All amounts are in Canadian dollars and are based on our
audited Annual and unaudited Interim Consolidated Financial
Statements for the year and quarter ended October 31, 2023 and related notes prepared in
accordance with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board, unless
otherwise noted. Our 2023 Annual Report (which includes our
audited Annual Consolidated Financial Statements and accompanying
Management's Discussion & Analysis), our 2023 Annual
Information Form and our Supplementary Financial Information are
available on our website at
http://www.rbc.com/investorrelations and on
https://www.sedarplus.ca.
2023 Net income
$14.9 Billion
Down 6% YoY
|
2023 Diluted EPS1
$10.50
Down 5% YoY
|
2023 Total PCL2
$2,468 Million
PCL on loans ratio3
up 23 bps4 YoY
|
2023 ROE5
14.2%
Down from 16.4%
last year
|
CET1 Ratio6
14.5%
Above regulatory
requirements
|
2023 Adjusted net income7
$16.1 Billion
Up slightly from
last year
|
2023 Adjusted diluted EPS7
$11.38
Up 2% YoY
|
2023 Total
ACL8
$5.4 Billion
ACL on loans ratio9
up 3 bps QoQ
|
2023 Adjusted ROE7
15.4%
Down from 16.6%
last year
|
2023 LCR10
131%
Down from 134%
last quarter
|
TORONTO, Nov. 30,
2023 /CNW/ - Royal Bank of Canada11 (TSX: RY) (NYSE: RY) today
reported net income of $14.9 billion
for the year ended October 31, 2023,
down $941 million or 6% from the
prior year. Diluted EPS12 was $10.50, down 5% over the prior year. Adjusted net
income7 of $16.1
billion was up slightly from the prior year. Adjusted diluted
EPS7 of $11.38 was up 2%
from the prior year. 1
Our consolidated results reflect an increase in total PCL of
$2.0 billion from a year ago,
primarily reflecting higher provisions in Personal & Commercial
Banking and Capital Markets. The PCL on loans ratio of 29
bps increased 23 bps from the prior year. The PCL on impaired
loans ratio12 was 21 bps, up 11 bps from the prior year
as provisions continue to trend upwards from pandemic lows. Results
benefitted from lower taxes reflecting a favourable shift in
earnings mix and the impact of the specified item relating to
certain deferred tax adjustments of $578
million.
Pre-provision, pre-tax earnings7 of $20.9 billion were up 2% from last year,
mainly reflecting higher net interest income driven by higher
spreads and strong volume growth in Canadian Banking and higher
loan growth in Wealth Management. Higher revenue in Capital Markets
reflecting higher revenue in Corporate & Investment Banking and
Global Markets also contributed to the increase. These factors were
partially offset by higher staff-related expenses (including
severance) and professional fees. Ongoing technology investments
and higher discretionary costs to support strong client-driven
growth also contributed to higher expenses.
Our capital position remained robust with a Common Equity Tier 1
(CET1) ratio6 of 14.5%, up 190 bps from the prior
year, supporting solid volume growth. In addition, this year we
returned $7.4 billion to our
shareholders through dividends.
Today, we declared a quarterly dividend of $1.38 per share reflecting an increase of
$0.03 or 2%.
"In a year defined by uncertainty, RBC served
as a stabilizing force for our clients, communities, colleagues and
shareholders. Our overall performance in 2023 exemplifies our
standing as an all-weather bank. Our strong balance sheet, prudent
risk management and diversified business model continue to underpin
our ability to deliver differentiated client experiences and advice
across all our businesses. As we enter 2024, RBC will work to
provide the best client value as efficiently as possible,
sharpening our focus to ensure our people and investments are
aligned to build the bank of the future. Across RBC, our employees
remain steadfast in their commitment to helping clients and
communities adapt and thrive in a changing world."
– 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).
For further information, refer to the Key performance and non-GAAP
measures section on pages 11 to 13 of this Earnings
Release.
|
6
|
This ratio is
calculated by dividing Common Equity Tier 1 (CET1) by risk-weighted
assets, in accordance with the 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
11 to 13 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 2023 Annual
Report.
|
11
|
When we say "we", "us",
"our", 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.
|
2023 Full-Year Business Segment
Performance
- 1% lower earnings in Personal & Commercial Banking,
primarily attributable to higher provisions on performing and
impaired loans reflecting a credit environment impacted by slowing
economic growth and rising interest rates, with the benchmark
interest rate up by 125 bps in fiscal 2023 and by 475 bps since the
beginning of March 2022. Higher
expenses mainly reflecting staff-related (including higher average
FTE) and marketing costs, as well as ongoing investments in
technology to enhance the client experience and deliver
personalized advice, also contributed to the decrease in earnings.
Our results were also impacted by a higher effective tax rate
reflecting the 1.5% increase in the Canadian corporate tax rate,
which was implemented at the beginning of the fiscal year. These
factors were partially offset by higher net interest income
reflecting higher spreads, largely as a result of interest rate
increases, and average volume growth of 8% in deposits (with
significant growth in term deposit products reflecting client
preference for higher yields) and 7% in loans (with strong
double-digit loan growth in business lending and credit cards) in
Canadian Banking. Approximately 650 thousand net new clients were
added in Canadian Banking in 2023, up more than 60% from last
year.
- 24% lower earnings in Wealth Management, mainly
attributable to higher staff costs and professional fees, largely
reflecting continued investments in the operational infrastructure
of City National. Higher PCL and the impact of the specified item
relating to impairment losses on our interest in an associated
company also contributed to the decrease. These factors were
partially offset by higher net interest income driven by higher
interest rates. Adjusted net income[13] decreased 19%. Our wealth
advisory businesses performed well with continued net positive
flows of fee-based client assets reflecting the quality of our
advice, clients' trust in our brand and the breadth of our
investment and holistic wealth planning solutions. City National
saw average loan growth of 12% (based on U.S. dollar figures).
- 6% lower earnings in Insurance, largely due to higher
capital funding costs, partially offset by improved claims
experience. The business generated over $1
billion in group annuity new business sales representing
~20% growth, and providing retirement income security to more
Canadian retirees.
- 23% earnings growth in Capital Markets, mainly due to
lower taxes reflecting changes in earnings mix, higher revenue in
Corporate & Investment Banking and Global Markets and the
impact of foreign exchange translation. While industry-wide fee
pools remained muted as clients largely maintained a risk-off
position, our market share gains helped deliver strong results.
These factors were partially offset by higher PCL, higher
compensation and ongoing technology investments. Trading activity
remained elevated as we saw improvement in the credit trading
environment as well as robust results in macro-focused businesses,
such as rates, underpinned by strong client flows.
Q4 2023 Performance
Net income and diluted EPS
of $4.1 billion and $2.90, respectively, were both up 6% from a year
ago. Adjusted net income13 and adjusted diluted
EPS13 of $4.0 billion and
$2.78, respectively, were up 1% and
flat compared to the prior year, respectively.
Results this quarter reflected higher provisions for credit
losses, with a PCL on loans ratio of 34 bps. Results benefitted
from lower taxes reflecting a favourable shift in earnings mix and
the impact of the specified item relating to certain deferred tax
adjustments of $578 million.
Pre-provision, pre-tax earnings13 of $4.8 billion were down 9% from a year ago,
due to lower revenue in Wealth Management, largely reflecting the
impact of impairment losses with respect to our interest in an
associated company, as well as lower revenue in Global Markets.
Results were also impacted by higher expenses, reflecting higher
staff-related costs including severance, higher professional fees,
ongoing technology investments and other items, such as legal
provisions in U.S. Wealth Management. These factors were partially
offset by higher net interest income driven by higher spreads and
strong volume growth in Canadian Banking, higher revenue in
Corporate & Investment Banking, and higher fee-based revenue in
Wealth Management.
Compared to last quarter, net income was up $259 million or 7% reflecting higher results in
Corporate Support, Insurance and Capital Markets, partially offset
by lower results in Wealth Management and Personal & Commercial
Banking. Adjusted net income13 was down 1% over the same
period.
Q4 2023
Compared to
Q4 2022
|
Reported:
· Net income of $4,131 million
· Diluted EPS of $2.90
· ROE of 15.2%
· CET1 ratio14 of 14.5%
|
↑ 6%
↑ 6%
↓40 bps
↑190 bps190 bps
|
Adjusted13:
· Net income of $3,965 million
· Diluted EPS of $2.78
· ROE of 14.6%
|
↑ 1%
→ 0%
↓ 120 bps
|
Q4 2023
Compared to
Q3 2023
|
· Net income of $4,131 million
· Diluted EPS of $2.90
· ROE of 15.2%
· CET1 ratio14 of
14.5%14
|
↑ 7%
↑ 6%
↑ 60
bps
↑ 40
bps
|
· Net income of $3,965 million
· Diluted EPS of $2.78
· ROE of 14.6%
|
↓ 1%
↓ 2%
↓ 50 bps
|
_________________
|
13
|
These are non-GAAP
measures. For further information, including a reconciliation,
refer to the Key performance and non-GAAP measures section on pages
11 to 13 of this Earnings Release.
|
14
|
This ratio is
calculated by dividing CET1 by risk-weighted assets, in accordance
with OSFI's Basel III CAR guideline.
|
Q4 2023 Business and Reporting Segment
Performance
Personal & Commercial Banking
Net income of $2,091 million
decreased $48 million or 2% from a
year ago, primarily attributable to higher PCL and higher
staff-related costs, largely reflecting severance. A higher
effective tax rate reflecting the 1.5% increase in the Canadian
corporate tax rate also contributed to the decrease. These factors
were partially offset by higher net interest income, reflecting
higher spreads and average volume growth of 7% in Canadian
Banking.
Compared to last quarter, net income decreased $43 million or 2%, primarily due to higher PCL on
performing loans in our Canadian Banking portfolios driven by
unfavourable changes in credit quality and higher staff-related
costs, largely reflecting severance. These factors were partially
offset by higher net interest income, primarily attributable to
higher spreads and average volume growth of 3% in Canadian
Banking.
Wealth Management
Net income decreased $607 million
or 74% from a year ago, mainly due to the impact of the specified
item relating to impairment losses on our interest in an associated
company, higher staff costs and professional fees, largely
reflecting continued investments in the operational infrastructure
of City National, and the impact of legal provisions. These factors
were partially offset by higher average fee-based client assets
reflecting market appreciation and net sales. Adjusted net
income15 decreased $430
million or 52%.
Compared to last quarter, net income decreased $448 million or 68%, mainly due to the impact of
the specified item relating to impairment losses on our interest in
an associated company, the impact of legal provisions and the gain
on the partial sale of RBC Investor Services® operations
in the prior quarter. These factors were partially offset by higher
net interest income driven by higher interest rates. Adjusted net
income15 decreased $271
million or 41%.
Insurance
Net income of $289 million
increased $21 million or 8% from last
year, mainly due to improved claims experience, a premium
adjustment in the prior year, benefits from favourable reinsurance
contract renegotiations and business growth. These factors
were partially offset by lower favourable investment-related
experience and higher capital funding costs.
Compared to last quarter, net income increased $62 million or 27%, mainly due to favourable
annual actuarial assumption updates and improved claims experience.
These factors were partially offset by lower favourable
investment-related experience.
Capital Markets
Net income of $987 million
increased $260 million or 36% from a
year ago, primarily due to lower taxes reflecting changes in
earnings mix and higher revenue in Corporate & Investment
Banking. These factors were partially offset by higher PCL and
lower revenue in Global Markets.
Compared to last quarter, net income increased $38 million or 4%, mainly due to lower taxes
reflecting changes in earnings mix and lower PCL mainly on impaired
loans. Higher loan syndication activity, largely in the U.S., also
contributed to the increase. These factors were partially offset by
lower fixed income and equity trading revenue across most
regions.
Corporate Support
Net income was $549 million in the
current 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 $101 million in the prior quarter, primarily due
to transaction and integration costs of $84
million relating to the planned acquisition of HSBC Canada,
which is treated as a specified item. Net loss was $74 million in the prior year, primarily due to
residual unallocated items and unfavourable tax adjustments.
Capital, Liquidity and Credit Quality
Capital – As at October 31,
2023, our CET1 ratio16 was 14.5%, up 190 bps from
last year, mainly reflecting net internal capital generation, the
favorable impact of the Basel III reforms and share issuances under
the DRIP. These factors were partially offset by risk-weighted
asset growth (excluding FX) and the impact of the CRD and other tax
related adjustments.
Liquidity – For the quarter ended October 31, 2023, the average LCR17
was 131%, which translates into a surplus of approximately
$91 billion, compared to 134% and a
surplus of approximately $97 billion
in the prior quarter. Average LCR levels decreased from prior
quarter primarily due to lower wholesale funding levels and loan
growth, partially offset by an increase in client deposits.
The Net Stable Funding Ratio18 (NSFR) as at
October 31, 2023 was 113%, which
translates into a surplus of approximately $109 billion, compared to 112% and a surplus of
approximately $104 billion in the
prior quarter. NSFR increased compared to the prior quarter mainly
due to an increase in deposits and stable funding, partially offset
by loan growth. 17
________________
|
15
|
These are non-GAAP
measures. For further information, including a reconciliation,
refer to the Key performance and non-GAAP measures section on pages
11 to 13 of this Earnings Release.
|
16
|
This ratio is
calculated by dividing CET1 by risk-weighted assets, 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 2023 Annual
Report.
|
Credit Quality
Q4 2023 vs. Q4 2022
Total PCL of $720 million increased $339 million or 89% from a year ago, primarily
reflecting higher provisions in Personal & Commercial Banking
and Capital Markets. The PCL on loans ratio of 34 bps increased 16
bps. The PCL on impaired loans ratio of 25 bps increased 13
bps.
PCL on performing loans of $194
million increased $68 million
or 54%, mainly due to higher provisions in Personal &
Commercial Banking as last year reflected the impact of releases in
our Caribbean Banking portfolios driven by the recovery from the
COVID-19 pandemic and model updates.
PCL on impaired loans of $539
million increased $285
million, mainly reflecting higher provisions in our Canadian
Banking portfolios. Higher provisions in Capital Markets across
most sectors also contributed to the increase.
Q4 2023 vs. Q3 2023
Total PCL increased
$104 million or 17% from last
quarter, primarily reflecting higher provisions in Personal &
Commercial Banking and U.S. Wealth Management (including City
National), partially offset by lower provisions in Capital Markets.
The PCL on loans ratio of 34 bps increased 5 bps. The PCL on
impaired loans ratio of 25 bps increased 2 bps.
PCL on performing loans increased $74
million or 62%, mainly due to higher provisions in our
Canadian Banking portfolios, largely driven by unfavourable changes
in credit quality.
PCL on impaired loans increased $40
million or 8%, mainly due to higher provisions in our
Canadian Banking portfolios and in U.S. Wealth Management
(including City National), primarily in the telecom and media and
consumer discretionary sectors. This was partially offset by lower
provisions in Capital Markets.
_____________________
|
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 2023 Annual
Report.
|
Selected
financial and other
highlights
|
|
|
As at or for the three
months ended
|
|
As at or for the year
ended
|
|
October
31
|
|
July
31
|
|
October
31
|
|
October
31
|
|
October
31
|
|
(Millions of Canadian
dollars, except per share, number of and percentage
amounts)
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Total
revenue
|
$
|
13,026
|
|
$
|
14,489
|
|
$
|
12,567
|
|
$
|
56,129
|
|
$
|
48,985
|
|
|
Provision for credit
losses (PCL)
|
|
720
|
|
|
616
|
|
|
381
|
|
|
2,468
|
|
|
484
|
|
|
Insurance policyholder
benefits, claims and acquisition expense (PBCAE)
|
|
92
|
|
|
1,379
|
|
|
116
|
|
|
4,022
|
|
|
1,783
|
|
|
Non-interest
expense
|
|
8,143
|
|
|
7,861
|
|
|
7,209
|
|
|
31,173
|
|
|
26,609
|
|
|
Income before income
taxes
|
|
4,071
|
|
|
4,633
|
|
|
4,861
|
|
|
18,466
|
|
|
20,109
|
|
Net
income
|
$
|
4,131
|
|
$
|
3,872
|
|
$
|
3,882
|
|
$
|
14,866
|
|
$
|
15,807
|
|
Net income -
adjusted (1)
|
$
|
3,965
|
|
$
|
4,017
|
|
$
|
3,934
|
|
$
|
16,083
|
|
$
|
15,998
|
|
Segments - net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal &
Commercial Banking
|
$
|
2,091
|
|
$
|
2,134
|
|
$
|
2,139
|
|
$
|
8,266
|
|
$
|
8,370
|
|
|
Wealth
Management (2)
|
|
215
|
|
|
663
|
|
|
822
|
|
|
2,427
|
|
|
3,210
|
|
|
Insurance
|
|
289
|
|
|
227
|
|
|
268
|
|
|
803
|
|
|
857
|
|
|
Capital
Markets (2)
|
|
987
|
|
|
949
|
|
|
727
|
|
|
4,139
|
|
|
3,368
|
|
|
Corporate
Support
|
|
549
|
|
|
(101)
|
|
|
(74)
|
|
|
(769)
|
|
|
2
|
|
Net
income
|
$
|
4,131
|
|
$
|
3,872
|
|
$
|
3,882
|
|
$
|
14,866
|
|
$
|
15,807
|
|
Selected
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS) - basic
|
$
|
2.90
|
|
$
|
2.74
|
|
$
|
2.75
|
|
$
|
10.51
|
|
$
|
11.08
|
|
|
- diluted
|
|
2.90
|
|
|
2.73
|
|
|
2.74
|
|
|
10.50
|
|
|
11.06
|
|
|
Earnings per share
(EPS) - basic adjusted (1)
|
$
|
2.78
|
|
$
|
2.84
|
|
$
|
2.78
|
|
$
|
11.39
|
|
$
|
11.21
|
|
|
- diluted adjusted (1)
|
|
2.78
|
|
|
2.84
|
|
|
2.78
|
|
|
11.38
|
|
|
11.19
|
|
|
Return on common equity
(ROE) (3), (4)
|
|
15.2 %
|
|
|
14.6 %
|
|
|
15.6 %
|
|
|
14.2 %
|
|
|
16.4 %
|
|
|
Return on common equity
(ROE) adjusted (1)
|
|
14.6 %
|
|
|
15.1 %
|
|
|
15.8 %
|
|
|
15.4 %
|
|
|
16.6 %
|
|
|
Average common
equity (3)
|
$
|
105,850
|
|
$
|
103,850
|
|
$
|
97,150
|
|
$
|
102,800
|
|
$
|
94,700
|
|
|
Net interest margin
(NIM) - on average earning assets, net (4)
|
|
1.51 %
|
|
|
1.50 %
|
|
|
1.56 %
|
|
|
1.50 %
|
|
|
1.48 %
|
|
|
PCL on loans as a % of
average net loans and acceptances
|
|
0.34 %
|
|
|
0.29 %
|
|
|
0.18 %
|
|
|
0.29 %
|
|
|
0.06 %
|
|
|
PCL on performing loans
as a % of average net loans and acceptances
|
|
0.09 %
|
|
|
0.06 %
|
|
|
0.06 %
|
|
|
0.08 %
|
|
|
(0.04) %
|
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
0.25 %
|
|
|
0.23 %
|
|
|
0.12 %
|
|
|
0.21 %
|
|
|
0.10 %
|
|
|
Gross impaired loans
(GIL) as a % of loans and acceptances
|
|
0.42 %
|
|
|
0.38 %
|
|
|
0.26 %
|
|
|
0.42 %
|
|
|
0.26 %
|
|
|
Liquidity coverage
ratio (LCR) (4), (5)
|
|
131 %
|
|
|
134 %
|
|
|
125 %
|
|
|
131 %
|
|
|
125 %
|
|
|
Net stable funding
ratio (NSFR) (4), (5)
|
|
113 %
|
|
|
112 %
|
|
|
112 %
|
|
|
113 %
|
|
|
112 %
|
|
Capital, Leverage
and Total loss absorbing capacity (TLAC) ratios (4),
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1) ratio
|
|
14.5 %
|
|
|
14.1 %
|
|
|
12.6 %
|
|
|
14.5 %
|
|
|
12.6 %
|
|
|
Tier 1 capital
ratio
|
|
15.7 %
|
|
|
15.4 %
|
|
|
13.8 %
|
|
|
15.7 %
|
|
|
13.8 %
|
|
|
Total capital
ratio
|
|
17.6 %
|
|
|
17.3 %
|
|
|
15.4 %
|
|
|
17.6 %
|
|
|
15.4 %
|
|
|
Leverage
ratio
|
|
4.3 %
|
|
|
4.2 %
|
|
|
4.4 %
|
|
|
4.3 %
|
|
|
4.4 %
|
|
|
TLAC ratio
|
|
31.0 %
|
|
|
30.9 %
|
|
|
26.4 %
|
|
|
31.0 %
|
|
|
26.4 %
|
|
|
TLAC leverage
ratio
|
|
8.5 %
|
|
|
8.5 %
|
|
|
8.5 %
|
|
|
8.5 %
|
|
|
8.5 %
|
|
Selected balance
sheet and other information (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
2,004,992
|
|
$
|
1,957,734
|
|
$
|
1,917,219
|
|
$
|
2,004,992
|
|
$
|
1,917,219
|
|
|
Securities, net of
applicable allowance
|
|
409,730
|
|
|
372,625
|
|
|
318,223
|
|
|
409,730
|
|
|
318,223
|
|
|
Loans, net of allowance
for loan losses
|
|
852,773
|
|
|
835,714
|
|
|
819,965
|
|
|
852,773
|
|
|
819,965
|
|
|
Derivative related
assets
|
|
142,450
|
|
|
115,914
|
|
|
154,439
|
|
|
142,450
|
|
|
154,439
|
|
|
Deposits
|
|
1,231,687
|
|
|
1,215,671
|
|
|
1,208,814
|
|
|
1,231,687
|
|
|
1,208,814
|
|
|
Common
equity
|
|
110,347
|
|
|
105,004
|
|
|
100,746
|
|
|
110,347
|
|
|
100,746
|
|
|
Total risk-weighted
assets (RWA) (4),
(6)
|
|
596,223
|
|
|
585,899
|
|
|
609,879
|
|
|
596,223
|
|
|
609,879
|
|
|
Assets under management
(AUM) (4)
|
|
1,067,500
|
|
|
1,095,400
|
|
|
999,700
|
|
|
1,067,500
|
|
|
999,700
|
|
|
Assets under
administration (AUA) (4), (8),
(9)
|
|
4,338,000
|
|
|
4,420,000
|
|
|
5,653,600
|
|
|
4,338,000
|
|
|
5,653,600
|
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(000s) - average basic
|
|
1,399,337
|
|
|
1,393,515
|
|
|
1,386,925
|
|
|
1,391,020
|
|
|
1,403,654
|
|
|
- average diluted
|
|
1,400,465
|
|
|
1,394,939
|
|
|
1,388,548
|
|
|
1,392,529
|
|
|
1,406,034
|
|
|
- end of period
|
|
1,400,511
|
|
|
1,394,997
|
|
|
1,382,911
|
|
|
1,400,511
|
|
|
1,382,911
|
|
|
Dividends declared per
common share
|
$
|
1.35
|
|
$
|
1.35
|
|
$
|
1.28
|
|
$
|
5.34
|
|
$
|
4.96
|
|
|
Dividend yield
(4)
|
|
4.5 %
|
|
|
4.2 %
|
|
|
4.0 %
|
|
|
4.3 %
|
|
|
3.7 %
|
|
|
Dividend payout
ratio (4)
|
|
47 %
|
|
|
49 %
|
|
|
47 %
|
|
|
51 %
|
|
|
45 %
|
|
|
Common share price (RY
on TSX) (10)
|
$
|
110.76
|
|
$
|
130.73
|
|
$
|
126.05
|
|
$
|
110.76
|
|
$
|
126.05
|
|
|
Market capitalization
(TSX) (10)
|
|
155,121
|
|
|
182,368
|
|
|
174,316
|
|
|
155,121
|
|
|
174,316
|
|
Business
information (number of)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (full-time
equivalent) (FTE)
|
|
91,398
|
|
|
93,753
|
|
|
91,427
|
|
|
91,398
|
|
|
91,427
|
|
|
Bank
branches
|
|
1,247
|
|
|
1,257
|
|
|
1,271
|
|
|
1,247
|
|
|
1,271
|
|
|
Automated teller
machines (ATMs)
|
|
4,341
|
|
|
4,353
|
|
|
4,368
|
|
|
4,341
|
|
|
4,368
|
|
Period average US$
equivalent of C$1.00 (11)
|
$
|
0.732
|
|
$
|
0.750
|
|
$
|
0.739
|
|
$
|
0.741
|
|
$
|
0.774
|
|
Period-end US$
equivalent of C$1.00
|
$
|
0.721
|
|
$
|
0.758
|
|
$
|
0.734
|
|
$
|
0.721
|
|
$
|
0.734
|
|
|
|
(1)
|
These are non-GAAP
measures. For further details, including a reconciliation, refer to
the Key performance and non-GAAP measures section of this Earnings
Release. Amounts have been revised from those previously presented
to conform to our basis of presentation for this non-GAAP
measure.
|
(2)
|
Amounts have been
revised from those previously presented to conform to our new basis
of segment presentation. For further details, refer to the About
Royal Bank of Canada section of our 2023 Annual Report.
|
(3)
|
Average amounts are
calculated using methods intended to approximate the average of the
daily balances for the period. This includes average common equity
used in the calculation of ROE. For further details, refer to the
Key performance and non-GAAP measures section of this Earnings
Release.
|
(4)
|
See the Glossary
section of our annual Management's Discussion and Analysis dated
November 29, 2023, for the fiscal year ended October 31, 2023,
available at www.sedarplus.ca, for an explanation of the
composition of this measure. Such explanation is incorporated by
reference hereto.
|
(5)
|
The LCR and NSFR
are calculated in accordance with the OSFI's LAR guideline. LCR is
the average for the three months ended for each respective period.
For further details, refer to the Liquidity and funding risk
section of our 2023 Annual Report.
|
(6)
|
Capital ratios and RWA
are calculated using OSFI's CAR guideline, the Leverage ratio is
calculated using OSFI's Leverage Requirements (LR) guideline, and
both the TLAC and TLAC leverage ratios are calculated using OSFI's
TLAC guideline. The results for the three months and year ended
October 31, 2023 and three months ended July 31, 2023 reflect our
adoption of the revised CAR and LR guidelines that came into effect
in Q2 2023 as part of OSFI's implementation of the Basel III
reforms. For further details, refer to the Capital management
section of our 2023 Annual Report.
|
(7)
|
Represents period-end
spot balances.
|
(8)
|
AUA includes $13
billion and $7 billion (July 31, 2023 – $13 billion and $7 billion,
October 31, 2022 – $15 billion and $6 billion) of securitized
residential mortgages and credit card loans,
respectively.
|
(9)
|
Comparative amounts
have been revised from those previously presented.
|
(10)
|
Based on TSX
closing market price at period-end.
|
(11)
|
Average amounts are
calculated using month-end spot rates for the period.
|
Personal
& Commercial Banking
|
|
|
|
|
|
|
|
|
|
As at or for the three
months ended
|
|
|
|
|
|
October
31
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts and as otherwise
noted)
|
|
2023
|
2023
|
2022
|
|
Net interest
income
|
|
$
|
4,188
|
$
|
4,062
|
$
|
3,901
|
|
Non-interest
income
|
|
|
1,530
|
|
1,501
|
|
1,518
|
Total
revenue
|
|
|
5,718
|
|
5,563
|
|
5,419
|
|
PCL on performing
assets
|
|
|
103
|
|
5
|
|
56
|
|
PCL on impaired
assets
|
|
|
348
|
|
300
|
|
230
|
PCL
|
|
|
451
|
|
305
|
|
286
|
|
Non-interest
expense
|
|
|
2,410
|
|
2,319
|
|
2,270
|
Income before income
taxes
|
|
|
2,857
|
|
2,939
|
|
2,863
|
Net
income
|
|
$
|
2,091
|
$
|
2,134
|
$
|
2,139
|
Revenue by
business
|
|
|
|
|
|
|
|
|
Canadian
Banking
|
|
$
|
5,434
|
$
|
5,292
|
$
|
5,179
|
|
Caribbean & U.S.
Banking
|
|
|
284
|
|
271
|
|
240
|
Key
ratios
|
|
|
|
|
|
|
|
|
ROE
|
|
|
26.7 %
|
|
28.1 %
|
|
30.5 %
|
|
NIM
|
|
|
2.77 %
|
|
2.74 %
|
|
2.72 %
|
|
Efficiency ratio
(1)
|
|
|
42.1 %
|
|
41.7 %
|
|
41.9 %
|
|
Operating
leverage (2)
|
|
|
(0.7) %
|
|
(1.5) %
|
|
8.9 %
|
Selected balance
sheet information
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
|
631,500
|
$
|
619,700
|
$
|
597,600
|
|
Average total earning
assets, net
|
|
|
599,400
|
|
588,400
|
|
569,000
|
|
Average loans and
acceptances, net
|
|
|
607,200
|
|
596,000
|
|
574,300
|
|
Average
deposits
|
|
|
621,000
|
|
601,100
|
|
570,200
|
Other
information
|
|
|
|
|
|
|
|
|
AUA (3), (4), (5)
|
|
|
336,800
|
|
357,500
|
|
340,300
|
|
Average AUA
|
|
|
341,700
|
|
349,100
|
|
338,300
|
|
AUM (4)
|
|
|
5,900
|
|
5,700
|
|
5,600
|
|
Number of employees
(FTE)
|
|
|
38,027
|
|
39,218
|
|
38,450
|
Credit
information
|
|
|
|
|
|
|
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
|
0.23 %
|
|
0.20 %
|
|
0.16 %
|
Other selected
information - Canadian Banking
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,998
|
$
|
2,043
|
$
|
1,999
|
|
NIM
|
|
|
2.71 %
|
|
2.68 %
|
|
2.70 %
|
|
Efficiency
ratio
|
|
|
40.9 %
|
|
40.5 %
|
|
40.3 %
|
|
Operating
leverage
|
|
|
(1.4) %
|
|
(2.0) %
|
|
9.2 %
|
|
|
(1)
|
Calculated as
non-interest expense divided by total revenue.
|
(2)
|
Defined as the
difference between our revenue growth rate and non-interest expense
growth rate.
|
(3)
|
AUA includes
securitized residential mortgages and credit card loans as at
October 31, 2023 of $13 billion and $7 billion, respectively (July
31, 2023 – $13 billion and $7 billion, October 31, 2022 – $15
billion and $6 billion).
|
(4)
|
Represents period-end
spot balances.
|
(5)
|
Comparative amounts
have been revised from those previously presented.
|
Q4 2023 vs. Q4 2022
Net income decreased
$48 million or 2% from a year ago,
primarily attributable to higher PCL and higher staff-related
costs, largely reflecting severance. A higher effective tax rate
reflecting the 1.5% increase in the Canadian corporate tax rate
also contributed to the decrease. These factors were partially
offset by higher net interest income, reflecting higher spreads and
average volume growth of 7% in Canadian Banking.
Total revenue increased $299
million or 6%.
Canadian Banking revenue increased $255
million or 5%, primarily due to higher net interest income
reflecting higher spreads and average volume growth of 9% in
deposits and 6% in loans.
Caribbean & U.S. Banking
revenue increased $44 million or 18%,
mainly due to higher net interest income reflecting improved
spreads.
Net interest margin was up 5 bps, mainly due to the impact of
the higher interest rate environment.
PCL increased $165 million or 58%,
mainly reflecting higher provisions on impaired loans in our
Canadian Banking retail portfolios, resulting in an increase of 7
bps in the PCL on impaired loans ratio. Higher provisions on
performing loans in our Caribbean Banking portfolios also
contributed to the increase, mainly reflecting the impact of
releases last year driven by the recovery from the COVID-19
pandemic and model updates. These drivers were partially offset by
lower provisions on performing loans in our Canadian Banking retail
portfolios.
Non-interest expense increased $140
million or 6%, mainly attributable to higher staff-related
costs, largely reflecting severance.
Q4 2023 vs. Q3 2023
Net income decreased $43 million or 2% from last quarter, primarily
due to higher PCL on performing loans in our Canadian Banking
portfolios driven by unfavourable changes in credit quality and
higher staff-related costs, largely reflecting severance. These
factors were partially offset by higher net interest income,
primarily attributable to higher spreads and average volume growth
of 3% in Canadian Banking.
Net interest margin was up 3 bps, mainly due to the impact of
the higher interest rate environment, partially offset by lower
mortgage spreads mainly due to competitive pricing pressures.
Wealth
Management
|
|
|
|
|
|
|
|
As at or for the three
months ended
|
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except number of, percentage amounts and as otherwise
noted)
|
|
|
2023
|
|
2023 (1)
|
|
2022 (1)
|
|
Net interest
income (2)
|
|
$
|
1,143
|
$
|
1,047
|
$
|
1,189
|
|
Non-interest
income (2)
|
|
|
3,045
|
|
3,355
|
|
3,098
|
Total
revenue
|
|
|
4,188
|
|
4,402
|
|
4,287
|
|
PCL on performing
assets
|
|
|
63
|
|
64
|
|
51
|
|
PCL on impaired
assets
|
|
|
69
|
|
38
|
|
11
|
PCL
|
|
|
132
|
|
102
|
|
62
|
|
Non-interest
expense
|
|
|
3,749
|
|
3,498
|
|
3,172
|
Income before income
taxes
|
|
|
307
|
|
802
|
|
1,053
|
Net
income
|
|
$
|
215
|
$
|
663
|
$
|
822
|
Revenue by
business
|
|
|
|
|
|
|
|
|
Canadian Wealth
Management
|
|
$
|
1,127
|
$
|
1,111
|
$
|
1,095
|
|
U.S. Wealth Management
(including City National)
|
|
|
1,867
|
|
1,969
|
|
2,068
|
|
U.S. Wealth Management
(including City National) (US$ millions)
|
|
|
1,369
|
|
1,477
|
|
1,529
|
|
Global Asset
Management
|
|
|
674
|
|
635
|
|
644
|
|
International Wealth
Management
|
|
|
338
|
|
324
|
|
169
|
|
Investor
Services (3)
|
|
|
182
|
|
363
|
|
311
|
Key
ratios
|
|
|
|
|
|
|
|
|
ROE
|
|
|
3.4 %
|
|
10.8 %
|
|
14.8 %
|
|
NIM (2)
|
|
|
2.91 %
|
|
2.48 %
|
|
2.86 %
|
|
Pre-tax margin
(4)
|
|
|
7.3 %
|
|
18.2 %
|
|
24.6 %
|
Selected balance
sheet information
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
|
177,600
|
$
|
191,900
|
$
|
185,300
|
|
Average total earning
assets, net
|
|
|
156,000
|
|
167,400
|
|
164,900
|
|
Average loans and
acceptances, net
|
|
|
114,200
|
|
112,400
|
|
111,900
|
|
Average deposits
(3)
|
|
|
156,600
|
|
154,300
|
|
195,300
|
Other
information
|
|
|
|
|
|
|
|
|
AUA (3), (5)
|
|
|
3,981,500
|
|
4,043,600
|
|
5,294,800
|
|
U.S.
Wealth Management (including City National) (5)
|
|
|
752,700
|
|
756,300
|
|
700,100
|
|
U.S. Wealth Management
(including City National) (US$ millions) (5)
|
|
|
542,800
|
|
573,500
|
|
513,700
|
|
Investor
Services (5)
|
|
|
2,488,600
|
|
2,544,500
|
|
3,906,900
|
|
AUM (5)
|
|
|
1,058,900
|
|
1,086,800
|
|
991,500
|
|
Average AUA
(3)
|
|
|
4,056,200
|
|
4,987,300
|
|
5,454,500
|
|
Average AUM
|
|
|
1,070,100
|
|
1,074,600
|
|
942,000
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
|
0.24 %
|
|
0.13 %
|
|
0.04 %
|
|
Number of employees
(FTE)
|
|
|
25,196
|
|
25,537
|
|
26,150
|
|
Number of
advisors (6)
|
|
|
6,169
|
|
6,239
|
|
6,158
|
Adjusted results
(7)
|
|
|
|
|
|
|
|
|
Total revenue -
adjusted
|
|
$
|
4,430
|
$
|
4,402
|
$
|
4,287
|
|
Income before income
taxes - adjusted
|
|
|
549
|
|
802
|
|
1,053
|
|
Net income -
adjusted
|
|
|
392
|
|
663
|
|
822
|
|
U.S. Wealth Management
(including City National) revenue - adjusted
|
|
|
2,109
|
|
1,969
|
|
2,068
|
|
U.S. Wealth Management
(including City National) revenue (US$ millions) -
adjusted
|
|
|
1,544
|
|
1,477
|
|
1,529
|
Key ratios –
adjusted (7)
|
|
|
|
|
|
|
|
|
ROE -
adjusted
|
|
|
6.3 %
|
|
10.8 %
|
|
14.8 %
|
|
Pre-tax margin -
adjusted
|
|
|
12.4 %
|
|
18.2 %
|
|
24.6 %
|
|
|
For the three months
ended
|
|
Estimated impact of
U.S. dollar, British pound and Euro translation on key income
statement items
|
Q4 2023
vs
|
Q4 2023
vs
|
|
(Millions of Canadian
dollars, except percentage amounts)
|
Q4
2022
|
Q3
2023
|
|
Increase
(decrease):
|
|
|
|
|
|
|
Total
revenue
|
$
|
62
|
$
|
43
|
|
|
PCL
|
|
2
|
|
4
|
|
|
Non-interest
expense
|
|
53
|
|
51
|
|
|
Net income
|
|
5
|
|
(11)
|
|
Percentage change in
average US$ equivalent of C$1.00
|
|
(1) %
|
|
(2) %
|
|
Percentage change in
average British pound equivalent of C$1.00
|
|
(8) %
|
|
0 %
|
|
Percentage change in
average Euro equivalent of C$1.00
|
|
(8) %
|
|
0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts have been
revised from those previously presented to conform to our new basis
of segment presentation. For further details, refer to the About
Royal Bank of Canada section of our 2023 Annual Report.
|
(2)
|
Amounts for the
three months ended July 31, 2023 have been revised from those
previously presented.
|
(3)
|
On July 3, 2023, we
completed the partial sale of RBC Investor Services
operations. The completion of the sale of the business of the U.K.
branch of RBC Investor Services Trust and the RBC Investor Services
business in Jersey remains subject to customary closing conditions,
including regulatory approvals. For further details, refer to Note
6 of our 2023 Annual Consolidated Financial Statements.
|
(4)
|
Pre-tax margin is
defined as Income before income taxes divided by Total
revenue.
|
(5)
|
Represents period-end
spot balances.
|
(6)
|
Represents
client-facing advisors across all our Wealth Management
businesses.
|
(7)
|
These are non-GAAP
measures and non-GAAP ratios. During the year ended October 31,
2023, we recognized impairment losses of $177 million (pre-tax $242
million) on our interest in an associated company. For further
details on this specified item, including a reconciliation, refer
to the Key performance and non-GAAP measures section of this
Earnings Release.
|
Q4 2023 vs. Q4 2022
Net income decreased $607 million or 74% from a year ago, mainly due
to the impact of the specified item relating to impairment losses
on our interest in an associated company, higher staff costs and
professional fees, largely reflecting continued investments in the
operational infrastructure of City National, and the impact of
legal provisions. These factors were partially offset by higher
average fee-based client assets reflecting market appreciation and
net sales. Adjusted net income19 decreased $430 million or 52%.18
Total revenue decreased $99
million or 2%, mainly due to the impact of the specified
item relating to impairment losses on our interest in an associated
company and reduced revenue following the partial sale of RBC
Investor Services operations in the current year. These factors
were partially offset by an increase in fee-based revenue, largely
reflecting market appreciation and net sales and the inclusion of
RBC Brewin Dolphin. Adjusted total revenue19 increased
$143 million or 3%.
PCL increased $70 million,
primarily in U.S. Wealth Management (including City National),
largely due to higher provisions on impaired loans in the real
estate and related and telecom and media sectors, which contributed
to an increase of 20 bps in the PCL on impaired loans ratio.
Non-interest expense increased $577
million or 18%, primarily due to higher staff costs and
professional fees, largely reflecting continued investments in the
operational infrastructure of City National. The impact of legal
provisions and the inclusion of RBC Brewin Dolphin and related
costs also contributed to the increase. These factors were
partially offset by reduced expenses following the partial sale of
RBC Investor Services operations.
Q4 2023 vs. Q3 2023
Net income decreased $448 million or 68% from last quarter, mainly due
to the impact of the specified item relating to impairment losses
on our interest in an associated company, the impact of legal
provisions and the gain on the partial sale of RBC Investor
Services operations in the prior quarter. These factors were
partially offset by higher net interest income driven by higher
interest rates. Adjusted net income19 decreased
$271 million or 41%.
Insurance
|
|
|
|
|
|
|
|
|
|
As at or for the three
months ended
|
|
|
|
October
31
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts and as otherwise
noted)
|
2023
|
2023
|
|
2022
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Net earned
premiums
|
|
$
|
1,121
|
$
|
1,773
|
$
|
908
|
|
Investment income,
gains/(losses) on assets supporting insurance policyholder
liabilities (1)
|
|
|
(593)
|
|
18
|
|
(334)
|
|
Fee income
|
|
|
61
|
|
57
|
|
70
|
Total
revenue
|
|
|
589
|
|
1,848
|
|
644
|
|
PCL
|
|
|
-
|
|
-
|
|
-
|
|
Insurance policyholder
benefits and claims (1)
|
|
|
16
|
|
1,295
|
|
42
|
|
Insurance policyholder
acquisition expense
|
|
|
76
|
|
84
|
|
74
|
|
Non-interest
expense
|
|
|
173
|
|
165
|
|
157
|
Income before income
taxes
|
|
|
324
|
|
304
|
|
371
|
Net
income
|
|
$
|
289
|
$
|
227
|
$
|
268
|
Revenue by
business
|
|
|
|
|
|
|
|
|
Canadian
Insurance
|
|
$
|
(89)
|
$
|
1,184
|
$
|
(130)
|
|
International
Insurance
|
|
|
678
|
|
664
|
|
774
|
Key
ratios
|
|
|
|
|
|
|
|
|
ROE
|
|
|
51.3 %
|
|
40.7 %
|
|
46.7 %
|
Selected balance
sheet information
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
|
23,900
|
$
|
24,100
|
$
|
22,000
|
Other
information
|
|
|
|
|
|
|
|
|
Premiums and
deposits (2)
|
|
$
|
1,297
|
$
|
1,974
|
$
|
1,071
|
|
Insurance claims and
policy benefit liabilities
|
|
$
|
11,966
|
$
|
12,700
|
$
|
11,511
|
|
Fair value changes on
investments backing policyholder liabilities (1)
|
|
|
(667)
|
|
(99)
|
|
(440)
|
|
Number of employees
(FTE)
|
|
|
2,781
|
|
2,887
|
|
2,731
|
|
|
(1)
|
Includes unrealized
gains and losses on investments backing policyholder liabilities
attributable to fluctuation of assets designated as fair value
through profit or loss (FVTPL). The investments which support
actuarial liabilities are predominantly fixed income assets
designated as FVTPL. Consequently, changes in the fair values of
these assets are recorded in Insurance premiums, investment and fee
income in the Consolidated Statements of Income and are largely
offset by changes in the fair value of the actuarial liabilities,
the impact of which is reflected in Insurance policyholder
benefits, claims and acquisition expense (PBCAE).
|
(2)
|
Premiums and deposits
include premiums on risk-based individual and group insurance and
annuity products as well as segregated fund deposits, consistent
with insurance industry practices.
|
Q4 2023 vs. Q4 2022
Net income increased
$21 million or 8% from last year,
mainly due to improved claims experience, a premium adjustment in
the prior year, benefits from favourable reinsurance contract
renegotiations and business growth. These factors were partially
offset by lower favourable investment-related experience and higher
capital funding costs.
Total revenue decreased $55
million or 9%, primarily reflecting the change in fair value
of investments backing policyholder liabilities, which is largely
offset in PBCAE as indicated below. This factor was partially
offset by business growth across most products, including group
annuity sales, and a premium adjustment in the prior year.
PBCAE decreased $24 million or
21%, primarily reflecting the change in fair value of investments
backing policyholder liabilities, which is largely offset in
revenue, improved claims experience and benefits from favourable
reinsurance contract renegotiations. These factors were partially
offset by lower favourable investment-related experience, business
growth including group annuity sales and lower favourable annual
actuarial assumption updates.
Non-interest expense increased $16
million or 10%, largely due to higher staff-related costs,
including severance, and ongoing technology investments.
______________________
|
19
|
These are
non-GAAP measures. For further information, including a
reconciliation, refer to the Key performance and non-GAAP measures
section on pages 11 to 13 of this Earnings Release.
|
Q4 2023 vs. Q3 2023
Net income increased $62 million or 27% from last quarter, mainly due
to favourable annual actuarial assumption updates and improved
claims experience. These factors were partially offset by lower
favourable investment-related experience.
Capital
Markets
|
|
|
|
|
As at or for the three
months ended
|
|
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts and as otherwise
noted)
|
|
|
2023
|
|
2023
|
|
2022 (1)
|
|
Net interest
income (2)
|
|
$
|
729
|
$
|
907
|
$
|
1,099
|
|
Non-interest
income (2)
|
|
|
1,835
|
|
1,772
|
|
1,406
|
Total revenue
(2)
|
|
|
2,564
|
|
2,679
|
|
2,505
|
|
PCL on performing
assets
|
|
|
25
|
|
51
|
|
20
|
|
PCL on impaired
assets
|
|
|
112
|
|
158
|
|
13
|
PCL
|
|
|
137
|
|
209
|
|
33
|
|
Non-interest
expense
|
|
|
1,678
|
|
1,620
|
|
1,679
|
Income before income
taxes
|
|
|
749
|
|
850
|
|
793
|
Net
income
|
|
$
|
987
|
$
|
949
|
$
|
727
|
Revenue by
business
|
|
|
|
|
|
|
|
|
Corporate &
Investment Banking
|
|
$
|
1,414
|
$
|
1,275
|
$
|
1,299
|
|
Global
Markets
|
|
|
1,251
|
|
1,484
|
|
1,317
|
|
Other
|
|
|
(101)
|
|
(80)
|
|
(111)
|
Key
ratios
|
|
|
|
|
|
|
|
|
ROE
|
|
|
14.1 %
|
|
13.4 %
|
|
10.0 %
|
Selected balance
sheet information
|
|
|
|
|
|
|
|
|
Average total
assets
|
|
$
|
1,140,600
|
$
|
1,089,500
|
$
|
1,126,400
|
|
Average trading
securities
|
|
|
187,400
|
|
157,400
|
|
137,900
|
|
Average loans and
acceptances, net
|
|
|
143,100
|
|
143,600
|
|
141,100
|
|
Average
deposits
|
|
|
277,900
|
|
285,500
|
|
296,700
|
Other
information
|
|
|
|
|
|
|
|
|
Number of employees
(FTE)
|
|
|
7,253
|
|
7,775
|
|
7,017
|
Credit
information
|
|
|
|
|
|
|
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
|
0.31 %
|
|
0.44 %
|
|
0.03 %
|
|
|
For the three months
ended
|
Estimated impact of
U.S. dollar, British pound and Euro translation on key income
statement items
|
Q4 2023
vs
|
Q4 2023
vs
|
(Millions of Canadian
dollars, except percentage amounts)
|
Q4
2022
|
Q3
2023
|
Increase
(decrease):
|
|
|
|
|
|
Total
revenue
|
$
|
55
|
$
|
51
|
|
PCL
|
|
2
|
|
4
|
|
Non-interest
expense
|
|
35
|
|
19
|
|
Net income
|
|
18
|
|
28
|
Percentage change in
average US$ equivalent of C$1.00
|
|
(1) %
|
|
(2) %
|
Percentage change in
average British pound equivalent of C$1.00
|
|
(8) %
|
|
0 %
|
Percentage change in
average Euro equivalent of C$1.00
|
|
(8) %
|
|
0 %
|
|
|
(1)
|
Amounts have been
revised from those previously presented to conform to our new basis
of segment presentation. For further details, refer to the About
Royal Bank of Canada section of our 2023 Annual Report.
|
(2)
|
The taxable equivalent
basis (teb) adjustment for the three months ended October 31, 2023
was $117 million (July 31, 2023 – $113 million, October 31,
2022 – $142 million).
|
Q4 2023 vs. Q4 2022
Net income increased
$260 million or 36% from a year ago,
primarily due to lower taxes reflecting changes in earnings mix and
higher revenue in Corporate & Investment Banking. These factors
were partially offset by higher PCL and lower revenue in Global
Markets.
Total revenue increased $59
million or 2%, mainly due to higher fixed income trading
revenue, largely in the U.S., higher debt and equity origination
across most regions, the impact of foreign exchange translation, as
well as higher loan syndication activity in the U.S. These factors
were partially offset by lower equity trading and foreign exchange
trading revenue across all regions.
PCL increased $104 million,
primarily reflecting higher provisions on impaired loans across
most sectors, resulting in an increase of 28 bps in the PCL on
impaired loans ratio.
Non-interest expense remained relatively flat, reflecting lower
compensation costs as the prior year included higher true-ups
related to our variable compensation plans. This was partially
offset by the impact of foreign exchange translation and ongoing
technology investments. Non-interest expense also reflects the
inclusion of severance.
Q4 2023 vs. Q3 2023
Net income increased $38 million or 4% from last quarter, mainly due
to lower taxes reflecting changes in earnings mix and lower PCL,
mainly on impaired loans. Higher loan syndication activity, largely
in the U.S., also contributed to the increase. These factors were
partially offset by lower fixed income and equity trading revenue
across most regions.
Corporate
Support
|
|
|
|
|
|
|
|
|
|
|
|
As at or for the three
months ended
|
|
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
(Millions of Canadian
dollars)
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Net interest income
(loss) (1), (2)
|
|
$
|
482
|
$
|
270
|
$
|
93
|
|
|
Non-interest income
(loss) (1), (2),
(3)
|
|
|
(515)
|
|
(273)
|
|
(381)
|
|
Total revenue
(1), (3)
|
|
|
(33)
|
|
(3)
|
|
(288)
|
|
|
PCL
|
|
|
-
|
|
-
|
|
-
|
|
|
Non-interest
expense (3)
|
|
|
133
|
|
259
|
|
(69)
|
|
Income (loss) before
income taxes (1)
|
|
|
(166)
|
|
(262)
|
|
(219)
|
|
|
Income taxes
(recoveries) (1)
|
|
|
(715)
|
|
(161)
|
|
(145)
|
|
Net income
(loss)
|
|
$
|
549
|
$
|
(101)
|
$
|
(74)
|
|
|
|
(1)
|
Teb
adjusted.
|
(2)
|
Amounts for the three
months ended July 31, 2023 have been revised from those previously
presented.
|
(3)
|
Revenue for the three
months ended October 31, 2023 included losses of $150 million (July
31, 2023 – gains of $129 million, October 31, 2022 – losses of $98
million) on economic hedges of our U.S. Wealth Management
(including City National) share-based compensation plans, and
non-interest expense included $(128) million (July 31, 2023 – $118
million, October 31, 2022 – $(81) million) of share-based
compensation expense driven by changes in the fair value of
liabilities relating to our U.S. Wealth Management (including City
National) share-based compensation plans.
|
Due to the nature of activities and consolidation adjustments
reported in this segment, we believe that a comparative period
analysis is not relevant.
Total revenue and Income taxes (recoveries) in each period in
Corporate Support include the deduction of the teb adjustments
related to the gross-up of income from Canadian taxable corporate
dividends and the U.S. tax credit investment business recorded in
Capital Markets. The amount deducted from revenue was offset by an
equivalent increase in Income taxes (recoveries).
The teb amount for the three months ended October 31, 2023 was $117
million, compared to $113
million in the prior quarter and $142
million in the same quarter last year. For further
discussion, refer to the How we measure and report our business
segments section of our 2023 Annual Report.
The following identifies the material items, other than the teb
impacts noted previously, affecting the reported results in each
period.
Q4 2023
Net income was $549
million, 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.
Q3 2023
Net loss was $101
million, primarily due to transaction and integration costs
of $84 million relating to the
planned acquisition of HSBC Canada, which is treated as a specified
item.
Q4 2022
Net loss was $74
million, primarily due to residual unallocated items and
unfavourable tax adjustments.
For further details on specified items, refer to the Key
performance and non-GAAP measures section of this Earnings
Release.
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.
Return on common equity
We use ROE, at both the
consolidated and business segment levels, as a measure of return on
total capital invested in our business. Management views the
business segment ROE measure as a useful measure for supporting
investment and resource allocation decisions because it adjusts for
certain items that may affect comparability between business
segments and certain competitors.
Our consolidated ROE calculation is based on net income
available to common shareholders divided by total average common
equity for the period. Business segment ROE calculations are based
on net income available to common shareholders divided by average
attributed capital for the period. For each segment, average
attributed capital includes the capital required to underpin
various risks as described in the Capital management section and
amounts invested in goodwill and intangibles.
The attribution of capital involves the use of assumptions,
judgments and methodologies that are regularly reviewed and revised
by management as deemed necessary. Changes to such assumptions,
judgments and methodologies can have a material effect on the
business segment ROE information that we report. Other companies
that disclose information on similar attributions and related
return measures may use different assumptions, judgments and
methodologies.
The following table provides a summary of our ROE
calculations:
Calculation
of ROE
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
.
|
|
October 31,
2023
|
|
October 31,
2023
|
(Millions of Canadian
dollars, except
percentage
amounts)
|
Personal
&
Commercial
Banking
|
Wealth
Management
|
Insurance
|
Capital
Markets
|
Corporate
Support
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
Net income available to
common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
|
$
|
2,070
|
$
|
200
|
$
|
287
|
$
|
970
|
$
|
535
|
$
|
4,062
|
|
$
|
14,623
|
Total average common
equity (1), (2)
|
|
|
$
|
30,700
|
$
|
23,600
|
$
|
2,250
|
$
|
27,250
|
$
|
22,050
|
$
|
105,850
|
|
$
|
102,800
|
ROE (3)
|
|
|
|
26.7 %
|
|
3.4 %
|
|
51.3 %
|
|
14.1 %
|
n.m.
|
|
15.2 %
|
|
|
14.2 %
|
|
|
(1)
|
Total average common
equity represents rounded figures.
|
(2)
|
The amounts for the
segments are referred to as attributed capital.
|
(3)
|
ROE is based on actual
balances of average common equity before rounding.
|
n.m. not
meaningful
|
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 and year ended October 31,
2023 with the corresponding periods in the prior year and
the three months ended July 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.
The following discussion describes the non-GAAP measures we use
in evaluating our operating results.
Pre-provision, pre-tax earnings
Pre-provision
pre-tax earnings is calculated as income (Q4 2023: $4,131 million; Q3 2023: $3,872 million; Q4 2022: $3,882 million; 2023: $14,866 million; 2022: $15,807 million) before income taxes (Q4 2023:
$(60) million; Q3 2023: $761 million; Q4 2022: $979 million; 2023: $3,600
million; 2022: $4,302 million)
and PCL (Q4 2023: $720 million; Q3
2023: $616 million; Q4 2022:
$381 million; 2023: $2,468 million; 2022: $484
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 and certain measures 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. Specified items impacting our results for
the three months and year ended October 31,
2023 and the three months ended July
31, 2023 are:
- Impairment losses: reflects impairment losses on our interest
in an associated company in the fourth quarter of 2023
- 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 in
the fourth quarter of 2023
- 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
- Transaction and integration costs relating to our planned
acquisition of HSBC Bank Canada (HSBC Canada)
Additional information about ROE and other key performance and
non-GAAP measures can be found under the Key performance and
non-GAAP measures section of our 2023 Annual Report.
Consolidated results, reported and adjusted
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.
|
|
|
As at or for the three
months ended
|
|
For the year
ended
|
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
October
31
|
October
31
|
(Millions of Canadian
dollars, except per share, number of and percentage
amounts)
|
2023
|
2023
|
|
2022 (1)
|
|
|
2023
|
|
2022 (1)
|
Total
revenue
|
$
|
13,026
|
$
|
14,489
|
$
|
12,567
|
|
$
|
56,129
|
$
|
48,985
|
|
PCL
|
|
720
|
|
616
|
|
381
|
|
|
2,468
|
|
484
|
|
Non-interest
expense
|
|
8,143
|
|
7,861
|
|
7,209
|
|
|
31,173
|
|
26,609
|
|
Income before income
taxes
|
|
4,071
|
|
4,633
|
|
4,861
|
|
|
18,466
|
|
20,109
|
|
Income taxes
|
|
(60)
|
|
761
|
|
979
|
|
|
3,600
|
|
4,302
|
Net
income
|
$
|
4,131
|
$
|
3,872
|
$
|
3,882
|
|
$
|
14,866
|
$
|
15,807
|
Net income available to
common shareholders
|
$
|
4,062
|
$
|
3,812
|
$
|
3,809
|
|
$
|
14,623
|
$
|
15,547
|
Average number of
common shares (thousands)
|
|
1,399,337
|
|
1,393,515
|
|
1,386,925
|
|
|
1,391,020
|
|
1,403,654
|
Basic earnings per
share (in dollars)
|
$
|
2.90
|
$
|
2.74
|
$
|
2.75
|
|
$
|
10.51
|
$
|
11.08
|
Average number of
diluted common shares (thousands)
|
|
1,400,465
|
|
1,394,939
|
|
1,388,548
|
|
|
1,392,529
|
|
1,406,034
|
Diluted earnings per
share (in dollars)
|
$
|
2.90
|
$
|
2.73
|
$
|
2.74
|
|
$
|
10.50
|
$
|
11.06
|
ROE (2)
|
|
15.2 %
|
|
14.6 %
|
|
15.6 %
|
|
|
14.2 %
|
|
16.4 %
|
Effective income tax
rate
|
|
-1.5 %
|
|
16.4 %
|
|
20.1 %
|
|
|
19.5 %
|
|
21.4 %
|
Total adjusting
items impacting net income (before-tax)
|
$
|
537
|
$
|
191
|
$
|
68
|
|
$
|
963
|
$
|
256
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
203
|
|
110
|
|
-
|
|
|
380
|
|
-
|
|
Specified item:
Impairment losses on our interest in an associated company
(4)
|
|
242
|
|
-
|
|
-
|
|
|
242
|
|
-
|
|
Amortization of
acquisition-related intangibles (5)
|
|
92
|
|
81
|
|
68
|
|
|
341
|
|
256
|
Total income taxes
for adjusting items impacting net income
|
$
|
703
|
$
|
46
|
$
|
16
|
|
$
|
(254)
|
$
|
65
|
|
Specified item: CRD and
other tax related adjustments (3),
(6)
|
|
-
|
|
-
|
|
-
|
|
|
(1,050)
|
|
-
|
|
Specified item: Certain
deferred tax adjustments (3)
|
|
578
|
|
-
|
|
-
|
|
|
578
|
|
-
|
|
Specified item:
Impairment losses on our interest in an associated company
(4)
|
|
65
|
|
-
|
|
-
|
|
|
65
|
|
-
|
|
Specified item: HSBC
Canada transaction and integration costs (3)
|
|
36
|
|
26
|
|
-
|
|
|
78
|
|
-
|
|
Amortization of
acquisition-related intangibles (5)
|
|
24
|
|
20
|
|
16
|
|
|
75
|
|
65
|
Adjusted results
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes - adjusted
|
|
4,608
|
|
4,824
|
|
4,929
|
|
|
19,429
|
|
20,365
|
|
Income taxes -
adjusted
|
|
643
|
|
807
|
|
995
|
|
|
3,346
|
|
4,367
|
Net income -
adjusted
|
$
|
3,965
|
$
|
4,017
|
$
|
3,934
|
|
$
|
16,083
|
$
|
15,998
|
Net income available to
common shareholders - adjusted
|
$
|
3,896
|
$
|
3,957
|
$
|
3,861
|
|
$
|
15,840
|
$
|
15,738
|
Average number of
common shares (thousands)
|
|
1,399,337
|
|
1,393,515
|
|
1,386,925
|
|
|
1,391,020
|
|
1,403,654
|
Basic earnings per
share (in dollars) - adjusted
|
$
|
2.78
|
$
|
2.84
|
$
|
2.78
|
|
$
|
11.39
|
$
|
11.21
|
Average number of
diluted common shares (thousands)
|
|
1,400,465
|
|
1,394,939
|
|
1,388,548
|
|
|
1,392,529
|
|
1,406,034
|
Diluted earnings per
share (in dollars) - adjusted
|
$
|
2.78
|
$
|
2.84
|
$
|
2.78
|
|
$
|
11.38
|
$
|
11.19
|
ROE -
adjusted
|
|
14.6 %
|
|
15.1 %
|
|
15.8 %
|
|
|
15.4 %
|
|
16.6 %
|
Adjusted effective
income tax rate
|
|
14.0 %
|
|
16.7 %
|
|
20.2 %
|
|
|
17.2 %
|
|
21.4 %
|
|
|
(1)
|
There were no specified
items for the three months and year ended October 31,
2022.
|
(2)
|
ROE is based on actual
balances of average common equity before rounding.
|
(3)
|
These amounts have been
recognized in Corporate Support.
|
(4)
|
During the fourth
quarter of 2023, we recognized impairment losses on our interest in
an associated company. This amount has been recognized in Wealth
Management.
|
(5)
|
Represents the impact
of amortization of acquisition-related intangibles (excluding
amortization of software), and any goodwill impairment.
|
(6)
|
The impact of
the CRD and other tax related adjustments does not include
$0.2 billion recognized in other comprehensive income.
|
(7)
|
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 have been revised
from those previously presented to conform to our basis of
presentation for this non-GAAP measure.
|
Segment results, reported and adjusted
The following table provides a reconciliation of Wealth
Management adjusted results to our reported results. The adjusted
results and measures presented below are non-GAAP measures or
ratios.
Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
For the year
ended
|
|
|
|
|
October
31 2023 (1)
|
|
|
October
31 2023 (1)
|
|
|
|
|
|
Item
excluded
|
|
|
|
|
|
Item
excluded
|
|
|
|
|
|
|
|
|
Specified
|
|
|
|
|
|
|
|
Specified
|
|
|
|
(Millions of Canadian
dollars, except percentage amounts and as otherwise
noted)
|
|
As
reported
|
|
item
(2)
|
|
Adjusted
|
|
As
reported
|
|
item
(2)
|
|
Adjusted
|
Total
revenue
|
|
$
|
4,188
|
|
$
|
242
|
|
$
|
4,430
|
|
$
|
17,544
|
|
$
|
242
|
|
$
|
17,786
|
PCL
|
|
|
132
|
|
|
-
|
|
|
132
|
|
|
328
|
|
|
-
|
|
|
328
|
|
Non-interest
expense
|
|
|
3,749
|
|
|
-
|
|
|
3,749
|
|
|
14,128
|
|
|
-
|
|
|
14,128
|
Net income before
income taxes
|
|
|
307
|
|
|
242
|
|
|
549
|
|
|
3,088
|
|
|
242
|
|
|
3,330
|
Net
income
|
|
$
|
215
|
|
$
|
177
|
|
$
|
392
|
|
$
|
2,427
|
|
$
|
177
|
|
$
|
2,604
|
Net income available
to common shareholders
|
|
|
200
|
|
|
177
|
|
|
377
|
|
|
2,372
|
|
|
177
|
|
|
2,549
|
Total average common
equity (3), (4)
|
|
|
23,600
|
|
|
|
|
|
23,600
|
|
|
24,050
|
|
|
|
|
|
24,050
|
Revenue by
business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Wealth Management
(including City National)
|
|
$
|
1,867
|
|
$
|
242
|
|
$
|
2,109
|
|
$
|
7,969
|
|
$
|
242
|
|
$
|
8,211
|
|
U.S. Wealth Management
(including City National) (US$ millions)
|
|
|
1,369
|
|
|
175
|
|
|
1,544
|
|
|
5,908
|
|
|
175
|
|
|
6,083
|
Key
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROE (5)
|
|
|
3.4 %
|
|
|
|
|
|
6.3 %
|
|
|
9.9 %
|
|
|
|
|
|
10.6 %
|
Pre-tax margin
(6)
|
|
|
7.3 %
|
|
|
|
|
|
12.4 %
|
|
|
17.6 %
|
|
|
|
|
|
18.7 %
|
|
|
(1)
|
There were no specified
items for the three months and year ended October 31,
2022.
|
(2)
|
Impairment losses on
our interest in an associated company.
|
(3)
|
Total average common
equity represents rounded figures.
|
(4)
|
The amounts for the
segments are referred to as attributed capital.
|
(5)
|
ROE is based on actual
balances of average common equity before rounding.
|
(6)
|
Pre-tax margin is
defined as Income before income taxes divided by Total
revenue.
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
|
|
As at
|
|
|
October
31
|
|
|
July
31
|
October
31
|
(Millions of Canadian
dollars)
|
|
2023 (1)
|
|
|
2023 (2)
|
|
2022 (1)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
61,989
|
|
$
|
80,358
|
$
|
72,397
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
71,086
|
|
|
87,650
|
|
108,011
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
|
|
|
|
Trading
|
|
190,151
|
|
|
176,603
|
|
148,205
|
|
Investment, net of
applicable allowance
|
|
219,579
|
|
|
196,022
|
|
170,018
|
|
|
|
409,730
|
|
|
372,625
|
|
318,223
|
|
|
|
|
|
|
|
|
|
Assets purchased
under reverse repurchase agreements and securities
borrowed
|
|
340,191
|
|
|
347,151
|
|
317,845
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
Retail
|
|
569,951
|
|
|
561,212
|
|
549,751
|
|
Wholesale
|
|
287,826
|
|
|
278,997
|
|
273,967
|
|
|
|
857,777
|
|
|
840,209
|
|
823,718
|
|
Allowance for loan
losses
|
|
(5,004)
|
|
|
(4,495)
|
|
(3,753)
|
|
|
|
852,773
|
|
|
835,714
|
|
819,965
|
|
|
|
|
|
|
|
|
|
Segregated fund net
assets
|
|
2,760
|
|
|
2,921
|
|
2,638
|
Other
|
|
|
|
|
|
|
|
|
Customers' liability
under acceptances
|
|
21,695
|
|
|
19,365
|
|
17,827
|
|
Derivatives
|
|
142,450
|
|
|
115,914
|
|
154,439
|
|
Premises and
equipment
|
|
6,749
|
|
|
6,793
|
|
7,214
|
|
Goodwill
|
|
12,594
|
|
|
12,299
|
|
12,277
|
|
Other
intangibles
|
|
5,907
|
|
|
5,892
|
|
6,083
|
|
Other assets
|
|
77,068
|
|
|
71,052
|
|
80,300
|
|
|
|
266,463
|
|
|
231,315
|
|
278,140
|
Total
assets
|
$
|
2,004,992
|
|
$
|
1,957,734
|
$
|
1,917,219
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
Personal
|
$
|
441,946
|
|
$
|
434,047
|
$
|
404,932
|
|
Business and
government
|
|
745,075
|
|
|
736,730
|
|
759,870
|
|
Bank
|
|
44,666
|
|
|
44,894
|
|
44,012
|
|
|
|
1,231,687
|
|
|
1,215,671
|
|
1,208,814
|
|
|
|
|
|
|
|
|
|
Segregated fund net
liabilities
|
|
2,760
|
|
|
2,921
|
|
2,638
|
Other
|
|
|
|
|
|
|
|
|
Acceptances
|
|
21,745
|
|
|
19,407
|
|
17,872
|
|
Obligations related to
securities sold short
|
|
33,651
|
|
|
36,653
|
|
35,511
|
|
Obligations related to
assets sold under repurchase agreements and securities
loaned
|
|
335,238
|
|
|
334,465
|
|
273,947
|
|
Derivatives
|
|
142,629
|
|
|
117,244
|
|
153,491
|
|
Insurance claims and
policy benefit liabilities
|
|
11,966
|
|
|
12,700
|
|
11,511
|
|
Other
liabilities
|
|
96,170
|
|
|
95,042
|
|
95,235
|
|
|
|
641,399
|
|
|
615,511
|
|
587,567
|
|
|
|
|
|
|
|
|
|
Subordinated
debentures
|
|
11,386
|
|
|
11,202
|
|
10,025
|
Total
liabilities
|
|
1,887,232
|
|
|
1,845,305
|
|
1,809,044
|
Equity attributable
to shareholders
|
|
|
|
|
|
|
|
|
Preferred shares and
other equity instruments
|
|
7,314
|
|
|
7,330
|
|
7,318
|
|
Common
shares
|
|
19,167
|
|
|
18,512
|
|
16,984
|
|
Retained
earnings
|
|
84,328
|
|
|
82,011
|
|
78,037
|
|
Other components of
equity
|
|
6,852
|
|
|
4,481
|
|
5,725
|
|
|
|
117,661
|
|
|
112,334
|
|
108,064
|
Non-controlling
interests
|
|
99
|
|
|
95
|
|
111
|
Total
equity
|
|
117,760
|
|
|
112,429
|
|
108,175
|
Total liabilities
and equity
|
$
|
2,004,992
|
|
$
|
1,957,734
|
$
|
1,917,219
|
|
|
(1)
|
Derived from audited
financial statements.
|
(2)
|
Derived from unaudited
financial statements.
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
October
31
|
|
July
31
|
October
31
|
|
October
31
|
October
31
|
(Millions of Canadian
dollars, except per share amounts)
|
2023 (1)
|
|
2023 (1)
|
2022 (1)
|
|
2023 (2)
|
2022 (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
11,863
|
|
$
|
11,219
|
$
|
8,540
|
|
$
|
43,463
|
$
|
26,565
|
|
Securities
|
|
4,580
|
|
|
3,751
|
|
2,465
|
|
|
14,512
|
|
7,062
|
|
Assets purchased under
reverse repurchase agreements and securities borrowed
|
|
6,428
|
|
|
6,063
|
|
2,941
|
|
|
22,164
|
|
5,447
|
|
Deposits and
other
|
|
1,631
|
|
|
1,801
|
|
952
|
|
|
6,852
|
|
1,697
|
|
|
|
24,502
|
|
|
22,834
|
|
14,898
|
|
|
86,991
|
|
40,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and
other
|
|
10,476
|
|
|
9,775
|
|
5,197
|
|
|
36,679
|
|
10,751
|
|
Other
liabilities
|
|
7,299
|
|
|
6,599
|
|
3,308
|
|
|
24,517
|
|
7,015
|
|
Subordinated
debentures
|
|
185
|
|
|
174
|
|
111
|
|
|
666
|
|
288
|
|
|
|
17,960
|
|
|
16,548
|
|
8,616
|
|
|
61,862
|
|
18,054
|
Net interest
income
|
|
6,542
|
|
|
6,286
|
|
6,282
|
|
|
25,129
|
|
22,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance premiums,
investment and fee income
|
|
589
|
|
|
1,848
|
|
644
|
|
|
5,675
|
|
3,510
|
|
Trading
revenue
|
|
408
|
|
|
485
|
|
451
|
|
|
2,392
|
|
926
|
|
Investment management
and custodial fees
|
|
2,106
|
|
|
2,099
|
|
1,900
|
|
|
8,344
|
|
7,610
|
|
Mutual fund
revenue
|
|
1,014
|
|
|
1,034
|
|
1,010
|
|
|
4,063
|
|
4,289
|
|
Securities brokerage
commissions
|
|
363
|
|
|
362
|
|
349
|
|
|
1,463
|
|
1,481
|
|
Service
charges
|
|
548
|
|
|
529
|
|
512
|
|
|
2,099
|
|
1,976
|
|
Underwriting and other
advisory fees
|
|
563
|
|
|
472
|
|
481
|
|
|
2,005
|
|
2,058
|
|
Foreign exchange
revenue, other than trading
|
|
248
|
|
|
289
|
|
266
|
|
|
1,292
|
|
1,038
|
|
Card service
revenue
|
|
302
|
|
|
334
|
|
310
|
|
|
1,240
|
|
1,203
|
|
Credit fees
|
|
411
|
|
|
342
|
|
337
|
|
|
1,489
|
|
1,512
|
|
Net gains (losses) on
investment securities
|
|
2
|
|
|
27
|
|
(23)
|
|
|
193
|
|
43
|
|
Income (loss) from
joint ventures and associates
|
|
(223)
|
|
|
(37)
|
|
24
|
|
|
(219)
|
|
110
|
|
Other
|
|
153
|
|
|
419
|
|
24
|
|
|
964
|
|
512
|
|
|
6,484
|
|
|
8,203
|
|
6,285
|
|
|
31,000
|
|
26,268
|
Total
revenue
|
|
13,026
|
|
|
14,489
|
|
12,567
|
|
|
56,129
|
|
48,985
|
Provision for credit
losses
|
|
720
|
|
|
616
|
|
381
|
|
|
2,468
|
|
484
|
Insurance
policyholder benefits, claims and acquisition
expense
|
|
92
|
|
|
1,379
|
|
116
|
|
|
4,022
|
|
1,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Human
resources
|
|
4,701
|
|
|
4,794
|
|
4,383
|
|
|
18,971
|
|
16,528
|
|
Equipment
|
|
612
|
|
|
611
|
|
571
|
|
|
2,381
|
|
2,099
|
|
Occupancy
|
|
404
|
|
|
411
|
|
401
|
|
|
1,634
|
|
1,554
|
|
Communications
|
|
348
|
|
|
324
|
|
319
|
|
|
1,271
|
|
1,082
|
|
Professional
fees
|
|
706
|
|
|
592
|
|
472
|
|
|
2,223
|
|
1,511
|
|
Amortization of other
intangibles
|
|
369
|
|
|
369
|
|
354
|
|
|
1,487
|
|
1,369
|
|
Other
|
|
1,003
|
|
|
760
|
|
709
|
|
|
3,206
|
|
2,466
|
|
|
|
8,143
|
|
|
7,861
|
|
7,209
|
|
|
31,173
|
|
26,609
|
Income before income
taxes
|
|
4,071
|
|
|
4,633
|
|
4,861
|
|
|
18,466
|
|
20,109
|
Income taxes
|
|
(60)
|
|
|
761
|
|
979
|
|
|
3,600
|
|
4,302
|
Net
income
|
$
|
4,131
|
|
$
|
3,872
|
$
|
3,882
|
|
$
|
14,866
|
$
|
15,807
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
4,129
|
|
$
|
3,870
|
$
|
3,876
|
|
$
|
14,859
|
$
|
15,794
|
|
Non-controlling
interests
|
|
2
|
|
|
2
|
|
6
|
|
|
7
|
|
13
|
|
|
$
|
4,131
|
|
$
|
3,872
|
$
|
3,882
|
|
$
|
14,866
|
$
|
15,807
|
Basic earnings per
share (in dollars)
|
$
|
2.90
|
|
$
|
2.74
|
$
|
2.75
|
|
$
|
10.51
|
$
|
11.08
|
Diluted earnings per
share (in dollars)
|
|
2.90
|
|
|
2.73
|
|
2.74
|
|
|
10.50
|
|
11.06
|
Dividends per common
share (in dollars)
|
|
1.35
|
|
|
1.35
|
|
1.28
|
|
|
5.34
|
|
4.96
|
|
(1)
|
Derived from unaudited
financial statements.
|
(2)
|
Derived from audited
financial statements.
|
Consolidated
Statements of Comprehensive Income
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
October
31
|
|
July
31
|
October
31
|
|
October
31
|
October
31
|
(Millions of Canadian
dollars)
|
|
2023 (1)
|
|
|
2023 (1)
|
|
2022 (1)
|
|
|
2023 (2)
|
|
2022 (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
4,131
|
|
$
|
3,872
|
$
|
3,882
|
|
$
|
14,866
|
$
|
15,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will be
reclassified subsequently to income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains (losses) on debt securities and loans at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains
(losses) on debt securities and loans at fair value through
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
|
(541)
|
|
|
(85)
|
|
(849)
|
|
|
(14)
|
|
(2,241)
|
|
|
Provision for credit
losses recognized in income
|
|
(11)
|
|
|
(3)
|
|
(3)
|
|
|
(14)
|
|
(16)
|
|
|
Reclassification of net
losses (gains) on debt securities and loans at fair value through
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income to income
|
|
3
|
|
|
(21)
|
|
22
|
|
|
(131)
|
|
(12)
|
|
|
|
|
(549)
|
|
|
(109)
|
|
(830)
|
|
|
(159)
|
|
(2,269)
|
|
Foreign currency
translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation gains (losses)
|
|
3,444
|
|
|
(1,878)
|
|
3,878
|
|
|
2,148
|
|
5,091
|
|
|
Net foreign currency
translation gains (losses) from hedging activities
|
|
(1,383)
|
|
|
722
|
|
(1,292)
|
|
|
(1,208)
|
|
(1,449)
|
|
|
Reclassification of
losses (gains) on foreign currency translation to income
|
|
-
|
|
|
(160)
|
|
-
|
|
|
(160)
|
|
(18)
|
|
|
Reclassification of
losses (gains) on net investment hedging activities to
income
|
|
-
|
|
|
146
|
|
-
|
|
|
146
|
|
17
|
|
|
|
|
2,061
|
|
|
(1,170)
|
|
2,586
|
|
|
926
|
|
3,641
|
|
Net change in cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivatives designated as cash flow hedges
|
|
797
|
|
|
10
|
|
963
|
|
|
216
|
|
1,634
|
|
|
Reclassification of
losses (gains) on derivatives designated as cash flow hedges to
income
|
|
67
|
|
|
(7)
|
|
-
|
|
|
146
|
|
194
|
|
|
|
|
864
|
|
|
3
|
|
963
|
|
|
362
|
|
1,828
|
Items that will not
be reclassified subsequently to income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
gains(losses) on employee benefit plans (3)
|
|
(132)
|
|
|
147
|
|
92
|
|
|
(344)
|
|
821
|
|
Net gains(losses) from
fair value changes due to credit risk on financial liabilities
designated at fair
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
value through profit or
loss
|
|
299
|
|
|
(388)
|
|
390
|
|
|
(576)
|
|
1,747
|
|
Net gains (losses) on
equity securities designated at fair value through other
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
26
|
|
|
-
|
|
(3)
|
|
|
44
|
|
50
|
|
|
|
193
|
|
|
(241)
|
|
479
|
|
|
(876)
|
|
2,618
|
Total other
comprehensive income (loss), net of taxes
|
|
2,569
|
|
|
(1,517)
|
|
3,198
|
|
|
253
|
|
5,818
|
Total comprehensive
income (loss)
|
$
|
6,700
|
|
$
|
2,355
|
$
|
7,080
|
|
$
|
15,119
|
$
|
21,625
|
Total comprehensive
income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
6,693
|
|
$
|
2,356
|
$
|
7,068
|
|
$
|
15,110
|
$
|
21,604
|
|
Non-controlling
interests
|
|
7
|
|
|
(1)
|
|
12
|
|
|
9
|
|
21
|
|
|
|
$
|
6,700
|
|
$
|
2,355
|
$
|
7,080
|
|
$
|
15,119
|
$
|
21,625
|
|
|
(1)
|
Derived
from unaudited financial statements.
|
(2)
|
Derived
from audited financial statements.
|
(3)
|
Includes
$(9) million that was reclassified from other comprehensive income
to retained earnings for the three months ended July 31, 2023 and
the year ended October 31, 2023.
|
Consolidated
Statements of Changes in Equity
|
|
|
|
|
For the three months
ended October 31, 2023 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and
loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at beginning
of period
|
$
|
7,323
|
$
|
18,670
|
$
|
7
|
$
|
(158)
|
$
|
82,011
|
$
|
(1,967)
|
$
|
4,556
|
$
|
1,892
|
$
|
4,481
|
$
|
112,334
|
$
|
95
|
$
|
112,429
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share capital
and other equity instruments
|
|
-
|
|
728
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
728
|
|
-
|
|
728
|
|
Common shares purchased
for cancellation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Redemption of preferred
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
54
|
|
699
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
753
|
|
-
|
|
753
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(70)
|
|
(772)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(842)
|
|
-
|
|
(842)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,893)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,893)
|
|
-
|
|
(1,893)
|
|
Dividends on preferred
shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
|
(3)
|
|
(70)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(45)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(45)
|
|
-
|
|
(45)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,129
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,129
|
|
2
|
|
4,131
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
193
|
|
(549)
|
|
2,056
|
|
864
|
|
2,371
|
|
2,564
|
|
5
|
|
2,569
|
Balance at end of
period
|
$
|
7,323
|
$
|
19,398
|
$
|
(9)
|
$
|
(231)
|
$
|
84,328
|
$
|
(2,516)
|
$
|
6,612
|
$
|
2,756
|
$
|
6,852
|
$
|
117,661
|
$
|
99
|
$
|
117,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended October 31, 2022 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at beginning
of period
|
$
|
7,323
|
$
|
17,367
|
$
|
5
|
$
|
(275)
|
$
|
76,466
|
$
|
(1,527)
|
$
|
3,108
|
$
|
1,431
|
$
|
3,012
|
$
|
103,898
|
$
|
100
|
$
|
103,998
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share capital
and other equity instruments
|
|
-
|
|
49
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
49
|
|
-
|
|
49
|
|
Common shares purchased
for cancellation
|
|
-
|
|
(98)
|
|
-
|
|
-
|
|
(884)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(982)
|
|
-
|
|
(982)
|
|
Redemption of preferred
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
50
|
|
1,034
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,084
|
|
-
|
|
1,084
|
|
Purchases of treasury
shares and other equity instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(60)
|
|
(1,093)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,153)
|
|
-
|
|
(1,153)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,774)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,774)
|
|
-
|
|
(1,774)
|
|
Dividends on preferred
shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
|
(1)
|
|
(68)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(59)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(59)
|
|
-
|
|
(59)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,876
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,876
|
|
6
|
|
3,882
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
479
|
|
(830)
|
|
2,580
|
|
963
|
|
2,713
|
|
3,192
|
|
6
|
|
3,198
|
Balance at end of
period
|
$
|
7,323
|
$
|
17,318
|
$
|
(5)
|
$
|
(334)
|
$
|
78,037
|
$
|
(2,357)
|
$
|
5,688
|
$
|
2,394
|
$
|
5,725
|
$
|
108,064
|
$
|
111
|
$
|
108,175
|
|
|
(1)
|
Derived from unaudited
financial statements.
|
|
|
|
|
For the year ended
October 31, 2023 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and
loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at beginning
of period
|
$
|
7,323
|
$
|
17,318
|
$
|
(5)
|
$
|
(334)
|
$
|
78,037
|
$
|
(2,357)
|
$
|
5,688
|
$
|
2,394
|
$
|
5,725
|
$
|
108,064
|
$
|
111
|
$
|
108,175
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share capital
and other equity instruments
|
|
-
|
|
2,080
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,081
|
|
-
|
|
2,081
|
|
Common shares purchased
for cancellation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Redemption of preferred
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
515
|
|
3,659
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,174
|
|
-
|
|
4,174
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(519)
|
|
(3,556)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,075)
|
|
-
|
|
(4,075)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
4
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,443)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(7,443)
|
|
-
|
|
(7,443)
|
|
Dividends on preferred
shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(236)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(236)
|
|
(21)
|
|
(257)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(18)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(18)
|
|
-
|
|
(18)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
14,859
|
|
-
|
|
-
|
|
-
|
|
-
|
|
14,859
|
|
7
|
|
14,866
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(876)
|
|
(159)
|
|
924
|
|
362
|
|
1,127
|
|
251
|
|
2
|
|
253
|
Balance at end of
period
|
$
|
7,323
|
$
|
19,398
|
$
|
(9)
|
$
|
(231)
|
$
|
84,328
|
$
|
(2,516)
|
$
|
6,612
|
$
|
2,756
|
$
|
6,852
|
$
|
117,661
|
$
|
99
|
$
|
117,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
October 31, 2022 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total equity
|
(Millions of Canadian
dollars)
|
Balance at beginning
of period
|
$
|
6,723
|
$
|
17,728
|
$
|
(39)
|
$
|
(73)
|
$
|
71,795
|
$
|
(88)
|
$
|
2,055
|
$
|
566
|
$
|
2,533
|
$
|
98,667
|
$
|
95
|
$
|
98,762
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share capital
and other equity instruments
|
|
750
|
|
99
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
848
|
|
-
|
|
848
|
|
Common shares purchased
for cancellation
|
|
-
|
|
(509)
|
|
-
|
|
-
|
|
(4,917)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,426)
|
|
-
|
|
(5,426)
|
|
Redemption of preferred
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
(150)
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(155)
|
|
-
|
|
(155)
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
552
|
|
4,922
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,474
|
|
-
|
|
5,474
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(518)
|
|
(5,183)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,701)
|
|
-
|
|
(5,701)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,946)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,946)
|
|
-
|
|
(6,946)
|
|
Dividends on preferred
shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(247)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(247)
|
|
(5)
|
|
(252)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(56)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(56)
|
|
-
|
|
(56)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
15,794
|
|
-
|
|
-
|
|
-
|
|
-
|
|
15,794
|
|
13
|
|
15,807
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,618
|
|
(2,269)
|
|
3,633
|
|
1,828
|
|
3,192
|
|
5,810
|
|
8
|
|
5,818
|
Balance at end of
period
|
$
|
7,323
|
$
|
17,318
|
$
|
(5)
|
$
|
(334)
|
$
|
78,037
|
$
|
(2,357)
|
$
|
5,688
|
$
|
2,394
|
$
|
5,725
|
$
|
108,064
|
$
|
111
|
$
|
108,175
|
|
|
(1)
|
Derived from audited
financial statements.
|
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, the expected
closing of the transaction involving HSBC Bank Canada, the expected
closing of the transaction involving the U.K. branch of RBC
Investor Services Trust and the RBC Investor Services business in
Jersey, 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),
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, 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 such sections may be updated by subsequent quarterly
reports. 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, 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 2023 Annual Report at
rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our
quarterly conference call is scheduled for November 30, 2023 at 8:30
a.m. (EST) and will feature a presentation about our fourth
quarter and 2023 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: 3725409#).
Please call between 8:20 a.m. and 8:25 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 November 30, 2023 until February 27, 2024 at
rbc.com/investorrelations/quarterly-financial-statements.html or by
telephone (905-694-9451 or 800-408-3053, passcode: 3344559#).
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