Glossary

Acceptances Bank-owned life insurance contracts (BOLI) Common Equity Tier 1 capital ratio A bill of exchange or negotiable instrument Our legacy portfolio includes BOLI where we CET1 capital less regulatory adjustments or drawn by the borrower for payment at maturity provided banks with BOLI stable value deductions divided by risk-weighted assets. and accepted by a bank. The acceptance agreements (“wraps”), which insure the life constitutes a guarantee of payment by the bank insurance policy’s cash surrender value from Covered bonds and can be traded in the money market. The market fluctuations on the underlying Full recourse on-balance sheet obligations bank earns a “stamping fee” for providing this investments, thereby allowing us to guarantee issued by banks and credit institutions that are guarantee. a minimum tax-exempt return to the counter- also fully collateralized by assets over which party. These wraps allow us to account for the investors enjoy a priority claim in the event of Allowance for credit losses underlying assets on an accrual basis instead an issuer’s insolvency. The amount deemed adequate by management of a mark-to-market basis. to absorb identified credit losses as well as Credit default swaps (CDS) losses that have been incurred but are not yet Basis point (bp) A derivative contract that provides the identifiable as at the balance sheet date. This One one-hundredth of a percentage point purchaser with a one-time payment should the allowance is established to cover the lending (.01%). referenced entity/entities default (or a similar portfolio including loans, acceptances, triggering event occur). guarantees, letters of credit, and unfunded Capital adequacy commitments. The allowance is increased by The level of capital that is sufficient to underpin the provision for credit losses, which is charged Derivative risk and accommodate potential unexpected A contract between two parties, which requires to income and decreased by the amount of increases in risk within specified regulatory write-offs, net of recoveries in the period. little or no initial investment and where targets while maintaining our business plans. payments between the parties are dependent This includes risks for which minimum upon the movements in price of an underlying Alt-A assets regulatory capital requirements may not be instrument, index or financial rate. Examples of A term used in the U.S. to describe assets specified. derivatives include swaps, options, forward (mainly mortgages) with a borrower risk profile rate agreements and futures. The notional between the prime and subprime catego- Collateral amount of the derivative is the contract amount rizations. Categorization of assets as Alt-A (as Assets pledged as security for a loan or other used as a reference point to calculate the opposed to prime) varies, such as limited obligation. Collateral can take many forms, payments to be exchanged between the two verification or documentation of borrowers’ such as cash, highly rated securities, property, parties, and the notional amount itself is income or a limited credit history. inventory, equipment and receivables. generally not exchanged by the parties.

Asset-backed securities (ABS) Collateralized debt obligation (CDO) Dividend payout ratio Securities created through the securitization of Securities with multiple tranches that are Common dividends as a percentage of net a pool of assets, for example auto loans or issued by special purpose entities and income after preferred share dividends. credit card loans. collateralized by debt obligations including bonds and loans. Each tranche offers a varying Earnings per share (EPS), basic Assets-to-capital multiple degree of risk and return so as to meet investor Calculated as net income less preferred share Total assets plus specified off-balance sheet demand. dividends divided by the average number of items, as defined by OSFI, divided by total shares outstanding. regulatory capital. Collateralized loan obligation (CLO) Securities that are backed by a pool of Earnings per share (EPS), diluted Assets under administration (AUA) commercial or personal loans, structured so Calculated as net income less preferred share Assets administered by us, which are benefi- that there are several classes of bonds with dividends divided by the average number of cially owned by clients, as at October 31, varying maturities, called tranches. shares outstanding adjusted for the dilutive unless otherwise noted. Services provided in effects of stock options and other convertible respect of assets under administration are of Commercial mortgage-backed securities securities. an administrative nature, including (CMBS) safekeeping, collecting investment income, Securities created through the securitization of Economic capital settling purchase and sale transactions, and commercial mortgages. record keeping. An estimate of the amount of equity capital required to underpin risks. It is calculated by Commitments to extend credit estimating the level of capital that is necessary Assets under management (AUM) Unutilized amount of credit facilities available to support our various businesses, given their Assets managed by us, which are beneficially to clients either in the form of loans, bankers’ risks, consistent with our desired solvency owned by clients, as at October 31, unless acceptances and other on-balance sheet standard and credit ratings. The identified risks otherwise noted. Services provided in respect financing, or through off-balance sheet products for which we calculate Economic Capital are of assets under management include the such as guarantees and letters of credit. credit, market (trading and non-trading), selection of investments and the provision of operational, business, fixed asset, and investment advice. We have assets under insurance. Additionally, Economic Capital Common Equity Tier 1 (CET1) capital management that are also administered by us includes goodwill and intangibles, and allows and included in assets under administration. The sum of common shares issued that meet regulatory criteria, share premium from the for diversification benefits across risks and issuances and other contributed surplus, business segments. Auction rate securities (ARS) retained earnings, accumulated other Securities issued through special purpose comprehensive income and other disclosed Fair value entities that hold long-term assets funded with reserves, and common shares issued by The amount of consideration that would be long-term debt. In the U.S., these securities are consolidated subsidiaries held by third parties; agreed upon in an arm’s length transaction issued by sponsors such as municipalities, less dividends removed from CET1 in between knowledgeable, willing parties who student loan authorities or other sponsors accordance with applicable accounting are under no compulsion to act. through bank-managed auctions. standards.

Glossary Royal Bank of Canada: Annual Report 2013 183 Gross-adjusted assets (GAA) Loan-to-value (LTV) ratio Provision for credit losses (PCL) GAA are used in the calculation of the Assets- Calculated based on the total facility amount The amount charged to income necessary to to-capital multiple. They represent our total for the residential mortgage and homeline bring the allowance for credit losses to a level assets including specified off-balance sheet product divided by the value of the related determined appropriate by management. This items and net of prescribed deductions. Off residential property. includes both specific and general provisions. balance sheet items for this calculation are direct credit substitutes, including letters of Master netting agreement Repurchase agreements credit and guarantees, transaction-related An agreement between us and a counterparty These involve the sale of securities for cash and contingencies, trade-related contingencies and designed to reduce the credit risk of multiple the simultaneous repurchase of the securities sale and repurchase agreements. derivative transactions through the creation of for value at a later date. These transactions a legal right of offset of exposure in the event of normally do not constitute economic sales and Guarantees and standby letters of credit a default. therefore are treated as collateralized financing These primarily represent irrevocable transactions. assurances that a bank will make payments in Net interest income the event that its client cannot meet its The difference between what is earned on Residential mortgage-backed securities financial obligations to third parties. Certain assets such as loans and securities and what is (RMBS) other guarantees, such as bid and performance paid on liabilities such as deposits and Securities created through the securitization of bonds, represent non-financial undertakings. subordinated debentures. residential mortgage loans.

Hedge Net interest margin (average assets) Return on common equity (ROE) A risk management technique used to mitigate Net interest income as a percentage of total Net income less preferred share dividends, exposure from market, interest rate or foreign average assets. expressed as a percentage of average common currency exchange risk arising from normal equity. banking operations. The elimination or reduction of such exposure is accomplished by Normal course issuer bid (NCIB) establishing offsetting positions. For example, A program for the repurchase of our own shares Reverse repurchase agreements assets denominated in foreign currencies can for cancellation through a stock exchange that These involve the purchase of securities for be offset with liabilities in the same currencies is subject to the various rules of the relevant cash and the simultaneous sale of the or through the use of foreign exchange hedging stock exchange and securities commission. securities for value at a later date. These instruments such as futures, options or foreign transactions normally do not constitute exchange contracts. Notional amount economic sales and therefore are treated as The contract amount used as a reference point collateralized financing transactions. Hedge funds to calculate payments for derivatives. A type of investment fund, marketed to Risk-weighted assets (RWA) accredited high net worth investors, that is Off-balance sheet financial instruments Assets adjusted by a regulatory risk-weight subject to limited regulation and restrictions on A variety of arrangements offered to clients, factor to reflect the riskiness of on and off- its investments compared to retail mutual which include credit derivatives, written put balance sheet exposures. Certain assets are funds, and that often utilize aggressive options, backstop liquidity facilities, stable not risk-weighted, but deducted from capital. strategies such as selling short, leverage, value products, financial standby letters of The calculation is defined by guidelines issued program trading, swaps, arbitrage and credit, performance guarantees, credit by OSFI based on Basel III, effective the first derivatives. enhancements, mortgage loans sold with quarter of 2013. For more details, refer to the recourse, commitments to extend credit, Capital management section. Home equity products securities lending, documentary and This is comprised of residential mortgages and commercial letters of credit, note issuances Securities lending secured personal loans whereby the borrower and revolving underwriting facilities, securities Transactions in which the owner of a security pledges real estate as collateral. lending indemnifications and indemnifications. agrees to lend it under the terms of a prearranged contract to a borrower for a fee. The borrower must collateralize the security International Financial Reporting Standards Office of the Superintendent of Financial Institutions Canada (OSFI) loan at all times. An intermediary such as a (IFRS) bank often acts as agent for the owner of the IFRS are principles-based standards, inter- The primary regulator of federally chartered financial institutions and federally security. There are two types of securities pretations and the framework adopted by the lending arrangements: lending with and International Accounting Standards Board. administered pension plans in Canada. OSFI’s mission is to safeguard policyholders, without credit or market risk indemnification. In depositors and pension plan members from securities lending without indemnification, the Impaired loans undue loss. bank bears no risk of loss. For transactions in Loans are classified as impaired when there has which the bank provides an indemnification, it been a deterioration of credit quality to the bears the risk of loss if the borrower defaults extent that management no longer has Operating leverage and the value of the collateral declines reasonable assurance of timely collection of the The difference between our revenue growth rate concurrently. full amount of principal and interest in and non-interest expense growth rate. accordance with the contractual terms of the Securities sold short loan agreement. Credit card balances are not Options A transaction in which the seller sells securities classified as impaired as they are directly written A contract or a provision of a contract that gives and then borrows the securities in order to off after payments are 180 days past due. one party (the option holder) the right, but not deliver them to the purchaser upon settlement. the obligation, to perform a specified trans- At a later date, the seller buys identical Innovative capital instruments action with another party (the option issuer or securities in the market to replace the Innovative capital instruments are capital option writer) according to specified terms. borrowed securities. instruments issued by Special Purpose Entities (SPEs), whose primary purpose is to raise Primary dealer Securitization capital. We previously issued innovative capital A formal designation provided to a bank or The process by which various financial assets instruments, RBC Trust Capital Securities (RBC securities broker-dealer permitted to trade are packaged into newly issued securities TruCS) and RBC Trust Subordinated Notes (RBC directly with a country’s central bank. Primary backed by these assets. TSNs), through three SPEs: RBC Capital Trust, dealers participate in open market operations, RBC Capital Trust II and RBC Subordinated act as market-makers of government debt and Notes Trust. As per OSFI Basel III guidelines, provide market information and analysis to non-qualifying innovative capital instruments assist with monetary policy. treated as additional Tier 1 capital are subject to phase out over a ten year period beginning on January 1, 2013.

184 Royal Bank of Canada: Annual Report 2013 Glossary Special purpose entities (SPEs) Taxable equivalent basis (teb) Trust Capital Securities (RBC TruCS) Special purpose entities, which may take the Income from certain specified tax advantaged Transferable trust units issued by special form of a corporation, trust, partnership or sources is increased to a level that would make purpose entities RBC Capital Trust or RBC unincorporated entity, typically are created to it comparable to income from taxable sources. Capital Trust II for the purpose of raising accomplish a narrow and well-defined objective There is an offsetting adjustment in the tax innovative Tier 1 capital. with legal arrangements that impose strict provision, thereby generating the same after- limits on the decision-making powers of their tax net income. governing board, trustee or management over Trust Subordinated Notes (RBC TSNs) its operations. Frequently these provisions Tier 1 capital Transferable trust units issued by RBC specify that the policy guiding the ongoing Tier 1 capital comprises predominantly CET1, Subordinated Notes Trust for the purpose of activities of the SPEs cannot be modified, other raising innovative Tier 2 capital. than perhaps by its creator or sponsor. with additional Tier 1 items such as preferred shares and non-controlling interests in subsidiaries Tier 1 instruments. Value-at-Risk (VaR) Standardized Approach A generally accepted risk-measurement Risk weights prescribed by OSFI are used to Tier 2 capital concept that uses statistical models based calculate risk-weighted assets for the credit risk on historical information to estimate within a exposures. Credit assessments by OSFI- Tier 2 capital consists mainly of recognized external credit rating agencies of subordinated debentures that meet certain given level of confidence the maximum loss S&P, Moody’s, Fitch and DBRS are used to risk- criteria, certain loan loss allowances and in market value we would experience in our weight our Sovereign and Bank exposures non-controlling interests in subsidiaries’ trading portfolio from an adverse one-day based on the standards and guidelines issued Tier 2 instruments. movement in market rates and prices. by OSFI. For our Business and Retail exposures, we use the standard risk weights prescribed by OSFI. Total capital and total capital ratio Total capital is defined as the total of Tier 1 and Tier 2 capital. The total capital ratio is Structured investment vehicles Managed investment vehicle that holds mainly calculated by dividing total capital by risk- highly rated asset-backed securities and funds weighted assets. itself using the short-term commercial paper market as well as the medium-term note (MTN) Tranche market. A security class created whereby the risks and returns associated with a pool of assets Subprime loans are packaged into several classes of Subprime lending is the practice of making securities offering different risk and return loans to borrowers who do not qualify for the profiles from those of the underlying asset best market interest rates because of their pool. Tranches are typically rated by ratings deficient credit history. Subprime lending carries more risk for lenders due to the agencies, and reflect both the credit quality combination of higher interest rates for the of underlying collateral as well as the level of borrowers, poorer credit histories, and adverse protection based on the tranches’ relative financial situations usually associated with subordination. subprime applicants.

Glossary Royal Bank of Canada: Annual Report 2013 185 Directors and executive officers

Directors

W. Geoffrey Beattie (2001) Alice D. Laberge (2005) Heather Munroe-Blum, Thomas A. Renyi (2013) Toronto, Ontario Vancouver, British Columbia O.C., O.Q., Ph.D., FRSC (2011) New Harbor, Maine Chief Executive Officer, Corporate Director Montreal, Quebec Corporate Director Generation Capital Professor of Medicine and Jacques Lamarre, O.C. (2003) Principal Emerita Edward Sonshine, O.Ont., Q.C. David F. Denison, FCPA, FCA Montreal, Quebec McGill University (2008) (2012) Strategic Advisor, Toronto, Ontario Toronto, Ontario Heenan Blaikie LLP Gordon M. Nixon, C.M., O.Ont. Chief Executive Officer Corporate Director (2001) RioCan Real Estate Brandt C. Louie, O.B.C., CPA, FCA Toronto, Ontario Investment Trust The Hon. Paule Gauthier, (2001) President and Chief P.C., O.C., O.Q., Q.C. (1991) West Vancouver, British Executive Officer Kathleen P. Taylor (2001) Quebec City, Quebec Columbia Royal Bank of Canada Toronto, Ontario Senior Partner Chairman and Chief Chair of the Board (Designate) Stein Monast L.L.P. Executive Officer David P. O’Brien, O.C. (1996) Royal Bank of Canada H.Y. Louie Co. Limited Calgary, Alberta Richard L. George, O.C. (2012) Chairman Chairman of the Board Bridget A. van Kralingen (2011) Calgary, Alberta London Drugs Limited Royal Bank of Canada New York, New York Partner, Novo Investment Group Senior Vice President Michael H. McCain (2005) J. Pedro Reinhard (2000) IBM Global Business Services Timothy J. Hearn (2006) Toronto, Ontario Key Biscayne, Florida IBM Corporation Calgary, Alberta President and Chief President Chairman Executive Officer Reinhard & Associates Victor L. Young, O.C. (1991) Hearn & Associates Maple Leaf Foods Inc. St. John’s, Newfoundland and Labrador Corporate Director

The date appearing after the name of each director indicates the year in which the individual became a director.

Group Executive (1), (2)

Morten N. Friis Zabeen Hirji A. Douglas McGregor Gordon M. Nixon, C.M., O.Ont. Chief Risk Officer (1) Chief Human Resources Officer Group Head, Capital Markets President and and Investor & Treasury Services Chief Executive Officer Janice R. Fukakusa, FCPA, FCA M. George Lewis Chief Administrative Officer and Group Head, Wealth David I. McKay Chief Financial Officer Management and Insurance Group Head, Personal & Commercial Banking

(1) Morten N. Friis will retire as Chief Risk Officer on January 10, 2014. Mark Hughes will take over as Chief Risk Officer and join the Group Executive on that date. (2) Bruce Ross will join RBC in January 2014 as Group Head, Technology & Operations, and will join the Group Executive

186 Royal Bank of Canada: Annual Report 2013 Directors and executive officers Principal subsidiaries

Carrying value of voting shares owned Principal subsidiaries (1) Principal office address (2) by the bank (3) Royal Bank Holding Inc. Toronto, Ontario, Canada $ 36,853 Royal Mutual Funds Inc. Toronto, Ontario, Canada RBC Insurance Holdings Inc. Mississauga, Ontario, Canada RBC General Insurance Company Mississauga, Ontario, Canada RBC Insurance Company of Canada Mississauga, Ontario, Canada RBC Life Insurance Company Mississauga, Ontario, Canada RBC Direct Investing Inc. Toronto, Ontario, Canada RBC Phillips, Hager & North Investment Counsel Inc. Toronto, Ontario, Canada R.B.C. Holdings (Bahamas) Limited Nassau, New Providence, Bahamas RBC Caribbean Investments Limited George Town, Grand Cayman, Cayman Islands Royal Bank of Canada Insurance Company Ltd. St. Michael, Barbados Investment Holdings (Cayman) Limited George Town, Grand Cayman, Cayman Islands RBC (Barbados) Funding Ltd. St. Michael, Barbados RBC Capital Markets Arbitrage S.A. Luxembourg, Luxembourg Capital Funding Alberta Limited Calgary, Alberta, Canada RBC Global Asset Management Inc. Toronto, Ontario, Canada RBC Investor Services Trust Toronto, Ontario, Canada RBC Investor Services Bank S.A. Esch-sur-Alzette, Luxembourg RBC (Barbados) Trading Bank Corporation St. James, Barbados RBC USA Holdco Corporation (2) New York, New York, U.S. 10,101 RBC Capital Markets, LLC (2) New York, New York, U.S. RBC Global Asset Management (U.S.) Inc. Minneapolis, Minnesota, U.S. RBC Dominion Securities Limited Toronto, Ontario, Canada 5,632 RBC Dominion Securities Inc. Toronto, Ontario, Canada RBC Holdings (Barbados) Ltd. St. Michael, Barbados 2,787 RBC Financial (Caribbean) Limited Port of Spain, Trinidad and Tobago RBC Finance S.à r.l./B.V. (2) Amsterdam, Netherlands 2,551 RBC Holdings (Luxembourg) S.A R.L. Luxembourg, Luxembourg RBC Holdings (Channel Islands) Limited Jersey, Channel Islands Royal Bank of Canada (Channel Islands) Limited Guernsey, Channel Islands Bluebay Asset Management (Services) Ltd. London, England 1,719 RBC Europe Limited London, England 1,510 RBC Capital Trust Toronto, Ontario, Canada 1,282 Royal Bank Mortgage Corporation Toronto, Ontario, Canada 1,075 RBC Covered Bond Guarantor Limited Partnership Toronto, Ontario, Canada 587 The Royal Trust Company Montreal, Quebec, Canada 525 RBC Bank (Georgia), National Association (2) Atlanta, Georgia, U.S. 243 RBC Luxembourg (Suisse) Holdings S.A R.L. Luxembourg, Luxembourg 151 Royal Bank of Canada (Suisse) SA Geneva, Switzerland Royal Trust Corporation of Canada Toronto, Ontario, Canada 142 (1) The Bank directly or indirectly owns 100% of the voting shares of each subsidiary. (2) Each subsidiary is incorporated or organized under the law of the state or country in which the principal office is situated, except for RBC USA Holdco Corporation which is incorporated under the laws of the State of Delaware, U.S., RBC Capital Markets, LLC, which is organized under the laws of the State of Minnesota, U.S. RBC Finance S.à r.l. / B.V. is a company incorporated in the Netherlands with its official seat in Amsterdam, the Netherlands, and place of effective management, central administration, and principal establishment in Luxembourg, Grand Duchy of Luxembourg. It is registered with the Luxembourg Register of Commerce under no. B169.988 and with the Dutch trade register of the Chamber of Commerce under no. 3315188. RBC Bank (Georgia), National Association is a nationally chartered U.S. bank having a head office in Atlanta, Georgia with operations in Raleigh, North Carolina and has adopted the corporate governance procedures of the law of the State of Delaware. (3) The carrying value (in millions of dollars) of voting shares is stated as the Bank’s equity in such investments.

Principal subsidiaries Royal Bank of Canada: Annual Report 2013 187 Shareholder information

Corporate headquarters Stock exchange listings Financial analysts, portfolio Common share repurchases Street address: (Symbol: RY) managers, institutional investors We are engaged in a Normal Royal Bank of Canada For financial information inquiries, Course Issuer Bid (NCIB). During 200 Bay Street Common shares are listed on: please contact: the one-year period commencing Toronto, Ontario M5J 2J5 Canada – Toronto Stock Investor Relations November 1, 2013, we may Canada Exchange (TSX) Royal Bank of Canada repurchase for cancellation, up to Tel: 1-888-212-5533 U.S. – New York Stock Exchange 200 Bay Street 30 million common shares in the Fax: 416-955-7800 (NYSE) 4th Floor, North Tower open market at market prices. We Switzerland – Swiss Exchange Toronto, Ontario M5J 2W7 determine the amount and timing Mailing address: (SIX) Canada of the purchases under the NCIB, P.O. Box 1 All preferred shares are listed on Tel: 416-955-7802 subject to prior consultation with Royal Bank Plaza the TSX. Fax: 416-955-7800 the Office of the Superintendent Toronto, Ontario M5J 2J5 or visit our website at of Financial Institutions Canada Canada Valuation day price rbc.com/investorrelations (OSFI). website: rbc.com For capital gains purposes, the Valuation Day (December 22, Direct deposit service A copy of our Notice of Intention Transfer Agent and Registrar 1971) cost base for our common Shareholders in Canada and the to file a NCIB may be obtained, Main Agent: shares is $7.38 per share. This U.S. may have their RBC common without charge, by contacting our Computershare Trust Company of amount has been adjusted to share dividends deposited directly Corporate Secretary at our Canada reflect the two-for-one share split to their bank account by electronic Toronto mailing address. 1500 University Street of March 1981 and the two-for- funds transfer. To arrange for this Suite 700 one share split of February 1990. service, please contact our 2014 Quarterly earnings release Montreal, Quebec H3A 3S8 The one-for-one share dividends Transfer Agent and Registrar, dates Canada paid in October 2000 and April Computershare Trust Company of First quarter February 26 Tel: 1-866-586-7635 (Canada and 2006 did not affect the Valuation Canada. Second quarter May 22 the U.S.) or 514-982-7555 Day value for our common Third quarter August 22 (International) shares. Eligible dividend designation Fourth quarter December 3 Fax: 514-982-7580 For purposes of the enhanced website: computershare.com\rbc Shareholder contacts dividend tax credit rules 2014 Annual Meeting For dividend information, change contained in the Income Tax Act The Annual Meeting of Common Co-Transfer Agent (U.S.): in share registration or address, (Canada) and any corresponding Shareholders will be held on Computershare Trust lost stock certificates, tax forms, provincial and territorial tax Wednesday, February 26, 2014, at Company, N.A. estate transfers or dividend legislation, all dividends (and 9:00 a.m. (Eastern Standard Time) 250 Royall Street reinvestment, please contact: deemed dividends) paid by us to at the Metro Toronto Convention Canton, Massachusetts 02021 Computershare Trust Company of Canadian residents on our Centre, North Building, 255 Front U.S.A. Canada common and preferred shares Street West, Toronto, Ontario, 100 University Avenue, 8th Floor after December 31, 2005, are Canada Co-Transfer Agent (U.K.): Toronto, Ontario M5J 2Y1 designated as “eligible Computershare Investor Canada dividends.” Unless stated Services PLC otherwise, all dividends (and Securities Services – Registrars Tel: 1-866-586-7635 (Canada and deemed dividends) paid by us P.O. Box 82, The Pavilions, the U.S.) or 514-982-7555 hereafter are designated as Bridgwater Road, (International) “eligible dividends” for the Bristol BS99 7NH Fax: 1-888-453-0330 (Canada and purposes of such rules. U.K. the U.S.) or 416-263-9394 (International) email: [email protected] Dividend dates for 2014 Subject to approval by the Board of Directors For other shareholder inquiries, Ex-dividend Record Payment please contact: dates dates dates Shareholder Relations Common and preferred January 23 January 27 February 24 Royal Bank of Canada shares series W, AA, AB, AC, April 22 April 24 May 23 200 Bay Street AD, AE, AF, AG, AJ, AL, AN, July 22 July 24 August 22 9th Floor, South Tower AP, AR, AT, AV and AX October 23 October 27 November 24 Toronto, Ontario M5J 2J5 Canada Governance A summary of the significant ways in which corporate governance Tel: 416-955-7806 practices followed by RBC differ from corporate governance practices Fax: 416-974-3535 required to be followed by U.S. domestic companies under the New York Stock Exchange listing standards is available on our website at rbc.com/governance.

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

Trademarks used in this report include the LION & GLOBE Symbol, ROYAL BANK OF CANADA, RBC, RBC BLUE WATER PROJECT, RBC CAPITAL TRUST, RBC CAREER LAUNCH, RBC GLOBAL ASSET MANAGEMENT, RBC INSURANCE, RBC SECURE CLOUD, RBC TSNs, RBC TruCS, RBC WEALTH MANAGEMENT and THOR which are trademarks of Royal Bank of Canada usedby Royal Bank of Canada and/or by its subsidiaries under licence. All other trademarks mentioned in this report, including those that are identified with the ‡ symbol, which are not the property of Royal Bank of Canada, are owned by their respective holders.

188 Royal Bank of Canada: Annual Report 2013 Shareholder information SERVICE TEAMWORK RESPONSIBILITY DIVERSITY INTEGRITY

RBC.COM/AR2013 81104 (12/2013)