(1)   RBC Dexia IS represents the total assets under administration as at September 30, 2007, of the joint venture established
January 2, 2006, of which we have a 50% ownership interest.

 

We provide personal and business banking solutions to individuals, businesses, business owners and professionals through 350 banking centres in the U.S. Southeast. The announced acquisition of Alabama National BanCorporation (ANB), expected to close in early 2008 pending shareholder and regulatory approvals, will add 103 branches focused in high-growth U.S. Southeast markets.

Our Caribbean operations provide banking solutions to individuals and businesses throughout our network of 44 branches in eight Caribbean countries and territories. The announced acquisition of RBTT, which is expected to close in mid-2008 pending shareholder and regulatory approvals, will add more than 84 branches to our network throughout the Caribbean.

We have a 50 per cent ownership in RBC Dexia IS, which offers a complete range of investor services, such as custody and fund administration, to institutions worldwide.

 
  Key highlights
•  We continued to expand our banking footprint in key growth areas in the U.S. Southeast through targeted acquisitions and de novo branch openings such as:
–   We announced our intention to acquire ANB, which would better position us to serve the banking needs of businesses, business owners and professionals in the key markets of Alabama, Florida and Georgia in the U.S. Southeast
–  We acquired 39 branches in Alabama that were owned by AmSouth Bancorporation
–  We added 17 branches in Georgia when we acquired Flag Financial Corporation.
•  We took steps to dramatically grow our banking operation in the Caribbean by announcing our intention in October to acquire RBTT. This transformational acquisition extends our reach into many important regional markets, notably Trinidad and Tobago, Jamaica, and the Dutch Caribbean, and provides the platform for additional growth both within and outside the region. The acquisition would create one of the most expansive banking networks in the Caribbean in 18 countries and territories across the region.
•  We realized 12 per cent growth in assets under administration with RBC Dexia IS underpinned by both new and existing client growth. RBC Dexia IS surpassed $2.7 trillion in assets under administration.
•  Loans and deposits in our U.S. banking operations rose 14 per cent and 8 per cent (18 per cent and 12 per cent in U.S. dollars), respectively, as a result of acquisitions and organic growth.
•  Loans and deposits in our Caribbean banking operations rose 10 per cent and 4 per cent (14 per cent and 8 per cent in U.S. dollars), respectively, as a result of growth initiatives and favourable business conditions in the region.
   
  Achievements in 2007
•  We made significant investments in our U.S. & International Banking operations, successfully pursuing strategically important acquisitions in the U.S. Southeast and Caribbean that complement our strategy.
•  We added a real estate lending team to our Caribbean operations, giving us the expertise to better serve clients across the region. In addition, we formed a Small Business Unit to serve this growing client segment.
•  RBC Dexia IS continues to be ranked the world’s number one global custodian in two leading industry surveys (Global Investor, R&M Consultants) and we achieved significant new business wins and retentions, including Claymore Investments, First State Investments (UK) Limited, Guardian Capital Group, HSBC Bank Canada, Manulife Financial, Swiss Reinsurance Company (Swiss Re) and Université du Québec.
   
  2008 and beyond
•  We will continue to implement our long-term strategy to become the pre-eminent bank for business, business owners and professionals in the U.S. Southeast.
•  We will focus on efficiently integrating, pending successful close, the ANB acquisition while retaining and growing our client base.
•  We will focus on successfully integrating, pending successful close, RBTT and our Caribbean retail banking operations to create the leading bank in the region.
•  We will focus on pursuing growth strategies with RBC Dexia IS that include strengthening our global client franchise, building new value-added products and expanding our presence in high-potential markets.