All amounts are in
Canadian dollars and are based on financial statements presented in
compliance with International Accounting Standard 34 Interim
Financial Reporting, unless otherwise noted. Effective November
1, 2023, we adopted IFRS 17 Insurance Contracts (IFRS 17).
Comparative amounts have been restated from those previously
presented. Our Q1 2024 Report to Shareholders and
Supplementary Financial Information are available at
http://www.rbc.com/investorrelations and on
https://www.sedarplus.com/.
|
Net income
$3.6 Billion
Up 14% YoY
|
Diluted
EPS1
$2.50
Up 12% YoY
|
Total
PCL2
$813 Million
PCL on loans ratio3
up 3 bps4 QoQ
|
ROE5
13.1%
Up 50 bps YoY
|
CET1
Ratio6
14.9%
Above regulatory requirements
|
Adjusted net
income7
$4.1 Billion
Down 5% YoY
|
Adjusted Diluted
EPS7
$2.85
Down 6% YoY
|
Total
ACL8
$5.7 Billion
ACL on loans ratio9
up 3 bps QoQ
|
Adjusted
ROE7
14.9%
Down 230 bps YoY
|
LCR10
132%
Up from 131% last
quarter
|
TORONTO, Feb. 28,
2024 /CNW/ - Royal Bank of Canada11 (TSX: RY)
(NYSE: RY) today reported net income of $3.6 billion for the quarter ended January 31, 2024, up $449
million or 14% from the prior year, which included the
$1,050 million impact of the Canada
Recovery Dividend (CRD) and other tax related adjustments. Diluted
EPS was $2.50, up 12% over the same
period. Adjusted net income7 and adjusted diluted
EPS7 of $4.1 billion and
$2.85 were down 5% and 6%,
respectively, from the prior year.
Our consolidated results reflect an increase in total PCL of
$281 million from a year ago, mainly
reflecting higher provisions in Personal & Commercial Banking
and Capital Markets, partially offset by lower provisions in Wealth
Management. The PCL on loans ratio of 37 bps increased 12 bps from
the prior year. The PCL on impaired loans ratio12 was 31
bps, up 14 bps from the prior year as provisions continue to trend
upwards, reflecting the impact of higher interest rates and rising
unemployment.
Results also reflected the impact of specified items relating to
the planned acquisition of HSBC Bank Canada (HSBC Canada),
including transaction and integration costs ($265 million before-tax and $218 million after-tax), and management of
closing capital volatility ($286
million before-tax and $207
million after-tax). The cost of the Federal Deposit
Insurance Corporation (FDIC) special assessment of $159 million before-tax ($115 million after-tax) also impacted
results.
Pre-provision, pre-tax earnings7 of $5.2 billion were down $607 million or 11% from last year, mainly due to
higher expenses, and lower revenue in Capital Markets, largely
reflecting lower trading revenue compared to a strong prior year.
These factors were partially offset by higher insurance investment
results from favourable investment performance as we repositioned
our portfolio for transition to IFRS 17. Results benefitted from
higher net interest income driven by solid volume growth, as well
as higher fee-based client assets reflecting market appreciation
and net sales in Wealth Management.
Compared to last quarter, net income was down 9%, partly
reflecting a higher effective tax rate, as results in the prior
quarter included the favourable impact of the specified item
relating to certain deferred tax adjustments, and higher PCL on
impaired loans. Lower results in Corporate Support and Personal
& Commercial Banking were partially offset by higher results in
Wealth Management, Capital Markets and Insurance. Adjusted net
income7 was up 8% over the same period. Pre-provision,
pre-tax earnings7 were up 12% as higher revenue more
than offset expense growth.
Our capital position remains robust, with a CET1
ratio6 of 14.9%, supporting solid volume growth and
$1.9 billion in common share
dividends.
"As our first quarter results show, RBC has the right
strategy in place to grow today while also generating long-term
value for shareholders. Underpinned by our balance sheet strength,
prudent approach to risk management and diversified business model,
we delivered solid, client-driven volume growth and a continued
focus on expense control. As we look towards the completion of our
planned HSBC Canada acquisition, we remain focused on being a
trusted advisor to clients through the delivery of new and
differentiated banking experiences."
– Dave McKay,
President and Chief Executive Officer of Royal Bank of Canada
__________________________________________________________
|
1 Earnings
per share (EPS).
|
2 Provision
for credit losses (PCL).
|
3 PCL on
loans ratio is calculated as PCL on loans as a percentage of
average net loans and acceptances.
|
4 Basis
points (bps).
|
5 Return on
equity (ROE) is calculated as net income available to common
shareholders divided by average common equity. For further
information, refer to the Key performance and non-GAAP measures
section on pages 3 to 5 of this Earnings Release.
|
6 This ratio
is calculated by dividing Common Equity Tier 1 (CET1) by
risk-weighted assets (RWA), in accordance with Office of the
Superintendent of Financial Institutions' (OSFI) Basel III Capital
Adequacy Requirements (CAR) guideline.
|
7 These are
non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 3 to 5 of this Earnings Release.
|
8 Allowance
for credit losses (ACL).
|
9 ACL on
loans ratio is calculated as ACL on loans as a percentage of total
loans and acceptances.
|
10 The
Liquidity coverage ratio (LCR) is calculated in accordance with
OSFI's Liquidity Adequacy Requirements (LAR) guideline. For further
details, refer to the Liquidity and funding risk section of our Q1
2024 Report to Shareholders.
|
11 When we
say "we", "us", "our", "the bank" or "RBC", we mean Royal Bank of
Canada and its subsidiaries, as applicable.
|
12 PCL on
impaired loans ratio is calculated as PCL on impaired loans as a
percentage of average net loans and acceptances.
|
Q1 2024
Compared to
Q1 2023
|
Reported:
•
Net income of $3,582 million
•
Diluted EPS of $2.50
•
ROE of 13.1%
•
CET1 ratio13 of
14.9%
|
↑
14%
↑
12%
↑
50 bps
↑
220 bps
|
Adjusted14:
•
Net income of $4,066
million
•
Diluted EPS of $2.85
•
ROE of 14.9%
|
↓ 5%
↓ 6%
↓ 230
bps
|
Q1 2024
Compared to
Q4 2023
|
•
Net income of $3,582 million
•
Diluted EPS of $2.50
•
ROE of 13.1%
•
CET1 ratio13 of
14.9%
|
↓ 9%
↓ 9%
↓ 180
bps
↑ 40
bps
|
•
Net income of $4,066
million
•
Diluted EPS of
$2.85
•
ROE of 14.9%
|
↑ 8%
↑ 8%
↑ 70 bps
|
Personal & Commercial Banking
Net income of $2,061 million
decreased $65 million or 3% from a
year ago, primarily attributable to higher PCL and non-interest
expenses. These factors were partially offset by higher net
interest income reflecting average volume growth of 9% in deposits
(including 11% in personal deposits) and 5% in loans (including
double-digit growth in business lending and credit cards of 14% and
13%, respectively) in Canadian Banking, and higher
spreads.
Compared to last quarter, net income decreased $30 million or 1%, primarily attributable to
higher PCL. This was largely offset by lower non-interest expenses,
higher card service revenue, as well as higher net interest income
reflecting average volume growth of 1% and higher spreads in
Canadian Banking.
Wealth Management
Net income of $606 million
decreased $224 million or 27% from a
year ago, mainly due to the cost of the FDIC special assessment of
$159 million before-tax ($115 million after-tax) in U.S. Wealth Management
(including City National) in the current quarter. Higher variable
compensation commensurate with increased commissionable revenue,
higher staff costs and professional fees, largely reflecting
continued investments in the operational infrastructure of City
National, and lower net interest income also contributed to the
decrease. These factors were partially offset by higher fee-based
client assets reflecting market appreciation and net
sales.
Compared to last quarter, net income increased $391 million, as last quarter reflected the
impact of the specified item relating to impairment losses on our
interest in an associated company and legal provisions in U.S.
Wealth Management (including City National). These factors were
partially offset by the cost of the FDIC special assessment, in the
current quarter, as noted above. U.S. Wealth Management (including
City National) results also included the impact of releases of
provisions on performing loans in the current quarter, as compared
to provisions taken last quarter.
Insurance
Net income of $220 million
increased $153 million from a year
ago, primarily due to higher insurance investment result from
favourable investment performance as we repositioned our portfolio
for the transition to IFRS 17. The current period also benefitted
from favourable market conditions. The results in the prior period
are not fully comparable as we were not managing our asset and
liability portfolios under IFRS 17.
Compared to last quarter, net income increased $123 million, as the prior quarter included the
impact of unfavourable annual actuarial assumption updates in
insurance service result. Insurance investment result increased
largely from favourable investment performance as we repositioned
our portfolio for the transition to IFRS 17. The current period
also benefitted from favourable market conditions. The results in
the prior period are not fully comparable as we were not managing
our asset and liability portfolios under IFRS 17.
Capital Markets
Net income of $1,154 million
decreased $87 million or 7% from a
year ago, primarily driven by lower revenue in Global Markets
compared to stronger results in the prior year and higher PCL.
These factors were partially offset by lower taxes reflecting
changes in earnings mix.
Compared to last quarter, net income increased $167 million or 17%, mainly due to higher revenue
in Global Markets, largely driven by higher fixed income revenue
across most regions. These factors were partially offset by higher
taxes.
________________________________________
|
13 This
ratio is calculated by dividing CET1 by RWA, in accordance with
OSFI's Basel III CAR guideline.
|
14 These are
non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 3 to 5 of this Earnings Release.
|
Corporate Support
Net loss was $459 million for the
current quarter, primarily due to the after-tax impact of
transaction and integration costs of $218
million and the after-tax impact of management of closing
capital volatility of $207 million,
both of which are related to the planned acquisition of HSBC Canada
and treated as specified items.
Net income was $549 million in the
prior quarter, primarily due to a specified item relating to
certain deferred tax adjustments of $578
million, as well as a favourable impact from tax-related
items. These factors were partially offset by the after-tax impact
of transaction and integration costs of $167
million relating to the planned acquisition of HSBC Canada,
which is treated as a specified item.
Net loss was $1,131 million in the
prior year, primarily due to the impact of the CRD and other tax
related adjustments of $1,050
million, which is a specified item. Asset/liability
management activities and residual unallocated items also
contributed to the net loss.
Capital, Liquidity and Credit Quality
Capital – As at January 31,
2024, our CET1 ratio15 was 14.9%, up 40 bps from
last quarter, mainly reflecting net internal capital generation,
the favourable impact of fair value OCI adjustments and share
issuances under the DRIP. These factors were partially offset by
RWA growth (excluding FX) and the net impact of regulatory
updates.
Liquidity – For the quarter ended January 31, 2024, the average LCR16
was 132%, which translates into a surplus of approximately
$94 billion, compared to 131% and a
surplus of approximately $91 billion
in the prior quarter. Average LCR16 remained relatively
stable from the prior quarter as increased wholesale funding
volumes and deposits were largely offset by on-balance sheet
securities and loan growth.
The Net Stable Funding Ratio17 (NSFR) as at
January 31, 2024 was 113%, which
translates into a surplus of approximately $112 billion, compared to 113% and a surplus of
approximately $109 billion in the
prior quarter. NSFR remained relatively stable from the previous
quarter as lower funding requirements for loans and securities
financing transactions were largely offset by additional funding
requirements on securities.
Credit Quality
Q1 2024 vs. Q1 2023
Total PCL increased
$281 million or 53% from a year ago,
mainly reflecting higher provisions in Personal & Commercial
Banking and Capital Markets, partially offset by lower provisions
in Wealth Management. The PCL on loans ratio increased 12 bps. The
PCL on impaired loans ratio of 31 bps increased 14 bps.
PCL on performing loans decreased $40
million or 23%, mainly due to releases in the current
quarter in U.S. Wealth Management (including City National),
largely driven by favourable changes to our macroeconomic forecast,
partially offset by unfavourable changes in credit quality, as
compared to provisions taken last year.
PCL on impaired loans increased $328
million, primarily due to higher provisions in our Canadian
Banking portfolios and Capital Markets, mainly in the real estate
and related sector.
Q1 2024 vs. Q4 2023
Total PCL increased
$93 million or 13% from last quarter,
mainly due to higher provisions in Personal & Commercial
Banking and Capital Markets, partially offset by lower provisions
in U.S. Wealth Management (including City National). The PCL on
loans ratio increased 3 bps. The PCL on impaired loans ratio
increased 6 bps.
PCL on performing loans decreased $61
million or 31%, mainly due to releases in the current
quarter as compared to provisions in the prior quarter in U.S.
Wealth Management (including City National) and lower provisions in
Capital Markets, both of which were largely due to favourable
changes to our macroeconomic forecast, partially offset by
unfavourable changes in credit outlook. These factors were
partially offset by higher provisions in our Canadian Banking
portfolios, mainly due to favourable changes to our macroeconomic
forecast in the prior quarter as compared to unfavourable changes
this quarter, partially offset by lower unfavourable changes in
credit quality.
PCL on impaired loans increased $146
million or 27%, primarily due to higher provisions in our
Canadian Banking portfolios.
Key Performance and Non-GAAP Measures
Performance measures
We measure and evaluate the
performance of our consolidated operations and each business
segment using a number of financial metrics, such as net income and
ROE. Certain financial metrics, including ROE, do not have a
standardized meaning under generally accepted accounting principles
(GAAP) and may not be comparable to similar measures disclosed by
other financial institutions.
Non-GAAP measures
We believe that certain non-GAAP
measures (including non-GAAP ratios) are more reflective of our
ongoing operating results and provide readers with a better
understanding of management's perspective on our performance. These
measures enhance the comparability of our financial performance for
the three months ended January 31,
2024 with the corresponding period in the prior year and the
three months ended October 31, 2023.
Non-GAAP measures do not have a standardized meaning under GAAP and
may not be comparable to similar measures disclosed by other
financial institutions.
__________________________________________
|
15 This
ratio is calculated by dividing CET1 by RWA, in accordance with
OSFI's Basel III CAR guideline.
|
16
The LCR is calculated in accordance with OSFI's LAR guideline.
For further details, refer to the Liquidity and funding risk
section of our Q1 2024 Report to Shareholders.
|
17 The
NSFR is calculated in accordance with OSFI's LAR guideline. For
further details, refer to the Liquidity and funding risk section of
our Q1 2024 Report to Shareholders.
|
The following discussion describes the non-GAAP measures we use
in evaluating our operating results.
Pre-provision, pre-tax
earnings18
Pre-provision,
pre-tax earnings is calculated as income (Q1 2024: $3,582 million; Q4 2023: $3,939 million; Q1 2023: $3,133 million) before income taxes (Q1 2024:
$766 million; Q4 2023: $(33) million; Q1 2023: $2,103 million) and PCL (Q1 2024: $813 million; Q4 2023: $720 million; Q1 2023: $532 million). We use pre-provision, pre-tax
earnings to assess our ability to generate sustained earnings
growth outside of credit losses, which are impacted by the cyclical
nature of the credit cycle.
Adjusted results
We believe that providing
adjusted results as well as certain measures and ratios excluding
the impact of the specified items discussed below and amortization
of acquisition-related intangibles enhance comparability with prior
periods and enables readers to better assess trends in the
underlying businesses.
Our results for all reported periods were adjusted for the
following specified item:
- Transaction and integration costs relating to our planned
acquisition of HSBC Canada.
Our results for the three months ended January 31, 2024 were adjusted for the following
specified item:
- Management of closing capital volatility related to the planned
acquisition of HSBC Canada. For further details, refer to the Key
corporate events section of our Q1 2024 Report to
Shareholders.
Our results for the three months ended October 31, 2023 were adjusted for the following
specified items:
- Impairment losses on our interest in an associated
company.
- Certain deferred tax adjustments: reflects the recognition of
deferred tax assets relating to realized losses in City National
associated with the intercompany sale of certain debt
securities.
Our results for the three months ended January 31, 2023 were adjusted for the following
specified item:
- CRD and other tax related adjustments: reflects the impact of
the CRD and the 1.5% increase in the Canadian corporate tax rate
applicable to fiscal 2022, net of deferred tax adjustments, which
were announced in the Government of Canada's 2022 budget and enacted in the first
quarter of 2023.
The following table provides a reconciliation of adjusted
results to our reported results and illustrates the calculation of
adjusted measures presented. The adjusted results and measures
presented below are non-GAAP measures or ratios.
______________________________
|
18 Prior period amounts have been
restated from those previously presented as part of the adoption of
IFRS 17, effective November 1, 2023. Refer to Note 2 of our
Condensed Financial Statements for further details on these
changes.
|
Consolidated results, reported and adjusted
|
|
As at or for the three
months ended
|
(Millions of Canadian
dollars, except per share, number of
|
|
|
January
31
|
|
|
October
31
|
|
January
31
|
|
and percentage
amounts)
|
|
|
2024
|
|
|
2023 (1)
|
|
2023 (1)
|
|
Total
revenue
|
|
$
|
13,485
|
|
$
|
12,685
|
$
|
13,357
|
|
|
PCL
|
|
|
813
|
|
|
720
|
|
532
|
|
|
Non-interest
expense
|
|
|
8,324
|
|
|
8,059
|
|
7,589
|
|
|
Income before income
taxes
|
|
|
4,348
|
|
|
3,906
|
|
5,236
|
|
|
Income taxes
|
|
|
766
|
|
|
(33)
|
|
2,103
|
|
Net
income
|
|
$
|
3,582
|
|
$
|
3,939
|
$
|
3,133
|
|
Net income available to
common shareholders
|
|
$
|
3,522
|
|
$
|
3,870
|
$
|
3,087
|
|
Average number of
common shares (thousands)
|
|
|
1,406,324
|
|
|
1,399,337
|
|
1,382,754
|
|
Basic earnings per
share (in dollars)
|
|
$
|
2.50
|
|
$
|
2.77
|
$
|
2.23
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,407,641
|
|
|
1,400,465
|
|
1,384,536
|
|
Diluted earnings per
share (in dollars)
|
|
$
|
2.50
|
|
$
|
2.76
|
$
|
2.23
|
|
ROE (2)
|
|
|
13.1 %
|
|
|
14.9 %
|
|
12.6 %
|
|
Effective income tax
rate
|
|
|
17.6 %
|
|
|
(0.8) %
|
|
40.2 %
|
|
Total adjusting
items impacting net income (before-tax)
|
|
$
|
631
|
|
$
|
537
|
$
|
97
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
|
265
|
|
|
203
|
|
11
|
|
|
Specified item:
Management of closing capital volatility related to the planned
acquisition of HSBC Canada (3),
(4)
|
|
|
286
|
|
|
-
|
|
-
|
|
|
Specified item:
Impairment losses on our interest in an associated company
(5)
|
|
|
-
|
|
|
242
|
|
-
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
80
|
|
|
92
|
|
86
|
|
Total income taxes
for adjusting items impacting net income
|
|
$
|
147
|
|
$
|
703
|
$
|
(1,032)
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
|
47
|
|
|
36
|
|
3
|
|
|
Specified item:
Management of closing capital volatility related to the planned
acquisition of HSBC Canada (3),
(4)
|
|
|
79
|
|
|
-
|
|
-
|
|
|
Specified item:
Impairment losses on our interest in an associated company
(5)
|
|
|
-
|
|
|
65
|
|
-
|
|
|
Specified item: Certain
deferred tax adjustments (3)
|
|
|
-
|
|
|
578
|
|
-
|
|
|
Specified item: CRD and
other tax related adjustments (3),
(7)
|
|
|
-
|
|
|
-
|
|
(1,050)
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
21
|
|
|
24
|
|
15
|
|
Adjusted results
(8)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes - adjusted
|
|
|
4,979
|
|
|
4,443
|
|
5,333
|
|
|
Income taxes -
adjusted
|
|
|
913
|
|
|
670
|
|
1,071
|
|
Net income -
adjusted
|
|
$
|
4,066
|
|
$
|
3,773
|
$
|
4,262
|
|
Net income available to
common shareholders - adjusted
|
|
$
|
4,006
|
|
$
|
3,704
|
$
|
4,216
|
|
Average number of
common shares (thousands)
|
|
|
1,406,324
|
|
|
1,399,337
|
|
1,382,754
|
|
Basic earnings per
share (in dollars) - adjusted
|
|
$
|
2.85
|
|
$
|
2.65
|
$
|
3.05
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,407,641
|
|
|
1,400,465
|
|
1,384,536
|
|
Diluted earnings per
share (in dollars) - adjusted
|
|
$
|
2.85
|
|
$
|
2.65
|
$
|
3.04
|
|
ROE -
adjusted
|
|
|
14.9 %
|
|
|
14.2 %
|
|
17.2 %
|
|
Adjusted effective
income tax rate
|
|
|
18.3 %
|
|
|
15.1 %
|
|
20.1 %
|
|
(1)
|
Amounts have been
restated from those previously presented as part of the adoption of
IFRS 17, effective November 1, 2023. Refer to Note 2 of our
Condensed Financial Statements for further details on these
changes.
|
(2)
|
ROE is calculated as
net income available to common shareholders divided by average
common equity. ROE is based on actual balances of average common
equity before rounding.
|
(3)
|
These amounts have been
recognized in Corporate Support.
|
(4)
|
Beginning the first
quarter of 2024, we included management of closing capital
volatility related to the planned acquisition of HSBC Canada as a
specified item for non-GAAP measures and non-GAAP ratios. For
further details, refer to the Key corporate events section of our
Q1 2024 Report to Shareholders.
|
(5)
|
During the fourth
quarter of 2023, we recognized impairment losses on our interest in
an associated company. This amount was recognized in Wealth
Management.
|
(6)
|
Represents the impact
of amortization of acquisition-related intangibles (excluding
amortization of software), and any goodwill impairment.
|
(7)
|
The impact of the CRD
and other tax related adjustments does not include $0.2 billion
recognized in other comprehensive income.
|
(8)
|
Effective the second
quarter of 2023, we included HSBC Canada transaction and
integration costs and amortization of acquisition-related
intangibles as adjusting items for non-GAAP measures and non-GAAP
ratios. Therefore, comparative adjusted results for the three
months ended January 31, 2023 have been revised from those
previously presented to conform to our basis of presentation for
this non-GAAP measure. As at January 31, 2024, the cumulative HSBC
Canada transaction and integration costs (before-tax) incurred are
$0.6 billion and it is currently estimated that an additional $0.9
billion will be incurred, for a total of approximately $1.5
billion.
|
Additional information about ROE and other key performance and
non-GAAP measures and ratios can be found under the Key performance
and non-GAAP measures section of our Q1 2024 Report to
Shareholders.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time
to time, we make written or oral forward-looking statements within
the meaning of certain securities laws, including the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995 and any applicable Canadian
securities legislation. We may make forward-looking statements in
this document, in other filings with Canadian regulators or the
SEC, in reports to shareholders, and in other communications. In
addition, our representatives may communicate forward-looking
statements orally to analysts, investors, the media and others.
Forward-looking statements in this document include, but are not
limited to, statements relating to our financial performance
objectives, vision and strategic goals and the expected closing of
the transaction involving HSBC Canada, including transaction and
integration costs, and includes statements made by our President
and Chief Executive Officer. The forward-looking statements
contained in this document represent the views of management and
are presented for the purpose of assisting the holders of our
securities and financial analysts in understanding our financial
position and results of operations as at and for the periods ended
on the dates presented, as well as our financial performance
objectives, vision, strategic goals and priorities and anticipated
financial performance, and may not be appropriate for other
purposes. Forward-looking statements are typically identified by
words such as "believe", "expect", "suggest", "seek", "foresee",
"forecast", "schedule", "anticipate", "intend", "estimate", "goal",
"commit", "target", "objective", "plan", "outlook", "timeline" and
"project" and similar expressions of future or conditional verbs
such as "will", "may", "might", "should", "could", "can" or "would"
or negative or grammatical variations thereof.
By their very nature, forward-looking
statements require us to make assumptions and are subject to
inherent risks and uncertainties, both general and specific in
nature, which give rise to the possibility that our predictions,
forecasts, projections, expectations or conclusions will not prove
to be accurate, that our assumptions may not be correct, that our
financial performance, environmental & social or other
objectives, vision and strategic goals will not be achieved, and
that our actual results may differ materially from such
predictions, forecasts, projections, expectations or
conclusions.
We caution readers not to place undue
reliance on our forward-looking statements as a number of risk
factors could cause our actual results to differ materially from
the expectations expressed in such forward-looking statements.
These factors – many of which are beyond our control and the
effects of which can be difficult to predict – include, but are not
limited to: credit, market, liquidity and funding, insurance,
operational, regulatory compliance (which could lead to us being
subject to various legal and regulatory proceedings, the potential
outcome of which could include regulatory restrictions, penalties
and fines), strategic, reputation, legal and regulatory
environment, competitive, model, systemic risks and other risks
discussed in the risk sections of our annual report for the fiscal
year ended October 31, 2023 (the 2023
Annual Report) and the Risk management section of our Q1 2024
Report to Shareholders, including business and economic conditions
in the geographic regions in which we operate, Canadian housing and
household indebtedness, information technology, cyber and
third-party risks, geopolitical uncertainty, environmental and
social risk (including climate change), digital disruption and
innovation, privacy and data related risks, regulatory changes,
culture and conduct risks, the effects of changes in government
fiscal, monetary and other policies, tax risk and transparency, and
our ability to anticipate and successfully manage risks arising
from all of the foregoing factors. Additional factors that could
cause actual results to differ materially from the expectations in
such forward-looking statements can be found in the risk sections
of our 2023 Annual Report and the Risk management section of our Q1
2024 Report to Shareholders, as may be updated by subsequent
quarterly reports.
We caution that the foregoing list of risk
factors is not exhaustive and other factors could also adversely
affect our results. When relying on our forward-looking statements
to make decisions with respect to us, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events, as well as the inherent uncertainty of
forward-looking statements. Material economic assumptions
underlying the forward-looking statements contained in this
document are set out in the Economic, market and regulatory review
and outlook section and for each business segment under the
Strategic priorities and Outlook sections in our 2023 Annual
Report, as updated by the Economic, market and regulatory review
and outlook section of our Q1 2024 Report to Shareholders. Such
sections may be updated by subsequent quarterly reports.
Assumptions about the duration and complexity of technological
builds, estimates for closing costs, and estimates of costs
required for post-close synergy impacts were considered in the
estimation of transaction and integration costs. Except as required
by law, we do not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to
time by us or on our behalf.
Additional information about these and other
factors can be found in the risk sections of our 2023 Annual Report
and the Risk management section of our Q1 2024 Report to
Shareholders, as may be updated by subsequent quarterly reports.
Information contained in or otherwise accessible through the
websites mentioned does not form part of this document. All
references in this document to websites are inactive textual
references and are for your information only.
ACCESS TO QUARTERLY RESULTS MATERIALS
Interested
investors, the media and others may review this quarterly Earnings
Release, quarterly results slides, supplementary financial
information and our Q1 2024 Report to Shareholders at
rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our
quarterly conference call is scheduled for February 28, 2024 at 8:00
a.m. (EDT) and will feature a presentation about our first
quarter results by RBC executives. It will be followed by a
question and answer period with analysts. Interested parties can
access the call live on a listen-only basis at
rbc.com/investorrelations/quarterly-financial-statements.html or
by telephone (416-340-2217 or 866-696-5910, passcode 4255087#).
Please call between 7:50 a.m. and 7:55 a.m.
(EDT).
Management's comments on results will be
posted on our website shortly following the call. A recording will
be available by 5:00 p.m. (EDT) from
February 28, 2024 until May 30, 2024
at rbc.com/investorrelations/quarterly-financial-statements.html
or by telephone (905-694-9451 or 800-408-3053, passcode
7594177#).
ABOUT RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 94,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank and one of the largest in the world, based on market
capitalization, we have a diversified business model with a focus
on innovation and providing exceptional experiences to our more
than 17 million clients in Canada,
the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of
community initiatives through donations, community investments and
employee volunteer activities. See how at
rbc.com/community-social-impact.
® Registered Trademarks of Royal Bank of Canada.
SOURCE Royal Bank of Canada