All amounts are in Canadian dollars and are based on our audited Annual and unaudited Interim Consolidated Financial Statements for the year and quarter ended October3 1, 2022 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the
2022 Net Income | 2022 Diluted EPS1 Flat YoY | 2022 PCL2 PCL on loans ratio up 16 | 2022 ROE4 16.4% Down 220 bps YoY | CET1 Ratio5 12.6% Well above regulatory |
Q4 2022 Net Income Flat YoY | Q4 2022 Diluted EPS Up 2% YoY | Q4 2022 PCL PCL on loans ratio up 1 | Q4 2022 ROE 15.6% Down 130 bps YoY | Leverage Ratio6 4.4% Down 20 bps QoQ |
Pre-provision, pre-tax earnings8 of
The PCL on loans ratio of 6 bps increased 16 bps from the prior year. The PCL on impaired loans ratio was 10 bps, flat from the prior year.
Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 12.6% supporting strong client-driven organic growth. In addition, this year we returned
"While market conditions continue to be tough, our 2022 results reflect a resilient bank that is well-positioned to pursue strategic growth and deliver long-term shareholder value. Our premium businesses, strong balance sheet, prudent risk management and diversified business model mean we can deliver advice and services that help our clients navigate all cycles. RBC colleagues remain focused on building more exceptional experiences for our clients and supporting sustainable and prosperous communities."
–
2022 Full-Year Business Segment Performance
- 7% earnings growth in Personal & Commercial Banking, primarily attributable to higher net interest income, driven by average volume growth of 9% in both loans and deposits in Canadian Banking, and higher spreads. As a result of the rising interest rate environment (
Bank of Canada raised the benchmark interest rate by 350 bps from March toOctober 2022 ), we saw higher spreads as compared to the prior year. Higher non-interest income, including higher foreign exchange revenue, card service revenue and service charges driven by increased client activity also contributed to the increase in earnings. These factors were partially offset by higher PCL, and higher staff and technology related costs. Our Canadian Banking franchise generated strong positive operating leverage of 3.8% while continuing to invest in digital initiatives to improve the client experience and deliver personalized advice. - 20% earnings growth in Wealth Management, mainly due to higher net interest income driven by average volume growth of 19% in loans and 11% in deposits largely in
U.S. Wealth Management (including City National), and higher interest rates. Higher average fee-based client assets primarily reflecting net sales, as well as the impact of a legal provision taken inU.S. Wealth Management (including City National) in the prior year that was partially released in the first quarter of 2022, also contributed to the increase. These factors were partially offset by higher staff-related costs and variable compensation. - 4% lower earnings in Insurance, largely due to the impact of lower new longevity reinsurance contracts, partially offset by higher favourable investment-related experience.
- 17% earnings growth in Investor & Treasury Services, mainly due to higher revenue from client deposits reflecting improved margins, partially offset by higher technology-related costs.
- 30% lower earnings in Capital Markets, primarily driven by lower revenue in Corporate & Investment Banking, larger releases of provisions on performing assets in the prior year and lower revenue in Global Markets. Global investment banking fee pools were impacted by weakness in credit and equity markets beginning in the second fiscal quarter of 2022, resulting in an approximately 30% decline in global investment banking fee pools9 this fiscal year compared to record levels in fiscal 2021.
Q4 2022 Performance
Earnings of
Pre-provision, pre-tax earnings[10] of
Earnings were up
Q4 2022 compared to Q4 2021 |
| → 0% ↑ 2% ↓ 130 bps ↓ 110 bps |
Q4 2022 compared to Q3 2022 |
| ↑ 9% ↑ 9% ↑ 100 bps ↓ 50 bps |
Q4 2022 Business Segment Performance
Personal & Commercial Banking
Net income of
Compared to last quarter, net income increased
Wealth Management
Net income of
Compared to last quarter, net income increased
Insurance
Net income of
Compared to last quarter, net income increased
Investor & Treasury Services
Net income of
Compared to last quarter, net income decreased
Capital Markets
Net income of
Compared to last quarter, net income increased
Capital, Liquidity and Credit Quality
Capital – As at
Liquidity – For the quarter ended
The Net Stable Funding Ratio (NSFR) as at
Credit Quality
Q4 2022 vs. Q4 2021
Total PCL was
PCL on performing loans was
PCL on impaired loans increased
Q4 2022 vs. Q3 2022
Total PCL was
PCL on performing loans decreased
PCL on impaired loans increased
Selected financial and other highlights
As at or for the three months ended | For the year ended | |||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
(Millions of Canadian dollars, except per share, number of and percentage amounts) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Total revenue | $ | 12,567 | $ | 12,132 | $ | 12,376 | $ | 48,985 | $ | 49,693 | ||||||
Provision for credit losses (PCL) | 381 | 340 | (227) | 484 | (753) | |||||||||||
Insurance policyholder benefits, claims and acquisition expense (PBCAE) | 116 | 850 | 1,032 | 1,783 | 3,891 | |||||||||||
Non-interest expense | 7,209 | 6,386 | 6,583 | 26,609 | 25,924 | |||||||||||
Income before income taxes | 4,861 | 4,556 | 4,988 | 20,109 | 20,631 | |||||||||||
Net income | $ | 3,882 | $ | 3,577 | $ | 3,892 | $ | 15,807 | $ | 16,050 | ||||||
Segments - net income | ||||||||||||||||
Personal & Commercial Banking | $ | 2,139 | $ | 2,023 | $ | 2,033 | $ | 8,370 | $ | 7,847 | ||||||
Wealth Management | 822 | 777 | 558 | 3,144 | 2,626 | |||||||||||
Insurance | 268 | 186 | 267 | 857 | 889 | |||||||||||
Investor & Treasury Services | 110 | 164 | 109 | 513 | 440 | |||||||||||
Capital Markets | 617 | 479 | 920 | 2,921 | 4,187 | |||||||||||
Corporate Support | (74) | (52) | 5 | 2 | 61 | |||||||||||
Net income | $ | 3,882 | $ | 3,577 | $ | 3,892 | $ | 15,807 | $ | 16,050 | ||||||
Selected information | ||||||||||||||||
Earnings per share (EPS) - basic | $ | 2.75 | $ | 2.52 | $ | 2.68 | $ | 11.08 | $ | 11.08 | ||||||
- diluted | 2.74 | 2.51 | 2.68 | 11.06 | 11.06 | |||||||||||
Return on common equity (ROE) (1) | 15.6 % | 14.6 % | 16.9 % | 16.4 % | 18.6 % | |||||||||||
Average common equity (1) | $ | 97,150 | $ | 95,750 | $ | 89,500 | $ | 94,700 | $ | 84,850 | ||||||
Net interest margin (NIM) - on average earning assets, net (2) | 1.56 % | 1.52 % | 1.43 % | 1.48 % | 1.48 % | |||||||||||
PCL on loans as a % of average net loans and acceptances | 0.18 % | 0.17 % | (0.12) % | 0.06 % | (0.10) % | |||||||||||
PCL on performing loans as a % of average net loans and acceptances | 0.06 % | 0.09 % | (0.19) % | (0.04) % | (0.20) % | |||||||||||
PCL on impaired loans as a % of average net loans and acceptances | 0.12 % | 0.08 % | 0.07 % | 0.10 % | 0.10 % | |||||||||||
Gross impaired loans (GIL) as a % of loans and acceptances | 0.26 % | 0.25 % | 0.31 % | 0.26 % | 0.31 % | |||||||||||
Liquidity coverage ratio (LCR) (3) | 125 % | 123 % | 123 % | 125 % | 123 % | |||||||||||
Net stable funding ratio (NSFR) (3) | 112 % | 113 % | 116 % | 112 % | 116 % | |||||||||||
Capital ratios and Leverage ratio (4) | ||||||||||||||||
Common Equity Tier 1 (CET1) ratio | 12.6 % | 13.1 % | 13.7 % | 12.6 % | 13.7 % | |||||||||||
Tier 1 capital ratio | 13.8 % | 14.3 % | 14.9 % | 13.8 % | 14.9 % | |||||||||||
Total capital ratio | 15.4 % | 15.9 % | 16.7 % | 15.4 % | 16.7 % | |||||||||||
Leverage ratio | 4.4 % | 4.6 % | 4.9 % | 4.4 % | 4.9 % | |||||||||||
TLAC ratio (5) | 26.4 % | 27.6 % | n.a. | 26.4 % | n.a. | |||||||||||
TLAC leverage ratio (5) | 8.5 % | 8.8 % | n.a. | 8.5 % | n.a. | |||||||||||
Selected balance sheet and other information (6) | ||||||||||||||||
Total assets | $ | 1,917,219 | $ | 1,842,092 | $ | 1,706,323 | $ | 1,917,219 | $ | 1,706,323 | ||||||
Securities, net of applicable allowance | 318,223 | 298,795 | 284,724 | 318,223 | 284,724 | |||||||||||
Loans, net of allowance for loan losses | 819,965 | 796,314 | 717,575 | 819,965 | 717,575 | |||||||||||
Derivative related assets | 154,439 | 122,058 | 95,541 | 154,439 | 95,541 | |||||||||||
Deposits | 1,208,814 | 1,178,604 | 1,100,831 | 1,208,814 | 1,100,831 | |||||||||||
Common equity | 100,746 | 96,570 | 91,983 | 100,746 | 91,983 | |||||||||||
Total risk-weighted assets | 609,879 | 589,050 | 552,541 | 609,879 | 552,541 | |||||||||||
Assets under management (AUM) (2) | 999,700 | 937,700 | 1,008,700 | 999,700 | 1,008,700 | |||||||||||
Assets under administration (AUA) (2), (7) | 5,649,700 | 5,748,900 | 6,347,300 | 5,649,700 | 6,347,300 | |||||||||||
Common share information | ||||||||||||||||
Shares outstanding (000s) - average basic | 1,386,925 | 1,396,381 | 1,424,534 | 1,403,654 | 1,424,343 | |||||||||||
- average diluted | 1,388,548 | 1,398,667 | 1,427,225 | 1,406,034 | 1,426,735 | |||||||||||
- end of period | 1,382,911 | 1,390,629 | 1,424,525 | 1,382,911 | 1,424,525 | |||||||||||
Dividends declared per common share | $ | 1.28 | $ | 1.28 | $ | 1.08 | $ | 4.96 | $ | 4.32 | ||||||
Dividend yield (2) | 4.0 % | 3.9 % | 3.3 % | 3.7 % | 3.8 % | |||||||||||
Dividend payout ratio (2) | 47 % | 51 % | 40 % | 45 % | 39 % | |||||||||||
Common share price (RY on TSX) (8) | $ | 126.05 | $ | 124.86 | $ | 128.82 | $ | 126.05 | $ | 128.82 | ||||||
Market capitalization (TSX) (8) | 174,316 | 173,634 | 183,507 | 174,316 | 183,507 | |||||||||||
Business information (number of) | ||||||||||||||||
Employees (full-time equivalent) (FTE) | 91,427 | 88,541 | 85,301 | 91,427 | 85,301 | |||||||||||
Bank branches | 1,271 | 1,283 | 1,295 | 1,271 | 1,295 | |||||||||||
Automated teller machines (ATMs) | 4,368 | 4,364 | 4,378 | 4,368 | 4,378 | |||||||||||
Period average US$ equivalent of | $ | 0.739 | $ | 0.783 | $ | 0.796 | $ | 0.774 | $ | 0.796 | ||||||
Period-end US$ equivalent of | $ | 0.734 | $ | 0.781 | $ | 0.808 | $ | 0.734 | $ | 0.808 |
(1) | Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes average common equity used in the calculation of ROE. For further details, refer to the Key performance and non-GAAP measures section of this Earnings Release. |
(2) | See the Glossary section of our 2022 Annual Report for composition of this measure. |
(3) | The LCR and NSFR are calculated in accordance with the Office of the Superintendent |
(4) | Capital ratios are calculated using OSFI's Capital Adequacy Requirements (CAR) guideline and the Leverage ratio is calculated using OSFI's Leverage Requirements (LR) guideline. |
(5) | Effective Q1 2022, OSFI requires Canadian Domestic Systemically Important Banks (D-SIBs) to meet minimum risk-based TLAC ratio and TLAC leverage ratio requirements which are calculated using OSFI's TLAC guideline. For further details, refer to the Capital management section. |
(6) | Represents period-end spot balances. |
(7) | AUA includes |
(8) | Based on TSX closing market price at period-end. |
(9) | Average amounts are calculated using month-end spot rates for the period. |
n.a. | not applicable |
Personal & Commercial Banking
As at or for the three months ended | |||||||||
October 31 | July 31 | October 31 | |||||||
(Millions of Canadian dollars, except percentage amounts and as otherwise noted) | 2022 | 2022 | 2021 | ||||||
Net interest income | $ | 3,901 | $ | 3,655 | $ | 3,169 | |||
Non-interest income | 1,518 | 1,527 | 1,436 | ||||||
Total revenue | 5,419 | 5,182 | 4,605 | ||||||
PCL on performing assets | 56 | 141 | (342) | ||||||
PCL on impaired assets | 230 | 183 | 134 | ||||||
PCL | 286 | 324 | (208) | ||||||
Non-interest expense | 2,270 | 2,130 | 2,087 | ||||||
Income before income taxes | 2,863 | 2,728 | 2,726 | ||||||
Net income | $ | 2,139 | $ | 2,023 | $ | 2,033 | |||
Revenue by business | |||||||||
Canadian Banking | $ | 5,179 | $ | 4,974 | $ | 4,414 | |||
240 | 208 | 191 | |||||||
Selected balances and other information | |||||||||
ROE | 30.5 % | 29.2 % | 32.5 % | ||||||
NIM | 2.72 % | 2.61 % | 2.42 % | ||||||
Efficiency ratio (1) | 41.9 % | 41.1 % | 45.3 % | ||||||
Operating leverage (2) | 8.9 % | 4.8 % | 2.5 % | ||||||
Average total assets | $ | 597,600 | $ | 582,700 | $ | 543,900 | |||
Average total earning assets, net | 569,000 | 555,400 | 518,900 | ||||||
Average loans and acceptances, net | 574,300 | 560,300 | 522,200 | ||||||
Average deposits | 570,200 | 555,300 | 524,300 | ||||||
AUA (3), (4) | 336,400 | 346,500 | 367,700 | ||||||
Average AUA | 338,300 | 343,500 | 363,500 | ||||||
AUM (4) | 5,600 | 5,400 | 5,400 | ||||||
PCL on impaired loans as a % of average net loans and acceptances | 0.16 % | 0.13 % | 0.10 % | ||||||
Other selected information - Canadian Banking | |||||||||
Net income | $ | 1,999 | $ | 1,971 | $ | 1,970 | |||
NIM | 2.70 % | 2.60 % | 2.42 % | ||||||
Efficiency ratio | 40.3 % | 39.7 % | 43.8 % | ||||||
Operating leverage | 9.2 % | 4.5 % | 2.7 % |
(1) | Calculated as non-interest expense divided by total revenue. |
(2) | Defined as the difference between our revenue growth rate and non-interest expense growth rate. |
(3) | AUA includes securitized residential mortgages and credit card loans as at |
(4) | Represents period-end spot balances. |
Q4 2022 vs. Q4 2021
Net income increased
Total revenue increased
Canadian Banking revenue increased
Net interest margin was up 30 bps, mainly due to the impact of the rising interest rate environment.
PCL was
Non-interest expense increased
Q4 2022 vs. Q3 2022
Net income increased
Net interest margin was up 11 bps, mainly due to the impact of the rising interest rate environment.
Wealth Management
As at or for the three months ended | |||||||||||||
October 31 | July 31 | October 31 | |||||||||||
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted) | 2022 | 2022 | 2021 | ||||||||||
Net interest income | $ | 1,149 | $ | 960 | $ | 675 | |||||||
Non-interest income | 2,827 | 2,695 | 2,769 | ||||||||||
Total revenue | 3,976 | 3,655 | 3,444 | ||||||||||
PCL on performing assets | 52 | 12 | (7) | ||||||||||
PCL on impaired assets | 11 | 1 | 12 | ||||||||||
PCL | 63 | 13 | 5 | ||||||||||
Non-interest expense | 2,858 | 2,618 | 2,718 | ||||||||||
Income before income taxes | 1,055 | 1,024 | 721 | ||||||||||
Net income | $ | 822 | $ | 777 | $ | 558 | |||||||
Revenue by business | |||||||||||||
Canadian Wealth Management | $ | 1,095 | $ | 1,070 | $ | 1,032 | |||||||
2,068 | 1,878 | 1,628 | |||||||||||
| 1,529 | 1,470 | 1,296 | ||||||||||
Global Asset Management | 644 | 609 | 711 | ||||||||||
International Wealth Management | 169 | 98 | 73 | ||||||||||
Selected balances and other information | |||||||||||||
ROE | 15.6 % | 16.0 % | 13.1 % | ||||||||||
NIM | 3.08 % | 2.75 % | 2.06 % | ||||||||||
Pre-tax margin (1) | 26.5 % | 28.0 % | 20.9 % | ||||||||||
Selected average balance sheet information | |||||||||||||
Average total assets | $ | 165,100 | $ | 154,700 | $ | 146,600 | |||||||
Average total earning assets, net | 148,000 | 138,700 | 130,000 | ||||||||||
Average loans and acceptances, net | 109,200 | 101,100 | 87,000 | ||||||||||
Average deposits | 157,900 | 156,800 | 151,500 | ||||||||||
Other information | |||||||||||||
AUA - total (2), (3) | 1,387,900 | 1,295,100 | 1,322,300 | ||||||||||
- | 700,100 | 683,400 | 704,200 | ||||||||||
- | 513,700 | 533,600 | 568,800 | ||||||||||
AUM (2) | 991,500 | 929,600 | 1,000,600 | ||||||||||
Average AUA | 1,316,500 | 1,278,700 | 1,314,100 | ||||||||||
Average AUM | 942,000 | 922,000 | 997,400 | ||||||||||
PCL on impaired loans as a % of average net loans and acceptances | 0.04 % | 0.01 % | 0.05 % | ||||||||||
Number of advisors (3) | 6,158 | 5,622 | 5,548 | ||||||||||
For the three months ended | |||||||||||||
Estimated impact of | Q4 2022 vs | Q4 2022 vs | |||||||||||
(Millions of Canadian dollars, except percentage amounts) | Q4 2021 | Q3 2022 | |||||||||||
Increase (decrease): | |||||||||||||
Total revenue | $ | 121 | $ | 112 | |||||||||
Non-interest expense | 99 | 90 | |||||||||||
Net income | 12 | 14 | |||||||||||
Percentage change in average US$ equivalent of | (7) % | (6) % | |||||||||||
Percentage change in average British pound equivalent of | 11 % | 2 % | |||||||||||
Percentage change in average Euro equivalent of | 9 % | 0 % | |||||||||||
(1) | Pre-tax margin is defined as Income before income taxes divided by Total revenue. |
(2) | Represents period-end spot balances. |
(3) | Represents client-facing advisors across all our Wealth Management businesses. |
Q4 2022 vs. Q4 2021
Net income increased
Total revenue increased
PCL increased
Non-interest expense increased
Q4 2022 vs. Q3 2022
Net income increased
Insurance
As at or for the three months ended | |||||||||
October 31 | July 31 | October 31 | |||||||
(Millions of Canadian dollars, except percentage amounts) | 2022 | 2022 | 2021 | ||||||
Non-interest income | |||||||||
Net earned premiums | $ | 908 | $ | 936 | $ | 1,569 | |||
Investment income, gains/(losses) on assets supporting insurance policyholder liabilities (1) | (334) | 245 | (128) | ||||||
Fee income | 70 | 52 | 60 | ||||||
Total revenue | 644 | 1,233 | 1,501 | ||||||
PCL | - | - | (1) | ||||||
Insurance policyholder benefits and claims (1) | 42 | 773 | 939 | ||||||
Insurance policyholder acquisition expense | 74 | 77 | 93 | ||||||
Non-interest expense | 157 | 139 | 152 | ||||||
Income before income taxes | 371 | 244 | 318 | ||||||
Net income | $ | 268 | $ | 186 | $ | 267 | |||
Revenue by business | |||||||||
$ | (130) | $ | 597 | $ | 796 | ||||
774 | 636 | 705 | |||||||
Selected balances and other information | |||||||||
ROE | 46.7 % | 32.3 % | 42.8 % | ||||||
Premiums and deposits (2) | $ | 1,071 | $ | 1,155 | $ | 1,795 | |||
Fair value changes on investments backing policyholder liabilities (1) | (440) | 115 | (266) |
(1) | Includes unrealized gains and losses on investments backing policyholder liabilities attributable to fluctuation of assets designated as fair value through profit or loss (FVTPL). The investments which support actuarial liabilities are predominantly fixed income assets designated as FVTPL. Consequently, changes in the fair values of these assets are recorded in Insurance premiums, investment and fee income in the Consolidated Statements of Income and are largely offset by changes in the fair value of the actuarial liabilities, the impact of which is reflected in Insurance policyholder benefits, claims and acquisition expense (PBCAE). |
(2) | Premiums and deposits include premiums on risk-based individual and group insurance and annuity products as well as segregated fund deposits, consistent with insurance industry practices. |
Q4 2022 vs. Q4 2021
Net income remained relatively flat largely reflecting the impact of offsetting items between revenue and PBCAE. PBCAE also included the impact of favourable annual actuarial assumption updates.
Total revenue decreased
PBCAE decreased
Non-interest expense increased
Q4 2022 vs. Q3 2022
Net income increased
Investor & Treasury Services
As at or for the three months ended | ||||||||
October 31 | July 31 | October 31 | ||||||
(Millions of Canadian dollars, except percentage amounts) | 2022 | 2022 | 2021 | |||||
Net interest income | $ | (1) | $ | 188 | $ | 155 | ||
Non-interest income | 504 | 394 | 393 | |||||
Total revenue | 503 | 582 | 548 | |||||
PCL on performing assets | - | 1 | (1) | |||||
PCL on impaired assets | - | (4) | - | |||||
PCL | - | (3) | (1) | |||||
Non-interest expense | 377 | 374 | 412 | |||||
Income before income taxes | 126 | 207 | 137 | |||||
Net income | $ | 110 | $ | 164 | $ | 109 | ||
Selected balances and other information | ||||||||
ROE | 13.5 % | 20.2 % | 15.2 % | |||||
Average deposits | $ | 252,800 | $ | 243,800 | $ | 233,300 | ||
Average client deposits | 59,400 | 59,900 | 65,700 | |||||
Average wholesale funding deposits | 193,400 | 183,900 | 167,600 | |||||
AUA (1) | 3,906,900 | 4,089,900 | 4,640,900 | |||||
Average AUA | 4,138,000 | 4,262,100 | 4,745,400 |
For the three months ended | |||||
Estimated impact of | Q4 2022 vs | Q4 2022 vs | |||
(Millions of Canadian dollars, except percentage amounts) | Q4 2021 | Q3 2022 | |||
Increase (decrease): | |||||
Total revenue | $ | (15) | $ | 4 | |
Non-interest expense | (18) | - | |||
Net income | 2 | 3 | |||
Percentage change in average US$ equivalent of | (7) % | (6) % | |||
Percentage change in average British pound equivalent of | 11 % | 2 % | |||
Percentage change in average Euro equivalent of | 9 % | 0 % |
(1) | Represents period-end spot balances. |
Q4 2022 vs. Q4 2021
Net income remained relatively flat as the impact of higher revenue from client deposits was largely offset by lower funding and liquidity revenue and lower revenue from our asset services business.
Total revenue decreased
Non-interest expense decreased
Q4 2022 vs. Q3 2022
Net income decreased
Capital Markets
As at or for the three months ended | |||||||||
October 31 | July 31 | October 31 | |||||||
(Millions of Canadian dollars, except percentage amounts) | 2022 | 2022 | 2021 | ||||||
Net interest income (1) | $ | 1,140 | $ | 1,136 | $ | 1,111 | |||
Non-interest income (1) | 1,173 | 513 | 1,187 | ||||||
Total revenue (1) | 2,313 | 1,649 | 2,298 | ||||||
PCL on performing assets | 19 | 19 | (11) | ||||||
PCL on impaired assets | 13 | (13) | (11) | ||||||
PCL | 32 | 6 | (22) | ||||||
Non-interest expense | 1,616 | 1,123 | 1,155 | ||||||
Income before income taxes | 665 | 520 | 1,165 | ||||||
Net income | $ | 617 | $ | 479 | $ | 920 | |||
Revenue by business | |||||||||
Corporate and Investment Banking | $ | 1,168 | $ | 625 | $ | 1,225 | |||
Global Markets | 1,255 | 1,142 | 1,122 | ||||||
Other | (110) | (118) | (49) | ||||||
Selected balances and other information | |||||||||
ROE | 9.2 % | 7.1 % | 16.1 % | ||||||
Average total assets | $ | 884,500 | $ | 812,700 | $ | 717,000 | |||
Average trading securities | 126,800 | 128,400 | 125,300 | ||||||
Average loans and acceptances, net | 130,800 | 126,000 | 106,100 | ||||||
Average deposits | 81,300 | 75,700 | 73,700 | ||||||
PCL on impaired loans as a % of average net loans and acceptances | 0.03 % | (0.04) % | (0.04) % |
For the three months ended | |||||
Estimated impact of | Q4 2022 vs | Q4 2022 vs | |||
(Millions of Canadian dollars, except percentage amounts) | Q4 2021 | Q3 2022 | |||
Increase (decrease): | |||||
Total revenue | $ | 73 | $ | 78 | |
Non-interest expense | 30 | 40 | |||
Net income | 40 | 33 | |||
Percentage change in average US$ equivalent of | (7) % | (6) % | |||
Percentage change in average British pound equivalent of | 11 % | 2 % | |||
Percentage change in average Euro equivalent of | 9 % | 0 % |
(1) | The taxable equivalent basis (teb) adjustment for the three months ended |
Q4 2022 vs. Q4 2021
Net income decreased
Total revenue increased
PCL was
Non-interest expense increased
Q4 2022 vs. Q3 2022
Net income increased
Corporate Support
As at or for the three months ended | |||||||||
October 31 | July 31 | October 31 | |||||||
(Millions of Canadian dollars) | 2022 | 2022 | 2021 | ||||||
Net interest income (loss) (1) | $ | 93 | $ | (49) | $ | (49) | |||
Non-interest income (loss) (1), (2) | (381) | (120) | 29 | ||||||
Total revenue (1), (2) | (288) | (169) | (20) | ||||||
PCL | - | - | - | ||||||
Non-interest expense (2) | (69) | 2 | 59 | ||||||
Income (loss) before income taxes (1) | (219) | (171) | (79) | ||||||
Income taxes (recoveries) (1) | (145) | (119) | (84) | ||||||
Net income (loss) | $ | (74) | $ | (52) | $ | 5 |
(1) | Teb adjusted. |
(2) | Revenue for the three months ended |
Due to the nature of activities and consolidation adjustments reported in this segment, we believe that a comparative period analysis is not relevant.
Total revenue and Income taxes (recoveries) in each period in Corporate Support include the deduction of the teb adjustments related to the gross-up of income from Canadian taxable corporate dividends and the
The teb amount for the three months ended
The following identifies the material items, other than the teb impacts noted previously, affecting the reported results in each period.
Q4 2022
Net loss was
Q3 2022
Net loss was
Q4 2021
Net income was
We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics, such as net income, ROE and non-GAAP measures, including pre-provision, pre-tax earnings. Certain financial metrics, including ROE and pre-provision, pre-tax earnings do not have any standardized meanings under GAAP and may not be comparable to similar measures disclosed by other financial institutions. We use ROE, at both the consolidated and business segment levels, as a measure of return on total capital invested in our business. We use pre-provision, pre-tax earnings to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of a credit cycle. We believe that certain non-GAAP measures are more reflective of our ongoing operating results and provide readers with a better understanding of management's perspective on our performance.
Calculation of ROE
For the three months ended | For the year ended | ||||||||||||||||||
. | |||||||||||||||||||
(Millions of Canadian dollars, except percentage amounts) | Personal & Commercial Banking | Wealth Management | Insurance | Investor & Treasury Services | Capital Markets | Corporate Support | |||||||||||||
Total | Total | ||||||||||||||||||
Net income available to common | |||||||||||||||||||
shareholders | $ | 2,114 | $ | 809 | $ | 266 | $ | 108 | $ | 599 | $ | (87) | $ | 3,809 | $ | 15,547 | |||
Total average common equity (1), (2) | $ | 27,550 | $ | 20,550 | $ | 2,250 | $ | 3,200 | $ | 25,950 | $ | 17,650 | $ | 97,150 | $ | 94,700 | |||
ROE (3) | 30.5 % | 15.6 % | 46.7 % | 13.5 % | 9.2 % | n.m. | 15.6 % | 16.4 % |
(1) | Total average common equity represents rounded figures. |
(2) | The amounts for the segments are referred to as attributed capital. |
(3) | ROE is based on actual balances of average common equity before rounding. |
n.m. | not meaningful |
Additional information about key performance and non-GAAP measures can be found under the Key performance and non-GAAP measures section of our 2022 Annual Report.
Consolidated Balance Sheets
As at | ||||||||
October 31 | July 31 | October 31 | ||||||
(Millions of Canadian dollars) | 20221 | 20222 | 20211 | |||||
Assets | ||||||||
Cash and due from banks | $ | 72,397 | $ | 89,110 | $ | 113,846 | ||
Interest-bearing deposits with banks | 108,011 | 98,145 | 79,638 | |||||
Securities | ||||||||
Trading | 148,205 | 141,986 | 139,240 | |||||
Investment, net of applicable allowance | 170,018 | 156,809 | 145,484 | |||||
318,223 | 298,795 | 284,724 | ||||||
Assets purchased under reverse repurchase agreements and securities borrowed | 317,845 | 318,565 | 307,903 | |||||
Loans | ||||||||
Retail | 549,751 | 538,389 | 503,598 | |||||
Wholesale | 273,967 | 261,592 | 218,066 | |||||
823,718 | 799,981 | 721,664 | ||||||
Allowance for loan losses | (3,753) | (3,667) | (4,089) | |||||
819,965 | 796,314 | 717,575 | ||||||
Segregated fund net assets | 2,638 | 2,690 | 2,666 | |||||
Other | ||||||||
Customers' liability under acceptances | 17,827 | 17,360 | 19,798 | |||||
Derivatives | 154,439 | 122,058 | 95,541 | |||||
Premises and equipment | 7,214 | 7,142 | 7,424 | |||||
Goodwill | 12,277 | 10,933 | 10,854 | |||||
Other intangibles | 6,083 | 4,383 | 4,471 | |||||
Other assets | 80,300 | 76,597 | 61,883 | |||||
278,140 | 238,473 | 199,971 | ||||||
Total assets | $ | 1,917,219 | $ | 1,842,092 | $ | 1,706,323 | ||
Liabilities and equity | ||||||||
Deposits | ||||||||
Personal | $ | 404,932 | $ | 392,267 | $ | 362,488 | ||
Business and government | 759,870 | 739,467 | 696,353 | |||||
Bank | 44,012 | 46,870 | 41,990 | |||||
1,208,814 | 1,178,604 | 1,100,831 | ||||||
Segregated fund net liabilities | 2,638 | 2,690 | 2,666 | |||||
Other | ||||||||
Acceptances | 17,872 | 17,390 | 19,873 | |||||
Obligations related to securities sold short | 35,511 | 38,504 | 37,841 | |||||
Obligations related to assets sold under repurchase agreements and securities loaned | 273,947 | 281,149 | 262,201 | |||||
Derivatives | 153,491 | 119,868 | 91,439 | |||||
Insurance claims and policy benefit liabilities | 11,511 | 12,033 | 12,816 | |||||
Other liabilities | 95,235 | 77,745 | 70,301 | |||||
587,567 | 546,689 | 494,471 | ||||||
Subordinated debentures | 10,025 | 10,111 | 9,593 | |||||
Total liabilities | 1,809,044 | 1,738,094 | 1,607,561 | |||||
Equity attributable to shareholders | ||||||||
Preferred shares and other equity instruments | 7,318 | 7,328 | 6,684 | |||||
Common shares | 16,984 | 17,092 | 17,655 | |||||
Retained earnings | 78,037 | 76,466 | 71,795 | |||||
Other components of equity | 5,725 | 3,012 | 2,533 | |||||
108,064 | 103,898 | 98,667 | ||||||
Non-controlling interests | 111 | 100 | 95 | |||||
Total equity | 108,175 | 103,998 | 98,762 | |||||
Total liabilities and equity | $ | 1,917,219 | $ | 1,842,092 | $ | 1,706,323 |
(1) | Derived from audited financial statements. |
(2) | Derived from unaudited financial statements. |
Consolidated Statements of Income
For the three months ended | For the year ended | ||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
(Millions of Canadian dollars, except per share amounts) | 2022 1 | 2022 1 | 2021 1 | 2022 2 | 2021 2 | ||||||||
Interest and dividend income | |||||||||||||
Loans | $ | 8,540 | $ | 6,761 | $ | 5,412 | $ | 26,565 | $ | 21,654 | |||
Securities | 2,465 | 1,822 | 1,200 | 7,062 | 4,877 | ||||||||
Assets purchased under reverse repurchase agreements and securities borrowed | 2,941 | 1,601 | 307 | 5,447 | 1,309 | ||||||||
Deposits and other | 952 | 553 | 95 | 1,697 | 305 | ||||||||
14,898 | 10,737 | 7,014 | 40,771 | 28,145 | |||||||||
Interest expense | |||||||||||||
Deposits and other | 5,197 | 2,786 | 1,270 | 10,751 | 5,448 | ||||||||
Other liabilities | 3,308 | 1,984 | 641 | 7,015 | 2,516 | ||||||||
Subordinated debentures | 111 | 77 | 42 | 288 | 179 | ||||||||
8,616 | 4,847 | 1,953 | 18,054 | 8,143 | |||||||||
Net interest income | 6,282 | 5,890 | 5,061 | 22,717 | 20,002 | ||||||||
Non-interest income | |||||||||||||
Insurance premiums, investment and fee income | 644 | 1,233 | 1,501 | 3,510 | 5,600 | ||||||||
Trading revenue | 451 | (128) | 103 | 926 | 1,183 | ||||||||
Investment management and custodial fees | 1,900 | 1,857 | 1,888 | 7,610 | 7,132 | ||||||||
Mutual fund revenue | 1,010 | 1,028 | 1,142 | 4,289 | 4,251 | ||||||||
Securities brokerage commissions | 349 | 344 | 350 | 1,481 | 1,538 | ||||||||
Service charges | 512 | 499 | 475 | 1,976 | 1,858 | ||||||||
Underwriting and other advisory fees | 481 | 369 | 655 | 2,058 | 2,692 | ||||||||
Foreign exchange revenue, other than trading | 266 | 250 | 239 | 1,038 | 1,066 | ||||||||
Card service revenue | 310 | 314 | 247 | 1,203 | 1,078 | ||||||||
Credit fees | 337 | 301 | 418 | 1,512 | 1,530 | ||||||||
Net gains (losses) on investment securities | (23) | 28 | 20 | 43 | 145 | ||||||||
Share of profit in joint ventures and associates | 24 | 33 | 34 | 110 | 130 | ||||||||
Other | 24 | 114 | 243 | 512 | 1,488 | ||||||||
6,285 | 6,242 | 7,315 | 26,268 | 29,691 | |||||||||
Total revenue | 12,567 | 12,132 | 12,376 | 48,985 | 49,693 | ||||||||
Provision for credit losses | 381 | 340 | (227) | 484 | (753) | ||||||||
Insurance policyholder benefits, claims and acquisition expense | 116 | 850 | 1,032 | 1,783 | 3,891 | ||||||||
Non-interest expense | |||||||||||||
Human resources | 4,383 | 3,858 | 3,988 | 16,528 | 16,539 | ||||||||
Equipment | 571 | 514 | 514 | 2,099 | 1,986 | ||||||||
Occupancy | 401 | 381 | 393 | 1,554 | 1,584 | ||||||||
Communications | 319 | 277 | 279 | 1,082 | 931 | ||||||||
Professional fees | 472 | 373 | 417 | 1,511 | 1,351 | ||||||||
Amortization of other intangibles | 354 | 342 | 330 | 1,369 | 1,287 | ||||||||
Other | 709 | 641 | 662 | 2,466 | 2,246 | ||||||||
7,209 | 6,386 | 6,583 | 26,609 | 25,924 | |||||||||
Income before income taxes | 4,861 | 4,556 | 4,988 | 20,109 | 20,631 | ||||||||
Income taxes | 979 | 979 | 1,096 | 4,302 | 4,581 | ||||||||
Net income | $ | 3,882 | $ | 3,577 | $ | 3,892 | $ | 15,807 | $ | 16,050 | |||
Net income attributable to: | |||||||||||||
Shareholders | $ | 3,876 | $ | 3,575 | $ | 3,887 | $ | 15,794 | $ | 16,038 | |||
Non-controlling interests | 6 | 2 | 5 | 13 | 12 | ||||||||
$ | 3,882 | $ | 3,577 | $ | 3,892 | $ | 15,807 | $ | 16,050 | ||||
Basic earnings per share (in dollars) | $ | 2.75 | $ | 2.52 | $ | 2.68 | $ | 11.08 | $ | 11.08 | |||
Diluted earnings per share (in dollars) | 2.74 | 2.51 | 2.68 | 11.06 | 11.06 | ||||||||
Dividends per common share (in dollars) | 1.28 | 1.28 | 1.08 | 4.96 | 4.32 |
(1) | Derived from unaudited financial statements. |
(2) | Derived from audited financial statements. |
Consolidated Statements of Comprehensive Income
For the three months ended | For the year ended | |||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||
(Millions of Canadian dollars) | 2022 1 | 2022 1 | 2021 1 | 2022 2 | 2021 2 | |||||||||
Net income | $ | 3,882 | $ | 3,577 | $ | 3,892 | $ | 15,807 | $ | 16,050 | ||||
Other comprehensive income (loss), net of taxes | ||||||||||||||
Items that will be reclassified subsequently to income: | ||||||||||||||
Net change in unrealized gains (losses) on debt securities and loans at fair value | ||||||||||||||
through other comprehensive income | ||||||||||||||
Net unrealized gains (losses) on debt securities and loans at fair value through other | ||||||||||||||
comprehensive income | (849) | (247) | (183) | (2,241) | 177 | |||||||||
Provision for credit losses recognized in income | (3) | (2) | (1) | (16) | (9) | |||||||||
Reclassification of net losses (gains) on debt securities and loans at fair value through other | ||||||||||||||
comprehensive income to income | 22 | (5) | (11) | (12) | (117) | |||||||||
(830) | (254) | (195) | (2,269) | 51 | ||||||||||
Foreign currency translation adjustments | ||||||||||||||
Unrealized foreign currency translation gains (losses) | 3,878 | (459) | (613) | 5,091 | (4,316) | |||||||||
Net foreign currency translation gains (losses) from hedging activities | (1,292) | 213 | 280 | (1,449) | 1,740 | |||||||||
Reclassification of losses (gains) on foreign currency translation to income | - | - | (2) | (18) | (7) | |||||||||
Reclassification of losses (gains) on net investment hedging activities to income | - | - | - | 17 | (1) | |||||||||
2,586 | (246) | (335) | 3,641 | (2,584) | ||||||||||
Net change in cash flow hedges | ||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | 963 | (296) | 767 | 1,634 | 1,373 | |||||||||
Reclassification of losses (gains) on derivatives designated as cash flow hedges to income | - | 46 | 99 | 194 | 272 | |||||||||
963 | (250) | 866 | 1,828 | 1,645 | ||||||||||
Items that will not be reclassified subsequently to income: | ||||||||||||||
Remeasurements of employee benefit plans | 92 | (319) | 456 | 821 | 2,251 | |||||||||
Net fair value change due to credit risk on financial liabilities designated as at fair value | ||||||||||||||
through profit or loss | 390 | 324 | 67 | 1,747 | 55 | |||||||||
Net gains (losses) on equity securities designated at fair value through other comprehensive | ||||||||||||||
income | (3) | 10 | 40 | 50 | 38 | |||||||||
479 | 15 | 563 | 2,618 | 2,344 | ||||||||||
Total other comprehensive income (loss), net of taxes | 3,198 | (735) | 899 | 5,818 | 1,456 | |||||||||
Total comprehensive income (loss) | $ | 7,080 | $ | 2,842 | $ | 4,791 | $ | 21,625 | $ | 17,506 | ||||
Total comprehensive income attributable to: | ||||||||||||||
Shareholders | $ | 7,068 | $ | 2,841 | $ | 4,787 | $ | 21,604 | $ | 17,501 | ||||
Non-controlling interests | 12 | 1 | 4 | 21 | 5 | |||||||||
$ | 7,080 | $ | 2,842 | $ | 4,791 | $ | 21,625 | $ | 17,506 |
(1) | Derived from unaudited financial statements. |
(2) | Derived from audited financial statements. |
Consolidated Statements of Changes in Equity
For the three months ended | |||||||||||||||||||||||||||
| Other components of equity | ||||||||||||||||||||||||||
Preferred |
| FVOCI securities and loans | Foreign | Cash flow | Total other | Equity | Non- | ||||||||||||||||||||
Common | Retained | Total equity | |||||||||||||||||||||||||
(Millions of Canadian dollars) | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,323 | $ | 17,367 | $ | 5 | $ | (275) | $ | 76,466 | $ | (1,527) | $ | 3,108 | $ | 1,431 | $ | 3,012 | $ | 103,898 | $ | 100 | $ | 103,998 | |||
Changes in equity | |||||||||||||||||||||||||||
Issues of share capital and other equity instruments | - | 49 | - | - | - | - | - | - | - | 49 | - | 49 | |||||||||||||||
Common shares purchased for cancellation | - | (98) | - | - | (884) | - | - | - | - | (982) | - | (982) | |||||||||||||||
Redemption of preferred shares and other equity | |||||||||||||||||||||||||||
instruments | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||
Sales of treasury shares and other equity instruments | - | - | 50 | 1,034 | - | - | - | - | - | 1,084 | - | 1,084 | |||||||||||||||
Purchases of treasury shares and other equity | |||||||||||||||||||||||||||
instruments | - | - | (60) | (1,093) | - | - | - | - | - | (1,153) | - | (1,153) | |||||||||||||||
Share-based compensation awards | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||
Dividends on common shares | - | - | - | - | (1,774) | - | - | - | - | (1,774) | - | (1,774) | |||||||||||||||
Dividends on preferred shares and distributions on | |||||||||||||||||||||||||||
other equity instruments | - | - | - | - | (67) | - | - | - | - | (67) | (1) | (68) | |||||||||||||||
Other | - | - | - | - | (59) | - | - | - | - | (59) | - | (59) | |||||||||||||||
Net income | - | - | - | - | 3,876 | - | - | - | - | 3,876 | 6 | 3,882 | |||||||||||||||
Total other comprehensive income (loss), net of taxes | - | - | - | - | 479 | (830) | 2,580 | 963 | 2,713 | 3,192 | 6 | 3,198 | |||||||||||||||
Balance at end of period | $ | 7,323 | $ | 17,318 | $ | (5) | $ | (334) | $ | 78,037 | $ | (2,357) | $ | 5,688 | $ | 2,394 | $ | 5,725 | $ | 108,064 | $ | 111 | $ | 108,175 | |||
For the three months ended | |||||||||||||||||||||||||||
| Other components of equity | ||||||||||||||||||||||||||
Preferred |
| FVOCI securities and loans | Foreign | Cash flow | Total other | Equity | Non- | ||||||||||||||||||||
Common | Retained | Total equity | |||||||||||||||||||||||||
(Millions of Canadian dollars) | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,473 | $ | 17,713 | $ | (57) | $ | (57) | $ | 68,951 | $ | 107 | $ | 2,389 | $ | (300) | $ | 2,196 | $ | 96,219 | $ | 91 | $ | 96,310 | |||
Changes in equity | |||||||||||||||||||||||||||
Issues of share capital and other equity instruments | - | 15 | - | - | - | - | - | - | - | 15 | - | 15 | |||||||||||||||
Common shares purchased for cancellation | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||
Redemption of preferred shares and other equity | |||||||||||||||||||||||||||
instruments | (750) | - | - | - | - | - | - | - | - | (750) | - | (750) | |||||||||||||||
Sales of treasury shares and other equity instruments | - | - | 205 | 994 | - | - | - | - | - | 1,199 | - | 1,199 | |||||||||||||||
Purchases of treasury shares and other equity instruments | |||||||||||||||||||||||||||
instruments | - | - | (187) | (1,010) | - | - | - | - | - | (1,197) | - | (1,197) | |||||||||||||||
Share-based compensation awards | - | - | - | - | (2) | - | - | - | - | (2) | - | (2) | |||||||||||||||
Dividends on common shares | - | - | - | - | (1,540) | - | - | - | - | (1,540) | - | (1,540) | |||||||||||||||
Dividends on preferred shares and distributions on | |||||||||||||||||||||||||||
other equity instruments | - | - | - | - | (68) | - | - | - | - | (68) | - | (68) | |||||||||||||||
Other | - | - | - | - | 4 | - | - | - | - | 4 | - | 4 | |||||||||||||||
Net income | - | - | - | - | 3,887 | - | - | - | - | 3,887 | 5 | 3,892 | |||||||||||||||
Total other comprehensive income (loss), net of taxes | - | - | - | - | 563 | (195) | (334) | 866 | 337 | 900 | (1) | 899 | |||||||||||||||
Balance at end of period | $ | 6,723 | $ | 17,728 | $ | (39) | $ | (73) | $ | 71,795 | $ | (88) | $ | 2,055 | $ | 566 | $ | 2,533 | $ | 98,667 | $ | 95 | $ | 98,762 |
(1) | Derived from unaudited financial statements. |
For the year ended | |||||||||||||||||||||||||||
| Other components of equity | ||||||||||||||||||||||||||
Preferred |
| FVOCI securities and loans | Foreign | Cash flow | Total other | Equity | Non- | ||||||||||||||||||||
Common | Retained | Total equity | |||||||||||||||||||||||||
(Millions of Canadian dollars) | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 6,723 | $ | 17,728 | $ | (39) | $ | (73) | $ | 71,795 | $ | (88) | $ | 2,055 | $ | 566 | $ | 2,533 | $ | 98,667 | $ | 95 | $ | 98,762 | |||
Changes in equity | |||||||||||||||||||||||||||
Issues of share capital and other equity instruments | 750 | 99 | - | - | (1) | - | - | - | - | 848 | - | 848 | |||||||||||||||
Common shares purchased for cancellation | - | (509) | - | - | (4,917) | - | - | - | - | (5,426) | - | (5,426) | |||||||||||||||
Redemption of preferred shares and other equity | |||||||||||||||||||||||||||
instruments | (150) | - | - | - | (5) | - | - | - | - | (155) | - | (155) | |||||||||||||||
Sales of treasury shares and other equity instruments | - | - | 552 | 4,922 | - | - | - | - | - | 5,474 | - | 5,474 | |||||||||||||||
Purchases of treasury shares and other equity | |||||||||||||||||||||||||||
instruments | - | - | (518) | (5,183) | - | - | - | - | - | (5,701) | - | (5,701) | |||||||||||||||
Share-based compensation awards | - | - | - | - | 2 | - | - | - | - | 2 | - | 2 | |||||||||||||||
Dividends on common shares | - | - | - | - | (6,946) | - | - | - | - | (6,946) | - | (6,946) | |||||||||||||||
Dividends on preferred shares and distributions on | |||||||||||||||||||||||||||
other equity instruments | - | - | - | - | (247) | - | - | - | - | (247) | (5) | (252) | |||||||||||||||
Other | - | - | - | - | (56) | - | - | - | - | (56) | - | (56) | |||||||||||||||
Net income | - | - | - | - | 15,794 | - | - | - | - | 15,794 | 13 | 15,807 | |||||||||||||||
Total other comprehensive income (loss), net of taxes | - | - | - | - | 2,618 | (2,269) | 3,633 | 1,828 | 3,192 | 5,810 | 8 | 5,818 | |||||||||||||||
Balance at end of period | $ | 7,323 | $ | 17,318 | $ | (5) | $ | (334) | $ | 78,037 | $ | (2,357) | $ | 5,688 | $ | 2,394 | $ | 5,725 | $ | 108,064 | $ | 111 | $ | 108,175 | |||
For the year ended | |||||||||||||||||||||||||||
| Other components of equity | ||||||||||||||||||||||||||
Preferred |
| FVOCI securities and loans | Foreign | Cash flow | Total other | Equity | Non- | ||||||||||||||||||||
Common | Retained | Total equity | |||||||||||||||||||||||||
(Millions of Canadian dollars) | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 5,948 | $ | 17,628 | $ | (3) | $ | (129) | $ | 59,806 | $ | (139) | $ | 4,632 | $ | (1,079) | $ | 3,414 | $ | 86,664 | $ | 103 | $ | 86,767 | |||
Changes in equity | |||||||||||||||||||||||||||
Issues of share capital and other equity instruments | 2,250 | 100 | - | - | (5) | - | - | - | - | 2,345 | - | 2,345 | |||||||||||||||
Common shares purchased for cancellation | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||
Redemption of preferred shares and other equity | |||||||||||||||||||||||||||
instruments | (1,475) | - | - | - | - | - | - | - | - | (1,475) | - | (1,475) | |||||||||||||||
Sales of treasury shares and other equity instruments | - | - | 647 | 4,116 | - | - | - | - | - | 4,763 | - | 4,763 | |||||||||||||||
Purchases of treasury shares and other equity | |||||||||||||||||||||||||||
instruments | - | - | (683) | (4,060) | - | - | - | - | - | (4,743) | - | (4,743) | |||||||||||||||
Share-based compensation awards | - | - | - | - | (6) | - | - | - | - | (6) | - | (6) | |||||||||||||||
Dividends on common shares | - | - | - | - | (6,158) | - | - | - | - | (6,158) | - | (6,158) | |||||||||||||||
Dividends on preferred shares and distributions on | |||||||||||||||||||||||||||
other equity instruments | - | - | - | - | (257) | - | - | - | - | (257) | (3) | (260) | |||||||||||||||
Other | - | - | - | - | 33 | - | - | - | - | 33 | (10) | 23 | |||||||||||||||
Net income | - | - | - | - | 16,038 | - | - | - | - | 16,038 | 12 | 16,050 | |||||||||||||||
Total other comprehensive income (loss), net of taxes | - | - | - | - | 2,344 | 51 | (2,577) | 1,645 | (881) | 1,463 | (7) | 1,456 | |||||||||||||||
Balance at end of period | $ | 6,723 | $ | 17,728 | $ | (39) | $ | (73) | $ | 71,795 | $ | (88) | $ | 2,055 | $ | 566 | $ | 2,533 | $ | 98,667 | $ | 95 | $ | 98,762 |
(1) | Derived from audited financial statements. |
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. We may make forward-looking statements in this Earnings Release, in other filings with Canadian regulators or the
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, that our financial performance objectives, vision and strategic goals will not be achieved, and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions.
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 can be difficult to predict – include: credit, market, liquidity and funding, insurance, operational, regulatory compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, competitive, model, legal and regulatory environment, systemic risks and other risks discussed in the risk sections of our annual report for the fiscal year ended
We caution that the foregoing list of risk 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. Material economic assumptions underlying the forward-looking statements contained in this Earnings Release are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook sections in our 2022 Annual Report. 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 the risk sections of our 2022 Annual Report. Information contained in or otherwise accessible through the websites mentioned does not form part of this Earnings Release. All references in this Earnings Release to websites are inactive textual references and are for your information only.
ACCESS TO QUARTERLY RESULTS MATERIALS
Interested investors, the media and others may review this quarterly Earnings Release, quarterly results slides, supplementary financial information and our 2022 Annual Report at rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our quarterly conference call is scheduled for
Management's comments on results will be posted on our website shortly following the call. A recording will be available by
ABOUT RBC
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
Trademarks used in this earnings release include the RBC LION & GLOBE Design, |
_________________________________________ | |
1 | Earnings per share (EPS). |
2 | Provision for credit losses (PCL). |
3 | Basis points (bps). |
4 | Return on equity (ROE). For further information, refer to the Key performance and non-GAAP measures section on page 11 of this Earnings Release. |
5 | This ratio is calculated by dividing Common Equity Tier 1 (CET1) by risk-weighted assets, in accordance with OSFI's Basel III Capital Adequacy Requirements guideline. |
6 | Leverage ratio is calculated using OSFI's Leverage Requirements guideline. |
7 | When we say "we", "us", "our", or "RBC", we mean |
8 | Pre-provision, pre-tax earnings is calculated as income (2022: |
9 | Dealogic, based on global investment bank fees, Fiscal 2022. |
10 | Pre-provision, pre-tax earnings is calculated as income (Q4 2022: |
SOURCE
© Canada Newswire, source