RBC Financial Group

RBC Quick Facts - Q3 2004

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RBC Financial Group's Strategic priorities

Medium-term Goals
1. Earnings growth:
Grow diluted earnings per share by 10-15%
2. Return on equity:
Achieve a return on common equity of 20+%
3. Revenue growth:
Achieve revenue growth of 8-10%
4. Portfolio quality:
Achieve a ratio of specific provisions for credit losses to average loans, acceptances and reverse repos of .35-.45%
(Cdn. GAAP)
5. Capital management:
Capital ratios (Cdn. GAAP):
Tier 1 capital of 8-8.5%
Total capital of 11-12%
6. Dividend payout ratio:
Common share dividends 40-50% of net income after preferred dividends
1. Strong fundamentals: our objective is to have top quartile financial performance among North American financial companies. Please refer to the sidebars (at right) for our medium-term goals, and our performance against our 2004 financial objectives
2. Expansion outside Canada: all of our businesses have global mandates. We wish to continue growing revenues and earnings outside of Canada, largely in the U.S., while defending our Canadian franchise.
3. Superior client experience: this priority reinforces our commitment to client satisfaction, retention and growing our share of our clients’ business. We are undertaking a number of initiatives to enhance our clients’ experience
4. Cross-enterprise leverage: our goal is to leverage our strengths in working across our business segments to provide integrated financial solutions to customers. These cross-platform efforts include sharing best practices and realizing revenue and cost synergies
Expansion in the U.S.

We are committed to growing our operations and expanding our presence in the United States, profitably and in a disciplined fashion. We have announced several acquisitions of U.S.-based companies over the past three years, as shown below. Currently, our focus is on improving returns from these recent acquisitions.
Expansion in the U.S.
Contact Us:  
Senior debt ratings
Moody's   Aa2
S&P AA-
Fitch AA
DBRS AA (low)
 
Common share dividend
payment dates for 2004
Record date   Payment dates
Jan. 26 Feb. 24
Apr. 22 May. 21
Jul. 26 Aug. 24
Oct. 26 Nov. 24
Shareholder relations
address: 123 Front Street West
6th Floor
Toronto, ON M5J 2M2
phone: 416-955-7802
fax: 416-955-7800
Web site: www.rbc.com/investorrelations
 
Main Transfer agent
Computershare Trust Company of Canada
address: 1500 University Street, Suite 700
Montreal, QC H3A 3S8
phone: 1-866-586-7635
fax: 514-982-7635
Web site: www.computershare.com
RBC Financial Group’s 2004 objectives*

1. Valuation:		 Q3 YTD 2004
performance*
Maintain share price/book value and share price/earnings that are in the top quartile of S&P/TSX Composite Banks Index 3rd and 2nd quartile respectively
Record share price growth above the average for the S&P/TSX Composite Banks Index Below the index
2. Earnings growth:
Grow diluted earnings per share by 10-15%
 8%
3. Return on equity:
Achieve a return on common equity of 17-19% 17.6%
4. Revenue growth:
Achieve revenue growth of 5-8% 2%
5. Expense growth:
Grow expenses at a lower rate than revenues Expense growth 8% and revenue growth 2%
6. Portfolio quality:
Achieve a ratio of specific provisions for credit losses to average loans, acceptances and reverse repos of .35-.45% (Cdn. GAAP) 0.23%
7. Capital management:
Maintain strong capital ratios (OSFI guidelines) Tier 1 capital = 9.1%
Total capital = 12.7%
8. Dividend payout ratio:
40-50% 42%
Share information

Trading symbol: RY
Listings:
TSX, NYSE, Switzerland

Shares outstanding:
649.1 million shares at July 31, 2004

 $39.0

Jul.31/03		 $40.2

Jul.31/04
Market capitalization
(C$billions)
TSX: RY share price performance
Common share dividends
Common share dividends
Uninterrupted dividend payment history.
Payout ratio 44% in Q3/04
Target payout ratio raised to 40 – 50%
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