RBC announces changes to banking businesses to drive growth
potential outside Canada
TORONTO, April 11, 2008 — Royal Bank of Canada
(RY on the TSX and NYSE) today announced management changes
at its domestic and international banking businesses to better
leverage its domestic banking success internationally.
"The excellent growth of our Canadian retail operations
demonstrates we are earning more business from new and existing
clients, and that we are successfully executing on our growth
initiatives," said Gordon Nixon, president and CEO, RBC.
"Today's realignment sharpens our focus on RBC's international
As a result of the changes, Jim
Westlake, currently group head, Canadian Banking, has
been appointed group head, International Banking and Insurance.
Westlake will be responsible for RBC's banking businesses
outside Canada while retaining responsibility for RBC's insurance
operations, providing oversight for RBC's global credit card
business and growing this business through RBC's international
banking and wealth management activities.
"By redoubling our efforts to focus on client service,
and product development and innovation in Canada, Jim has
been very successful in solidifying RBC's leadership in the
domestic marketplace," said Nixon. "Jim's new mandate
is to leverage this success in working with our management
teams in the U.S. and our rapidly expanding Caribbean operations."
McKay has been appointed group head, Canadian Banking,
and will be responsible for continuing RBC's growth momentum
in the Canadian banking marketplace and extending RBC's competitive
strength by providing over 13 million Canadian clients with
leading personal and business financial services. McKay, currently
head of Personal Financial Services, will be responsible for
RBC's retail banking and online investing businesses in Canada,
including RBC's domestic sales and branch distribution.
"As a core source of revenues and earnings for RBC,
our Canadian banking-related businesses must continue to build
momentum and add to our domestic leadership position,"
said Nixon. McKay will report directly to Nixon and join RBC's
RBC's Wealth Management, Capital Markets, International Banking,
and Insurance segments each have mandates to expand outside
Canada. "The moves announced today will help RBC further
leverage our strength to grow outside Canada," said Nixon.
For the past two years, operations outside Canada accounted
for approximately one-third of RBC's overall revenues.
The size and scope of recent and pending international banking
acquisitions provide RBC with significant scale in the U.S.
Southeast and Caribbean. As a result of the most recent acquisition
in the U.S., Raleigh, North Carolina-based RBC Bank has more
than 430 branches and nearly 6,000 employees in the U.S, Southeast
focused on serving businesses, business owners and professionals.
In May or June 2008, RBC also expects to complete its acquisition
of RBTT Financial Group, based in Trinidad and Tobago. Following
the close, which is pending regulatory approval, RBC will
have one of the most expansive banking networks in the Caribbean,
with a presence in 18 countries and territories across the
region. With more than US$13.7 billion in assets, the combined
operations will have 130 branches across the Caribbean, with
more than 6,900 employees serving more than 1.6 million clients.
Peter Armenio, currently Group Head, U.S. & International
Banking, has announced his intention to retire, but will stay
on to assist with the completion of the RBTT acquisition.
"Peter has made significant contributions to RBC's success
throughout his career and I want to thank him for his commitment
and leadership," said Nixon.
RBC will begin reporting financial results of its five business
segments commencing in the third fiscal quarter, which begins
May 1, 2008:
- Canadian Banking, which includes all domestic banking
businesses— Personal Financial Services, Business Financial
Services, and Credit Cards and Payment Solutions,
- Wealth Management, which includes Canadian Wealth
Management, U.S. & International Wealth Management,
and Global Asset Management,
- International Banking, which includes all banking
operations outside Canada and RBC's 50 per cent interest
in RBC Dexia Investor Services,
- Capital Markets, which includes Global Markets,
Global Investment Banking and Equity Markets, and other
wholesale banking businesses, and
- Insurance, which includes all insurance businesses.
"The evolution of our structure over the past few years
reflects our ability and commitment to build five distinct
and solid business segments that are all driven by a passion
for our clients' success," said Nixon.
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. We
employ approximately 70,000 full- and part-time employees
who serve more than 15 million personal, business, public
sector and institutional clients through offices in Canada,
the U.S. and 36 other countries. For more information, please
- 30 -
Beja Rodeck, Director, Media Relations, (416) 974-5506
Caution regarding forward-looking statements
From time to time, we make written or
oral forward-looking statements within the meaning of certain
securities laws, including the "safe harbour" provisions
of the United States Private Securities Litigation Reform
Act of 1995 and any applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
statements about our expectations relating to growth, including
growth potential outside Canada for us and for each of our
business segments. Forward-looking statements are typically
identified by words such as "believe," "expect,"
"anticipate," "intend," and "plan"
and similar expressions of future or conditional verbs such
as "will," "may," "should,"
"could," or "would".
By their very nature, forward-looking statements require
us to make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, expectations or conclusions will not prove to
be accurate, that our assumptions may not be correct and that
our objectives will not be achieved. We caution readers not
to place undue reliance on these statements as a number of
important factors could cause our actual results to differ
materially from the expectations expressed in such forward-looking
statements. These factors include general business and economic
conditions in Canada, the United States and other countries
in which we conduct business, including the impact from the
continuing volatility in the U.S. subprime and related markets
and lack of liquidity in various other financial markets;
the impact of the movement of the Canadian dollar relative
to other currencies, particularly the U.S. dollar, British
pound and Euro; the effects of changes in government monetary
and other policies; the effects of competition in the markets
in which we operate; the impact of changes in laws and regulations;
our ability to successfully execute our strategies and to
complete and integrate strategic acquisitions and joint ventures
successfully; and our ability to attract and retain key employees
We caution that the foregoing list of important factors is
not exhaustive and other factors could also adversely affect
our results. When relying on our forward-looking statements
to make decisions with respect to us, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by
law, we do not undertake to update any forward-looking statement,
whether written or oral, that may be made from time to time
by us or on our behalf.
Additional information about these and other factors can
be found in our Q1 2008 Report to Shareholders and in our
2007 Annual Report to Shareholders.