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RBC comments on Citi Investment Research Report
TORONTO, April 28, 2008 — Royal Bank of Canada
(RY on TSX and NYSE) today issued the following statement
with regards to the Citi Investment Research report which
was issued this morning.
We provided extensive disclosure in our Q1 2008 report to
shareholders with respect to our financial position at the
time. As our second quarter 2008 has not yet ended, we are
not in a position to quantify valuations and report on our
current financial position. However, based on our knowledge
of developments within our institution following Q1 2008 and
our assessment of reporting practices of global financial
institutions with respect to their first calendar quarter
earnings, we believe that the analysis contained in the Citigroup
report dated April 27, 2008 contains significant errors in
fact and significantly overstates both the risks and the amount
of any potential write-down RBC might incur. Our exposures
are well within our risk limits as an organization and we
do not see these as creating any significant downward pressure
on our capital ratios. In short, our exposures are within
our risk appetite and are very manageable.
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 harbor" provisions
of the United States Private Securities Litigation Reform
Act of 1995 and any applicable Canadian securities legislation.
These forward-looking statements include, among others, statements
with respect to our financial position and any potential write-down
RBC might incur. Forward-looking statements are typically
identified by words such as "believe," "expect,"
"forecast," "anticipate," "intend,"
"estimate," "goal," "plan" and
"project" 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, forecasts,
projections, expectations or conclusions will not prove accurate
and that our assumptions may not be correct. 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 continuing
volatility in the U.S. subprime and related markets and lack
of liquidity in the financial markets; the impact of the movement
of the Canadian dollar relative to other currencies, particularly
the U.S. dollar and British pound; the effects of changes
in government monetary and other policies; the impact of changes
in laws and regulations including tax laws and changes in
accounting standards, policies and estimates, including changes
in our estimates of provisions and allowances. We caution
that the foregoing list of important factors that may affect
future results is not exhaustive. 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 2007 Annual Report and in our Q1 2008 Report
to Shareholders.
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For further information, please contact:
Media Contact:
Beja Rodeck, Director, Media Relations, (416) 974-5506, beja.rodeck@rbc.com
Investor Contacts:
Marcia Moffat, Head, Investor Relations, (416) 955-7803, marcia.moffat@rbc.com
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