DOCSLIB.ORG

PDF Opens in New Window

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

Royal Bank of Canada 2001 Annual Report / Focused growth 3456 RBC AR Cover v.2 12/11/01 14:58 Page 1 / Corporate profile / Royal Bank of Canada (RY on the TSE and NYSE) and its subsidiaries, operating under the masterbrand RBC Financial Group, is one of North America’s premier diversified financial services companies and, within Canada, the leader in most of its businesses. In all, we serve more than 12 million personal, business and public sector clients worldwide. In Canada, we have strong positions in all personal and commercial banking product lines. In wealth management, we have the largest private banking, full-service brokerage (by assets) and mutual fund operations among Canadian banks (second-largest among all fund providers), and we own the second- largest self-directed broker, Action Direct. In corporate and investment banking, we continue to be the top-ranked securities underwriter and among the top mergers & acquisitions (M&A) advisors. We are the largest Canadian bank-owned insurer and one of the fastest growing in the country. We are the leader in travel insurance and creditor products. We also have by far the largest custody operations in the country. Our domestic delivery network includes more than 1,300 branches and other units, and over 4,200 banking machines. Currently, we have 1.9 million online and 2.3 million telephone clients. Internationally, we provide personal and commercial banking, mortgage origination, insurance, full-service brokerage, and corporate and investment banking services to over two million clients in the United States through RBC Centura, RBC Prism Mortgage, RBC Liberty Insurance, RBC Dain Rauscher and RBC Capital Markets. We also have a retail network in the Caribbean. Outside North America, we provide corporate and investment banking, trade finance, correspondent banking, treasury and securities custody services to business clients, and private banking services to individuals. We have a major presence in the global reinsurance market. Our international network includes 724 offices in more than 30 countries. / What’s inside 1 Financial highlights Financial review 91 Glossary 2 Chairman’s message (U.S. GAAP) 93 Directors & 3 Chief Executive Officer’s 18 Management’s discussion executive officers message and analysis 94 Corporate governance 6 Performance compared 57 Consolidated financial 96 Principal subsidiaries to objectives statements IBC Shareholder information 7 Why invest in Royal Bank 85 Supplementary information of Canada (RY)? 8 International expansion Financial review 11 Growth of our businesses (Canadian GAAP) 14 Frequently asked questions 18A Management’s discussion 16 Serving our stakeholders and analysis 57A Consolidated financial statements 86A Supplementary information 3456 RBC AR Cover v.2 12/11/01 15:00 Page 2 / RBC at a glance / Share of RBC 2001 / Business profile cash net income (1) Personal & Personal & Commercial Banking serves over 11 million individuals, small and medium-sized businesses, and commercial clients in Commercial Banking Canada, the U.S., the Caribbean and The Bahamas. Distribution RBC Royal Bank capabilities include a network of branches, business banking centres 55% RBC Centura and other sales units, mobile sales representatives, automated RBC Prism Mortgage banking machines, and telephone and Internet banking channels. RBC Builder Finance Financial services include deposit accounts, investments and mutual RBC Royal Bank of Canada funds, credit and debit cards, business and personal loans, and resi- dential and commercial mortgages, all supported by financial advice. Insurance Insurance provides a wide range of creditor, life, health, travel, home and auto insurance products and services to more than RBC Insurance five million North American clients as well as reinsurance to busi- RBC Liberty Insurance ness clients around the world. These products and services are offered through a wide variety of distribution channels, including the telephone, independent brokers, travel agents, a proprietary 7% sales force and the Internet. Wealth Management Wealth Management provides direct and full-service brokerage, financial planning, investment counselling, trust, private banking, RBC Investments mutual funds and investment management services to private clients RBC Dain Rauscher in Canada, the U.S. and internationally. Products and services RBC Global Private Banking 14% are delivered through the bank’s branch network across Canada, RBC Global Investment Management RBC Investments offices, private banking offices and other locations worldwide. Services are also delivered via the Internet and telephone. Through recent acquisitions, U.S. clients are served primarily in a full-service brokerage capacity in 41 states. Corporate & Corporate & Investment Banking serves corporate, government and institutional clients in North America and in selected product and 17% Investment Banking industry niches globally. Headquartered in Toronto, with key centres RBC Capital Markets of expertise in Minneapolis, New York and London, and offices in 29 other cities, this business offers North American expertise in the energy, communications, health care and technology sectors, and global expertise in the resource sectors. It is also globally competitive in Canadian securities, equity and credit derivatives, M&A, structured finance, foreign exchange and Eurobonds. Transaction Processing offers specialized transaction processing Transaction Processing 6% services to commercial, corporate and institutional clients in domestic RBC Global Services and select international markets. Key businesses include custody, correspondent banking, cash management, payments and trade finance. (1) Excluding special items detailed in Table 4 on page 20. Financial measures are derived from U.S. GAAP consolidated financial statements, unless otherwise noted. / Strategy highlights / Key operating highlights / Core financial highlights (1) • Accelerate U.S. growth through • Acquired North Carolina–based (C$ millions, taxable equivalent basis, continued development of U.S. Centura Banks, Inc. except percentage amounts) % change 2001 2000 capabilities and expansion in • Launched Moneris Solutions Gross revenues 13% $ 7,090 $ 6,271 targeted personal and commercial with Bank of Montreal to offer Non-interest expenses 12 4,125 3,684 markets North American merchants sim- Cash net income 24 1,395 1,124 • Sustain cost management focus, plified transaction processing Economic Profit 27 456 360 offsetting volume increases and • Signed agreement to provide Cash return on common equity (ROE) (60)bp 20.0% 20.6% new initiatives with cost reductions mobile mortgage application Number of employees software to mortgage specialists (full-time equivalent) 10% 34,849 31,610 • Expand distribution channels, • Acquired Liberty Life Insurance (C$ millions, taxable equivalent basis, add new products and enhance and Liberty Insurance Services except percentage amounts) % change 2001 2000 products in Canada • Consolidated most Canadian Gross revenues 119% $ 542 $ 247 • Continue to expand in the U.S. insurance operations at the new Non-interest expenses 117 375 173 • Maximize efficiency by integrat- Meadowvale Business Complex Cash net income 83 188 103 ing systems, services and in Mississauga, Ont. Economic Profit 7 72 67 structure in North America • Enhanced Insurance Web site Cash ROE (1,750)bp 21.9% 39.4% across business lines at rbcinsurance.com and Number of employees launched online access to (full-time equivalent) 96% 2,583 1,318 home and auto insurance quotes • Continue to identify and segment • Purchased Minneapolis-based (C$ millions, taxable equivalent basis, client base to tailor distribution Dain Rauscher and Boston-based except percentage amounts) % change 2001 2000 channels and develop appropriate retail brokerage Tucker Anthony Gross revenues 23% $ 3,075 $ 2,497 investment solutions Sutro, with combined entity to Non-interest expenses 46 2,691 1,846 • Develop market leadership in the be called RBC Dain Rauscher Cash net income (19) 352 437 financial planning industry • Divested businesses unrelated Economic Profit (69) 97 309 • Protect and grow domestic to retail investors – RT Capital Cash ROE (3,240)bp 18.4% 50.8% franchise while expanding U.S. Management and Group Number of employees and U.K. distribution Retirement Services division (full-time equivalent) 39% 10,512 7,553 • Expand market position in • Established as a strong player in (C$ millions, taxable equivalent basis, targeted U.S. industry sectors the alternative asset management except percentage amounts) % change 2001 2000 • Increase market penetration in business globally Gross revenues 19% $ 2,781 $ 2,330 asset securitization and broaden • Experienced significant growth Non-interest expenses 24 1,804 1,456 share of the U.S. market in high- in the client base and transaction Cash net income (21) 417 527 yield debt and alternative assets volume of proprietary Web-based Economic Profit (123) (44) 194 • Build global niches in trading, foreign exchange trading Cash ROE (1,020)bp 11.8% 22.0% distribution and structuring program, FX Direct® Number of employees • Announced restructuring that (full-time equivalent) 16% 2,954 2,541 better positions the business for future North American growth • Leverage client relationships and • Acquired Australia-based (C$ millions, taxable equivalent basis, leadership position in Canada to Perpetual Fund Services except percentage amounts) % change 2001 2000 develop new business in select • Received prestigious Gross revenues 6%
Recommended publications
  • ROYAL BANK REPORTS FOURTH QUARTER and FULL YEAR 2001 RESULTS Diversified Businesses and International Expansion Lead to Record Y

    ROYAL BANK REPORTS FOURTH QUARTER and FULL YEAR 2001 RESULTS Diversified Businesses and International Expansion Lead to Record Y

    ROYAL BANK REPORTS FOURTH QUARTER AND FULL YEAR 2001 RESULTS Diversified businesses and international expansion lead to record year. TORONTO, November 20, 2001 – For its fourth quarter ended October 31, 2001, Royal Bank of Canada (RY on TSE & NYSE) today announced net income of $680 million ($.94 per share) and cash net income of $803 million ($1.12 per share). Excluding the gain on the sale of RT Capital Management and the write-down of deferred income taxes, mentioned on page 11, core cash net income was $564 million ($.78 per share). Fourth quarter core financial highlights (U.S. GAAP and compared to a year ago): · Cash net income $564 million, down 5%. · Diluted cash earnings per share $.78, down 15%. · Cash ROE 12.9%. · Revenue growth 20%. · Nonaccrual loans ratio 1.36%, up 13 basis points from last quarter. Full year core financial highlights (U.S. GAAP and compared to 2000): · Cash net income $2,517 million, up 10%. · Diluted cash earnings per share $3.68, up 4%. · Cash ROE 17.1%. · Revenue growth 19%. For the three months ended For the full year ended Oct. 31, Oct. 31, 2001 Oct. 31, Oct. 31, Oct. 31, 2001 Oct. 31, 2001 (core, i.e., 2000 2001 (core, i.e., 2000 (C$ millions, except per excluding excluding share and ROE amounts) special items (1)) special items (1)) U.S. GAAP Cash net income(2) $803 $564 $594 $2,721 $2,517 $2,296 Net income $680 $441 $568 $2,435 $2,231 $2,208 Cash EPS – diluted(2) $1.12 $.78 $.92 $4.00 $3.68 $3.55 EPS – diluted $.94 $.60 $.88 $3.55 $3.24 $3.40 Economic Profit(3) $15 $15 $184 $583 $583 $714 Cash ROE(2) 18.6% 12.9% 20.1% 18.6% 17.1% 20.2% ROE 15.7% 9.9% 19.2% 16.6% 15.1% 19.3% Canadian GAAP Cash net income(2) $778 $539 $620 $2,693 $2,463 $2,358 Net income $656 $417 $595 $2,411 $2,181 $2,274 Cash EPS – diluted(2) $1.09 $.74 $.97 $3.95 $3.60 $3.65 EPS – diluted $.91 $.56 $.93 $3.52 $3.16 $3.51 Economic Profit(3) $(7) $(7) $207 $539 $539 $764 Cash ROE(2) 18.1% 12.3% 20.9% 18.5% 16.8% 20.6% ROE 15.2% 9.4% 20.0% 16.4% 14.8% 19.8% (1) Special items in Q4/01 and 2001 are shown on page 11.
  • Revenue Growth** 22% 22% Operating Expense Growth** 19% 20% * Growth Vs

    Revenue Growth** 22% 22% Operating Expense Growth** 19% 20% * Growth Vs

    Highlights of Results February 22, 2002 Investor Relations www.rbc.com/investorrelations Caution regarding forward-looking statements Royal Bank of Canada, from time to time, makes written and oral forward-looking statements, included in this presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, in reports to shareholders and in other communications, which are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements with respect to the bank’s objectives for 2002, and the medium and long terms, and strategies to achieve those objectives, as well as statements with respect to the bank’s beliefs, plans, expectations, anticipations, estimates and intentions. The words “may,” “could,” “should,” “would,” “suspect,” “outlook,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” and words and expressions of similar import are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. The bank cautions readers not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward- looking statements.
  • What Has Explained Ipo Underpricing?

    What Has Explained Ipo Underpricing?

    WHAT HAS EXPLAINED IPO UNDERPRICING? Wen Wen B.A. Business Administrative Studies at York University, 2000 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration Segal Business School Global Assets and Wealth Management MBA O Wen Wen 2005 SIMON FRASER UNIVERSITY Fall 2005 A11 rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Wen Wen Degree: Master of Business Administration Title of Project: What Has Explained IPO Underpricing? Supervisory Committee: Peter Klein Senior Supervisor Faculty of Business Administration Simon Fraser University - - Andrey Pavlov Supervisor Faculty of Business Administration Simon Fraser University Date Approved: December 07.2005 DECLARATION OF PARTIAL COPYRIGHT LICENCE The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its circulating collection, and, without changing the content, to translate the thesislproject or extended essays, if technically possible, to any medium or format for the purpose of preservation of the digital work. The author has further agreed that permission for multiple copying of this work for scholarly purposes may be granted by either the author or the Dean of Graduate Studies.
  • Royal Bank of Canada Annual Information Form

    Royal Bank of Canada Annual Information Form

    TM ROYAL BANK OF CANADA ANNUAL INFORMATION FORM December 10, 2002 TABLE OF CONTENTS INCORPORATION ............................................................................................... 1 BUSINESS Overview .................................................................................................................. 1 RBC Banking ........................................................................................................... 1 RBC Insurance .......................................................................................................... 2 RBC Investments....................................................................................................... 3 RBC Capital Markets ............................................................................................... 4 RBC Global Services ............................................................................................... 5 Competition .............................................................................................................. 6 General development of the business ....................................................................... 7 GOVERNMENT SUPERVISION AND REGULATION – CANADA Supervision and regulation........................................................................................ 10 Capital Liquidity and Dividends ............................................................................... 11 Business....................................................................................................................