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Royal Bank of Canada reports third quarter 2017 results

TORONTO, August 23, 2017 -  Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $2,796 million for the third quarter ended July 31, 2017, down $99 million or 3% from a year ago. Excluding an after-tax gain of $235 million from the sale of our home and auto insurance manufacturing business in the prior year, net income was up $136 million or 5%(1). Results reflect strong earnings growth in Wealth Management, Insurance excluding the prior year gain on sale(1), and Investor & Treasury Services, as well as solid earnings in Personal & Commercial Banking. These factors were partially offset by lower results in Capital Markets primarily due to less favourable market conditions.

Compared to last quarter, net income was relatively unchanged. Credit quality remains strong, with a provision for credit losses (PCL) ratio of 0.23%. We remain well-capitalized with a Common Equity Tier 1 (CET1) ratio of 10.9%. In addition, today we announced an increase to our quarterly dividend of $0.04 or 5% to $0.91 per share.

'RBC had a solid third quarter and strong results for the first nine months of the year, and we are proud to have been ranked highest in overall customer satisfaction for the second year in a row(2). I am also pleased to announce a 5% increase to our quarterly dividend as part of our commitment to deliver long-term shareholder value,” said Dave McKay, RBC President and Chief Executive Officer. “We are driving sustainable growth by further investing in our people, digital capabilities, and key markets, while leveraging our strengths in data and technology to exceed our clients’ expectations.”

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1  Results and measures excluding the specified items are non-GAAP measures. For further information, including a reconciliation, refer to the non-GAAP section on page 3 of this Earnings Release.

2  Highest In Customer Satisfaction Among the Big Five Banks, J.D. Power 2017 Canadian Retail Banking Satisfaction Study, July 2017.