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RBC creates Wealth Management segment
Move enhances focus on growing global businesses to complement
premier Canadian franchise
TORONTO, February 7, 2007 — RBC today announced
the creation of a new Wealth Management business segment consisting
of businesses that directly serve the growing wealth management
needs of affluent and high net worth clients globally, and
businesses that provide asset management and trust products.
"We believe that global demand for wealth management
products and services will continue to increase as global
economies develop and populations mature," said Gordon
M. Nixon, RBC President and Chief Executive Officer. "RBC
is very well positioned to generate high quality revenue and
earnings growth from this demand and we intend to grow this
segment of our business aggressively over the next several
years."
The growth of the Wealth Management segment will be built
on the foundation of:
- Canada's largest full-service brokerage business, RBC
Dominion Securities;
- Canada's largest single fund management company, RBC Asset
Management;
- RBC's leading trust services and discretionary investment
management businesses in Canada;
- The eighth largest full service brokerage in the U.S.,
RBC Dain Rauscher; and
- One of the world's leading private banks, Royal Bank of
Canada Global Private Banking, which provides wealth management
services to clients in 21 financial centres around the world.
RBC's Wealth Management segment will be led by George Lewis,
previously head of RBC's Canadian Wealth Management business
line, who will join RBC's Group Executive immediately. As
of October 31, 2006, Wealth Management had approximately $475
billion of client assets under administration, $140 billion
of assets under management, and 3,000 financial advisors,
demonstrating critical mass in an attractive segment of the
global financial services market.
The new Wealth Management platform complements RBC's global
wholesale banking segment, Capital Markets, which has a leadership
position in Canada across virtually all major business lines
and strong and growing market positions in select segments
of the global capital markets. The Capital Markets segment
will be a key partner of the Wealth Management segment since
its products and services are increasingly in demand by advisors
to high net worth clients.
The performance of RBC's banking businesses outside Canada
remains important to future growth. As head of RBC's U.S.
& International Banking segment, Peter Armenio will continue
to be responsible for RBC's banking operations internationally
and in the U.S., including RBC's Caribbean banking operations
and RBC Centura, with more than 290 branches in five U.S.
states. "We will continue to focus on being the bank
for businesses, business owners, and professionals in the
Southeast U.S. by expanding our products and services to meet
the needs of our clients," Nixon said. Armenio will also
oversee RBC's 50 per cent ownership in its RBC Dexia joint
venture.
RBC's largest business segment will be renamed Canadian Banking
and remain a core source of revenues and earnings under the
leadership of Jim Westlake. "Our Canadian retail business
segment will continue to differentiate itself from our Canadian
and U.S. peers by offering clients significant breadth and
quality of products and advice," Nixon said.
In addition to Personal Banking, Business Financial Services,
Cards and Payment Solutions, and Global Insurance, RBC's retail
investment business in Canada, both in-branch and RBC Direct
Investing, will continue to be a part of the Canadian Banking
segment.
Operationally, the new corporate structure will take effect
immediately. RBC will begin reporting financial results according
to the new structure as of its second quarter earnings report,
scheduled for May 25, 2007.
ABOUT RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name of RBC. We are Canada's
largest bank as measured by assets and market capitalization
and one of North America's leading diversified financial services
companies. We provide personal and commercial banking, wealth
management services, insurance, corporate and investment banking
and transaction processing services on a global basis. Our
corporate support team enables business growth with expert
professional advice and state-of-the art processes and technology.
We employ approximately 70,000 full- and part-time employees
who serve more than 14 million personal, business, public
sector and institutional clients throughout offices in North
America and 34 countries around the world. For more information,
please visit rbc.com.
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For further information, please contact:
Beja Rodeck, Director, Media Relations,
(416) 974-5506, toll-free 1-888-880-2173, beja.rodeck@rbc.com
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