3rd Quarter Results

Tue, Oct 01, 2013 22:34 CET

Interim Condensed Consolidated Financial Statements (unaudited)

Interim Condensed Consolidated Balance Sheets (unaudited)
(Millions of Canadian dollars)	July 31 2013	April 30 2013	October 31 2012	July 31 2012
Assets
Cash and due from banks	$ 14,083	$ 14,503	$ 12,617	$ 10,586
Interest-bearing deposits with banks	7,376	6,981	10,255	11,386
Securities (Note 4)
Trading	137,484	139,786	120,783	117,050
Available-for-sale	36,818	36,543	40,828	41,340

	174,302	176,329	161,611	158,390
Assets purchased under reverse repurchase agreements and securities borrowed	120,184	124,644	112,257	107,841
Loans (Note 5)
Retail	318,288	312,520	301,185	297,637
Wholesale	85,853	86,049	79,056	77,516
	404,141	398,569	380,241	375,153
Allowance for loan losses (Note 5)	(1,921 )	(1,966 )	(1,997 )	(1,937 )

	402,220	396,603	378,244	373,216
Investments for account of segregated fund holders	463	438	383	357
Other
Customers' liability under acceptances	10,211	9,275	9,385	9,115
Derivatives (Note 6)	77,846	93,693	91,293	103,257
Premises and equipment, net	2,679	2,677	2,691	2,672
Goodwill	8,234	8,106	7,485	7,466
Other intangibles	2,742	2,725	2,686	2,649
Investments in associates	135	132	125	163
Prepaid pension benefit cost	1,099	1,089	1,049	984
Other assets	29,730	30,335	35,019	36,312

	132,676	148,032	149,733	162,618
Total assets	$ 851,304	$ 867,530	$ 825,100	$ 824,394
Liabilities and equity
Deposits (Note 8)
Personal	$ 190,819	$ 187,581	$ 179,502	$ 176,698
Business and government	340,539	328,608	312,882	308,261
Bank	14,855	15,058	15,835	17,845

	546,213	531,247	508,219	502,804
Insurance and investment contracts for account of segregated fund holders	463	438	383	357
Other
Acceptances	10,211	9,275	9,385	9,115
Obligations related to securities sold short	46,473	49,628	40,756	43,562
Obligations related to assets sold under repurchase agreements and securities loaned	65,550	72,384	64,032	55,908
Derivatives (Note 6)	80,378	97,665	96,761	108,819
Insurance claims and policy benefit liabilities	7,815	8,228	7,921	7,965
Accrued pension and other post-employment benefit expense	1,806	1,786	1,729	1,631
Other liabilities	35,205	39,454	41,371	40,762
	247,438	278,420	261,955	267,762
Subordinated debentures (Note 10)	7,392	8,503	7,615	7,646
Trust capital securities	828	899	900	900
Total liabilities	802,334	819,507	779,072	779,469
Equity attributable to shareholders
Preferred shares (Note 10)	4,600	4,813	4,813	4,813
Common shares (shares issued - 1,440,177,840, 1,444,372,468, 1,445,302,600 and 1,444,300,306) (Note 10)	14,333	14,354	14,323	14,279
Treasury shares - preferred (shares held - 17,021, 12,098 and (41,632), 63,195)	(1 )	-	1	(2 )
- common (shares held - 107,308, (701,082), (543,276) and (261,419))	(10 )	40	30	13
Retained earnings	27,251	26,191	24,270	23,310
Other components of equity	1,040	853	830	755
	47,213	46,251	44,267	43,168
Non-controlling interests	1,757	1,772	1,761	1,757
Total equity	48,970	48,023	46,028	44,925
Total liabilities and equity	$ 851,304	$ 867,530	$ 825,100	$ 824,394

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

Interim Condensed Consolidated Statements of Income (unaudited)


		For the three months ended			For the nine months ended
(Millions of Canadian dollars, except per share amounts)		July 31 2013	April 30 2013	July 31 2012	July 31 2013	July 31 2012
Interest income
	Loans	$ 4,135	$ 3,995	$ 4,170	$ 12,184	$ 11,946
	Securities	949	887	946	2,797	2,961
	Assets purchased under reverse repurchase agreements and securities borrowed	233	237	249	719	696
Deposits		33	14	14	60	47
		5,350	5,133	5,379	15,760	15,650
Interest expense
	Deposits	1,401	1,386	1,502	4,210	4,549
	Other liabilities	476	433	505	1,386	1,502
Subordinated debentures		80	91	83	263	276
		1,957	1,910	2,090	5,859	6,327
	Net interest income	3,393	3,223	3,289	9,901	9,323
Non-interest income
	Insurance premiums, investment and fee income	561	1,246	1,323	2,828	3,799
	Trading revenue	100	151	295	607	1,040
	Investment management and custodial fees	637	605	515	1,851	1,508
	Mutual fund revenue	669	622	514	1,885	1,519
	Securities brokerage commissions	346	336	292	1,003	883
	Service charges	361	354	347	1,069	1,014
	Underwriting and other advisory fees	305	401	379	1,175	1,059
	Foreign exchange revenue, other than trading	200	186	129	561	452
	Card service revenue	251	232	243	737	686
	Credit fees	240	246	267	772	628
	Net gain on available-for-sale securities (Note 4)	27	44	42	137	40
	Share of (loss) profit in associates	(1 )	2	9	7	25
Other		129	121	112	364	278
	Non-interest income	3,825	4,546	4,467	12,996	12,931
	Total revenue	7,218	7,769	7,756	22,897	22,254
	Provision for credit losses (Note 5)	267	288	324	904	939
	Insurance policyholder benefits, claims and acquisition expense	263	938	1,000	1,906	2,851
Non-interest expense
	Human resources	2,486	2,551	2,313	7,669	6,955
	Equipment	290	270	255	833	745
	Occupancy	308	306	297	919	864
	Communications	189	179	193	529	555
	Professional fees	189	182	167	531	479
	Outsourced item processing	61	69	64	190	199
	Amortization of other intangibles	145	139	130	419	386
	Impairment of goodwill and other intangibles	-	-	7	-	168
Other		333	315	333	973	936

		4,001	4,011	3,759	12,063	11,287
Income before income taxes from continuing operations		2,687	2,532	2,673	8,024	7,177
Income taxes		383	596	433	1,714	1,498
Net income from continuing operations		2,304	1,936	2,240	6,310	5,679
Net loss from discontinued operations		-	-	-	-	(51 )
	Net income	$ 2,304	$ 1,936	$ 2,240	$ 6,310	$ 5,628
Net income attributable to:
	Shareholders	$ 2,279	$ 1,912	$ 2,216	$ 6,236	$ 5,554
Non-controlling interests		25	24	24	74	74
		$ 2,304	$ 1,936	$ 2,240	$ 6,310	$ 5,628
Basic earnings per share (in dollars) (Note 11)		$ 1.54	$ 1.28	$ 1.49	$ 4.18	$ 3.72
	Basic earnings per share from continuing operations (in dollars)	1.54	1.28	1.49	4.18	3.75
	Basic loss per share from discontinued operations (in dollars)	-	-	-	-	(0.03 )
	Diluted earnings per share (in dollars) (Note 11)	1.52	1.27	1.47	4.15	3.68
	Diluted earnings per share from continuing operations (in dollars)	1.52	1.27	1.47	4.15	3.71
	Diluted loss per share from discontinued operations (in dollars)	-	-	-	-	(0.03 )
Dividends per common share (in dollars)		0.63	0.63	0.57	1.86	1.68

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

Interim Condensed Consolidated Statements of Comprehensive Income (unaudited)


		For the three months ended					For the nine months ended
(Millions of Canadian dollars)		July 31 2013	April 30 2013		July 31 2012		July 31 2013		July 31 2012
Net income		$ 2,304	$ 1,936		$ 2,240		$ 6,310		$ 5,628
Other comprehensive income (loss), net of taxes
	Items that will be reclassified subsequently to income:
	Net change in unrealized (losses) gains on available-for-sale securities
	Net unrealized (losses) gains on available-for-sale securities	(172 )		102		121		(68 )	110
Reclassification of net gains on available-for-sale securities to income		(7 )	(23 )		(12 )		(80 )		(1 )

		(179 )	79		109		(148 )		109
Foreign currency translation adjustments
	Unrealized foreign currency translation gains (losses)	554		170		244		673	(31 )
	Net foreign currency translation (losses) gains from hedging activities	(358 )		(95 )		(124 )		(416 )	89
Reclassification of losses on net investment hedging activities to income		-	-		11		-		11

		196	75		131		257		69
Net change in cash flow hedges
	Net gains (losses) on derivatives designated as cash flow hedges	178		(73 )		49		129	52
Reclassification of (gains) losses on derivatives designated as cash flow hedges to income		(8 )	(8 )		9		(28 )		36

		170	(81 )		58		101		88
	Total other comprehensive income, net of taxes	187		73		298		210	266
	Total comprehensive income	$ 2,491		$ 2,009		$ 2,538		$ 6,520	$ 5,894
Total comprehensive income attributable to:
	Shareholders	$ 2,466		$ 1,985		$ 2,514		$ 6,446	$ 5,819
Non-controlling interests		25	24		24		74		75
		$ 2,491		$ 2,009		$ 2,538		$ 6,520	$ 5,894

Royal Bank of Canada

3rd Quarter Results

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