Royal Bank of Canada reports record third 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 Q3 2013 Report to 
Shareholders and Supplementary Financial Information are available on our 
website at rbc.com/investorrelations. 
TORONTO, Aug. 29, 2013 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today 
reported record net income of $2,304 million for the quarter ended July 31, 
2013, up $64 million or 3% from the prior year and up $368 million or 19% from 
last quarter. We also announced an increase to our quarterly dividend of $0.04 
or 6%, to $0.67 per share. 
Excluding specified items as discussed on page 3 of this Earnings Release, net 
income was $2,214 million, up $236 million or 12%((1)) from last year and up 
$247 million or 13%((1)) from last quarter. Our solid results were driven by 
continued strength across most of our businesses, including record earnings in 
Personal & Commercial Banking and Wealth Management. 
"We continue to deliver solid performance, with record earnings of over $2.3 
billion, as we leverage our strength, scale, and strong capital position to 
successfully execute on our disciplined growth strategy through a slow growth 
environment," said Gordon M. Nixon, RBC President and CEO. "Today we are also 
pleased to announce a 6% increase in our quarterly dividend". 
Q3 2013 compared to Q3 2012            YTD 2013 compared to YTD 2012 
• Net income of $2,304           • Net income of $6,310
million( )(up 3% from $2,240           million (up 12% from $5,628
million)                               million) 
• Diluted earnings per           • Diluted EPS of $4.15 (up
share (EPS) of $1.52 (up $0.05         $0.47 from $3.68)
from $1.47) 
• Return on common equity        • ROE of 19.7% (up from
(ROE) of 20.9% (down from 22.7%)       19.6%) 
• Basel III Common Equity         
Tier 1 (CET1) ratio of 9.2% 
Results and measures excluding specified items((1)), as detailed on page 3, 
include a favourable income tax adjustment of $90 million in the current 
quarter, a restructuring charge of $44 million ($31 million after-tax) in the 
prior quarter and net favourable adjustments of $262 million after-tax in the 
prior year. 
Excluding specified items((1)):        Excluding specified items((1)):
Q3 2013 compared to Q3 2012            YTD 2013 compared to YTD 2012 
• Net income of $2,214           • Net income of $6,251
million (up 12% from $1,978            million (up 12% from $5,568
million)                               million) 
• Diluted EPS of $1.46 (up       • Diluted EPS of $4.11 (up
$0.17 from $1.29)                      $0.47 from $3.64) 
• ROE of 20.0% (up from          • ROE of 19.5% (up from
19.9%)                                 19.3%) 
Personal & Commercial Banking net income was a record $1,180 million, up $78 
million or 7% compared to last year, largely due to solid volume growth across 
all businesses in Canada and lower provision for credit losses (PCL) 
reflecting improved credit quality. The inclusion of our acquisition of Ally 
Canada also contributed to the increase. Excluding the prior year's favourable 
mortgage prepayment adjustment, net income increased $170million or 17%((1)). 
Compared to last quarter, net income was up $123 million or 12%, largely due 
to the positive impact of seasonal factors, including additional days in the 
quarter, and volume growth across most businesses in Canada. 
Wealth Management net income was a record $236 million, up $80 million or 51% 
compared to last year, mainly due to higher average fee-based client assets 
resulting from net sales and capital appreciation. Higher transaction volumes 
also contributed to the increase. Excluding an unfavourable impact of $29 
million ($21 million after-tax) related to certain regulatory and legal 
matters in the prior year, earnings were up $59 million or 33%((1)). Compared 
to the prior quarter, net income was up $11 million or 5%, mainly due to 
higher average fee-based client assets. 
(_______________________________________ )
(1)  These measures are non-GAAP. For further information, including a 
reconciliation, refer to the non-GAAP measures section on page 3 of this 
Earnings Release. 
Insurance net income was $160 million, down $19 million or 11% from a year ago 
as higher earnings from a new U.K. annuity contract this quarter were mostly 
offset by higher claims costs including net claims of $14 million ($10 million 
after-tax) related to severe weather conditions in Alberta and Ontario. In 
addition, the prior year benefitted from a $33 million ($24 million after-tax) 
reduction of policy acquisition cost-related liabilities reflecting changes to 
our proprietary distribution channel. Compared to the prior quarter, earnings 
decreased $6 million or 4%. 
Investor & Treasury Services net income was $104 million, up $53 million from 
a year ago, primarily due to higher revenue and our ongoing focus on cost 
management activities in Investor Services. Incremental earnings related to 
our additional 50% ownership of Investor Services also contributed to the 
increase. These factors were partially offset by lower funding and liquidity 
revenue. Excluding last year's loss related to the acquisition of RBC Dexia, 
net income increased $42 million((1)). Compared to the prior quarter, net 
income increased $37 million, largely driven by higher securities lending as 
the current quarter was favourably impacted by the European dividend season, 
partially offset by lower funding and liquidity revenue. Excluding last 
quarter's restructuring charge, net income increased $6 million or 6%((1)). 
Capital Markets net income was $388 million, down $41 million or 10% from a 
year ago, primarily due to lower fixed income trading revenue, partly as a 
result of market concerns related to the planned phase-out of the U.S. 
quantitative easing program, and lower investment banking activities compared 
to strong levels last year. These factors were partially offset by lower 
variable compensation and a favourable income tax adjustment of $31 million 
related to the first half of the current year, as a result of a lower 
effective tax rate for the current year. 
Compared to last quarter, earnings were flat, as lower investment banking 
activities across most geographies, and lower fixed income trading revenue 
were offset by lower variable compensation, the favourable income tax 
adjustment related to the first half of the current year, and growth in 
lending, primarily in the U.S. 
Corporate Support net income was $236 million, largely reflecting net 
favourable tax adjustments, including a $90 million income tax adjustment 
related to the prior year. Asset/liability management activities also 
contributed to our results. 
Capital - As at July 31, 2013, Basel III Common Equity Tier 1 (CET1) ratio was 
9.2%, up 10 basis points compared to last quarter, driven by strong internal 
capital generation. 
Credit Quality - Total PCL of $267 million decreased $57 million or 18% from a 
year ago, mainly due to lower provisions in our Caribbean and Canadian Banking 
portfolios reflecting improved credit quality, partially offset by higher 
provisions in Wealth Management. Total PCL decreased $21 million or 7% from 
the prior quarter, mainly due to decreases in our Canadian Banking and Capital 
Markets portfolios, partially offset by an increase in Wealth Management. PCL 
ratio of 26 basis points declined 8 basis points compared to the prior year 
and 3 basis points compared to last quarter. 
-----------------------------------------------
(1) These measures are non-GAAP. For further information, including a 
reconciliation, refer to the non-GAAP measures section on page 3 of this 
Earnings Release. 
Non-GAAP measures 
Results and measures excluding specified items are non-GAAP measures. 
Specified items include a favourable income tax adjustment of $90 million in 
the current quarter, a restructuring charge of $44 million ($31 million 
after-tax) in the prior quarter, and net favourable adjustments of $262 
million after-tax in the prior year including the release of a $128 million 
tax uncertainty provision and net interest income of $72 million ($53 million 
after-tax) related to the settlement of several tax matters, a change in 
estimate of mortgage prepayment interest of $125 million ($92 million 
after-tax), and a loss of $12 million ($11 million after-tax) related to our 
acquisition of the remaining 50% interest in RBC Dexia. 
Given the nature and purpose of our management reporting framework, we use and 
report certain non-GAAP financial measures, which are not defined, do not have 
a standardized meaning under GAAP and may not be comparable with similar 
information disclosed by other financial institutions. We believe that 
excluding these specified items from our results is more reflective of our 
ongoing operating results, will provide readers with a better understanding of 
our performance and should enhance the comparability of our comparative 
periods. For further information, refer to the Key performance and non-GAAP 
measures section of our Q3 2013 Report to Shareholders. 
 


    Net Income excluding specified items

(Millions of Canadian dollars, except per share and percentage amounts)
                                                                                                                        
                        


                     For the three months ended July 31, 2013                   For the three months ended July 31, 
2012                 
                                                                                                                     
Loss 
                                                                                                                    
  related 
                                     Income tax                                         Tax          Mortgage 
         Reported                                         Adjusted     Reported                                     
  to RBC        Adjusted 
                                     adjustment                                     settlement      prepayment       
Dexia 
                                                                                                    adjustment      
acquisition     
Net                                                                                                                      
         
income     $    2,304   $                            (90)   $    2,214   $    2,240   $       (181)   $        (92)   $  
     11   $    1,978 
Basic
earnings                                                                                                                 
         
per
share      $     1.54   $                          (0.06)   $     1.48   $     1.49   $      (0.13)   $      (0.06)   $  
   0.01   $     1.31 
Diluted
earnings                                                                                                                 
         
per
share      $     1.52   $                          (0.06)   $     1.46   $     1.47   $      (0.12)   $      (0.06)   $  


          -   $     1.29

ROE             20.9%                                            20.0%        22.7%                                     
                   19.9%
                                                                                                                        
                        
                         For the three months ended April 30, 2013                                                      
                        
                                           I&TS
             Reported                  restructuring          Adjusted                                                  
             
                                          charge                                                                        
                        

Net                                                                                                                     


         
income     $    1,936   $                              31   $    1,967                                                   
                     
Basic
earnings                                                                                                                 
         
per                                                        
share      $     1.28   $                            0.02   $     1.30                                                   
                     
Diluted
earnings                                                                                                                 
         
per
share      $     1.27   $                            0.02   $     1.29                                                   


                        

ROE             18.5%                                            18.8%                                                  
                        
                                                                                                                        
                        


                      For the nine months ended July 31, 2013                            For the nine months ended 
July 31, 2012             
                                                                                                                     
Loss 
                                                                                                                    
  related 
                          Income            I&TS                                        Tax          Mortgage 
         Reported                                         Adjusted     Reported                                     
  to RBC        Adjusted 
                            tax         restructuring                               settlement      prepayment       
Dexia 
                        adjustment         charge                                                   adjustment      
acquisition     
Net                                                                                                                      
         
income     $    6,310   $          (90)   $            31   $    6,251   $    5,628   $       (181)   $        (92)   $  
    213   $    5,568 
Basic
earnings                                                                                                                 
         
per
share      $     4.18   $        (0.06)   $          0.02   $     4.14   $     3.72   $      (0.13)   $      (0.06)   $  
   0.15   $     3.68 
Diluted
earnings                                                                                                                 
         
per
share      $     4.15   $        (0.06)   $          0.02   $     4.11   $     3.68   $      (0.12)   $      (0.06)   $  


       0.14   $     3.64

ROE             19.7%                                            19.5%        19.6%                                     
                   19.3%
                                                                                                                        
                        

Personal & Commercial Banking net income, excluding specified items

(Millions of Canadian dollars)
                                                                                                                     
                 For the three months ended July 31, 2012                   For the nine months ended July 31, 2012     
                        
                             Mortgage                                                    Mortgage
             Reported       prepayment         Adjusted                    Reported     prepayment        Adjusted      
             
                            adjustment                                                  adjustment                      
                        

Net                                                                                                                     


         
income     $    1,102   $          (92)   $         1,010                $    3,054   $        (92)   $       2,962      


                        
                                                                                                                        
                        
                                                                                                                        
                        

Investor & Treasury Services net income, excluding specified items

(Millions of Canadian dollars)
                                                                                                                     
                                                                           For the the three months ended July 31,      
             
               For the three months ended April 30, 2013                                     2012                       
                        
                                                                                           Loss
                                                                                          related
                          Restructuring
             Reported                          Adjusted                    Reported       to RBC          Adjusted      
             
                             charge                                                        Dexia
                                                                                        acquisition                     
                        

Net                                                                                                                     


         
income     $       67   $            31   $            98                $       51   $          11   $          62      


                        
                                                                                                                        
                        
                                                                                                                        
                        
                For the nine months ended July 31, 2013                     For the nine months ended July 31, 2012     
                        
                                                                                           Loss
                                                                                          related
                          Restructuring
             Reported                          Adjusted                    Reported       to RBC          Adjusted      
             
                             charge                                                        Dexia
                                                                                        acquisition                     
                        

Net                                                                                                                     


         
income     $      251   $            31   $           282                $       13   $         213   $         226      


                        
                                                                                                                        
                        



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 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 Q3 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 Q3 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 Q3 2013 Report to 
Shareholders.

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.

ACCESS TO QUARTERLY RESULTS MATERIALS

Interested investors, the media and others may review this quarterly earnings 
release, quarterly results slides, supplementary financial information and our 
Q3 2013 Report to Shareholders on our website at rbc.com/investorrelations.

Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for Thursday, August 29, 2013 at 
7:30 a.m. (EDT) and will feature a presentation about our third quarter 
results by RBC executives. It will be followed by a question and answer 
period with analysts.

Interested parties can access the call live on a listen-only basis at: 
www.rbc.com/investorrelations/ir_events_presentations.html or by telephone 
(416-695-7806 or 1-888-789-9572, passcode 2674741#). Please call between 7:20 
a.m. and 7:25 a.m. (EDT).

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 (EDT) on 
August 29 until November 27, 2013 at: 
www.rbc.com/investorrelations/ir_quarterly.html or by telephone (905-694-9451 
or 1-800-408-3053, passcode 3629188#).

ABOUT RBC

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 44 other 
countries. For more information, please visit rbc.com.

Trademarks used in this Earnings Release include the LION & GLOBE Symbol, 
ROYAL BANK OF CANADA and RBC which are trademarks of 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 holders.



SOURCE  RBC 
Media Relations Contacts Tanis Feasby, Director, Financial 
Communications,tanis.feasby@rbc.com, 416-955-5172 or 1-888-880-2173 
(toll-free outside Toronto) Rina Cortese, Media 
Relations,rina.cortese@rbc.com, 416-974-5506 or 1-888-880-2173 (toll-free 
outside Toronto) 
Investor Relations Contacts Karen McCarthy, Director, Investor 
Relations,karen.mccarthy@rbc.com, 416-955-7809 Lynda Gauthier, Director, 
Investor Relations,lynda.gauthier@rbc.com, 416-955-7808 Robert Colangelo, 
Associate Director, Investor Relations,robert.colangelo@rbc.com, 416-955-2049 
To view this news release in HTML formatting, please use the following URL: 
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CO: RRYIR
ST: Ontario
NI: FIN ERN  
-0- Aug/29/2013 10:00 GMT