Royal Bank of Canada


CEO Message

Chair message

Sustainable growth

Exceptional client experience

Best talent

Simplify. Agile. Innovate.

Community & social impact

Who we are

Royal Bank of Canada is a global financial institution with a purpose driven, principles-led approach to delivering leading performance. Our success comes from the 80,000+ employees who bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 16 million clients in Canada, the U.S. and 35 other countries.

Why invest?

  • Market leader with a focused growth strategy
  • Diversified business model with leading client
  • Financial strength underpinned by prudent risk and cost management
  • Innovation is in our DNA
  • Leading corporate citizen

Our purpose

Guided by our vision to be among the world’s most trusted and successful financial institutions, and driven by our purpose of helping clients thrive and communities prosper, we aim to be:

  • The undisputed financial services leader in Canada
  • The preferred partner to corporate, institutional and high net worth clients in the U.S.
  • A leading financial services partner valued for our expertise in select global financial centres

Our values

  • Client First
  • Collaboration
  • Accountability
  • Diversity & Inclusion
  • Integrity

Our strategy

Our purpose, vision and values are aligned to strategic initiatives that drive our competitive advantage in a changing marketplace.





Community &
social impact

Our business segments

Personal & Commercial Banking

  • Financial services leader in Canada with a presence in the Caribbean and the U.S.
  • Number 1 or 2 market share in all key Canadian Banking product categories

Capital Markets

  • Premier North American investment bank with select global reach in Europe, Asia and other international locations
  • 9th largest global investment bank by fees(1)
  • (1) Dealogic, based on global investment bank fees, Fiscal 2017.

Investor & Treasury Services

  • Leading global asset services provider and Canadian transaction bank with an integrated client offering
  • Provides short-term funding and liquidity management services for RBC


  • Canada’s largest bank-owned insurer and among the fastest growing insurance organizations in the country
  • Offers reinsurance solutions for clients globally

Wealth Management

  • Largest mutual fund company and wealth advisory business in Canada
  • Growing presence in U.S. private and commercial banking and wealth management
  • Top-five wealth manager globally(2)
  • (2) Scorpio Partnership Global Private Banking Benchmark, 2017.

Message from
Dave McKay

On behalf of my 80,000+ colleagues, I am honoured to share the story of our record 2017 and our ongoing journey to position RBC for the future.

We reported record earnings of $11.5 billion, up 10% from the prior year. This demonstrated the strength of our diversified business model, our disciplined approach to risk and cost management, and above all, our purpose of helping clients thrive and communities prosper.

We delivered a return on equity of 17% and strengthened our Common Equity Tier 1 capital ratio to 10.9%. In November 2017, we were designated as a Global Systemically Important Bank by the Financial Stability Board, reflecting the size and scale of our global operations. As we already meet the requirement of a 1% buffer, we do not expect any significant impact to our capital position.

We also returned a record $8.2 billion of capital in dividends and share buybacks, reflecting our commitment to shareholders while executing on our growth strategies. We delivered compound annual Total Shareholder Returns of 12% and 17% over three and five years, outperforming our global peer group.

The favourable macroeconomic environment contributed to our success, with strong GDP growth, high employment and interest rate increases leading to low credit losses, strong demand for credit and stronger margins.

Beyond our performance, we believe how we achieve success is as important as what we achieve; this is critical in creating a path for sustained growth over the long term. It is heartening as CEO to see how our principles-led approach and our values, including the importance of diversity and inclusion, drive our daily decision-making from the Board to the branch and everywhere in between.

Sustainable growth

We have a focused strategy that targets high-growth client segments within our priority markets of Canada, the U.S., and in select global financial centres. Across geographies, we are deepening relationships with our clients and bringing the strength, breadth and depth of RBC to meet their goals.

In Canada, where we are number one or two in all key banking segments, we are not being complacent but looking to transform our physical network and digitize our operations to meet changing customer needs. We’ve expanded our insurance offering and we see opportunities for further growth within Personal & Commercial Banking, specifically in commercial banking, investments, deposits and credit cards.

We are also exploring ways to add new sources of value for our clients. We are increasingly collaborating with strategic partners to create the ecosystems in which our customers live and work. For example, we have recently started offering employee health care expense management for commercial clients, and we have integrated invoicing, accounting and financial insights into our business banking platform so that entrepreneurs can spend more time growing their businesses.

In our leading Canadian wealth management franchise, we are adding more value to clients through our unmatched wealth planning expertise, including business succession and intergenerational wealth transfers. We are also building out our top-performing asset management capabilities.

In the U.S., the successful integration of City National is allowing us to serve more commercial and high net worth clients. In 2017, City National deepened its presence in its core markets of California and New York City while also expanding in Washington, D.C. and Minneapolis and building on synergies with other parts of the firm, including Capital Markets.

Our U.S. capital markets business continues to grow. It accounts for more than half of overall Capital Markets earnings. Globally, RBC Capital Markets has been ranked as one of the top 10 investment banks by fees for the last five years. Together, our U.S. capital markets and wealth management businesses (including City National) position us well to be the preferred partner to corporate, institutional and high net worth clients and their businesses in the U.S.

We also continue to improve our competitive position in select markets in the U.K., Europe and Asia, by focusing on key client segments served by our wealth and asset management, capital markets and investor and treasury services businesses.

We believe how we achieve success is as important as what we achieve; this is critical in creating a path for sustained growth over the long term.

Exceptional client experiences

More than ever before, we are building from the customer in, creating a Digitally Enabled Relationship Bank that is simple to deal with and that adds more value to clients.

We are learning from and working with our clients to develop the next generation of products. Our size and scale gives us an advantage in using data to better understand our clients, anticipate their future needs and offer them increasingly personalized solutions, while investing in keeping their information secure.

Our digital and innovation strategies are fundamental to creating exceptional client experiences, driving customer loyalty and acquiring new clients. In Personal & Commercial Banking, we have grown our sales force in advice roles, we have significantly grown our mobile users, and today 84% of our financial transactions are performed in self-serve channels. The work we’ve done to serve clients as we move to a digital future helped us win Highest in Customer Satisfaction Among the Big Five Retail Banks in J.D. Power’s 2017 Canadian Retail Banking Satisfaction survey for the second year in a row.

Simplify. Agile. Innovate.

As we integrate into our customers’ digital lives, we are collaborating with an ever broader range of global partners, bringing exciting new opportunities to our clients across all of our business lines.

We are working in new ways to design and build products, processes, technology and services in a faster, simpler, more adaptable and cost effective way. In an unprecedented time of change in our industry, customer expectations and preferences are shifting almost daily. I believe one of my greatest responsibilities as CEO is to ensure that the cadence and speed of change inside RBC matches that of the wider world. So, as we reimagine our future and the role that we play in our customers’ lives, we are changing the way that we work.

We’re proud to be a champion for Canadian innovation, particularly the transformational technologies of blockchain and artificial intelligence (AI). As one of the leading voices on AI in Canada, we have established the research institute Borealis AI to pursue curiosity-driven research in machine learning. This will help to not only drive our own innovation, 
but also secure Canada’s position as a global destination for AI research and ventures.

Best talent

We know that our best ideas come when we unlock the potential of our people, allowing the full diversity of our organization to thrive. To accelerate this journey we are simplifying our structure, redefining our leadership model and tapping into the strengths and talent of our employees. By creating an environment where employees are encouraged to be bolder and use their full expertise, capabilities and experiences, 
we will be able to succeed in hiring and retaining top talent and provide them with meaningful work.

Community and social impact

As a purpose-driven company, we believe we are accountable for creating a positive social impact in the communities where we operate. Among countless examples across our businesses and regions in 2017, none articulated this focus more clearly than RBC Future Launch, our $500-million commitment to empower Canadian youth for the jobs of tomorrow. Over the next 10 years, we are dedicating our knowledge, skills and resources to help young people access meaningful employment. Investing in the next generation is both a business imperative and the right thing to do.

Thank you

I offer a sincere thank you to the 16 million clients who continue to put their trust in RBC. I also want to thank my colleagues for their ideas and their commitment to seeing those clients succeed. As always, I appreciate the guidance and insight from our diverse board of directors. And finally, to you our shareholders, I reiterate our commitment to executing on our strategy and delivering sustainable earnings growth in line with our purpose.

David McKay
President and Chief Executive Officer

Key metrics in 2017

Sustainable growth

Diluted EPS


CET1 ratio

Dividend payout ratio

Three-year TSR

Refer to the sustainable growth section for more information

Exceptional client experiences

#1 Client Satisfaction among Big Five Canadian retail banks in 2017 J.D. Power survey

Best talent

94% employees who are proud to be a part of RBC(1)

Community and social impact

150,000+ employees volunteer hours(2)

$98+ million in cash donations and community investments(3)

(1) 2017 Employee Opinion Survey.
(2) Includes non-work time hours reported by employees globally and retirees in Canada through RBC's formal volunteering programs.
(3) Includes employee volunteer grants and gifts in-kind, as well as non-profit contributions to non-registered charities. Figure does not include sponsorships.

Group Executive Officers

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Message from
Katie Taylor

Photo portrait of Kathleen Taylor

Dear fellow shareholders,

RBC has a clear purpose: to help clients thrive and communities prosper. This simple statement unites your board of directors, the management team and dedicated employees as we focus on delivering long-term shareholder value by ensuring positive outcomes for all stakeholders. Change has become a hallmark of our times and in 2017 RBC successfully executed on its key strategies, moved forward on its transformation priorities and welcomed new talent to its senior management team.

Overseeing our strategy

One of the board’s most critical roles is to provide oversight and stewardship of RBC’s strategic direction. We provide guidance to management as it builds a Digitally Enabled Relationship Bank and focuses on markets and segments where RBC is positioned to succeed. In order to anticipate and respond to a dynamic, global marketplace, we advise management on its strategic plans, challenge assumptions, and assist in identifying and building pathways to sustainable growth within the bank’s risk appetite.

Focusing on talent

Talent management, including senior management succession planning, is a key board responsibility, essential to supporting RBC’s strategic objectives. We take a comprehensive approach to pipeline development that includes early identification of key candidates and in-depth evaluations of the skills and expertise required for both the near and medium term. As the banking industry continues to evolve, a diversity of experiences, perspectives and backgrounds represented at all levels of management becomes a critical advantage and key to successfully executing on the bank’s strategy.

Robust risk management

The board assesses management’s plans to ensure business opportunities are balanced against sound risk management priorities and an effective enterprise-wide framework. We actively engage with management to assure that a strong risk culture is supported at all levels of RBC and that the bank’s risk management function is independent from the businesses. We also provide guidance on, and approve the bank’s risk appetite, and maintain open communications with regulators.

Good governance

Your board champions RBC’s culture of ‘doing what’s right’ and our core values of integrity and accountability. We help establish and promote ethical standards and behaviour across all levels of the organization, working to foster an approach to business that considers impacts to society, the economy and the environment. Diversity of gender, thought and experience is critical to successful board oversight, and our board culture encourages transparency, active engagement and productive debate. Once again in 2017, we were recognized for our approach, winning Best Overall Governance at the Excellence in Governance Awards in Toronto and Best Overall Corporate Governance – International at the Corporate Governance Awards in New York.

We also continue to refine the skills and experience needed to provide orderly board succession and strengthen our ranks to support RBC’s future strategic goals. To this end, we were pleased to welcome Jeffery Yabuki to the RBC board. As the president and CEO of Fiserv Inc. – a leading provider of financial services – Jeff brings us deep experience in financial services, technology solutions and strategic advice.

We were also saddened this year by the passing of our esteemed colleague Richard (Rick) George. Rick was a true leader in Canadian business and a trusted advisor on the RBC board. He is greatly missed by all.

Shareholder engagement

Working with our stakeholders is an important component of our governance process, notable this year for the collaborative efforts that produced the RBC Proxy Access Policy. Committed to the creation of long-term value, we will continue to look for new and effective ways to meaningfully engage with investors, clients and the communities we serve.

On behalf of the board, I would like to thank Dave McKay and his leadership team for their commitment and dedication to helping realize RBC’s vision of being recognized as one of the world’s most trusted and successful financial institutions. We would also like to express the board’s deep appreciation to RBC employees around the world who deliver the very best to our clients and communities every day.

Kathleen Taylor
Chair of the Board

RBC Board
of Directors

Andrew Chisholm
Jacynthe Côté
Toos Daruvala
David Denison
Alice Laberge
Michael McCain
David McKay
Heather Munroe-Blum
Thomas Renyi
Kathleen Taylor
Bridget van Kralingen
Thierry Vandal
Jeffery Yabuki

Sustainable growth

RBC continued to achieve high-quality earnings growth by focusing on our clients, deploying capital effectively and investing for the future, while carefully managing risks and costs.

Annualized dividend
increase of:

7% – one year
7% – ten year(1)

(1) Compound Annual Growth Rate.

Earnings by business segment(2)

  • %
  • %
  • %
  • %
  • %

(2) Excludes Corporate Support.

Financial Performance Metrics(3)

  Medium-Term Objectives 2017 Results
Diluted EPS Growth 7%+ 11.5%
Return on Equity 16%+ 17.0%
Capital Ratio (CET 1) Strong 10.9%
Dividend Payout Ratio 40% – 50% 46%

(3) Our focus is to maximize total shareholder returns (TSR) through the achievement of top half performance compared to our global peer group over the medium term (3-5 years), which we believe reflects a longer term view of strong and consistent financial performance.

Total Shareholder Return(4)

RBC Global Peer Average
Three-year 12% 10%
Five-year 17% 15%

(4) Reflects annualized TSR and is calculated based on the TSX common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at October 31, 2017. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our financial performance objectives section of our 2017 Management’s Discussion and Analysis.

For more information, please visit:

We are committed to distributing economic value to create a better future for our clients and communities. We do this with a simple equation. We earn money through the products and services that we provide, and distribute a portion of that revenue to those we rely on for our success. The remainder, our profit, is then paid out to shareholders through dividends and repurchases or reinvested for future growth.

In 2017, we earned revenue of $40.7 billion

$29.2 billion was spent on:






The remainder of our profit of $11.5 billion goes to shareholders or is reinvested:



Exceptional client experience

Our business is about people and always earning the right to be our clients’ first choice. We aim to deliver excellent service, including meaningful, personalized interactions that build life-long client relationships. Whether it’s day-to-day personal, business or corporate banking, we want to be the best bank to help 
our clients achieve their goals.

Reshaping how we engage

We are reshaping our physical and advisor networks and adding new ways to serve our clients. This includes rethinking how we support the specific needs of surrounding communities and important client demographics such as retirees, newcomers and students.

Providing personalized advice

We’re providing personalized advice and solutions to help our clients manage their day-to-day finances and products but also anticipate their future banking needs. This is backed by local expertise in the markets where we operate and an understanding of each client’s needs to offer the right advice and solutions to help them succeed.

Digital experience

We are building a Digitally Enabled Relationship Bank. Life moves quickly so we’re making sure that we focus on speed of service and simplifying everyday client needs.

This means re-imagining how we serve our clients no matter how they choose to interact with us. We are also developing innovative partnerships and investing in online and mobile channels, new branch formats and more expert advisors.

The client is at the centre of everything we do

Best talent

We are attracting, inspiring and empowering our people to deliver their best. RBC has a diverse workforce and inclusive culture that promotes sharing different perspectives and experiences to enable innovation and creative thinking.


Employees who are proud to be part of RBC(1)

(1) 2017 Employee Opinion Survey.

Our talent strategy

Our success begins and ends with engaged employees. Our 80,000+ colleagues bring our vision, values and strategy to life so we can help our clients thrive and communities prosper.

We recognize the value a diverse workforce brings. That’s why we continually strive to create an inclusive environment where everyone feels valued, engaged and empowered to pursue a meaningful career.

We encourage employees to have an always learning mindset, speak up for the good of RBC and set ambitious goals. In the past year, we’ve stepped up our focus on changing the way we work to ensure our people are equipped with the skills to be successful today and in the future.

An organization of our size offers a world of opportunities, including: mentorship, coaching, employee resources groups, and making a difference in our communities. We develop our talent through:

  • Engaging careers with opportunities for growth
  • Investments in learning and development to enhance knowledge, skills and capabilities
  • Competitive compensation and benefits
  • Diversity and inclusion

Investing in youth

RBC believes that all young people should have work integrated learning experiences prior to graduation. Career Launch – our one-year, paid internship program – provides just that to 100 recent graduates annually.

In 2016, we introduced RBC Amplify, an intensive four-month internship in Toronto where students were assigned to some of our toughest business challenges. The program is now global, expanding to Minneapolis, Jersey City and Luxembourg. This is a window into the future of RBC.

Workplace recognition awards

Ranked #1 “Best Places to Work in Canada” (Indeed)

One of Canada’s Best Diversity Employers – Employment Equity Achievement Award (EEAA) – for outstanding achievement in initiatives for women; visible minorities; Indigenous peoples; and persons with disabilities. (Government of Canada)

Named one of the Best Workplaces in Canada
(The Great Place to Work® Institute Canada)

For more information, please visit:

Simplify. Agile. Innovate.

Innovation is more than a buzzword at RBC. We’re not just digitizing our existing products, but building new business models across our platforms. We’re investing in smarter, simpler ways to interact and add value for our clients, communities and people. This means changing the way we work and using data to create new insights and services, but also thinking bigger and partnering with startups and universities to drive Canada’s role in global innovation.

Leading in artificial intelligence

We’re using artificial intelligence (AI) and machine learning to better understand our clients and offer relevant and timely offerings and services:

  • Launched NOMI InsightsTM and NOMI Find & SaveTM, two AI-enabled services that provide personalized advice to our clients helping to manage their day-to-day finances and make saving simpler
  • Established Borealis AI, an RBC Institute for Research, to pursue curiosity-driven research in machine learning and increase collaboration with world-class research centres
  • Supporting initiatives like NextAI and the Vector Institute to ensure Canada remains a global destination for the study of AI and becomes home for AI-focused ventures, entrepreneurs and scientists
  • Piloted NORA, an AI bot that helps the wealth management team learn more about potential clients

Delivering value for our clients

  • First bank in Canada to enable bill payments and Interac e‑Transfer using Siri voice commands
  • Connecting clients to a mutual fund advisor using live video through MyAdvisor, our online advice platform
  • Teamed up with Petro-Canada to deliver exclusive savings and loyalty benefits, adding more value for clients using our award-winning RBC Rewards® program
  • Working with Wave, our small business clients have access to an integrated financial management platform within online banking, a first among North American banks
  • Providing travellers with peace of mind through RBC Insurance PATH, a travel app that provides up-to-date advisories, emergency and medical assistance and the ability to send automated emails to family and friends
  • Using machine learning to identify sales and trading opportunities for our Capital Markets clients

Driving innovation and research

  • Committed to shaping the Canadian innovation ecosystem through partnerships like OneEleven and C100, which support the growth of start-ups
  • Working with the best, brightest and boldest minds in universities to launch programs like ONRamp that help students and graduate entrepreneurs develop and commercialize their ideas
  • Exploring how to use emerging technologies like blockchain with industry leaders, the Fintech community and the Canadian government across all of our businesses
  • Created an in-house RBC GAM innovation lab to incubate digital capabilities and drive innovation
  • Using robotics, Investor & Treasury Services has teams in Malaysia, Luxembourg and Canada dedicated to automating a number of manual processes to deliver operational excellence

2017: By the numbers

(1) Represents the 90-Day Active customers in Canadian Banking only.

Community & social impact

As a purpose-driven company, creating a positive social impact – not just an economic one – is integral to how we do business. It is fundamental to our philosophy and is at the very heart of our corporate citizenship approach.

Breakthrough investment in youth

We announced RBC Future Launch, a 10-year, $500-million commitment to helping young people access meaningful employment through work experience, skills development and networking. In 2017, we partnered with organizations across Canada, donating over $24 million, volunteering our time and bringing together youth, community organizations and stakeholders to better understand the issues facing young Canadians and the opportunities available to them. Additionally, RBC supported approximately 150 charitable partners with nearly $8 million in donations to help youth and their families access the right mental health care at the right time.

We support clean growth and the transition to low carbon

We recognize that accelerating low carbon growth and enabling resilience in the face of a changing climate will reduce risk and safeguard economic growth. We also support efforts to standardize and enhance the disclosure of climate-related financial risks and we are participating in a United Nations led working group to test drive the recommendations of the Financial Stability Board’s Task Force for Climate-Related Disclosures.

$5.1 billion in green bond underwriting in 2017

$4 billion in renewable energy financing(1)

The only major Canadian financial institution with a dedicated Cleantech advisory team

(1) As at October 31, 2017. Calculated based on “Authorized” amount.

What gets measured, gets managed

We have developed a new framework to better measure the impact of our $98+ million in cash donations and community investments(2) and drive better decision-making and resource allocation to address relevant societal issues. We’re also committed to helping the charitable sector better manage the impacts of its work through our capacitybuilding activities on measurement and evaluation.

(2) Includes employee volunteer grants and gifts in-kind, as well as non-profit contributions to non-registered charities. Figure does not include sponsorships.

Our employees care

We are recognized by the following for our leadership in Corporate Citizenship

For more information, please visit:


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2018 Annual Meeting
The Annual Meeting of Common Shareholders will be held on Friday, April 6, 2018, at 9:30 a.m. (Eastern Time), at the Metro Toronto Convention Centre, 255 Front Street West, Toronto, Ontario, Canada

2018 Quarterly earnings release dates

First quarter February 23
Second quarter May 24
Third quarter August 23
Fourth quarter November 28