(1)  Taxable equivalent basis.


Our diverse capital markets businesses provide corporate and institutional clients with advice, capital, access to the world’s financial markets and innovative products to help them achieve their growth objectives. By leveraging our leadership position in Canada, we have built a strong and growing U.S. mid-market capital markets franchise. Outside North America, we have established ourselves as a leading provider of global financial services. Notable areas of strength include global fixed income distribution capabilities, structuring and trading, foreign exchange, and infrastructure finance, as well as broad capabilities in global mining and energy.


  Key highlights
•  We completed three acquisitions to expand our client base and enhance our capabilities:
–   Carlin Financial Group, which provides our clients with a best-in-class North American electronic trade execution platform
–  Daniels & Associates, L.P., a U.S. merger and acquisition advisory firm specializing in the communications, media and entertainment, and technology sectors
–  Seasongood & Mayer, LLC, strengthening our franchise as one of the leading municipal finance platforms in the U.S.
•  We expanded our global infrastructure finance platform and completed significant transactions in North America, Europe and Australia to be regarded as a top-tier player in the global infrastructure finance business.
•  We expanded our base metals capabilities, enabling new and innovative transactions, such as a copper derivative with a notional value of US$1 billion.
•  We continued to extend our business in selected markets around the world, including asset-based lending in Canada, fixed income and structured product distribution in Asia, and investment banking in the U.S.
  Achievements in 2007
•  We remain the leading Canadian investment bank. We were named:
–   Dealmaker of the Year in Canada for four of the last five years (Financial Post)
–   Best Investment Bank in Canada (Global Finance magazine)
–  Best Canadian Debt House (Euromoney Magazine, 2007)
–   Number One Foreign Exchange Dealer in Canadian dollars (Euromoney Magazine, 2007).
•  We continued to hold the leading market share in the Canadian fixed income market and remain a global leader. We led an $8.1 billion global bond issue, one of the largest to date.
•  We extended our leadership position in Australian and New Zealand dollar denomination bond issuances and retained our premier position in the Alternative Dollar market.
•  We launched the RBC Hedge 250 Index® on the London Stock Exchange as a joint venture with New Star Asset Management.

  2008 and beyond
•  We will strive to remain the Canadian wholesale client’s first choice for all financial products and services.
•  We will leverage our success and continue to diversify into new and complementary areas where we can show competitive strength such as:
–   Exporting our infrastructure and project finance expertise from the U.K. to other markets
Growing our investment banking and municipal finance business in the U.S.
Investing in our alternative assets and structured products businesses and expanding our distribution capabilities
Extending our global energy and mining capabilities
Leveraging the Carlin acquisition to build out our electronic trading capabilities.