(1)  Total assets, Total earning assets, and Loans and acceptances include average securitized residential mortgage and credit card loans for the year of $22 billion and $4 billion, respectively.

CANADIAN BANKING provides personal and business financial services in Canada. Through our leading national distribution network and the most valuable brand in Canada, we reach approximately 10 million clients through our extensive branch and ATM network, proprietary and specialized sales forces, online channels and contact centres.


  2008 Key performance highlights
•  Net income was up $117 million, or 5%, over last year, reflecting revenue growth and effective cost management efforts. Prior year results included a $326 million ($269 million after-tax) gain related to the Visa Inc. restructuring, partially offset by an increase to our credit card customer loyalty reward program liability of $121 million ($79 million after-tax).
•  Total revenue increased $257 million, or 3%, over the prior year, reflecting continued solid volume growth across all businesses, partially offset by margin compression. The growth was achieved well within our risk-reward parameters. The prior year included the gain related to the Visa Inc. restructuring and the points liability cost as noted above.
•  Our loan book increased by 13% as a result of strong growth in the home equity business and the launch of new credit card offerings
•  We grew our deposit base by 5% through the introduction of new personal and business products that included U.S. dollar eSavings accounts and two new high-yield investment solutions for business clients.
  Business achievements in 2008
•  We expanded our reach to clients by growing our mobile and specialized sales forces, adding new bank branches and ATMs and increasing the number of bank branches that are open extended hours, including Saturdays, particularly in high-growth markets.
•  Clients have greater access to more customized and enhanced financial planning and advice tools with Your Future by Design®, a unique approach to client advice. We also continued to develop and provide clients with interactive online planning resources, such as Credit Solutions Selector, Mortgage Calculator, Business Solutions Selector, and Cash Flow tools.
•  We have deepened client relationships and rewarded clients for their loyalty with further developments to our multi-product rebates and new, innovative products including a line-up of Canadian and U.S. dollar high-interest savings accounts; the new Visa Infinite card, providing exclusive benefits and privileges to cardholders; security-enhanced, chip-enabled credit cards; and eStatements and preferred commission pricing for our Direct Investing clients.
•  With the launch of our Language Line interpreter service, our clients can now do business with our contact centre agents in over 150 languages.
With the acquisition of ABN AMRO N.V.’s Canadian commercial leasing division, we extended our leadership position as the largest bank-owned commercial leasing business in Canada, as measured by assets.
We made it easier for our business clients when we launched the Global Banking for Business program to provide a single point of contact for small and commercial business clients in all major international trading regions.
We continued to be recognized for our efforts to improve our client service. In 2008 we were named:

A leader among the Big Five Banks in Branch Service and Financial
   Advice (Synovate Best Banking Awards: The Synovate Customer
   Service Index (CSI) 2008 – Personal Banking)

– The number one domestic Private Bank in Canada (Euromoney
    2008 Private Banking Survey)

– Best in overall service: RBC Direct Investing (Dalbar 2007 Direct
   Brokerage Service Award)

– The number one bank chosen by most commercial clients* in
   Canada, with almost three in 10 Canadian commercial businesses
   dealing with RBC, and strong year over year gains in client loyalty
   (Maritz Industry Survey, 2008)

* Businesses with sales revenue of $1 million or above.

  2009 and beyond
•  We will focus on continuing to make it easier for clients to do business with RBC through great products, services, improved processes and increased accessibility.
•  We will continue to focus on delivering a superior client experience.
•  We will strive to deliver insightful, relevant financial advice and solutions to retain and attract clients to RBC in specific markets, geographies and life stages.
•  We will focus on aligning our infrastructure, products and services, sales and retail capabilities to drive future growth, efficiencies and client value.