (7) (6) (3) () - (37) (5) Goodwill impairment - - - - - - - - - - - (30) Rabobank settlement costs - - - - - - - - - - - (74) Cash Basis Measures 4 Net income,494,6,77,8,7 5 979 907 979 4,78 3,387,803 After-tax effect of amortization of other intangibles 5 0 8 0 (3) 0 4 4 7 45 9 Cash Net income 4,54,83,95,38,83 59 999 9 993 4,799 3,43,994 Cash Diluted EPS 4.6 0.97 0.9 0.86 0.90 0.39 0.76 0.70 0.76 3.65.60.6 Cash ROE 4 7.5% 4.% 3.3% 3.3% 4.0% 0.4% 0.3% 0.%.% 3.7% 8.% 6.6% Economic Profit 4 Net income,494,6,77,8,7 5 979 907 979 4,78 3,387,803 After-tax effect of amortization of other intangibles 5 0 8 0 (3) 0 4 4 7 45 9 Capital charge (557) (544) (57) (493) (496) (496) (494) (46) (45) (,050) (,903) (,8) Economic Profit 4 957 739 678 645 687 3 505 460 54,749,59,73 Comprehensive income Net income,494 Other comprehensive income, net of taxes Net unrealized gains (losses) on available-for-sale securities 6 Reclassification of (gains) losses on available-for-sale securities to income 3 Unrealized foreign currency translation gains (losses) 879 Reclassification of (gains) losses on foreign currency translation to income (40) Net foreign currency translation gains (losses) from hedging activities (63) Net gains (losses) on derivatives designated as cash flow hedges 7 Reclassification to income of (gains) losses on derivatives designated as cash flow hedges 7 Other comprehensive income 89 Total comprehensive income,783 OPERATING LEVERAGE For the three months ended (C$ MM, except percentage amounts) Q/07 Q/06 Q/07 vs. Q/06 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Total revenue 5,698 4,960 5,349 5,06 5, 4,960 4,796 4,99 4,686 4,773 0,637 9,84 7,80 Add: teb adjustment 70 37 50 46 80 37 33 5 7 4 3 09 55 Less: Revenue related to VIEs (8) 4 3 (35) (8) (7) (9) 6 6 (7) (4) - Global Insurance revenue 860 858 863 8 806 858 80 888 83 790 3,348 3,3,875 Impact of the new financial instruments accounting standards 33 - - - - - - - - - - - Total revenue (adjusted) 4,864 4,47 7.3% 4,53 4,399 4,43 4,47 4,055 4,075 3,875 4,00 7,509 6,006 4,98 Non-interest expense 3 3,067,75,955,86,98,75,79,73,66,654,495 0,766 0,833 Less: Global insurance related non-interest expense 8 6 4 3 8 6 3 6 8 6 57 50 50 Non-interest expense (adjusted),939,635.5%,83,730,800,635,588,606,543,58 0,978 0,65 0,33 Operating leverage (compared to prior year) 5.8 % 3.% 3.3% 4.3% (0.6)% 7. % 6.6 % 3.6 %.6%.5% 7.5 % (4.6)% Amounts shown are reported on an after-tax basis. For further details, refer to the 006 Annual Report to Shareholders or the Quarterly Report to Shareholders that correspond to the period in which the item was recorded. Excludes the impact of the new financial instruments accounting standards related to Global Insurance. 3 In 005, non-interest expense also excludes Enron litigation-related provision. For further details, refer to Specified items. 4 These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion. 5 Includes $30 million RBC Mortgage goodwill impairment charge in 004. -7-
RBC CANADIAN PERSONAL AND BUSINESS (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Income Statement Net interest income,588,567,539,46,443,43,380,8,87 5,975 5,37 4,897 Non-interest income,958,98,848,785,855,80,87,747,699 7,406 7,8 6,36 Total revenue 3,546 3,485 3,387 3, 3,98 3,33 3,5 3,08,986 3,38,499,3 Provision for credit losses (PCL) 8 73 68 4 38 43 58 03 604 54 40 Insurance policyholder benefits, claims and acquisition expense 56 6 67 69 65 740 68 6 58,509,65,4 Non-interest expense,575,566,539,533,50,5,454,49,45 6,40 5,87 5,630 Business realignment charges - - - - - 6 - - - 7 63 Other 3 396 360 358 83 333 334 95 3 89,334,49 943 Net income 877 775 74 608 669 504 679 54 597,794,304,043 Total Revenue by business lines Personal Banking 969 946 94 857 869 889 890 799 80 3,64 3,388 3,094 Business Financial Services 555 559 54 55 56 54 59 48 486,4,0,888 Cards and Payment Solutions 49 45 46 34 404 40 394 340 35,586,495,34 Wealth Management 733 69 667 69 64 69 55 575 549,69,94,05 Global Insurance 860 863 8 806 858 80 888 83 790 3,348 3,3,875 Total 3,546 3,485 3,387 3, 3,98 3,33 3,5 3,08,986 3,38,499,3 Financial ratios Return on equity (ROE) 4 36.7% 34.% 33.% 8.3% 30.0%.8% 3.% 5.5% 9.% 3.5% 7.% 4.7% Return on risk capital (RORC) 4 50.8% 46.3% 45.3% 39.% 4.5% 3.7% 44.8% 37.3% 43.0% 43.% 39.% 37.6% Net interest margin (average earning assets) 3.6% 3.30% 3.33% 3.8% 3.6% 3.8% 3.30% 3.7% 3.6% 3.9% 3.8% 3.33% Efficiency ratio 44.4% 44.9% 45.4% 47.7% 45.5% 46.7% 44.7% 49.3% 47.4% 45.9% 47.0% 50.% Operating leverage 4 5.7% 4.6%.5% 7.3% 3.6% 3. % 0.4 % (4.3)%. % 4.5% 5.5% (0.5)% Average balances Total assets 3,900 07,800 0,800 97,00 94,600 90,900 84,00 79,000 75,400 00,700 8,400 64,00 Total earning assets 93,500 88,300 83,500 78,300 75,800 7,400 65,700 60,600 56,800 8,500 63,900 47,00 Loans and acceptances 9,400 88,00 83,00 77,400 73,300 68,900 6,700 58,500 55,600 80,500 6,500 45,300 Residential mortgage 08,000 05,00 0,300 99,000 96,800 94,000 90,00 88,00 86,300 00,800 89,700 79,900 Personal 37,900 37,00 35,900 34,700 33,900 33,300 3,00 30,500 9,400 35,400 3,300 7,00 Secured loans 4,000 3,000,000,000 0,400 9,800 9,00 8,800 8,000,600 8,900 6,600 Unsecured loans 3,900 4,00 3,900 3,700 3,500 3,500,900,700,400 3,800,400 0,600 Credit cards,000 0,600 0,00 9,600 9,500 9,00 8,900 8,600 8,500 9,900 8,800 7,900 Business and government loans (includes acceptances) 35,500 35,400 34,900 34,00 33,00 3,500 3,500 3,00 3,400 34,400 3,700 30,300 Deposits 5,900 49,500 47,000 43,500 4,700 40,300 39,300 37,400 38,000 45,700 38,800 33,700 Attributed capital 4 9,400 8,950 8,800 8,750 8,750 8,700 8,600 8,350 8,00 8,800 8,450 8,00 Risk capital 4 6,800 6,600 6,450 6,350 6,350 6,50 5,950 5,700 5,500 6,450 5,850 5,400 Credit quality Gross impaired loans / Average loans and acceptances 0.33% 0.3% 0.9% 0.30% 0.30% 0.9% 0.3% 0.33% 0.34% 0.33% 0.3% 0.44% PCL / Average loans and acceptances 0.38% 0.36% 0.6% 0.39% 0.33% 0.3% 0.35% 0.4% 0.6% 0.33% 0.34% 0.8% Net write-offs / Average loans and acceptances 0.36% 0.35% 0.3% 0.39% 0.3% 0.38% 0.34% 0.39% 0.3% 0.34% 0.36% 0.39% Global Insurance Net earned premiums 5 663 656 644 69 666 630 657 668 609,595,564,38 Investment income 33 50 4 9 4 09 50 37 44 535 540 43 Fee income 64 57 63 48 50 6 8 7 37 8 07 80 Total revenue 860 863 8 806 858 80 888 83 790 3,348 3,3,875 Insurance policyholder benefits, claims and acquisition expense 56 6 67 69 65 740 68 6 58,509,65,4 Non-interest expense 8 4 3 8 6 3 6 8 6 57 50 50 Business realignment charges - - - - - () - - - - () 8 Net income (loss) before taxes 6 0 63 59 90 (69) 8 9 8 3 86 4 Additional information Gross premiums and deposits 5 895 864 860 8 860 809 837 806 836 3,406 3,88 3,85 Canadian life and health 97 7 6 59 77 56 47 44 54,069,00 76 US life and health 35 35 67 67 63 8 06 00 8 63 770 974 Property & casualty 45 5 43 37 4 45 39 35 34 573 553 50 Reinsurance & other 38 305 89 59 79 6 45 7 66,3 964 975 Insurance policyholder benefits and claims 369 469 459 49 50 603 54 488 47,939,03,744 Insurance policyholder acquisition expense 47 4 68 8 3 37 40 34 570 5 380 Insurance claims and policy benefit liabilities 7,948 7,337 7,35 7,8 7,50 7,7 6,94 6,860 6,78 7,337 7,7 6,488 Business information Assets under administration,900 3,00 03,00 0,300 95,400 80,300 75,800 7,600 64,800 3,00 80,300 57,300 Assets under management 96,800 89,700 83,700 83,00 79,300 7,00 70,00 65,00 6,900 89,700 7,00 58,700 Other earnings measures Net income 877 775 74 608 669 504 679 54 597,794,304,043 After-tax effect of amortization of other intangibles 3 7 7 8 Cash Net income 4 879 778 743 60 670 506 68 56 598,80,3,05 Capital charge (49) (37) (3) (4) (3) (30) (7) (5) (4) (95) (886) (86) Economic Profit 4 630 54 5 386 438 76 454 3 384,876,45,89 Reported results include securitized residential mortgage and credit card loans and related amounts for income and provision for credit losses. The securitized residential mortgage and credit card loans included as at January 3, 007 were $8 billion and $3.7 billion, respectively. Securitized residential mortgages and credit card loans are included in Total assets, Total earning assets, Loans and acceptances, Residential mortgage and Credit cards to better reflect how the assets are managed. In Q/07, we reclassified amounts from Non-interest income to Net Interest income due to changes in certain trustee services agreements. Refer to "Notes to Users" for further discussion. 3 Includes income taxes and non-controlling interest in net income of subsidiaries. 4 These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion and page 5 for ROE and RORC reconciliation. 5 Net premiums equals gross premiums and deposits less the cost of premiums to other institutions for reinsurance coverage. -8-
RBC U.S. AND INTERNATIONAL PERSONAL AND BUSINESS Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 (C$ MM) Income Statement Net interest income 30 79 76 75 79 78 88 74 68,09,08 989 Non-interest income 50 46 45 446 43 396 4 394 49,763,60,73 Total revenue 803 740 70 7 70 674 699 668 687,87,78,70 Provision for credit losses (PCL) 0 5 5 6 0 4 8 5 4 6 5 80 Non-interest expense 6 575 550 568 567 505 554 547 544,60,50,330 Business realignment charges - - - - () - - - () 3 Other 33 33 35 4 3 35 47 4 36 4 4 55 Net income 49 6 06 0 3 80 8 93 444 387 4 Total Revenue by business lines Wealth Management 57 466 430 460 446 406 4 40 4,80,65,658 Banking 76 74 7 6 64 68 77 66 66,070,077,044 Total 803 740 70 7 70 674 699 668 687,87,78,70 Financial ratios Return on equity (ROE) 5.3% 4.8% 3.% 3.% 3.3% 7.0% 9.5% 9.7%.3% 3.6%.8% 5.4% Return on risk capital (RORC) 6.7% 4.0%.6%.5%.6% 8.% 5.7% 6.0% 9.0%.4% 9.6% 9.% Net interest margin (average earning assets) 3.08% 3.08% 3.08% 3.0% 3.34% 3.30% 3.0% 3.7% 3.3% 3.8% 3.5%.98% Average balances Total assets 43,700 40,00 39,800 39,500 36,800 37,00 39,500 38,000 35,900 39,000 37,700 37,00 Total earning assets 39,000 35,900 35,600 35,00 33,00 33,400 35,700 34,400 3,900 34,900 34,00 33,00 Loans and acceptances 3,000,000 0,500 0,600 0,600 0,500,700 0,500 9,500 0,700 0,500 8,800 Deposits 37,00 34,00 34,500 34,000 3,900 3,900 35,000 34,00 3,00 33,600 33,300 33,00 Attributed capital 3,800 3,350 3,300 3,50 3,000 3,050 3,50 3,350 3,00 3,00 3,50 3,800 Risk capital,50,050,000,900,850,850,950,050,900,950,950,50 Credit quality Gross impaired loans / Average loans and acceptances 0.8% 0.89% 0.9% 0.9% 0.8% 0.79% 0.84% 0.8% 0.89% 0.90% 0.79%.7% PCL / Average loans and acceptances 0.7% 0.09% 0.0% 0.% 0.9% 0.08% 0.33% 0.30% 0.8% 0.3% 0.5% 0.43% Net write-offs / Average loans and acceptances 0.% 0.09% 0.0% 0.3% 0.4% 0.4% 0.3% 0.% 0.4% 0.4% 0.% 0.3% Business information Assets under administration 333,900 307,900 97,300 9,00 87,300 34,300 46,900 5,00 48,600 307,900 34,300 33,700 Assets under management 60,900 53,400 50,400 49,00 49,00 46,700 47,00 47,900 46,900 53,400 46,700 44,00 Other earnings measures Net income 49 6 06 0 3 80 8 93 444 387 4 After-tax effect of amortization of other intangibles 0 0 (5) 5 43 34 53 Cash Net income 6 37 8 7 9 94 08 487 4 67 Capital charge (00) (85) (87) (84) (80) (83) (86) (86) (86) (336) (34) (40) Economic Profit 6 5 34 34 3 44 6 8 5 80 (35) (US$ MM) Income Statement Net interest income 6 50 48 4 4 36 33 980 9 753 Non-interest income 43 43 380 390 374 336 333 30 347,557,336,304 Total revenue 693 663 68 63 65 57 566 54 568,537,48,057 Provision for credit losses (PCL) 9 4 4 5 9 3 4 4 6 Non-interest expense 56 57 49 498 490 49 449 444 449,997,77,774 Business realignment charges - - - - () - - - () 9 Other 30 7 33 36 8 30 38 0 30 4 8 4 Net income 8 4 99 9 88 65 66 77 393 30 6 Total Revenue by business lines Wealth Management 454 47 386 40 387 344 34 37 348,59,36,63 Banking 39 46 4 9 8 8 4 5 0 945 887 794 Total 693 663 68 63 65 57 566 54 568,537,48,057 Average balances Total assets 37,600 35,900 35,600 34,600 3,800 3,600 3,000 30,800 9,700 34,500 3,000 8,300 Total earning assets 33,500 3,00 3,900 30,900 8,600 8,400 8,900 7,800 7,00 30,900 8,00 5,300 Loans and acceptances 9,800 8,800 8,400 8,00 7,800 7,400 7,600 6,600 6,00 8,300 6,900 4,400 Deposits 3,900 30,700 30,900 9,800 7,600 7,00 8,300 7,600 6,500 9,700 7,400 5,00 Attributed capital 3,50 3,000,950,850,600,600,650,750,650,850,650,900 Risk capital,900,850,800,650,600,550,600,650,600,700,600,750 Business information Assets under administration 83,700 74,00 6,700 6,400 5,300 98,400 0,700 00,400 00,300 74,00 98,400 9,800 Assets under management 5,700 47,500 44,600 43,900 43,00 39,500 38,500 38,00 37,800 47,500 39,500 36,300 Includes income taxes and non-controlling interest in net income of subsidiaries. These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion and page 5 for ROE and RORC reconciliation. -9-
RBC CAPITAL MARKETS (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Income Statement Net interest income (teb) 78 4 5 67 68 46 78 73 0 0 607 847 Non-interest income,3,46,3,70 945 800 935 80 900 4,49 3,455 3,086 Total revenue (teb),400,60,83,337,03 946,03 993,0 4,693 4,06 3,933 Provision for (recovery of) credit losses (PCL) (8) - (7) (3) (85) (5) (8) (46) () (5) (9) (08) Non-interest expense 877 770 767 835 686,54 698 67 705 3,058 3,74,845 Business realignment charges - () - - - - - - () 7 Other (teb) 76 94 9 8 (7) 78 8 39 344 8 34 Net income (loss) 40 35 39 433 330 (57) 55 94 68,407 760 87 Total Revenue (teb) Total Revenue (teb),400,60,83,337,03 946,03 993,0 4,693 4,06 3,933 Revenue related to VIEs offset in Non-controlling interest 4 3 (35) (8) (7) (9) 6 6 (7) (4) - Total revenue (teb) excluding VIEs,389,56,5,37,0 973,0 987,04 4,700 4,086 3,933 Total Revenue (teb) by business lines Global Markets 804 607 644 754 574 480 560 557 659,579,56,68 Global Investment Banking and Equity Markets 35 39 306 35 74 43 46 38 5,50 979 94 RBC Dexia IS 3 70 55 60 59 84 8 30 7 5 558 500 455 Other 74 79 73 73 8 95 77 7 84 306 37 69 Total,400,60,83,337,03 946,03 993,0 4,693 4,06 3,933 Financial ratios Return on equity (ROE) 4 30.5% 5.8% 6.5% 35.0 % 30.0 % (5.7)% 4.6% 8.9% 5.% 9.3% 8.% 9.5% Return on risk capital (RORC) 4 38.7% 33.4% 34.4% 45. % 37.8 % (7.4)% 3.5% 38.% 33.0% 37.7% 3.8% 6.3% Average balances Total assets 306,900 83,00 7,500 6,600 5,800 43,600 35,500,400 5,700 67,800 9,300 9,300 Loans and acceptances 9,300 6,00 4,800,600 0,500 9,300 7,500 6,700 6,800 3,500 7,600 8,600 Deposits 39,300 5,00 8,300 6,000 5,900 3,700 99,600 9,600 89,400 8,800 98,900 88,400 Attributed capital 4 5,400 4,750 4,900 5,050 4,300 4,00 4,00 4,00 4,50 4,750 4,00 4,00 Risk capital 4 4,50 3,700 3,750 3,900 3,400 3,00 3,00 3,50 3,00 3,700 3,50 3,50 Credit quality Gross impaired loans / Average loans and acceptances 0.% 0.3% 0.9% 0.35% 0.55% 0.6% 0.90%.38%.07% 0.6% 0.67%.8% PCL / Average loans and acceptances (0.)% 0.00 % (0.)% (0.4)% (.65)% (0.5)% (0.4)% (.4)% (0.04)% (0.49)% (0.5)% (0.58)% Net write-offs / Average loans and acceptances (0.)% 0.05 % (0.09)% (0.4)% (0.55)% 0.38 % 0.5 % (0.0)% (0.8)% (0.)% 0.%.07% Business information Assets under administration 5 - RBC 5,400 4,700 4,300 3,600 3,300,363,600,3,400,96,300,65,700 4,700,363,600,0,900 - RBC Dexia IS,050,000,893,000,83,700,83,00,738,00 - - - -,893,000 - - Other earnings measures Net income (loss) 40 35 39 433 330 (57) 55 94 68,407 760 87 After-tax effect of amortization of other intangibles 6 8 6 6 - - - - Cash Net income 4 46 33 335 439 33 (57) 55 94 69,48 76 87 Capital charge (43) (8) (9) (9) (4) (08) (07) (05) () (500) (43) (44) Economic Profit 4 83 95 06 30 7 (65) 48 89 58 98 330 385 Includes income taxes and non-controlling interest in net income of subsidiaries. Starting in Q/05, we have consolidated certain entities in accordance with Accounting Guideline 5, Consolidation of Variable Interest Entities (VIE). Amount represents revenue attributed to other equity investors of consolidated VIEs which is offset in Non-controlling interest in net income of subsidiaries. 3 Our Institutional & Investor Services (IIS) business was combined with the Dexia Funds Services business of Dexia Banque Internationale à Luxembourg (Dexia) on January, 006, formin RBC Dexia Investor Services (RBC Dexia IS). Given the similarity of these businesses, we have disclosed the revenue from our prior business, IIS, and our 50% proportionate ownership of RBC Dexia IS on the same line for comparative purposes. As RBC Dexia IS reports on a calendar quarter there is a one month lag in the reporting of its earnings. For this reason, no earnings for RBC Dexia IS were recorded in Q/06. Comparative amounts in prior periods represent earnings for IIS only. 4 These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion on page 5 for ROE and RORC reconciliation. 5 Assets under administration - RBC Dexia IS represents the total AUA of the joint venture, of which we have a 50% ownership interest. RBC Dexia IS was created on January, 006, and we contributed AUA of $,400 billion to the joint venture at that time. As RBC Dexia IS reports on a one-month lag basis, Assets under administration - RBC Dexia IS reported for Q/07 are as at December 3, 006. -0-
CORPORATE SUPPORT (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Income Statement Net interest income (teb) (0) (9) (0) (5) (08) (84) (83) (60) (66) (489) (93) (34) Non-interest income 50 93 36 4 47 7 48 57 56 80 88 68 Total revenue (teb) (5) (36) (65) (47) (6) (57) (35) (3) (0) (309) (05) (46) Provision for (recovery of) credit losses (PCL) () (9) (0) (7) (0) (4) (5) () (7) (86) (47) (36) Non-interest expense 4 44 5 (8) (4) 40 6 5 (0) 37 6 8 Business realignment charges - - - - - 35-39 64 Other (teb), (8) (08) (6) (93) (09) (8) (34) (4) (4) (37) (44) (4) Net income (loss) 48 47 (9) 7 (36) (3) 6 9 (4) (6) Additional information teb adjustment (70) (50) (46) (80) (37) (33) (5) (7) (4) (3) (09) (55) Average balances Total assets (5,600) (5,700) (5,800) (5,700) (4,500) (3,500) (4,500) (4,800) (3,800) (5,400) (4,00) (,300) Attributed capital 3,850 3,450 3,050,650 3,50 3,400 3,00,500,050 3,50,800,600 Other earnings measures Net income (loss) 48 47 (9) 7 (36) (3) 6 9 (4) (6) After-tax effect of amortization of other intangibles - () - - - - - - - Cash Net income 3 48 46 3 (9) 7 (36) (3) 6 0 (3) (6) Capital charge (65) (94) (69) (56) (70) (75) (74) (55) (4) (89) (45) (5) Economic Profit 3 (7) (48) (56) (75) () (87) (39) () (77) (58) (76) DISCONTINUED OPERATIONS (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Income Statement Net interest income - 3 6 7 5 8 93 Non-interest income - - () () - 40 38 43 () 60 Total revenue - - - 3 3 46 45 55 4 49 53 Non-interest expense - 7 7 5 37 64 57 53 5 76 Business realignment charges - - - - - 9 - - 3 5 Goodwill impairment - - - - - - 4 - - - 4 30 Other - - (0) (7) () (5) (9) (5) - (8) (9) (48) Net income (loss) - () (7) (0) () () () (9) (9) (50) (0) Average balances Total assets - 00 00 00 300,400,900,700,300 00,800 3,00 Loans and acceptances - 00 00 00 00,000,500,300,000 00,500,800 Other earnings measures Net income (loss) - () (7) (0) () () () (9) (9) (50) (0) After-tax effect of amortization of other intangibles - - - - - - 6 - (4) - 30 Cash Net income 3 - () (7) (0) () () (6) (9) () (9) (48) (90) Capital charge - - - - - - - - - - - - Economic Profit 3 - () (7) (0) () () (6) (9) () (9) (48) (90) The teb adjustments recorded in RBC Capital Markets are eliminated in Corporate Support. Includes income taxes and non-controlling interest in net income of subsidiaries. 3 These measures are non-gaap financial measures. Refer to "Notes to Users" for further discussion and page 5 for ROE and RORC reconciliation. --
BALANCE SHEETS (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Period-end balances ASSETS Cash and due from banks 3,878 4,40 3,84 5, 4,68 5,00 5,87 4,36 4,309 4,40 5,00 3,7 Interest-bearing deposits with banks 7,637 0,50,430 8,878 0,93 5,37 6,476 7,043 6,84 0,50 5,37 6,67 Securities Trading 69,030 47,37 37,67 7,06 3,55 5,760 7,545 0,808 99,48 47,37 5,760 89,3 Investment 7,8 37,63 35,3 36,965 34,07 34,735 38,37 37,777 37,5 37,63 34,735 39,64 Total Securities 96,85 84,869 7,803 63,99 65,658 60,495 55,68 39,585 36,760 84,869 60,495 8,946 Assets purchased under reverse repurchase agreements and securities borrowed 67,744 59,378 63,98 56,30 47,564 4,973 44,47 43,58 36,93 59,378 4,973 46,949 Loans Residential mortgage 98,57 96,675 95,688 9,506 9,776 9,043 88,09 84,55 8,654 96,675 9,043 8,998 Personal 45,787 44,90 44,0 4,44 4,337 4,045 40,68 39,75 37,753 44,90 4,045 36,848 Credit cards 7,553 7,55 6,79 6,05 5,468 6,00 6,03 5,79 6,87 7,55 6,00 6,456 Business and government 67,85 6,07 59,48 57,583 55,65 53,66 5,38 49,779 49,757 6,07 53,66 47,58 Total loans 9,78 09,939 05,90 98,58 94,96 9,94 87,05 79,397 76,98 09,939 9,94 7,560 Allowance for loan losses (,455) (,409) (,45) (,435) (,439) (,498) (,569) (,6) (,638) (,409) (,498) (,644) Total loans, net of allowance for loan losses 8,63 08,530 04,505 97,46 9,757 90,46 85,48 77,785 75,343 08,530 90,46 70,96 Customers' liability under acceptances 0,0 9,08 9,606 8,876 7,95 7,074 7,005 6,654 5,960 9,08 7,074 6,84 Derivatives 4,6 37,79 37,39 4,9 38,37 38,834 38,677 36,45 36,90 37,79 38,834 38,897 Premises and equipment, net,97,88,77,699,736,708,7,753,767,88,708,738 Goodwill 4,93 4,304 4,37 4,05 4,57 4,03 4,78 4,4 4,337 4,304 4,03 4,80 Other intangibles 699 64 644 686 704 409 475 5 5 64 409 5 Assets of operations held for sale - 8 67 7 78 63,65,657,804 8 63,457 Other assets 7,457 5,47 4,06 3,65 3,337,908,45,34,579 5,47,908 5,356 Total assets 57,65 536,780 53,969 50,893 487,874 469,5 463,35 434,873 44,09 536,780 469,5 46, LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Personal 7,867 4,040 3,590 3,437,880,68,370 4,308 3,097 4,040,68,56 Business and government 98,796 89,40 78,598 70,45 60, 60,593 56,970 43,35 40,583 89,40 60,593 33,83 Bank 48,943 40,343 4,54 39,05 4,77 34,649 35,57 5,833 6,340 40,343 34,649 5,880 Total deposits 365,606 343,53 334,70 3,787 34,87 306,860 304,497 83,49 80,00 343,53 306,860 70,959 Acceptances 0,0 9,08 9,606 8,876 7,95 7,074 7,005 6,654 5,960 9,08 7,074 6,84 Obligations related to securities sold short 46,36 38,5 40,508 36,04 35,856 3,39 34,0 3,8 8,854 38,5 3,39 5,005 Obligations related to assets sold under repurchase agreements and securities loaned 4,7 4,03 38,030 8,35 8,84 3,38 0,998 9,57 6,80 4,03 3,38 6,473 Derivatives 43,97 4,094 40,839 47,07 4,668 4,59 4,39 4,9 4,48 4,094 4,59 4,0 Insurance claims and policy benefit liabilities 7,948 7,337 7,35 7,8 7,50 7,7 6,94 6,860 6,78 7,337 7,7 6,488 Liabilities of operations held for sale - 3 36 3 37 40 50 47 59 3 40 6 Other liabilities,853,649 0,07 0,388 8,533 8,408 5,680 4,557 5,390,649 8,408 0,7 Subordinated debentures 6,807 7,03 7,8 7,839 8,6 8,67 8,839 8,0 8,90 7,03 8,67 8,6 Trust capital securities,385,383,400,390,399,400,39,400,400,383,400,300 Preferred share liabilities 99 98 300 300 300 300 300 300 300 98 300 300 Non-controlling interest in subsidiaries,799,775,800,947,96,944 85 674 5,775,944 58 Shareholders' equity Preferred shares,600,050,300,000 700 700 83 83 83,050 700 53 Common shares 7,6 7,96 7,76 7,9 7,89 7,70 7,6 7,09 7,0 7,96 7,70 6,988 Contributed surplus 55 9 87 78 99 65 54 4 0 9 65 69 Treasury shares - preferred (3) () (43) (5) (3) () - - - () () - - common (4) (80) (8) (78) (99) (6) (5) (7) (3) (80) (6) (94) Retained earnings 6,64 5,77 5,0 4,649 4,84 3,704 3,748 3,73,68 5,77 3,704,065 Accumulated other comprehensive income (loss) (,760) - - - - - - - - - - - Net foreign currency translation adjustments - (,004) (,) (,84) (,035) (,774) (,503) (,305) (,46) (,004) (,774) (,556) Total shareholders' equity 3,458,3,547 0,75 0,35 9,847 0,4 9,806 8,953,3 9,847 7,904 Total liabilities and shareholders' equity 57,65 536,780 53,969 50,893 487,874 469,5 463,35 434,873 44,09 536,780 469,5 46, Reflects amounts that have been securitized. Refer to the Loan securitization information on page 5. Relates to assets and liabilities of discontinued operations (RBC Mortgage Company). --
SELECTED AVERAGE BALANCE SHEET ITEMS, 3 (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Securities 99,930 78,00 70,400 7,00 7,000 57,000 5,400 43,00 40,00 73,000 48,00 37,700 Assets purchased under reverse repurchase agreements and securities borrowed 6,500 63,300 58,900 53,000 47,00 47,400 47,500 4,500 4,00 55,600 44,400 43,900 Total loans 3,300 06,000 00,00 93,300 90,500 87,500 8,300 76,300 73,400 97,500 79,700 65,900 Residential mortgage 97,00 96,00 94,000 9,500 9,00 89,400 86,000 83,00 8,00 93,00 85,00 77,600 Personal 46,700 45,700 44,600 43,00 4,400 4,000 4,600 40,000 38,600 44,000 40,600 34,900 Credit cards 7,500 7,00 6,400 5,600 6,500 6,00 5,900 6,700 6,800 6,400 6,400 5,800 Business and government 63,300 58,500 56,700 54,500 5,000 5,400 49,300 48,000 47,700 55,400 49,00 49,400 Customers' liability under acceptances 9,600 9,00 9,00 8,600 8,00 7,000 6,500 6,00 6,000 8,700 6,400 6,000 Average earning assets 483,300 455,900 437,300 48,00 44,800 398,800 387,900 368,00 360,00 434,00 378,900 353,000 Total assets 558,900 55,500 509,500 493,800 480,000 469,600 456,600 436,300 45,500 50,300 447,00 4,400 Deposits 359,300 336,500 37,400 38,700 30,500 304,00 9,900 8,300 75,300 33,300 88,00 68,00 Common equity,450 0,500 0,050 9,700 9,300 9,350 9,50 8,400 7,600 9,900 8,600 7,800 Total equity,600,600 0,900 0,400 9,900 0,00 9,900 9,00 8,500 0,700 9,500 8,600 ASSETS UNDER ADMINISTRATION AND MANAGEMENT (C$ MM) Q/07 Q4/06 Q3/06 Q/06 Q/06 Q4/05 Q3/05 Q/05 Q/05 006 005 004 Assets under administration 4 - RBC Institutional 3,900 06,00 03,300 98,500 96,00,373,800,33,700,33,000,86,00 06,00,373,800,7,500 Personal 447,300 49,700 40,400 399,600 389,900 350,400 353,00 348,900 347,400 49,700 350,400 333,000 Retail mutual funds - - - - - 54,000 50,300 48,00 45,500-54,000 43,400 Total assets under administration 56,00 55,800 504,700 498,00 486,000,778,00,735,00,70,00,679,00 55,800,778,00,593,900 Assets under administration 4 - RBC Dexia IS,050,000,893,000,83,700,83,00,738,00 - - - -,893,000 - - Assets under management Institutional 8,00 4,00,700,600 4,000 3,300 3,300,800,00 4,00 3,300 0,600 Personal 44,00 39,400 36,400 35,00 3,900 9,400 8,500 7,600 6,00 39,400 9,400 4,700 Retail mutual funds 85,400 79,600 75,000 74,400 7,600 66,00 65,500 6,700 60,500 79,600 66,00 57,600 Total assets under management 57,700 43,00 34,00 3,00 8,500 8,800 7,300 3,00 08,800 43,00 8,800 0,900 Calculated using methods intended to approximate the average of the daily balances for the period. Average total loans are reported net of allowance for loan losses. Average residential mortgage, personal, credit cards and business and government balances are reported on a gross basis (before deducting allowance for loan losses). 3 Prior to Q/07, all amounts were reported as from continuing operations except for Total assets which also included assets of discontinued operations on page. 4 Assets under administration - RBC Dexia IS represents the total Assets under administraton (AUA) of the joint venture, of which we have a 50% ownership interest. RBC Dexia IS was created on January, 006, and we contributed AUA of $,400 billion to the joint venture at that time. As RBC Dexia IS reports on a one-month lag basis, Assets under administration - RBC Dexia IS reported for Q/07 are as at December 3, 006. -3-