RBC Financial Group 2005 Corporate Responsibility Report and Public Acountability Statement

ACCESS TO CREDIT AND MORE
Financing is essential for many small businesses to start, operate or grow. RBC offers a host of credit solutions tailored to meet the needs of diverse businesses at various stages. But access to credit is only one concern of small business clients. We also strive to meet other needs by providing the best possible products, advice and expertise.

WE LISTEN TO SMALL BUSINESS
At the heart of RBC’s commitment to entrepreneurs is our pledge to small business. Embedded in the pledge are the ideas of listening, understanding and responding to the needs of entrepreneurs.

RBC Royal Bank surveys about 7,000 small business clients each year to assess how well we meet their needs, and to keep abreast of the changing nature of small business. In the U.S., RBC Centura surveyed over 2,200 business customers in 2005. We also survey a cross-section of business owners who are not our clients, to identify trends and issues in the marketplace.

For example, clients told us they wanted a single point of contact. In response, we have doubled the number of employees who are dedicated to help small business owners with both their business and personal financial needs. We had 480 people devoted to this role in Canada by the end of 2005. Clients also asked to use our volume buying power to their advantage. In 2005, we partnered with Dell to offer small business clients technology packages at more affordable prices than they would otherwise have access to.

In the United States, RBC Centura’s small business clients indicated that they want to do business with a bank that does more than meet their lending needs. They want to deal with an organization that understands their business and provides advice. To address this, we have developed a new small business strategy that emphasizes extensive training for front-line staff, enabling them to deliver the kind of advice clients want.

CLIENT FIRST
RBC’s “client first” approach to small business means we are committed to make it easier for our clients to do business with us. We adapt our products, processes and skills to keep pace with the needs of today’s entrepreneurs. For instance, in 2005, we:

• Streamlined our small business account opening process to facilitate same-day account opening in any branch in Canada;

• Made it easier to structure business accounts for financial covenants;

• Eliminated paperwork and branch visits for most loans originated through Royal Direct telephone banking;

• Improved the Avion Visa card for small business by adding a points roll-up option and reducing fees for supplementary cards;

• Introduced a custom switch that makes it easier for small businesses to move their main banking relationship; and

• Provided training for 90 per cent of our small business account managers in Canada to develop their expertise further.

SERVICES FOR A DIVERSITY OF NEEDS
There aren’t one-size-fits-all solutions for business clients. We serve a diversity of industries, and have dedicated specialists to meet the varied priorities of our clients. For instance:

• We have nearly 50 specialists dedicated to the manufacturing sector in Canada; and

• We tailor products and services for professionals, franchise owners and public sector organizations in Canada and the United States.

Knowledge-based industries
RBC is the market leader in helping knowledge-based industries in Canada. We have 50 specialized account managers across Canada who are solely dedicated to working with businesses and industry in the areas of Information and Advanced Technology, Media and Entertainment, and Life Sciences and Health Care. We deliver customized financial services to meet the needs of knowledge-based industries at all stages of their lifecycle – from start-up financing to going public.

Women entrepreneurs
In both Canada and the United States, women-owned businesses are a growing trend. RBC Royal Bank identified this market as a priority a decade ago, and has helped women build their businesses by sharing information, advice and networks. Today, RBC is the market leader for women entrepreneurs in Canada, with 19 per cent market share. Our Women’s Champions Network is made up of account managers, personal bankers and investment advisors across the country.

RBC is a founding member of the Global Banking Alliance (GBA) for Women, dedicated to speeding the growth of women-owned businesses globally.

RBC sponsored the 2005 RBC Canadian Woman Entrepreneur Awards to recognize contributions to the Canadian economy.

Young entrepreneurs
RBC Royal Bank provides tailored services and advice to help young people start and grow their businesses. We support the Business and Entrepreneurship Initiative YouthBiz, a new TakingITGlobal initiative aimed at connecting young entrepreneurs with what they need to build the companies of their dreams.

The RBC Foundation is a founding sponsor of the Canadian Youth Business Foundation (CYBF), a national organization that empowers aspiring young Canadian entrepreneurs to start up their own businesses. RBC has committed $500,000 over five years to continue to support CYBF, the national leader in youth entrepreneurship.

Aspiring dentists and doctors need to make sizeable financial investments long before they start their professional careers. RBC supports these future entrepreneurs with our Medical and Dental Student Scholarships, available to students in Canada who are beginning their studies, along with lending programs that recognize the cost of their education and their long-term earnings potential.

Agriculture
RBC is Canada’s largest non-government private lender to agriculture and agribusiness and serves more farmers and farm families than any other financial institution in the country. Our policy is to work with clients as partners, through bad times and in good.

Our farm finance specialists tailor solutions to meet clients’ financial requirements. In addition, for those who run into challenges – such as those affected by the BSE and avian flu crises RBC proactively contacts clients to explore ways to manage in these situations such as deferring principal payments, restructuring debt or increasing credit.

We also help farmers plan for the future. In 2005, we took agricultural economist Dr. David Kohl of Virginia Tech University on tour to talk about farm management, growth and succession. We encourage careers in agriculture through support of the Douglas McRorie Memorial Scholarship for agriculture students and have supported the RBC Royal Bank 4-H Interprovincial Exchange since 1963.

Not-for-profit organizations
Considered one of the fastest-growing sectors in Canada, not-for-profit organizations have needs similar to those of any enterprise. RBC is committed to helping them thrive – so they can focus on their real work of helping others.

More than 18,000 not-for-profit clients in Canada use the RBC Community Account, launched in 1999. This low-fee account is available to churches, schools, societies and lodges, charities and associations. Service fees are waived for the first three months for certain core banking transactions.

RESOURCES FOR ENTREPRENEURS
Starting or expanding a small business
RBC supports a number of organizations that help new entrepreneurs move forward, including:

• The National Angel Organization, an advocacy group that addresses the need for more seed or early-stage funding in Canada, by providing Angel investors with a secure environment to network and learn from their peers as well as the opportunity to be heard collectively on national issues; and

• Ontario’s Small Business Enterprise Centres, 44 centres across the province that offer one-stop solutions, services and programs to meet the needs of entrepreneurs by providing easy access to business consulting services and information, including management, marketing, technology and financing that support start-up and early-stage business growth.

Networks for new business
To help fuel the next wave of business growth, RBC supports practical ways for clients to expand and become more productive. In Canada, RBC joined an initiative to help manufacturing industries increase their competitiveness, as a sponsor of the Manufacturing 20/20 cross-country consultation led by Canadian Manufacturers & Exporters.

ViaTech, an initiative started by RBC Royal Bank, offers knowledge-based firms across Canada a no-cost forum where they can discuss business challenges and get expert feedback from companies whose areas of expertise include accounting, new product development, marketing/communications and financing.

Employee skills development
In 2005, the RBC Foundation sponsored the RBC National Award for Small Business Skill Development, which recognizes a small business that helps its employees develop skills and competencies so they can help grow the small business in which they work.

Client education
RBC offers a broad range of educational materials and seminars including:

• Definitive Guides provide practical information on topics including customer loyalty, cash flow, marketing,
e-commerce, exporting and others;

• The New Entrepreneur’s Toolkit CD, a start-up kit for business produced in partnerships with the CATAAlliance, LaBarge Weinstein Professional Corporation and the National Angel Organization; and

• A small business speaker series, featuring experts, both from RBC and industry, to speak with small business clients via interactive seminars broadcast to branches in Canada through RBC’s internal broadcasting system.