RBC announces changes to business segments
Enhanced focus on institutional investor business announced as part of business segment and management changes
TORONTO, September 11, 2012 - Today RBC announced
changes to its business segments, effective October 31, 2012.
RBC's business segments for financial reporting purposes will
be: Investor & Treasury Services; Personal & Commercial
Banking; Capital Markets; Wealth Management; and Insurance.
Investor & Treasury Services is a newly created
business segment that will include RBC Investor Services,
Global Financial Institutions and Treasury Services. It will
bring together RBC capabilities key to serving the needs of
institutional investing clients and will provide custodial,
advisory, financing and other services for clients to safeguard
assets, maximize liquidity and manage risk in multiple jurisdictions
around the world. Clients include financial institutions,
sovereign wealth funds, insurance companies, asset managers,
hedge funds and pension funds. The segment also brings together
treasury services. Harry Samuel will assume the responsibilities
of head, Investor & Treasury Services and will report
to Doug McGregor and Mark Standish. José Placido will
continue in his role as chief executive officer, RBC Investor
Personal & Commercial Banking, which, in addition
to all Canadian banking businesses (Personal Financial Services,
Business Financial Services and Cards and Payment Solutions),
will include Caribbean Banking and U.S. Banking. Dave McKay,
currently group head, Canadian Banking, will take on responsibility
for Caribbean Banking and U.S. Banking. We will continue to
provide selected financial information for Canadian Banking,
Caribbean and U.S. Banking consistent with our current disclosure.
"These changes reflect our goal to grow our investor
and custody franchise, which is attractive because of its
low risk profile and stable revenue streams," said Gordon
M. Nixon, RBC president and chief executive officer. "And
by bringing together all of our retail banking businesses,
we can leverage our domestic banking expertise internationally."
Capital Markets will include Global Markets and Corporate
and Investment Banking, and will exclude Global Financial
Institutions and Treasury Services. Doug McGregor and Mark
Standish continue to be responsible for Capital Markets as
co-group heads of this business segment.
Wealth Management, which remains a business segment,
will continue to include Canadian Wealth Management, U.S.
and International Wealth Management and Global Asset Management.
George Lewis, currently group head, Wealth Management, continues
to have responsibility for this segment.
Insurance will also remain a business segment and
includes Canadian Insurance and International and Other Insurance.
Neil Skelding will continue as president and chief executive
officer of RBC Insurance and report to George Lewis.
After 17 years with RBC, Jim Westlake, group head, International
Banking and Insurance, has announced his intention to retire
later this year. "Jim has made many contributions to
RBC's success throughout his career, and I want to thank him
for his commitment and leadership," said Mr. Nixon.
Mr. Westlake will advise and support in the transition of
the International Banking and Insurance businesses to other
segments as outlined above. The transition of management responsibilities
is expected to be completed by October 31, 2012.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name RBC. We are Canada's largest
bank as measured by assets and market capitalization, and
are among the largest banks in the world, based on market
capitalization. We are one of North America's leading diversified
financial services companies, and provide personal and commercial
banking, wealth management services, insurance, corporate
and investment banking and investor services on a global basis.
We employ approximately 80,000 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 51 other countries. For more information, please
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release may be
deemed to be forward-looking statements under 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, but are not limited
to, statements relating to the reporting of our business segments'
financial results, our goals for the growth of our investor
and custody franchise and the leveraging of our domestic banking
expertise internationally. Forward-looking statements are
typically identified by words such as "believe",
"expect", "foresee", "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 to be accurate, that our assumptions may not
be correct and that other forward-looking statements, including
the statements discussed above, will not be achieved. We caution
readers not to place undue reliance on these statements as
a number of risk factors could cause our actual results to
differ materially from the expectations expressed in such
forward-looking statements. These factors - many of which
are beyond our control and the effects of which are difficult
to predict - include: credit, market, operational, and liquidity
and funding risks, and other risks discussed in the Risk management
sections of our 2011 Annual Report and our Q3 2012 Report
to Shareholders; general business, economic and financial
market conditions in Canada, the United States and certain
other countries in which we conduct business, including the
effects of the European sovereign debt crisis; the effects
of changes in government fiscal, monetary and other policies;
the effects of competition in the markets in which we operate;
the effects of changes in government fiscal, monetary, economic
and other policies; changes to and new interpretations of
risk-based capital and liquidity guidelines; the impact of
changes in laws and regulations; our ability to attract and
retain employees; the accuracy and completeness of information
concerning our clients and counterparties; our ability to
successfully execute our strategies and to complete and integrate
strategic acquisitions and joint ventures successfully; and
development and integration of our distribution networks.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. Additional information about these and other factors
can be found in our Q3 2012 Report to Shareholders and 2011
Except as required by law, we do not undertake to update
any forward-looking statement contained in this press release.
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