Royal Bank of Canada to repurchase up to 20 million of its
TORONTO, October 17, 2008 — Royal Bank of Canada
(RY on TSX and NYSE) today announced its intention, subject
to the approval of the Office of the Superintendent of Financial
Institutions and the Toronto Stock Exchange, to renew its
normal course issuer bid through the facilities of the Toronto
Stock Exchange and to repurchase for cancellation up to 20
million common shares, representing approximately 1.5 per
cent of the bank's outstanding common shares as at October
15, 2008. The bank intends to file a notice of intention with
the Toronto Stock Exchange in this regard.
Purchases may commence after the Toronto Stock Exchange has
accepted the notice of intention and may continue for a period
of one year. The amount and timing of any purchases will be
determined by the bank. The price paid for any repurchased
shares will be the market price of such shares on the TSX
at the time of acquisition.
The proposed share repurchase will enable the bank to balance
the imperatives of maintaining strong capital ratios with
the ongoing need to generate shareholder value. On July 31,
2008, the bank's Tier 1 and Total capital ratios were 9.5
per cent and 11.7 per cent, respectively.
The bank currently has a normal course issuer bid under
way through which approximately 1.1 million of an allowed
20 million common shares have been repurchased as of October
15, 2008. This bid will expire October 31, 2008.
RBC intends to establish a plan under which its broker, RBC
Dominion Securities Inc., would repurchase RBC shares pursuant
to the bid. Such a plan would define a pre-arranged set of
criteria, in accordance with which share repurchases would
be made automatically, until the plan is terminated by RBC
or the bid expires. RBC would not be entitled to vary, suspend
or terminate the plan except in accordance with its terms.
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Josie Merenda, (416) 974-2044
Beja Rodeck, (416) 974-5506