Royal Bank of Canada Reports First Quarter 2013 Results

All amounts are in Canadian dollars and are based on financial statements 
prepared in compliance with International Accounting Standard 34 Interim 
Financial Reporting, unless otherwise noted. Our Q1 2013 Report to 
Shareholders and Supplementary Financial Information are available on our 
website at 
TORONTO, Feb. 28, 2013 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today 
reported net income of $2,070 million for the first quarter ended January 31, 
2013, up $215 million or 12% from the prior year, and up $159 million or 8% 
from the prior quarter, reflecting record earnings in both Personal & 
Commercial Banking and Wealth Management, as well as strong performance in 
Capital Markets. 
"RBC continued its strong momentum, with earnings of over $2 billion in the 
first quarter, reflecting solid growth across most businesses and effective 
cost discipline," said Gordon M. Nixon, RBC President and CEO. "We believe our 
financial strength and competitive advantages position us to successfully 
manage through the ongoing industry headwinds, and continue to extend our lead 
in Canada, while selectively growing our presence globally. Today we are also 
pleased to announce a 5% increase in our quarterly dividend." 
Q1 2013 compared to Q1 2012            Q1 2013 compared to Q4 2012 

    --  Net income of $2,070               --  Net income of $2,070
        million (up 12% from                   million (up 8% from
        $1,855 million)                        $1,911 million)
    --  Diluted earnings per               --  Diluted EPS of $1.36 (up
        share (EPS) of $1.36 (up               $0.11 from $1.25)
        $0.14 from $1.22)                  --  ROE of 19.6% (up from
    --  Return on common equity                18.7%)
        (ROE) of 19.6% (down
        from 19.7%)
    --  Basel III Common Equity
        Tier 1 (CET1) ratio of

Announced an increase in our quarterly dividend of $0.03 or 5%, to $0.63 per 

Q1 2013 Business Segment Performance

Personal & Commercial Banking net income was a record $1,120 million, up $108 
million or 11% compared to last year, reflecting solid volume growth of 7% 
across all our Canadian businesses, partially offset by spread compression. We 
also achieved positive operating leverage of 2.6% in Canadian Banking. 
Compared to the prior quarter, net income increased $86 million or 8%, 
reflecting lower PCL, seasonally lower costs, and solid volume growth across 
all Canadian businesses, partially offset by spread compression.

Wealth Management net income was a record $233 million, up $45 million or 24% 
from a year ago, mainly due to higher average fee-based client assets 
resulting from net sales and capital appreciation, increased transaction 
volumes reflecting improved market conditions, and higher semi-annual 
performance fees. Compared to last quarter, net income increased $26 million 
or 13%, largely driven by the semi-annual performance fees earned in the 
current quarter, higher average fee-based client assets and increased 
transaction volumes. Expenses were up when compared to both the prior year and 
prior quarter, primarily due to higher variable compensation on improved 

Insurance net income was $164 million, down $26 million or 14% compared to 
last year as the prior year included net investment gains as well as a new 
U.K. annuity reinsurance contract. Compared to last quarter, net income 
decreased $30 million or 15%, mainly due to higher reinsurance and disability 
claims costs, partially offset by the favourable impact of interest rates and 
investment activity on insurance policyholder liabilities.

Investor & Treasury Services net income was $80 million, down $3 million from 
a year ago, as incremental earnings related to our additional 50% ownership of 
RBC Investor Services was more than offset by lower funding and liquidity 
revenue and higher infrastructure costs. Compared to the prior quarter, net 
income increased $8 million or 11%, primarily reflecting increased foreign 
exchange revenue and higher custodial fees.

Capital Markets net income was $464 million, up $93 million or 25% compared to 
last year, primarily driven by strong growth in U.S. lending and loan 
syndication as well as North American M&A and origination activity. These 
factors were partially offset by a higher effective tax rate reflecting 
increased earnings in higher tax jurisdictions, higher variable compensation 
on improved results, and higher PCL largely related to a couple of accounts. 
Compared to last quarter, net income increased $54 million or 13%, primarily 
due to higher fixed income trading results reflecting increased client 
activity and favourable market conditions, as well as higher M&A, loan 
syndication, and debt origination activities. These results were partially 
offset by a higher effective tax rate reflecting increased earnings in higher 
tax jurisdictions, and higher PCL, as noted above.

Capital - As at January 31, 2013, our Basel III "all-in" CET1 ratio was 9.3%, 
up 90 basis points compared to our estimated pro-forma CET1 ratio of 8.4% last 
quarter, reflecting the delayed regulatory implementation of the credit 
valuation adjustment (CVA) capital requirements and strong internal capital 
generation. Excluding the CVA, our CET1 ratio this quarter was up 30 basis 

Credit Quality - Total PCL of $349 million increased $82 million from the 
prior year, primarily due to provisions on a couple of accounts in our 
wholesale portfolio, partly offset by lower write-offs related to our credit 
card portfolio. PCL decreased $13 million or 4% compared to last quarter, 
mainly due to lower provisions in our Canadian business lending and retail 


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 earnings release, in filings with Canadian 
regulators or the U.S. Securities and Exchange Commission (SEC), in reports to 
shareholders and in other communications. Forward-looking statements include, 
but are not limited to, statements relating to our future business growth and 
efficiencies, our financial performance objectives, vision and strategic 
goals; and include our President and Chief Executive Officer's statements. The 
forward-looking information contained in this earnings release is 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, our future business 
growth and efficiencies, our financial performance objectives, vision and 
strategic goals, and may not be appropriate for other purposes. 
Forward-looking statements are typically identified by words such as 
"believe", "expect", "foresee", "forecast", "anticipate", "intend", 
"estimate", "goal", "plan" and "project" and similar expressions of future or 
conditional verbs such as "will", "may", "should", "could" or "would".

By their very nature, forward-looking statements require us to make 
assumptions and are subject to inherent risks and uncertainties, 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 and that our financial performance objectives, 
vision and strategic goals will not be achieved. We caution readers not to 
place undue reliance on these 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: 
credit, market, liquidity and funding, operational, legal and regulatory 
compliance, insurance, reputation and strategic risks and other risks 
discussed in the Risk management and Overview of other risks sections of our 
2012 Annual Report and in the Risk management section of our Q1 2013 Report to 
Shareholders; the impact of changes in laws and regulations, including 
relating to the Dodd-Frank Wall Street Reform and Consumer Protection Act and 
the regulations issued and to be issued thereunder, the Basel Committee on 
Banking Supervision's global standards for capital and liquidity reform, 
over-the-counter derivatives reform, the payments system in Canada, consumer 
protection measures and regulatory reforms in the U.K. and Europe; general 
business and economic market conditions in Canada, the United States and 
certain other countries in which we operate, including the effects of the 
European sovereign debt crisis, and the high levels of Canadian household 
debt; cybersecurity; the effects of changes in government fiscal, monetary and 
other policies; the effects of competition in the markets in which we operate; 
our ability to attract and retain employees; the accuracy and completeness of 
information concerning our clients and counterparties; judicial or regulatory 
judgments and legal proceedings; development and integration of our 
distribution networks; and the impact of environmental issues.

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. Material economic assumptions underlying the forward 
looking-statements contained in this earnings release are set out in the 
Overview and outlook section and for each business segment under the heading 
Outlook and priorities in our 2012 Annual Report, as updated by the Overview 
section in our Q1 2013 Report to Shareholders. 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 
management and Overview of other risks sections of our 2012 Annual Report to 
Shareholders and in the Risk management section of our Q1 2013 Report to 

Information contained in or otherwise accessible through the websites 
mentioned does not form part of this earnings release. All references in this 
earnings release to websites are inactive textual references and are for your 
information only.

Interested investors, the media and others may review this quarterly earnings 
release, quarterly results slides, supplementary financial information and our 
Q1 2013 Report to Shareholders on our website at

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for Thursday, February 28, 2013 at 
9:00 a.m. (EST) and will feature a presentation about our first quarter 
results by RBC executives. It will be followed by a question and answer 
period with analysts.

Interested parties can access the call live on a listen-only basis at: or by telephone 
(416-340-2217 or 1-866-696-5910, passcode 1853457#). Please call between 8:50 
a.m. and 8:55 a.m. (EST).

Management's comments on results will be posted on our website shortly 
following the call. Also, a recording will be available by 5:00 pm (EST) on 
February 28 until May 30, 2013 at: or by telephone (905-694-9451 
or 1-800-408-3053, passcode 3629188#).

Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under 
the master brand name RBC. We are Canada's largest bank as measured by assets 
and market capitalization, and are among the largest banks in the world, based 
on market capitalization. We are one of North America's leading diversified 
financial services companies, and provide personal and commercial banking, 
wealth management services, insurance, and investor services and wholesale 
banking on a global basis. We employ approximately 80,000 full- and part-time 
employees who serve more than 15 million personal, business, public sector and 
institutional clients through offices in Canada, the U.S. and 49 other 
countries. For more information, please visit

Trademarks used in this earnings release include the LION & GLOBE Symbol, 
Royal Bank of Canada used by Royal Bank of Canada and/or by its subsidiaries 
under license. All other trademarks mentioned in this earnings release, which 
are not the property of Royal Bank of Canada, are owned by their respective 

Media Relations Contacts Tanis Feasby, Director, Financial 
Communications,, 416-955-5172 or 1-888-880-2173 
(toll-free outside Toronto) Rina Cortese, Media 
Relations,, 416-974-5506 or 1-888-880-2173 (toll-free 
outside Toronto)

Investor Relations Contacts Amy Cairncross, VP & Head, Investor 
Relations,, 416-955-7803 Karen McCarthy, Director, 
Investor Relations,, 416-955-7809 Lynda Gauthier, 
Director, Investor Relations,, 416-955-7808 Robert 
Colangelo, Associate Director, Investor Relations,, 


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