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 Q3 2024 Report to Shareholders and
Supplementary Financial Information are available at
http://www.rbc.com/investorrelations and on
https://www.sedarplus.com/.
|
|
Net income
$4.5 Billion
Up 16% YoY
|
Diluted
EPS1
$3.09
Up 13% YoY
|
Total
PCL2
$659 Million
PCL on loans ratio3
down 14 bps4 QoQ
|
ROE5
15.5%
Up 60 bps YoY
|
CET1
ratio6
13.0%
Above regulatory
requirements
|
Adjusted net
income7
$4.7 Billion
Up 18% YoY
|
Adjusted diluted
EPS7
$3.26
Up 15% YoY
|
Total
PCL8
$659 Million
PCL on loans ratio9
down 14 bps4 QoQ
|
Adjusted
ROE7
16.4%
Up 100 bps YoY
|
LCR10
126%
Down from 128% last
quarter
|
TORONTO, Aug. 28,
2024 /CNW/ - Royal Bank of Canada11 (RY on TSX and NYSE)
today reported net income of $4.5
billion for the quarter ended July
31, 2024, up $626 million or
16% from the prior year. Diluted EPS was $3.09, up 13% over the same period. Higher
results in Personal & Commercial Banking, Capital Markets and
Wealth Management were partially offset by lower results in
Corporate Support and Insurance. The inclusion of HSBC Bank Canada
(HSBC Canada) results12 increased net income by
$239 million. Adjusted net
income7 and adjusted diluted EPS7 of
$4.7 billion and $3.26 were up 18% and 15%, respectively, from the
prior year.
Results also reflected the impact of the specified item relating
to HSBC Canada transaction and integration costs (Q3 2024:
$160 million before-tax and
$125 million after-tax; Q3 2023:
$110 million before-tax and
$84 million after-tax) and
amortization of acquisition-related intangibles (Q3 2024:
$154 million before-tax and
$116 million after-tax; Q3 2023:
$81 million before-tax and
$61 million after-tax).
Pre-provision, pre-tax earnings7 of $6.0 billion were up $820
million or 16% from last year. The inclusion of HSBC Canada
results increased pre-provision, pre-tax
earnings7 by $412
million. Excluding HSBC Canada results, pre-provision,
pre-tax earnings7 increased 8% from last year,
mainly due to higher net interest income reflecting higher spreads
and solid average volume growth in Canadian Banking. Higher
fee-based revenue in Wealth Management reflecting market
appreciation and net sales, as well as higher Corporate &
Investment Banking revenue in Capital Markets, also contributed to
the increase. These factors were partially offset by higher
expenses driven by higher variable compensation on improved results
and continued investments in our franchises.
Compared to last quarter, net income was up 14% reflecting
higher results in Personal & Commercial Banking, Corporate
Support and Wealth Management, partially offset by lower results in
Capital Markets. Adjusted net income7 was up 13% over
the same period. Pre-provision, pre-tax earnings7 were
up 3% as higher revenue more than offset expense growth. The PCL on
loans ratio of 27 bps decreased 14 bps from the prior quarter
mainly reflecting the prior quarter's 9 bps impact of initial PCL
on performing loans purchased in the HSBC Canada transaction. The
PCL on impaired loans ratio13 was 26 bps, down 4 bps
from the prior quarter.
Our capital position remained robust, with a CET1
ratio6 of 13.0%, up 20 bps from the prior quarter. On
June 10, 2024, we announced that the
Toronto Stock Exchange and the Office of the Superintendent of
Financial Institutions had approved our normal course issuer bid to
purchase, for cancellation, up to 30 million of our common shares.
In Q3 2024, we repurchased 0.5 million shares for $73 million.
"Our Q3 results demonstrate that RBC continues to operate
from a position of strategic and financial strength with solid
revenue growth and momentum underpinned by a strong balance sheet,
robust capital position and prudent risk management. Combined with
our recently announced changes to the executive leadership team and
business segments, RBC is better positioned than ever to accelerate
our next phase of growth and deliver long-term value to clients,
communities and shareholders."
– Dave McKay, President
and Chief Executive Officer of Royal Bank of Canada
____________________________________________________
|
1 Earnings
per share (EPS).
|
2 Provision
for credit losses (PCL).
|
3 PCL on
loans ratio is calculated as PCL on loans as a percentage of
average net loans and acceptances.
|
4 Basis
points (bps).
|
5 Return on
equity (ROE) is calculated as net income available to common
shareholders divided by average common equity. For further
information, refer to the Key performance and non-GAAP measures
section on pages 4 to 5 of this Earnings Release.
|
6 This ratio
is calculated by dividing Common Equity Tier 1 (CET1) by
risk-weighted assets (RWA), in accordance with Office of the
Superintendent of Financial Institutions' (OSFI) Basel III Capital
Adequacy Requirements (CAR) guideline.
|
7 These are
non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 4 to 5 of this Earnings Release.
|
8 Allowance
for credit losses (ACL).
|
9 ACL on
loans ratio is calculated as ACL on loans as a percentage of total
loans and acceptances.
|
10 The
liquidity coverage ratio (LCR) is calculated in accordance with
OSFI's Liquidity Adequacy Requirements (LAR) guideline. For further
details, refer to the Liquidity and funding risk section of our Q3
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 On March
28, 2024, we completed the acquisition of HSBC Canada (HSBC Canada
transaction). HSBC Canada results reflect revenue, PCL,
non-interest expenses and income taxes associated with the acquired
operations and clients, which include the acquired assets, assumed
liabilities and employees with the exception of assets and
liabilities relating to treasury and liquidity management
activities. For further details, refer to the Key corporate events
section of our Q3 2024 Report to Shareholders.
|
13 PCL on
impaired loans ratio is calculated as PCL on impaired loans as a
percentage of average net loans and acceptances.
|
|
Q3 2024
|
Reported:
|
|
Adjusted15:
|
|
|
Compared to
|
• Net income of
$4,486 million
|
↑ 16%
|
• Net income of
$4,727 million
|
↑ 18%
|
Q3 2023
|
• Diluted EPS of
$3.09
|
↑ 13%
|
• Diluted EPS of
$3.26
|
↑ 15%
|
|
• ROE of
15.5%
|
↑ 60 bps
|
• ROE of
16.4%
|
↑ 100 bps
|
|
• CET1
ratio14 of 13.0%
|
↓
110 bps
|
|
|
|
Q3 2024
|
• Net income of
$4,486 million
|
↑ 14%
|
• Net income of
$4,727 million
|
↑ 13%
|
Compared
to
|
• Diluted
EPS of $3.09
|
↑ 13%
|
• Diluted
EPS of $3.26
|
↑ 12%
|
Q2 2024
|
• ROE of
15.5%
|
↑ 100 bps
|
• ROE of
16.4%
|
↑ 90 bps
|
|
• CET1
ratio14 of 13.0%
|
↑ 20 bps
|
|
|
|
YTD
2024
|
• Net income of
$12,018 million
|
↑ 13%
|
• Net income of
$12,991 million
|
↑ 8%
|
Compared to
|
• Diluted EPS of
$8.34
|
↑ 10%
|
• Diluted
EPS of $9.03
|
↑ 6%
|
YTD 2023
|
• ROE of
14.4%
|
↑ 30 bps
|
• ROE of
15.6%
|
↓ 40 bps
|
___________________________________________________
|
14 This
ratio is calculated by dividing CET1 by RWA, in accordance
with OSFI's Basel III CAR guideline.
|
15 These are
non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 4 to 5 of this Earnings Release.
|
Net income of $2,490 million
increased $356 million or 17% from a
year ago. The inclusion of HSBC Canada results increased net income
by $198 million. Excluding HSBC
Canada results, net income increased $158
million or 7%, primarily driven by higher net interest
income reflecting higher spreads and average volume growth of 10%
in deposits and 6% in loans in Canadian Banking, partially offset
by higher PCL.
Compared to last quarter, net income increased $439 million or 21%. The inclusion of HSBC Canada
results increased net income by $259
million, as the current quarter includes a full quarter of
net income and the prior quarter reflected the initial PCL on the
performing loans purchased in the HSBC Canada transaction.
Excluding HSBC Canada results, net income increased $180 million or 9%, primarily driven by higher
net interest income reflecting average volume growth of 2% in
Canadian Banking, the impact of two more days in the current
quarter and higher spreads in Canadian Banking. These factors were
partially offset by higher staff-related costs.
Net income of $862 million
increased $199 million or 30% from a
year ago,
mainly due to higher fee-based client assets reflecting market appreciation
and net sales, which also drove higher variable compensation.
Higher transactional revenue and lower PCL also contributed to the
increase. The prior year also included the gain on the sale of RBC
Investor Services operations.
Compared to last quarter, net income increased $93 million or 12%, primarily due to higher
fee-based client assets reflecting market appreciation, which also
drove higher variable compensation.
Net income of $170 million
decreased $45 million or 21% from a
year ago, largely due to lower insurance investment result from
lower favourable investment-related experience, partially offset by
lower capital funding costs. This was partially offset by higher
insurance service result, largely attributable to improved claims
experience in life retrocession and business growth across the
majority of our products. The results in the prior period are not
fully comparable as we were not managing our asset and liability
portfolios under IFRS 17.
Compared to last quarter, net income decreased $7 million or 4%, largely due to lower insurance
investment result from lower favourable investment-related
experience. This factor was largely offset by higher insurance
service result, mainly due to business growth across the majority
of our products.
Net income of $1,172 million
increased $223 million or 23% from a
year ago, primarily driven by higher revenue in Corporate
& Investment Banking, primarily due to higher municipal banking
activity, higher loan syndication activity in the U.S., higher debt
origination in North America and
the impact of foreign exchange translation. Lower PCL also
contributed to the increase. These factors were partially offset by
higher taxes reflecting changes in earnings mix and higher
compensation on increased results.
Compared to last quarter, net income decreased $90 million or 7% from record levels, mainly due
to lower M&A activity in the U.S., partially offset by lower
PCL on impaired loans in a few sectors.
Net loss was $208 million for the
current quarter, primarily due to the after-tax impact of the HSBC
Canada transaction and integration costs of $125 million, which is treated as a specified
item. Unallocated costs also contributed to the net loss.
Net loss was $309 million in the
prior quarter, primarily due to the after-tax impact of the HSBC
Canada transaction and integration costs of $282 million, partially offset by the after-tax
impact of management of closing capital volatility related to the
HSBC Canada transaction of $112
million, both of which are treated as specified items.
Unallocated costs also contributed to the net loss.
Net loss was $101 million in the
prior year, primarily due to the after-tax impact of the HSBC
Canada transaction and integration costs of $84 million, which is treated as a specified
item.
Capital – As at July 31,
2024, our CET1 ratio16 was 13.0%, up 20 bps from
last quarter, mainly reflecting net internal capital generation,
partially offset by RWA growth (excluding FX).
Liquidity – For the quarter ended July 31, 2024, the average LCR17 was
126%, which translates into a surplus of approximately $81 billion, compared to 128% and a surplus of
approximately $83 billion in the
prior quarter. Average LCR17 remained relatively
stable from the prior quarter reflecting loan growth and an
increase in on-balance sheet securities, largely offset by growth
in retail deposits.
The Net Stable Funding Ratio18 (NSFR) as at
July 31, 2024 was 114%, which
translates into a surplus of approximately $136 billion, compared to 111% and a surplus of
approximately $105 billion in the
prior quarter. NSFR increased compared to the previous quarter,
mainly due to higher available stable funding driven by an increase
in the weighted value of retail deposits and wholesale
funding.
________________________________________________________________________
|
16 This
ratio is calculated by dividing CET1 by RWA, in accordance
with OSFI's Basel III CAR guideline.
|
17 The LCR
is calculated in accordance with OSFI's LAR guideline. For further
details, refer to the Liquidity and funding risk section of our Q3
2024 Report to Shareholders.
18 The NSFR
is calculated in accordance with OSFI's LAR guideline. For further
details, refer to the Liquidity and funding risk section of our Q3
2024 Report to Shareholders.
|
Credit Quality
Q3 2024 vs. Q3 2023
Total PCL of $659 million
increased $43 million or 7% from a
year ago, mainly reflecting higher provisions in Personal &
Commercial Banking, partially offset by lower provisions in Capital
Markets and Wealth Management. The PCL on loans ratio of 27 bps
decreased 2 bps. The PCL on impaired loans ratio of 26 bps
increased 3 bps.
PCL on performing loans of $42
million decreased $78 million
or 65%, mainly due to favourable changes to our scenario weights,
partially offset by unfavourable changes to our macroeconomic
forecast and credit quality.
PCL on impaired loans of $623
million increased $124 million
or 25%, mainly due to higher provisions in our Canadian Banking
portfolios, partially offset by lower provisions in Capital
Markets.
Q3 2024 vs. Q2 2024
Total PCL decreased $261 million or 28% from last
quarter, primarily reflecting lower provisions in Personal &
Commercial Banking and Capital Markets. The PCL on loans ratio
decreased 14 bps. The PCL on impaired loans ratio decreased 4
bps.
PCL on performing loans decreased $202
million or 83%, mainly reflecting higher provisions in the
prior quarter driven by the initial PCL on performing loans
purchased in the HSBC Canada transaction.
PCL on impaired loans decreased $49
million or 7%, mainly due to lower provisions in Capital
Markets and Wealth Management, partially offset by higher
provisions in our Canadian Banking commercial portfolio in a few
sectors, including the real estate and related sector.
Performance measures
We measure and evaluate the performance of our consolidated
operations and each business segment using a number of financial
metrics, such as net income and ROE. Certain financial metrics,
including ROE, do not have a standardized meaning under generally
accepted accounting principles (GAAP) and may not be comparable to
similar measures disclosed by other financial institutions.
Non-GAAP measures
We believe that certain non-GAAP measures (including non-GAAP
ratios) are more reflective of our ongoing operating results and
provide readers with a better understanding of management's
perspective on our performance. These measures enhance the
comparability of our financial performance for the three and nine
months ended July 31, 2024 with the
corresponding periods in the prior year and the three months ended
April 30, 2024. Non-GAAP measures do
not have a standardized meaning under GAAP and may not be
comparable to similar measures disclosed by other financial
institutions.
The following discussion describes the non-GAAP measures we use
in evaluating our operating results.
Pre-provision, pre-tax earnings
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. The
following table provides a reconciliation of our reported results
to pre-provision, pre-tax earnings and illustrates the calculation
of pre-provision, pre-tax earnings presented:
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
|
|
July
31
|
|
|
April
30
|
|
July
31
|
|
|
|
July
31
|
|
|
July
31
|
|
(Millions of Canadian
dollars)
|
|
|
2024
|
|
|
2024
|
|
2023 (1)
|
|
|
|
2024
|
|
|
2023 (1)
|
|
|
Net income
|
|
$
|
4,486
|
|
$
|
3,950
|
$
|
3,860
|
|
|
$
|
12,018
|
|
$
|
10,673
|
|
|
Add: Income
taxes
|
|
|
887
|
|
|
976
|
|
736
|
|
|
|
2,629
|
|
|
3,604
|
|
|
Add: PCL
|
|
|
659
|
|
|
920
|
|
616
|
|
|
|
2,392
|
|
|
1,748
|
|
Pre-provision,
pre-tax earnings (2)
|
|
$
|
6,032
|
|
$
|
5,846
|
$
|
5,212
|
|
|
$
|
17,039
|
|
$
|
16,025
|
|
|
|
(1)
|
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.
|
(2)
|
For the three months
ended July 31, 2024, pre-provision, pre-tax earnings excluding HSBC
Canada results of $5,620 million is calculated as pre-provision,
pre-tax earnings of $6,032 million less net income of $239 million,
income taxes of $90 million, and PCL of $83 million.
|
Adjusted results
We believe that providing adjusted results as well as certain
measures and ratios excluding the impact of the specified items
discussed below and amortization of acquisition-related intangibles
enhances comparability with prior periods and enables readers to
better assess trends in the underlying businesses.
Our results for all reported periods were adjusted for the
following specified item:
- HSBC Canada transaction and integration costs.
Our results for the nine months ended July 31, 2024 and the three months ended
April 30, 2024 were adjusted for the
following specified item:
- Management of closing capital volatility related to the HSBC
Canada transaction. For further details, refer to the Key corporate
events section of our Q3 2024 Report to Shareholders.
Our results for the nine months ended July 31, 2023 were adjusted for the following
specified item:
- Canada Recovery Dividend (CRD) and other tax related
adjustments: reflects the impact of the CRD and the 1.5% increase
in the Canadian corporate tax rate applicable to fiscal 2022, net
of deferred tax adjustments, which were announced in the Government
of Canada's 2022 budget and
enacted in the first quarter of 2023.
The following table provides a reconciliation of our reported
results to our adjusted results and illustrates the calculation of
adjusted measures presented. The adjusted results and measures
presented below are non-GAAP measures or ratios.
Consolidated results, reported and adjusted
|
|
As at or for the three
months ended
|
|
As at or for the nine
months ended
|
(Millions of Canadian
dollars, except per share, number of
|
|
|
July
31
|
|
|
April
30
|
|
July
31
|
|
|
|
July
31
|
|
|
July
31
|
|
and percentage
amounts)
|
|
|
2024
|
|
|
2024
|
|
2023 (1)
|
|
|
|
2024
|
|
|
2023 (1)
|
|
|
Total
revenue
|
|
$
|
14,631
|
|
$
|
14,154
|
$
|
12,977
|
|
|
$
|
42,270
|
|
$
|
38,779
|
|
|
PCL
|
|
|
659
|
|
|
920
|
|
616
|
|
|
|
2,392
|
|
|
1,748
|
|
|
Non-interest
expense
|
|
|
8,599
|
|
|
8,308
|
|
7,765
|
|
|
|
25,231
|
|
|
22,754
|
|
|
Income before income
taxes
|
|
|
5,373
|
|
|
4,926
|
|
4,596
|
|
|
|
14,647
|
|
|
14,277
|
|
|
Income taxes
|
|
|
887
|
|
|
976
|
|
736
|
|
|
|
2,629
|
|
|
3,604
|
|
Net
income
|
|
$
|
4,486
|
|
$
|
3,950
|
$
|
3,860
|
|
|
$
|
12,018
|
|
$
|
10,673
|
|
Net income available
to common shareholders
|
|
$
|
4,377
|
|
$
|
3,881
|
$
|
3,800
|
|
|
$
|
11,780
|
|
$
|
10,499
|
|
Average number of
common shares (thousands)
|
|
|
1,414,194
|
|
|
1,412,651
|
|
1,393,515
|
|
|
|
1,411,044
|
|
|
1,388,217
|
|
Basic earnings per
share (in dollars)
|
|
$
|
3.09
|
|
$
|
2.75
|
$
|
2.73
|
|
|
$
|
8.35
|
|
$
|
7.56
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,416,149
|
|
|
1,414,166
|
|
1,394,939
|
|
|
|
1,412,644
|
|
|
1,389,857
|
|
Diluted earnings per
share (in dollars)
|
|
$
|
3.09
|
|
$
|
2.74
|
$
|
2.73
|
|
|
$
|
8.34
|
|
$
|
7.55
|
|
ROE (2)
|
|
|
15.5 %
|
|
|
14.5 %
|
|
14.9 %
|
|
|
|
14.4 %
|
|
|
14.1 %
|
|
Effective income tax
rate
|
|
|
16.5 %
|
|
|
19.8 %
|
|
16.0 %
|
|
|
|
17.9 %
|
|
|
25.2 %
|
|
Total adjusting
items impacting net income (before-tax)
|
|
$
|
314
|
|
$
|
309
|
$
|
191
|
|
|
$
|
1,254
|
|
$
|
426
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3), (4)
|
|
|
160
|
|
|
358
|
|
110
|
|
|
|
783
|
|
|
177
|
|
|
Specified item:
Management of closing capital volatility related to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC Canada transaction
(3), (5)
|
|
|
-
|
|
|
(155)
|
|
-
|
|
|
|
131
|
|
|
-
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
154
|
|
|
106
|
|
81
|
|
|
|
340
|
|
|
249
|
|
Total income taxes
for adjusting items impacting net income
|
|
$
|
73
|
|
$
|
61
|
$
|
46
|
|
|
$
|
281
|
|
$
|
(957)
|
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
|
35
|
|
|
76
|
|
26
|
|
|
|
158
|
|
|
42
|
|
|
Specified item:
Management of closing capital volatility related to the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC Canada transaction
(3), (5)
|
|
|
-
|
|
|
(43)
|
|
-
|
|
|
|
36
|
|
|
-
|
|
|
Specified item: CRD and
other tax related adjustments (3), (7)
|
|
|
-
|
|
|
-
|
|
-
|
|
|
|
-
|
|
|
(1,050)
|
|
|
Amortization of
acquisition-related intangibles (6)
|
|
|
38
|
|
|
28
|
|
20
|
|
|
|
87
|
|
|
51
|
|
Adjusted results
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes - adjusted
|
|
$
|
5,687
|
|
$
|
5,235
|
$
|
4,787
|
|
|
$
|
15,901
|
|
$
|
14,703
|
|
|
Income taxes -
adjusted
|
|
|
960
|
|
|
1,037
|
|
782
|
|
|
|
2,910
|
|
|
2,647
|
|
|
Net income -
adjusted
|
|
|
4,727
|
|
|
4,198
|
|
4,005
|
|
|
|
12,991
|
|
|
12,056
|
|
|
Net income available to
common shareholders - adjusted
|
|
|
4,618
|
|
|
4,129
|
|
3,945
|
|
|
|
12,753
|
|
|
11,882
|
|
Average number of
common shares (thousands)
|
|
|
1,414,194
|
|
|
1,412,651
|
|
1,393,515
|
|
|
|
1,411,044
|
|
|
1,388,217
|
|
Basic earnings per
share (in dollars) - adjusted (8)
|
|
$
|
3.26
|
|
$
|
2.92
|
$
|
2.83
|
|
|
$
|
9.04
|
|
$
|
8.56
|
|
Average number of
diluted common shares (thousands)
|
|
|
1,416,149
|
|
|
1,414,166
|
|
1,394,939
|
|
|
|
1,412,644
|
|
|
1,389,857
|
|
Diluted earnings per
share (in dollars) - adjusted (8)
|
|
$
|
3.26
|
|
$
|
2.92
|
$
|
2.83
|
|
|
$
|
9.03
|
|
$
|
8.55
|
|
ROE - adjusted
(8)
|
|
|
16.4 %
|
|
|
15.5 %
|
|
15.4 %
|
|
|
|
15.6 %
|
|
|
16.0 %
|
|
Effective income tax
rate - adjusted (8)
|
|
|
16.9 %
|
|
|
19.8 %
|
|
16.3 %
|
|
|
|
18.3 %
|
|
|
18.0 %
|
|
|
|
(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)
|
As at July 31, 2024,
the cumulative HSBC Canada transaction and integration costs
(before-tax) incurred were $1.2 billion and it is currently
estimated that an additional $0.3 billion will be incurred, for a
total of approximately $1.5 billion.
|
(5)
|
For the nine months
ended July 31, 2024 and the three months ended April 30, 2024, we
included management of closing capital volatility related to the
HSBC Canada transaction as a specified item for non-GAAP measures
and non-GAAP ratios. For further details, refer to the Key
corporate events section of our Q3 2024 Report to
Shareholders.
|
(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)
|
See the Glossary
section of our interim Management's Discussion and Analysis dated
August 27, 2024, for the three and nine months ended July 31, 2024,
available at https://www.sedarplus.com/, for an explanation of the
composition of these measures. Such explanation is incorporated by
reference hereto.
|
Additional information about ROE and other key performance and
non-GAAP measures and ratios can be found under the Key performance
and non-GAAP measures section of our Q3 2024 Report to
Shareholders.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time to time, we make written or oral forward-looking
statements within the meaning of certain securities laws, including
the "safe harbour" provisions of the United States Private
Securities Litigation Reform Act of 1995 and any applicable
Canadian securities legislation. We may make forward-looking
statements in this document, in other filings with Canadian
regulators or the SEC, in reports to shareholders, and in other
communications. In addition, our representatives may communicate
forward-looking statements orally to analysts, investors, the media
and others. Forward-looking statements in this document include,
but are not limited to, statements relating to our financial
performance objectives, vision and strategic goals and the expected
impacts of the HSBC Canada transaction, including transaction and
integration costs, and includes statements made by our President
and Chief Executive Officer. The forward-looking statements
contained in this document represent the views of management and
are presented for the purpose of assisting the holders of our
securities and financial analysts in understanding our financial
position and results of operations as at and for the periods ended
on the dates presented, as well as our financial performance
objectives, vision, strategic goals and priorities and anticipated
financial performance, and may not be appropriate for other
purposes. Forward-looking statements are typically identified by
words such as "believe", "expect", "suggest", "seek", "foresee",
"forecast", "schedule", "anticipate", "intend", "estimate", "goal",
"commit", "target", "objective", "plan", "outlook", "timeline" and
"project" and similar expressions of future or conditional verbs
such as "will", "may", "might", "should", "could", "can" or "would"
or negative or grammatical variations thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, which give rise
to the possibility that our predictions, forecasts, projections,
expectations or conclusions will not prove to be accurate, that our
assumptions may not be correct, that our financial performance,
environmental & social or other objectives, vision and
strategic goals will not be achieved and that our actual results
may differ materially from such predictions, forecasts,
projections, expectations or conclusions.
We caution readers not to place undue reliance on our
forward-looking statements as a number of risk factors could cause
our actual results to differ materially from the expectations
expressed in such forward-looking statements. These factors – many
of which are beyond our control and the effects of which can be
difficult to predict – include, but are not limited to: credit,
market, liquidity and funding, insurance, operational, regulatory
compliance (which could lead to us being subject to various legal
and regulatory proceedings, the potential outcome of which could
include regulatory restrictions, penalties and fines), strategic,
reputation, legal and regulatory environment, competitive, model,
systemic risks and other risks discussed in the risk sections of
our 2023 Annual Report and the Risk management section of our Q3
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 Q3
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 Q3 2024 Report to Shareholders. Such
sections may be updated by subsequent quarterly reports.
Assumptions about costs related to post-close consolidation and
integration activities 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 Q3 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 Q3 2024 Report to Shareholders
at rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for August 28, 2024 at 8:00
a.m. (EST) and will feature a presentation about our third
quarter results by RBC executives. It will be followed by a
question and answer period with analysts. Interested parties can
access the call live on a listen-only basis at
rbc.com/investorrelations/quarterly-financial-statements.html or
by telephone (416-340-2217 or 866-696-5910, passcode 3369122#).
Please call between 7:50 a.m. and 7:55 a.m.
(EST).
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. (EST) from August 28, 2024 until December 3, 2024
at rbc.com/investorrelations/quarterly-financial-statements.html or
by telephone (905-694-9451 or 800-408-3053, passcode 3148244#).
ABOUT RBC
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SOURCE Royal Bank of Canada