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 October 31,
2020 and related notes prepared in accordance with
International Financial Reporting Standards (IFRS). Our 2020 Annual
Report (which includes our audited Annual Consolidated Financial
Statements and accompanying Management's Discussion &
Analysis), our 2020 Annual Information Form and our Supplementary
Financial Information are available on our website at:
http://www.rbc.com/investorrelations.
2020 Net
Income
$11.4 Billion
Down 11% YoY
|
2020 Diluted
EPS1
$7.82
Down 11% YoY
|
2020
PCL2
$4.4 Billion
Up $2.5BN YoY
PCL on loans ratio
prudently increased 32
bps3
|
2020
ROE4
14.2%
Down from 16.8% last
year
|
CET1 Ratio
12.5%
Robust capital levels,
up 40 bps YoY
|
TORONTO, Dec. 2, 2020 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today
reported net income of $11,437
million for the year ended October
31, 2020, down $1,434 million
or 11% from the prior year. Diluted EPS was $7.82, down 11% over the same period. Our
consolidated results reflect higher PCL (increased by $2.5 billion from the prior year), as we
prudently built reserves given the unprecedented challenges brought
on by the COVID-19 pandemic, in addition to the impact of lower
interest rates. Lower results in Personal & Commercial Banking
and Wealth Management were partially offset by robust earnings in
Capital Markets, as well as higher results in Investor &
Treasury Services and Insurance.
The PCL on loans ratio of 63 bps increased by 32 bps from the
prior year, largely resulting from higher provisions on performing
loans due to the impact of the COVID-19 pandemic. The PCL on
impaired loans ratio was 24 bps, down 3 bps from the prior year.
Our capital position remained robust, with a Common Equity Tier 1
(CET1) ratio of 12.5%, up 40 bps from the prior year
(pre-pandemic levels). We also had a strong average Liquidity
Coverage Ratio (LCR) of 145%.
"In what has been
an unparalleled year due to the global pandemic, RBC demonstrated
the strength and resilience of our franchise. The combination of
prudent risk management, a strong balance sheet and diversified
business model, and our Purpose-led approach to supporting
employees, clients and communities, defined our success in a
challenging operating environment," said Dave McKay, RBC
President and Chief Executive Officer. "Looking ahead,
while it is difficult to predict how the coming year will unfold,
RBC has the strength, stability and operational resilience to face
a range of scenarios, and to continue creating long-term
sustainable value. I want to sincerely thank all RBCers for their
unwavering support of our clients, communities and each
other."
|
2020 Full Year Business Segment Performance
- 21% lower earnings in Personal & Commercial Banking,
mainly due to higher PCL, primarily attributable to the impact of
the COVID-19 pandemic on performing loans. The net increase in
costs associated with the COVID-19 pandemic, including additional
staff-related costs, also contributed to the decrease. Earnings
also reflected a decline in net interest income, as strong average
volume growth (+6% in loans and +14% in deposits in Canadian
Banking) was more than offset by the impact of lower interest rates
and competitive pricing pressures. In addition, we continued our
investment in digital solutions to improve our clients' experience
and deliver personalized advice as the pandemic amplified client
preferences for digital offerings.
- 15% lower earnings in Wealth Management, primarily due
to a gain in the prior year on the sale of the private debt
business of BlueBay ($134 million
after-tax), a decline in net interest income from lower interest
rates partially offset by volume growth, and higher staff-related
costs. Lower income from sweep deposits also contributed to the
decrease. These factors were partially offset by an increase in
earnings from higher average fee-based client assets, primarily
reflecting net sales and market appreciation, net of the associated
variable compensation.
- 3% earnings growth in Insurance, largely due to higher
favourable investment-related experience, partially offset by
unfavourable annual actuarial assumption updates.
- 13% earnings growth in Investor & Treasury Services,
as the prior year included severance and related costs
($83 million after-tax) associated
with the repositioning of the business. The repositioning combined
with the impact of ongoing efficiency initiatives also resulted in
lower staff-related costs in the current year. These factors were
partially offset by lower client deposit revenue due to margin
compression primarily driven by lower interest rates.
- 4% earnings growth in Capital Markets, largely due to
higher fixed income trading revenue across all regions as elevated
market volatility drove increased client activity, and higher debt
origination across most regions as the low interest rate
environment drove increased primary issuance. Higher equity trading
revenue primarily in the U.S. also contributed to the increase.
These factors were partially offset by higher PCL mainly
attributable to the impact of the COVID-19 pandemic on performing
assets, higher taxes due to an increase in the proportion of
earnings from higher tax rate jurisdictions, and higher
compensation on improved results.
_______________________________
|
1 Earnings per share
(EPS).
|
2
Provision for credit losses (PCL).
|
3 Basis
points (bps).
|
4 Return
on equity (ROE). This measure does not have a standardized meaning
under GAAP. For further information, refer to the Key Performance
and non-GAAP measures section on page 12 of this Earnings
Release.
|
Q4 2020 Performance
Earnings of $3,246 million were up $40
million or 1% from a year ago, due to higher results in
Capital Markets, Corporate Support and Investor & Treasury
Services. These were largely offset by lower earnings in Wealth
Management, Personal & Commercial Banking and Insurance. Q4
2019 results included a gain on the sale of the private debt
business of BlueBay ($134 million
after-tax) in Wealth Management. This gain was largely offset by
higher severance and related costs ($83
million after-tax) associated with the repositioning of our
Investor & Treasury Services business, as well as by an
unfavourable accounting adjustment ($41
million after-tax) in Corporate Support included in the
prior year.
Earnings were up $45 million or 1%
from last quarter, due to higher earnings in Personal &
Commercial Banking, Insurance and Investor & Treasury Services.
These were partially offset by lower earnings in Capital Markets,
Corporate Support and Wealth Management.
|
|
|
|
|
|
|
|
|
|
Q4 2020
compared to
Q4 2019
|
•
|
Net income of $3,246
million
|
↑
|
1%
|
•
|
Diluted EPS of
$2.23
|
↑
|
2%
|
•
|
ROE of
16.0%
|
↓
|
20 bps
|
•
|
CET1 ratio of
12.5%
|
↑
|
40 bps
|
|
|
|
|
|
|
|
|
|
|
Q4 2020
compared to
Q3 2020
|
•
|
Net income of $3,246
million
|
↑
|
1%
|
•
|
Diluted EPS of
$2.23
|
↑
|
1%
|
•
|
ROE of
16.0%
|
↑
|
30 bps
|
•
|
CET1 ratio of
12.5%
|
↑
|
50 bps
|
|
|
|
|
|
Q4 2020 Business Segment
Performance
Personal & Commercial Banking
Net income of $1,502 million
decreased $116 million or 7% from a
year ago, primarily attributable to lower spreads, largely
reflecting the impact of lower interest rates. An increase in
technology and related costs and lower card service revenue also
contributed to the decrease. These factors were partially offset by
average volume growth of 12% in Canadian Banking and lower PCL.
Compared to last quarter, net income increased $135 million or 10%, primarily due to lower PCL,
average volume growth of 3% in Canadian Banking and lower
staff-related costs. These factors were partially offset by lower
spreads, lower card service revenue, an increase in technology and
related costs, including digital initiatives, and the timing of
professional fees.
Wealth Management
Net income of $546 million
decreased $183 million or 25% from a
year ago, largely due to a gain in the prior year on the sale of
the private debt business of BlueBay of $134
million (after-tax). A decline in net interest income also
contributed to the decrease, as average volume growth was more than
offset by the impact of lower interest rates. These factors were
partially offset by earnings from higher average fee-based client
assets, primarily reflecting net sales and market appreciation, net
of the associated variable compensation costs.
Compared to last quarter, net income decreased $16 million or 3%. An increase in revenue from
higher average fee-based client assets, net of the associated
variable compensation costs, and lower PCL were largely offset by
unfavourable changes in the net impact of our U.S. share-based
compensation plans and the fair value of seed capital investments.
In combination with higher technology and related costs and the
impact of foreign exchange translation, these factors drove a
decrease in net income. Net interest income also contributed to the
decrease as average volume growth was more than offset by the
impact of lower interest
rates.
Insurance
Net income of $254 million
decreased $28 million or 10% from a
year ago, primarily due to unfavourable annual actuarial assumption
updates. The impact from lower favourable longevity reinsurance
contracts and reinsurance contract renegotiations also contributed
to the decrease. These factors were partially offset by lower
claims costs and higher favourable investment-related
experience.
Compared to last quarter, net income increased $38 million or 18%, primarily due to improved
travel and disability claims experience, as well as the impact of
longevity reinsurance contracts in the current quarter. Higher
benefits from favourable reinsurance contract renegotiations also
contributed to the increase. These factors were partially offset by
unfavourable annual actuarial assumption updates in the current
quarter primarily related to mortality experience.
Investor & Treasury Services
Net income of $91 million
increased $46 million from a year
ago, as the prior year included severance and related costs
associated with the repositioning of the business ($83 million after-tax). These factors were
partially offset by lower revenue from funding and liquidity,
client deposits and our asset services business.
Compared to last quarter, net income increased $15 million or 20%, mainly driven by higher
funding and liquidity revenue, primarily reflecting the impact of
interest rate movements in the prior quarter, partially offset by
lower revenue from our asset services business due to reduced
client activity.
Capital Markets
Net income of $840 million
increased $256 million or 44% from a
year ago, largely driven by higher revenue in Global Markets
reflecting favourable market conditions, and Corporate and
Investment Banking, mainly due to higher debt and equity
origination across most regions. Lower compensation also
contributed to the increase. These factors were partially offset by
higher taxes due to an increase in the proportion of earnings from
higher tax rate jurisdictions.
Compared to last quarter, net income decreased $109 million or 11%, mainly driven by lower fixed
income trading revenue across most regions relative to the prior
quarter which benefitted from significant client activity amid
elevated market volatility. This was partially offset by lower
compensation on decreased results.
Corporate Support
Net income was $13 million in the
current quarter, mainly due to asset/liability management
activities, partially offset by net unfavourable tax adjustments.
Net income was $31 million last
quarter, primarily due to asset/liability management activities,
partially offset by net unfavourable tax adjustments and residual
unallocated costs. Net loss was $52
million in the same quarter last year, largely due to the
impact of an unfavourable accounting adjustment.
Capital, Liquidity and Credit Quality
Capital – As at October 31,
2020, our Basel III CET1 ratio was 12.5%, up 50 bps from
last quarter, mainly reflecting strong internal capital generation,
lower RWA (primarily market risk) and favourable pension &
post-employment benefit impact, partially offset by net credit
downgrades.
Liquidity – For the quarter ended October 31, 2020, average LCR was 145%, which
translates into a surplus of approximately $112 billion, compared to 154% and a surplus of
approximately $127 billion in the
prior quarter. While average LCR remains at higher than normal
levels due to sustained increases in client deposits driven largely
due to industry-wide impacts of the pandemic and associated actions
taken by central banks, it has declined quarter over quarter due to
liquidity optimization actions taken by management.
Credit Quality
Q4 2020 vs. Q4
2019
Total PCL was $427
million. PCL on loans of $398
million decreased $107 million
or 21% from a year ago, primarily due to lower provisions in
Personal & Commercial Banking and Capital Markets, partially
offset by higher provisions in Wealth Management. The PCL on loans
ratio of 23 bps decreased 9 bps, and the PCL on impaired loans
ratio was 15 bps.
PCL on other financial assets was $29
million, compared to $(6)
million in the prior year, largely reflecting higher
provisions in Capital Markets due to the impact of the COVID-19
pandemic.
PCL on loans in Personal & Commercial Banking decreased
$74 million or 19%, largely due to
lower provisions on impaired loans in our Canadian Banking retail
and commercial portfolios, mainly due to the impact of the COVID-19
related government support and payment deferral programs, resulting
in a decrease of 14 bps in the impaired loans ratio. This was
partially offset by higher provisions on performing loans in our
Canadian Banking commercial portfolios, primarily due to the
evolving impact of the COVID-19 pandemic.
PCL on loans in Wealth Management increased $17 million or 50%, largely reflecting higher
provisions on performing loans in U.S. Wealth Management (including
City National) due to the evolving impact of the COVID-19 pandemic.
This was partially offset by lower provisions and higher recoveries
on impaired loans in U.S. Wealth Management (including City
National), mainly in the consumer discretionary and investments
sectors, respectively, resulting in a decrease of 21 bps in the
impaired loans ratio.
PCL on loans in Capital Markets decreased $48 million or 62%, mainly relating to provisions
on performing loans as the current quarter largely reflected
favourable changes in macroeconomic factors.
Q4 2020 vs. Q3 2020
Compared to last quarter,
total PCL decreased $248 million or
37%. PCL on loans decreased $280
million or 41%, primarily due to lower provisions in
Personal & Commercial Banking, Capital Markets and Wealth
Management. The PCL on loans ratio of 23 bps was down 17 bps and
the PCL on impaired loans ratio was down 8 bps from last
quarter.
PCL on other financial assets of $29
million increased $32 million,
largely reflecting higher provisions in Capital
Markets.
PCL on loans in Personal & Commercial Banking decreased
$207 million or 39%, as higher
provisions on performing loans in our Canadian Banking commercial
portfolios were more than offset by lower provisions in our
Canadian Banking retail portfolios, largely due to higher
unfavourable changes in our credit quality outlook in the prior
quarter. Lower provisions on impaired loans in our Canadian Banking
portfolios, mainly due to the impact of the COVID-19 related
government support and payment deferral programs, also contributed
to the decrease.
PCL on loans in Wealth Management decreased $25 million or 33%, primarily in U.S. Wealth
Management (including City National) as the current quarter
reflected provisions on impaired loans in a few sectors offset by a
recovery in the investments sector, while the prior quarter
reflected higher provisions on impaired loans, largely in the
industrial products and investments sectors.
PCL on loans in Capital Markets decreased $50 million or 63%, primarily relating to
provisions on performing loans as the prior quarter reflected
higher unfavourable changes in our credit quality outlook,
partially offset by lower repayments in the current quarter.
Digitally Enabled Relationship Bank
90-day Active Mobile users increased 12% from a year ago to 5.0
million, resulting in a 37% increase in mobile sessions. Digital
adoption increased to 54.0%.
|
Selected
financial and other highlights
|
|
|
As at or for the
three months ended
|
For the year
ended
|
(Millions of Canadian
dollars, except per share, number of and percentage amounts)
(1)
|
|
October
31 2020
|
|
July
31
2020
|
|
October
31
2019
|
|
October
31 2020
|
|
October
31
2019
|
|
Total
revenue
|
$
|
11,092
|
$
|
12,920
|
$
|
11,370
|
$
|
47,181
|
$
|
46,002
|
|
Provision for credit
losses (PCL)
|
|
427
|
|
675
|
|
499
|
|
4,351
|
|
1,864
|
|
Insurance
policyholder benefits, claims and acquisition expense
(PBCAE)
|
|
461
|
|
1,785
|
|
654
|
|
3,683
|
|
4,085
|
|
Non-interest
expense
|
|
6,058
|
|
6,380
|
|
6,319
|
|
24,758
|
|
24,139
|
|
Income before income
taxes
|
|
4,146
|
|
4,080
|
|
3,898
|
|
14,389
|
|
15,914
|
Net
income
|
$
|
3,246
|
$
|
3,201
|
$
|
3,206
|
$
|
11,437
|
$
|
12,871
|
Segments - net
income
|
|
|
|
|
|
|
|
|
|
|
|
Personal &
Commercial Banking
|
$
|
1,502
|
$
|
1,367
|
$
|
1,618
|
$
|
5,087
|
$
|
6,402
|
|
Wealth
Management
|
|
546
|
|
562
|
|
729
|
|
2,155
|
|
2,550
|
|
Insurance
|
|
254
|
|
216
|
|
282
|
|
831
|
|
806
|
|
Investor &
Treasury Services
|
|
91
|
|
76
|
|
45
|
|
536
|
|
475
|
|
Capital
Markets
|
|
840
|
|
949
|
|
584
|
|
2,776
|
|
2,666
|
|
Corporate
Support
|
|
13
|
|
31
|
|
(52)
|
|
52
|
|
(28)
|
Net
income
|
$
|
3,246
|
$
|
3,201
|
$
|
3,206
|
$
|
11,437
|
$
|
12,871
|
Selected
information
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(EPS)
|
- basic
|
|
$
|
2.23
|
$
|
2.20
|
$
|
2.19
|
$
|
7.84
|
$
|
8.78
|
|
|
- diluted
|
|
|
2.23
|
|
2.20
|
|
2.18
|
|
7.82
|
|
8.75
|
|
Return on common
equity (ROE) (2), (3)
|
|
16.0%
|
|
15.7%
|
|
16.2%
|
|
14.2%
|
|
16.8%
|
|
Average common equity
(2)
|
$
|
78,800
|
$
|
79,350
|
$
|
76,600
|
$
|
78,800
|
$
|
75,000
|
|
Net interest margin
(NIM) - on average earning assets, net
|
|
1.52%
|
|
1.49%
|
|
1.60%
|
|
1.55%
|
|
1.61%
|
|
PCL on loans as a %
of average net loans and acceptances
|
|
0.23%
|
|
0.40%
|
|
0.32%
|
|
0.63%
|
|
0.31%
|
|
PCL on performing
loans as a % of average net loans and acceptances
|
|
0.08%
|
|
0.17%
|
|
0.05%
|
|
0.39%
|
|
0.04%
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
0.15%
|
|
0.23%
|
|
0.27%
|
|
0.24%
|
|
0.27%
|
|
Gross impaired loans
(GIL) as a % of loans and acceptances
|
|
0.47%
|
|
0.57%
|
|
0.46%
|
|
0.47%
|
|
0.46%
|
|
Liquidity coverage
ratio (LCR) (4)
|
|
145%
|
|
154%
|
|
127%
|
|
145%
|
|
127%
|
Capital ratios and
Leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1) ratio
|
|
12.5%
|
|
12.0%
|
|
12.1%
|
|
12.5%
|
|
12.1%
|
|
Tier 1 capital
ratio
|
|
13.5%
|
|
13.3%
|
|
13.2%
|
|
13.5%
|
|
13.2%
|
|
Total capital
ratio
|
|
15.5%
|
|
15.3%
|
|
15.2%
|
|
15.5%
|
|
15.2%
|
|
Leverage
ratio
|
|
4.8%
|
|
4.8%
|
|
4.3%
|
|
4.8%
|
|
4.3%
|
Selected balance
sheet and other information (5)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,624,548
|
$
|
1,683,134
|
$
|
1,428,935
|
$
|
1,624,548
|
$
|
1,428,935
|
|
Securities, net of
applicable allowance
|
|
275,814
|
|
290,513
|
|
249,004
|
|
275,814
|
|
249,004
|
|
Loans, net of
allowance for loan losses
|
|
660,992
|
|
655,941
|
|
618,856
|
|
660,992
|
|
618,856
|
|
Derivative related
assets
|
|
113,488
|
|
157,378
|
|
101,560
|
|
113,488
|
|
101,560
|
|
Deposits
|
|
1,011,885
|
|
1,017,158
|
|
886,005
|
|
1,011,885
|
|
886,005
|
|
Common
equity
|
|
80,719
|
|
78,821
|
|
77,816
|
|
80,719
|
|
77,816
|
|
Total risk-weighted
assets
|
|
546,242
|
|
551,421
|
|
512,856
|
|
546,242
|
|
512,856
|
|
Assets under
management (AUM)
|
|
843,600
|
|
841,200
|
|
762,300
|
|
843,600
|
|
762,300
|
|
Assets under
administration (AUA) (6)
|
|
5,891,200
|
|
5,872,900
|
|
5,678,000
|
|
5,891,200
|
|
5,678,000
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding
(000s)
|
- average
basic
|
|
|
1,422,578
|
|
1,422,705
|
|
1,432,685
|
|
1,423,915
|
|
1,434,779
|
|
|
- average
diluted
|
|
|
1,426,466
|
|
1,427,777
|
|
1,438,257
|
|
1,428,770
|
|
1,440,682
|
|
|
- end of
period
|
|
|
1,422,473
|
|
1,422,200
|
|
1,430,096
|
|
1,422,473
|
|
1,430,096
|
|
Dividends declared
per common share
|
$
|
1.08
|
$
|
1.08
|
$
|
1.05
|
$
|
4.29
|
$
|
4.07
|
|
Dividend yield
(7)
|
|
4.4%
|
|
4.8%
|
|
4.0%
|
|
4.7%
|
|
4.1%
|
|
Dividend payout
ratio
|
|
48%
|
|
49%
|
|
48%
|
|
55%
|
|
46%
|
|
Common share price
(RY on TSX) (8)
|
$
|
93.16
|
$
|
92.40
|
$
|
106.24
|
$
|
93.16
|
$
|
106.24
|
|
Market capitalization
(TSX) (8)
|
|
132,518
|
|
131,411
|
|
151,933
|
|
132,518
|
|
151,933
|
Business
information (number of)
|
|
|
|
|
|
|
|
|
|
|
|
Employees (full-time
equivalent) (FTE)
|
|
83,842
|
|
83,734
|
|
82,801
|
|
83,842
|
|
82,801
|
|
Bank
branches
|
|
1,329
|
|
1,330
|
|
1,327
|
|
1,329
|
|
1,327
|
|
Automated teller
machines (ATMs)
|
|
4,557
|
|
4,561
|
|
4,600
|
|
4,557
|
|
4,600
|
Period average US$
equivalent of C$1.00 (9)
|
$
|
0.756
|
$
|
0.737
|
$
|
0.755
|
$
|
0.744
|
$
|
0.752
|
Period-end US$
equivalent of C$1.00
|
$
|
0.751
|
$
|
0.747
|
$
|
0.759
|
$
|
0.751
|
$
|
0.759
|
|
|
(1)
|
Effective November 1,
2019, we adopted IFRS 16 Leases. Results from periods prior
to November 1, 2019 are reported in accordance with IAS 17
Leases in our 2020 Annual Report. For further details on the
impacts of the adoption of IFRS 16 including the description of
accounting policies selected, refer to Note 2 of our 2020 Annual
Consolidated Financial Statements.
|
(2)
|
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.
|
(3)
|
These measures may
not have a standardized meaning under generally accepted accounting
principles (GAAP) and may not be comparable to similar measures
disclosed by other financial institutions. For further details,
refer to the Key performance and non-GAAP measures section of this
Earnings Release.
|
(4)
|
LCR is the average
for the three months ended for each respective period and is
calculated in accordance with the Office of the Superintendent of
Financial Institutions' (OSFI) Liquidity Adequacy Requirements
(LAR) guidance as updated in accordance with the regulatory
guidance issued in fiscal 2020. For further details, refer to the
Liquidity and funding risk section of our 2020 Annual
Report.
|
(5)
|
Represents period-end
spot balances.
|
(6)
|
AUA includes $15.6
billion and $6.7 billion (July 31, 2020 – $16.2 billion and $6.7
billion, October 31, 2019 – $15.5 billion and $8.1 billion) of
securitized residential mortgages and credit card loans,
respectively.
|
(7)
|
Defined as dividends
per common share divided by the average of the high and low share
price in the relevant period.
|
(8)
|
Based on TSX closing
market price at period-end.
|
(9)
|
Average amounts are
calculated using month-end spot rates for the period.
|
|
|
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)
|
2020
|
2020
|
2019
|
|
Net interest
income
|
$
|
3,114
|
$
|
3,079
|
$
|
3,238
|
|
Non-interest
income
|
|
1,259
|
|
1,269
|
|
1,330
|
Total
revenue
|
|
4,373
|
|
4,348
|
|
4,568
|
|
PCL on performing
assets
|
|
135
|
|
247
|
|
50
|
|
PCL on impaired
assets
|
|
181
|
|
280
|
|
337
|
PCL
|
|
316
|
|
527
|
|
387
|
|
Non-interest
expense
|
|
2,030
|
|
1,985
|
|
2,007
|
Income before
income taxes
|
|
2,027
|
|
1,836
|
|
2,174
|
Net
income
|
$
|
1,502
|
$
|
1,367
|
$
|
1,618
|
Revenue by
business
|
|
|
|
|
|
|
|
Canadian
Banking
|
$
|
4,165
|
$
|
4,135
|
$
|
4,321
|
|
Caribbean & U.S.
Banking
|
|
208
|
|
213
|
|
247
|
Selected balances
and other information
|
|
|
|
|
|
|
|
ROE
|
|
26.0%
|
|
23.4%
|
|
27.0%
|
|
NIM
|
|
2.59%
|
|
2.60%
|
|
2.82%
|
|
Efficiency ratio
(1)
|
|
46.4%
|
|
45.7%
|
|
43.9%
|
|
Operating
leverage
|
|
(5.4)%
|
|
(5.7)%
|
|
3.7 %
|
|
Average total
assets
|
$
|
503,200
|
$
|
494,800
|
$
|
477,900
|
|
Average total earning
assets, net
|
|
478,500
|
|
470,300
|
|
456,100
|
|
Average loans and
acceptances, net
|
|
482,000
|
|
473,400
|
|
458,900
|
|
Average
deposits
|
|
481,300
|
|
465,100
|
|
405,200
|
|
AUA (2),
(3)
|
|
292,800
|
|
293,100
|
|
283,800
|
|
Average
AUA
|
|
297,600
|
|
286,000
|
|
281,800
|
|
AUM (3)
|
|
5,300
|
|
5,200
|
|
5,000
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
0.15%
|
|
0.24%
|
|
0.29%
|
Other selected
information - Canadian Banking
|
|
|
|
|
|
|
|
Net income
|
$
|
1,474
|
$
|
1,330
|
$
|
1,555
|
|
NIM
|
|
2.56%
|
|
2.58%
|
|
2.76%
|
|
Efficiency
ratio
|
|
44.9%
|
|
43.9%
|
|
42.0%
|
|
Operating
leverage
|
|
(6.8)%
|
|
(5.5)%
|
|
4.3 %
|
|
|
(1)
|
Calculated as
non-interest expense divided by total revenue.
|
(2)
|
AUA includes
securitized residential mortgages and credit card loans as at
October 31, 2020 of $15.6 billion and $6.7 billion, respectively
(July 31, 2020 – $16.2 billion and $6.7 billion, October 31, 2019 –
$15.5 billion and $8.1 billion).
|
(3)
|
Represents period-end
spot balances.
|
Q4 2020 vs. Q4 2019
Net income decreased $116 million or 7% from a year ago, primarily
attributable to lower spreads, an increase in technology and
related costs, and lower card service revenue. These factors were
partially offset by average volume growth of 12% in Canadian
Banking and lower PCL.
Total revenue decreased $195
million or 4%, mainly due to lower spreads, largely due to
the impact of lower interest rates, a decrease in card service
revenue and lower service charges. These factors were partially
offset by average volume growth in Canadian Banking of 5% in loans
and 19% in deposits.
Net interest margin was down 23 bps compared to the same quarter
last year, mainly due to lower interest rates.
PCL decreased $71 million or 18%,
largely due to lower provisions on impaired loans in our Canadian
Banking portfolios, resulting in a decrease of 14 bps in the
impaired loans ratio. This was partially offset by higher
provisions on performing loans in our Canadian Banking portfolios,
primarily due to the evolving impact of the COVID-19 pandemic. For
further details on PCL, refer to Capital, Liquidity and Credit
quality in the Q4 2020 Business Segment Performance section of this
Earnings Release.
Non-interest expense increased $23
million or 1%, mainly attributable to an increase in
technology and related costs, including digital initiatives, as
well as incremental COVID-19 related operating costs. These factors
were partially offset by lower discretionary spend.
Q4 2020 vs. Q3 2020
Net income increased $135 million or 10% from last quarter, primarily
due to lower PCL, average volume growth of 3% in Canadian Banking
and lower staff-related costs. These factors were partially offset
by lower spreads, lower card service revenue, an increase in
technology and related costs, including digital initiatives, and
the timing of professional fees.
|
|
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)
|
2020
|
2020
|
2019
|
|
Net interest
income
|
$
|
686
|
$
|
699
|
$
|
745
|
|
Non-interest
income
|
|
2,382
|
|
2,465
|
|
2,442
|
Total
revenue
|
|
3,068
|
|
3,164
|
|
3,187
|
|
PCL on performing
assets
|
|
51
|
|
31
|
|
(1)
|
|
PCL on impaired
assets
|
|
-
|
|
43
|
|
35
|
PCL
|
|
51
|
|
74
|
|
34
|
|
Non-interest
expense
|
|
2,312
|
|
2,361
|
|
2,262
|
Income before
income taxes
|
|
705
|
|
729
|
|
891
|
Net
income
|
$
|
546
|
$
|
562
|
$
|
729
|
Revenue by
business
|
|
|
|
|
|
|
|
Canadian Wealth
Management
|
$
|
835
|
$
|
806
|
$
|
823
|
|
U.S. Wealth
Management (including City National)
|
|
1,539
|
|
1,659
|
|
1,556
|
|
U.S.
Wealth Management (including City National) (US$
millions)
|
|
1,165
|
|
1,222
|
|
1,175
|
|
Global Asset
Management
|
|
608
|
|
606
|
|
713
|
|
International Wealth
Management
|
|
86
|
|
93
|
|
95
|
Selected balances
and other information
|
|
|
|
|
|
|
|
ROE
|
|
13.0%
|
|
13.3%
|
|
19.5%
|
|
NIM
|
|
2.50%
|
|
2.58%
|
|
3.30%
|
|
Pre-tax margin
(1)
|
|
23.0%
|
|
23.0%
|
|
28.0%
|
Selected average
balance sheet information
|
|
|
|
|
|
|
|
Average total
assets
|
$
|
126,300
|
$
|
124,900
|
$
|
103,900
|
|
Average total earning
assets, net
|
|
109,300
|
|
107,800
|
|
89,500
|
|
Average loans and
acceptances, net
|
|
81,000
|
|
81,300
|
|
66,700
|
|
Average
deposits
|
|
132,100
|
|
131,100
|
|
100,700
|
Other
information
|
|
|
|
|
|
|
|
AUA - total
(2)
|
|
1,100,000
|
|
1,097,100
|
|
1,062,200
|
|
- U.S.
Wealth Management (including City National) (2)
|
|
583,800
|
|
584,500
|
|
543,300
|
|
- U.S.
Wealth Management (including City National) (US$ millions)
(2)
|
|
438,200
|
|
436,400
|
|
412,600
|
|
AUM (2)
|
|
836,400
|
|
834,100
|
|
755,700
|
|
Average
AUA
|
|
1,107,700
|
|
1,082,000
|
|
1,055,700
|
|
Average
AUM
|
|
839,600
|
|
815,000
|
|
753,300
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
0.00%
|
|
0.21%
|
|
0.21%
|
|
Number of advisors
(3)
|
|
5,428
|
|
5,376
|
|
5,296
|
|
|
For the three months
ended
|
Estimated impact
of U.S. dollar, British pound and Euro translation on key income
statement items
|
Q4 2020
vs
|
Q4 2020
vs
|
(Millions of Canadian
dollars, except percentage amounts)
|
Q4
2019
|
Q3
2020
|
Increase
(decrease):
|
|
|
|
|
|
Total
revenue
|
$
|
7
|
$
|
(41)
|
|
Non-interest
expense
|
|
6
|
|
(33)
|
|
Net income
|
|
-
|
|
(5)
|
Percentage change in
average US$ equivalent of C$1.00
|
|
0%
|
|
3%
|
Percentage change in
average British pound equivalent of C$1.00
|
|
(4)%
|
|
(1)%
|
Percentage change in
average Euro equivalent of C$1.00
|
|
(6)%
|
|
(1)%
|
|
|
(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 2020 vs. Q4 2019
Net income decreased $183 million or 25% from a year ago, largely due
to a gain in the prior year on the sale of the private debt
business of BlueBay of $134 million
(after-tax), as well as lower net interest income. These factors
were partially offset by earnings from higher average fee-based
client assets, net of the associated variable compensation
costs.
Total revenue decreased $119
million or 4%, mainly due to a gain in the prior year on the
sale of the private debt business of BlueBay of $151 million, as well as a decline in net
interest income as average volume growth was more than offset by
the impact of lower interest rates. These factors were partially
offset by higher average fee-based client assets, primarily
reflecting net sales and market appreciation.
PCL increased $17 million or 50%,
largely reflecting higher provisions on performing loans in U.S.
Wealth Management (including City National). This was partially
offset by lower provisions and higher recoveries on impaired loans
in U.S. Wealth Management (including City National), driving a
decrease of 21 bps in the impaired loans ratio. For further details
on PCL, refer to Capital, Liquidity and Credit quality in the Q4
2020 Business Segment Performance section of this Earnings
Release.
Non-interest expense increased $50
million or 2%, largely due to higher variable compensation
commensurate with increased commissionable revenue.
Q4 2020 vs. Q3 2020
Net income decreased $16 million or 3% from last quarter. An increase
in revenue from higher average fee-based client assets, net of the
associated variable compensation costs, and lower PCL were largely
offset by unfavourable changes in the net impact of our U.S.
share-based compensation plans and the fair value of seed capital
investments. In combination with higher technology and related
costs and the impact of foreign exchange translation, these factors
drove a decrease in net income. Net interest income also
contributed to the decrease as average volume growth was more than
offset by the impact of lower interest rates.
|
|
Insurance
|
|
|
|
|
As at or for the
three months ended
|
|
|
|
October
31
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts)
|
2020
|
2020
|
|
2019
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Net earned
premiums
|
$
|
986
|
$
|
974
|
$
|
944
|
|
|
Investment income,
gains/(losses) on assets supporting insurance policyholder
liabilities (1)
|
|
(71)
|
|
1,196
|
|
168
|
|
|
Fee income
|
|
43
|
|
42
|
|
41
|
Total
revenue
|
|
958
|
|
2,212
|
|
1,153
|
|
PCL
|
|
(1)
|
|
-
|
|
-
|
|
Insurance
policyholder benefits and claims (1)
|
|
391
|
|
1,715
|
|
572
|
|
Insurance
policyholder acquisition expense
|
|
70
|
|
70
|
|
82
|
|
Non-interest
expense
|
|
151
|
|
140
|
|
153
|
Income before
income taxes
|
|
347
|
|
287
|
|
346
|
Net
income
|
$
|
254
|
$
|
216
|
$
|
282
|
Revenue by
business
|
|
|
|
|
|
|
|
Canadian
Insurance
|
$
|
299
|
$
|
1,636
|
$
|
609
|
|
International
Insurance
|
|
659
|
|
576
|
|
544
|
Selected balances
and other information
|
|
|
|
|
|
|
|
ROE
|
|
42.5%
|
|
35.9%
|
|
50.3%
|
|
Premiums and deposits
(2)
|
$
|
1,129
|
$
|
1,131
|
$
|
1,105
|
|
Fair value changes on
investments backing policyholder liabilities (1)
|
|
(235)
|
|
997
|
|
(28)
|
|
|
(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.
|
(2)
|
Premiums and deposits
include premiums on risk-based insurance and annuity products, and
individual and group segregated fund deposits, consistent with
insurance industry practices.
|
Q4 2020 vs. Q4 2019
Net income decreased $28 million or 10% from a year ago, primarily due
to unfavourable annual actuarial assumption updates. The impact
from lower favourable longevity reinsurance contracts and
reinsurance contract renegotiations also contributed to the
decrease. These factors were partially offset by lower claims costs
and higher favourable investment-related experience.
Total revenue decreased $195
million or 17%, mainly due to the change in fair value of
investments backing policyholder liabilities, which is largely
offset in PBCAE as indicated below, and lower realized investment
gains. These factors were partially offset by business growth,
primarily in International Insurance, which is largely offset in
PBCAE as indicated below.
PBCAE decreased $193 million or
30%, mainly reflecting the change in fair value of investments
backing policyholder liabilities, higher favourable
investment-related experience and lower claims costs. These factors
were partially offset by unfavourable annual actuarial assumption
updates in the current year largely related to mortality
experience, lower favourable longevity reinsurance contracts,
business growth, and the lower impact from reinsurance contract
renegotiations.
Non-interest expense decreased $2
million or 1%.
Q4 2020 vs. Q3 2020
Net income increased $38 million or 18% from last quarter, primarily
due to improved travel and disability claims experience as well as
the impact of longevity reinsurance contracts in the current
quarter. Higher benefits from favourable reinsurance contract
renegotiations also contributed to the increase. These factors were
partially offset by unfavourable annual actuarial assumption
updates in the current quarter primarily related to mortality
experience.
|
Investor
& Treasury Services
|
|
|
|
As at or for the
three months ended
|
|
|
|
October
31
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts)
|
2020
|
2020
|
|
2019
|
|
Net interest
income
|
$
|
108
|
$
|
89
|
$
|
37
|
|
Non-interest
income
|
|
413
|
|
395
|
|
529
|
Total
revenue
|
|
521
|
|
484
|
|
566
|
|
PCL on performing
assets
|
|
(4)
|
|
(4)
|
|
(1)
|
|
PCL on impaired
assets
|
|
-
|
|
-
|
|
-
|
PCL
|
|
(4)
|
|
(4)
|
|
(1)
|
|
Non-interest
expense
|
|
407
|
|
388
|
|
508
|
Income before
income taxes
|
|
118
|
|
100
|
|
59
|
Net
income
|
$
|
91
|
$
|
76
|
$
|
45
|
Selected balances
and other information
|
|
|
|
|
|
|
|
ROE
|
|
10.1%
|
|
8.4%
|
|
4.8%
|
|
Average
deposits
|
$
|
187,000
|
$
|
195,700
|
$
|
175,200
|
|
|
Average client
deposits
|
|
63,300
|
|
65,800
|
|
57,600
|
|
|
Average wholesale
funding deposits
|
|
123,700
|
|
129,900
|
|
117,600
|
|
AUA (1)
|
|
4,483,500
|
|
4,468,100
|
|
4,318,100
|
|
Average
AUA
|
|
4,588,400
|
|
4,375,800
|
|
4,296,300
|
|
|
|
For the three months
ended
|
Estimated impact
of U.S. dollar, British pound and Euro translation on key income
statement items
|
Q4 2020
vs
|
Q4 2020
vs
|
(Millions of Canadian
dollars, except percentage amounts)
|
Q4
2019
|
Q3
2020
|
Increase
(decrease):
|
|
|
|
|
|
Total
revenue
|
$
|
13
|
$
|
2
|
|
Non-interest
expense
|
|
15
|
|
2
|
|
Net income
|
|
(1)
|
|
-
|
Percentage change in
average US$ equivalent of C$1.00
|
|
0%
|
|
3%
|
Percentage change in
average British pound equivalent of C$1.00
|
|
(4)%
|
|
(1)%
|
Percentage change in
average Euro equivalent of C$1.00
|
|
(6)%
|
|
(1)%
|
|
(1) Represents
period-end spot balances.
|
Q4 2020 vs. Q4 2019
Net income increased
$46 million from a year ago, as the prior year included
severance and related costs associated with the repositioning of
the business. These factors were partially offset by lower revenue
from funding and liquidity, client deposits and our asset services
business.
Total revenue decreased $45
million or 8%, mainly due to lower funding and liquidity
revenue largely driven by elevated enterprise liquidity partially
offset by higher gains from the disposition of securities, and
lower client deposit revenue as the growth in client deposit
volumes was more than offset by margin compression. Lower revenue
from our asset services business driven by reduced client activity
also contributed to the decrease. These factors were partially
offset by the impact of foreign exchange translation.
Non-interest expense decreased $101
million or 20% as the prior year included severance and
related costs associated with the repositioning of the business.
Lower staff-related costs reflecting the benefit from ongoing
efficiency initiatives also contributed to the decrease. These
factors were partially offset by the impact of foreign exchange
translation and higher costs in support of efficiency and
technology initiatives.
Q4 2020 vs. Q3 2020
Net income increased
$15 million or 20% from last quarter,
mainly driven by higher funding and liquidity revenue primarily
reflecting the impact of interest rate movements in the prior
quarter, partially offset by lower revenue from our asset services
business due to reduced client activity.
|
Capital
Markets
|
|
|
As at or for the
three months ended
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars, except percentage amounts)
|
|
2020
|
|
2020
|
|
2019
|
|
Net interest income
(1)
|
$
|
1,183
|
$
|
1,335
|
$
|
1,063
|
|
Non-interest income
(1)
|
|
1,092
|
|
1,413
|
|
924
|
Total revenue
(1)
|
|
2,275
|
|
2,748
|
|
1,987
|
|
PCL on performing
assets
|
|
(3)
|
|
12
|
|
18
|
|
PCL on impaired
assets
|
|
68
|
|
66
|
|
60
|
PCL
|
|
65
|
|
78
|
|
78
|
|
Non-interest
expense
|
|
1,165
|
|
1,471
|
|
1,308
|
Income before
income taxes
|
|
1,045
|
|
1,199
|
|
601
|
Net
income
|
$
|
840
|
$
|
949
|
$
|
584
|
Revenue by
business
|
|
|
|
|
|
|
|
Corporate and
Investment Banking
|
$
|
1,088
|
$
|
1,080
|
$
|
934
|
|
Global
Markets
|
|
1,333
|
|
1,774
|
|
1,095
|
|
Other
|
|
(146)
|
|
(106)
|
|
(42)
|
Selected balances
and other information
|
|
|
|
|
|
|
|
ROE
|
|
14.4%
|
|
15.7%
|
|
10.0%
|
|
Average total
assets
|
$
|
709,000
|
$
|
777,400
|
$
|
696,100
|
|
Average trading
securities
|
|
106,700
|
|
102,700
|
|
103,800
|
|
Average loans and
acceptances, net
|
|
101,500
|
|
116,400
|
|
98,100
|
|
Average
deposits
|
|
74,400
|
|
77,200
|
|
76,800
|
|
PCL on impaired loans
as a % of average net loans and acceptances
|
|
0.27%
|
|
0.25%
|
|
0.24%
|
|
|
(1)
|
The taxable
equivalent basis (teb) adjustment for the three months ended
October 31, 2020 was $127 million (July 31, 2020 – $126 million,
October 31, 2019 - $112 million).
|
Q4 2020 vs. Q4 2019
Net income increased $256 million or 44% from a year ago, largely
driven by higher revenue in Global Markets and Corporate and
Investment Banking, as well as lower compensation. These factors
were partially offset by higher taxes due to an increase in the
proportion of earnings from higher tax rate jurisdictions.
Total revenue increased $288
million or 14%, mainly due to higher equity trading revenue
primarily in the U.S. reflecting favourable market conditions and
increased client activity, as well as higher debt origination
across most regions. Higher fixed income trading revenue largely in
the U.S. driven by increased client activity, and higher equity
origination across most regions also contributed to the
increase.
PCL decreased $13 million or 17%,
mainly due to lower provisions on performing loans, partially
offset by higher provisions on other financial assets. For further
details on PCL, refer to Capital, Liquidity and Credit quality in
the Q4 2020 Business Segment Performance section of this Earnings
Release.
Non-interest expense decreased $143
million or 11%, primarily driven by lower compensation.
Q4 2020 vs. Q3 2020
Net income decreased $109 million or 11% from last quarter, mainly
driven by lower fixed income trading revenue across most regions
relative to the prior quarter which benefitted from significant
client activity amid elevated market volatility. This was partially
offset by lower compensation on decreased results.
|
Corporate
Support
|
|
|
As at or for the
three months ended
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
(Millions of Canadian
dollars)
|
|
2020
|
|
2020
|
|
2019
|
|
Net interest income
(loss) (1)
|
$
|
(81)
|
$
|
(63)
|
$
|
28
|
|
Non-interest income
(loss) (1)
|
|
(22)
|
|
27
|
|
(119)
|
Total revenue
(1)
|
|
(103)
|
|
(36)
|
|
(91)
|
|
PCL
|
|
-
|
|
-
|
|
1
|
|
Non-interest
expense
|
|
(7)
|
|
35
|
|
81
|
Income (loss)
before income taxes (1)
|
|
(96)
|
|
(71)
|
|
(173)
|
|
Income taxes
(recoveries) (1)
|
|
(109)
|
|
(102)
|
|
(121)
|
Net income
(loss)
|
$
|
13
|
$
|
31
|
$
|
(52)
|
Due to the nature of activities and consolidation adjustments
reported in this segment, we believe that a comparative period
analysis is not relevant. The following identifies material items
affecting the reported results in each period.
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 U.S. tax credit investment business recorded in
Capital Markets. The amount deducted from revenue was offset by an
equivalent increase in income taxes (recoveries).
The teb amount for the three months ended October 31, 2020 was $127
million, $126 million last
quarter and $112 million in the same
quarter last year. For further discussion, refer to the How we
measure and report our business segments section of our 2020 Annual
Report.
The following identifies the material items, other than the teb
impacts noted previously, affecting the reported results in each
period.
Q4 2020
Net income was $13
million in the current quarter, mainly due to
asset/liability management activities, partially offset by net
unfavourable tax adjustments.
Q3 2020
Net income was $31
million last quarter, primarily due to asset/liability
management activities, partially offset by net unfavourable tax
adjustments and residual unallocated costs.
Q4 2019
Net loss was $52
million in the same quarter last year, largely due to the
impact of an unfavourable accounting adjustment.
Key performance and non-GAAP measures
We measure and evaluate the performance of our consolidated
operations and each business segment using a number of financial
metrics, such as net income and ROE. ROE does not have a
standardized meaning under GAAP. We use ROE, at both the
consolidated and business segment levels, as a measure of return on
total capital invested in our business.
|
Calculation
of ROE
|
|
For the three months
ended
|
For the year
ended
|
|
October 31,
2020
|
October 31,
2020
|
(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
|
$
|
1,482
|
$
|
531
|
$
|
252
|
$
|
89
|
$
|
819
|
$
|
-
|
$
|
3,173
|
$
|
11,164
|
Total average common
equity (1), (2)
|
$
|
22,700
|
$
|
16,200
|
$
|
2,350
|
$
|
3,450
|
$
|
22,700
|
$
|
11,400
|
$
|
78,800
|
$
|
78,800
|
ROE (3)
|
|
26.0%
|
|
13.0%
|
|
42.5%
|
|
10.1%
|
|
14.4%
|
n.m.
|
|
16.0%
|
|
14.2%
|
|
|
(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 these and other key performance and
non-GAAP measures can be found under the Key performance and
non-GAAP measures section of our 2020 Annual Report.
|
Consolidated Balance Sheets
|
|
|
As at
|
|
|
October
31
|
|
July
31
|
October
31
|
(Millions of Canadian
dollars)
|
|
2020
(1)
|
|
2020 (2)
|
|
2019 (1)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
118,888
|
$
|
119,181
|
$
|
26,310
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
39,013
|
|
40,640
|
|
38,345
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
|
|
|
Trading
|
|
136,071
|
|
145,533
|
|
146,534
|
|
Investment, net of
applicable allowance
|
|
139,743
|
|
144,980
|
|
102,470
|
|
|
|
275,814
|
|
290,513
|
|
249,004
|
|
|
|
|
|
|
|
|
Assets purchased
under reverse repurchase agreements and securities
borrowed
|
|
313,015
|
|
308,215
|
|
306,961
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
Retail
|
|
457,976
|
|
443,845
|
|
426,086
|
|
Wholesale
|
|
208,655
|
|
217,605
|
|
195,870
|
|
|
|
666,631
|
|
661,450
|
|
621,956
|
|
Allowance for loan
losses
|
|
(5,639)
|
|
(5,509)
|
|
(3,100)
|
|
|
|
660,992
|
|
655,941
|
|
618,856
|
|
|
|
|
|
|
|
|
Segregated fund
net assets
|
|
1,922
|
|
1,908
|
|
1,663
|
Other
|
|
|
|
|
|
|
|
Customers' liability
under acceptances
|
|
18,507
|
|
18,239
|
|
18,062
|
|
Derivatives
|
|
113,488
|
|
157,378
|
|
101,560
|
|
Premises and
equipment
|
|
7,934
|
|
8,175
|
|
3,191
|
|
Goodwill
|
|
11,302
|
|
11,356
|
|
11,236
|
|
Other
intangibles
|
|
4,752
|
|
4,640
|
|
4,674
|
|
Other
assets
|
|
58,921
|
|
66,948
|
|
49,073
|
|
|
|
214,904
|
|
266,736
|
|
187,796
|
Total
assets
|
$
|
1,624,548
|
$
|
1,683,134
|
$
|
1,428,935
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
Personal
|
$
|
343,052
|
$
|
337,196
|
$
|
294,732
|
|
Business and
government
|
|
624,311
|
|
640,284
|
|
565,482
|
|
Bank
|
|
44,522
|
|
39,678
|
|
25,791
|
|
|
|
1,011,885
|
|
1,017,158
|
|
886,005
|
|
|
|
|
|
|
|
|
Segregated fund
net liabilities
|
|
1,922
|
|
1,908
|
|
1,663
|
Other
|
|
|
|
|
|
|
|
Acceptances
|
|
18,618
|
|
18,348
|
|
18,091
|
|
Obligations related
to securities sold short
|
|
29,285
|
|
36,841
|
|
35,069
|
|
Obligations related
to assets sold under repurchase agreements and securities
loaned
|
|
274,231
|
|
273,768
|
|
226,586
|
|
Derivatives
|
|
109,927
|
|
155,479
|
|
98,543
|
|
Insurance claims and
policy benefit liabilities
|
|
12,215
|
|
12,421
|
|
11,401
|
|
Other
liabilities
|
|
69,831
|
|
70,938
|
|
58,137
|
|
|
|
514,107
|
|
567,795
|
|
447,827
|
|
|
|
|
|
|
|
|
Subordinated
debentures
|
|
9,867
|
|
9,899
|
|
9,815
|
Total
liabilities
|
|
1,537,781
|
|
1,596,760
|
|
1,345,310
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
|
|
|
|
|
|
Preferred shares and
other equity instruments
|
|
5,945
|
|
7,447
|
|
5,707
|
|
Common
shares
|
|
17,499
|
|
17,481
|
|
17,587
|
|
Retained
earnings
|
|
59,806
|
|
57,805
|
|
55,981
|
|
Other components of
equity
|
|
3,414
|
|
3,535
|
|
4,248
|
|
|
|
86,664
|
|
86,268
|
|
83,523
|
Non-controlling
interests
|
|
103
|
|
106
|
|
102
|
Total
equity
|
|
86,767
|
|
86,374
|
|
83,625
|
Total liabilities
and equity
|
$
|
1,624,548
|
$
|
1,683,134
|
$
|
1,428,935
|
|
|
(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)
|
2020
(1)
|
2020 (1)
|
2019 (1)
|
|
2020
(2)
|
2019 (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
5,522
|
$
|
5,603
|
$
|
6,186
|
|
$
|
23,420
|
$
|
24,863
|
|
Securities
|
|
1,335
|
|
1,681
|
|
1,659
|
|
|
6,488
|
|
6,827
|
|
Assets purchased
under reverse repurchase agreements and securities
borrowed
|
|
550
|
|
617
|
|
2,268
|
|
|
4,668
|
|
8,960
|
|
Deposits and
other
|
|
56
|
|
55
|
|
329
|
|
|
307
|
|
683
|
|
|
|
7,463
|
|
7,956
|
|
10,442
|
|
|
34,883
|
|
41,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits and
other
|
|
1,588
|
|
1,838
|
|
3,175
|
|
|
8,783
|
|
12,988
|
|
Other
liabilities
|
|
811
|
|
917
|
|
2,066
|
|
|
4,985
|
|
8,231
|
|
Subordinated
debentures
|
|
54
|
|
62
|
|
90
|
|
|
280
|
|
365
|
|
|
|
2,453
|
|
2,817
|
|
5,331
|
|
|
14,048
|
|
21,584
|
Net interest
income
|
|
5,010
|
|
5,139
|
|
5,111
|
|
|
20,835
|
|
19,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance premiums,
investment and fee income
|
|
958
|
|
2,212
|
|
1,153
|
|
|
5,361
|
|
5,710
|
|
Trading
revenue
|
|
224
|
|
623
|
|
116
|
|
|
1,239
|
|
995
|
|
Investment management
and custodial fees
|
|
1,577
|
|
1,489
|
|
1,477
|
|
|
6,101
|
|
5,748
|
|
Mutual fund
revenue
|
|
961
|
|
915
|
|
932
|
|
|
3,712
|
|
3,628
|
|
Securities brokerage
commissions
|
|
320
|
|
341
|
|
323
|
|
|
1,439
|
|
1,305
|
|
Service
charges
|
|
456
|
|
430
|
|
493
|
|
|
1,842
|
|
1,907
|
|
Underwriting and
other advisory fees
|
|
578
|
|
570
|
|
428
|
|
|
2,319
|
|
1,815
|
|
Foreign exchange
revenue, other than trading
|
|
233
|
|
246
|
|
242
|
|
|
1,012
|
|
986
|
|
Card service
revenue
|
|
211
|
|
259
|
|
252
|
|
|
969
|
|
1,072
|
|
Credit
fees
|
|
361
|
|
296
|
|
344
|
|
|
1,321
|
|
1,269
|
|
Net gains on
investment securities
|
|
23
|
|
11
|
|
16
|
|
|
90
|
|
125
|
|
Share of profit in
joint ventures and associates
|
|
20
|
|
20
|
|
26
|
|
|
77
|
|
76
|
|
Other
|
|
160
|
|
369
|
|
457
|
|
|
864
|
|
1,617
|
|
|
6,082
|
|
7,781
|
|
6,259
|
|
|
26,346
|
|
26,253
|
Total
revenue
|
|
11,092
|
|
12,920
|
|
11,370
|
|
|
47,181
|
|
46,002
|
Provision for
credit losses
|
|
427
|
|
675
|
|
499
|
|
|
4,351
|
|
1,864
|
Insurance
policyholder benefits, claims and acquisition
expense
|
|
461
|
|
1,785
|
|
654
|
|
|
3,683
|
|
4,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Human
resources
|
|
3,587
|
|
4,032
|
|
3,720
|
|
|
15,252
|
|
14,600
|
|
Equipment
|
|
508
|
|
469
|
|
452
|
|
|
1,907
|
|
1,777
|
|
Occupancy
|
|
431
|
|
415
|
|
424
|
|
|
1,660
|
|
1,635
|
|
Communications
|
|
254
|
|
233
|
|
296
|
|
|
989
|
|
1,090
|
|
Professional
fees
|
|
385
|
|
337
|
|
382
|
|
|
1,330
|
|
1,305
|
|
Amortization of other
intangibles
|
|
330
|
|
325
|
|
309
|
|
|
1,273
|
|
1,197
|
|
Other
|
|
563
|
|
569
|
|
736
|
|
|
2,347
|
|
2,535
|
|
|
|
6,058
|
|
6,380
|
|
6,319
|
|
|
24,758
|
|
24,139
|
Income before
income taxes
|
|
4,146
|
|
4,080
|
|
3,898
|
|
|
14,389
|
|
15,914
|
Income
taxes
|
|
900
|
|
879
|
|
692
|
|
|
2,952
|
|
3,043
|
Net
income
|
$
|
3,246
|
$
|
3,201
|
$
|
3,206
|
|
$
|
11,437
|
$
|
12,871
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
3,247
|
$
|
3,197
|
$
|
3,201
|
|
$
|
11,432
|
$
|
12,860
|
|
Non-controlling
interests
|
|
(1)
|
|
4
|
|
5
|
|
|
5
|
|
11
|
|
|
$
|
3,246
|
$
|
3,201
|
$
|
3,206
|
|
$
|
11,437
|
$
|
12,871
|
Basic earnings per
share (in dollars)
|
$
|
2.23
|
$
|
2.20
|
$
|
2.19
|
|
$
|
7.84
|
$
|
8.78
|
Diluted earnings
per share (in dollars)
|
|
2.23
|
|
2.20
|
|
2.18
|
|
|
7.82
|
|
8.75
|
Dividends per
common share (in dollars)
|
|
1.08
|
|
1.08
|
|
1.05
|
|
|
4.29
|
|
4.07
|
|
|
(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)
|
|
2020
(1)
|
|
2020 (1)
|
|
2019 (1)
|
|
|
2020
(2)
|
|
2019 (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
3,246
|
$
|
3,201
|
$
|
3,206
|
|
$
|
11,437
|
$
|
12,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
33
|
|
749
|
|
(26)
|
|
|
(24)
|
|
192
|
|
|
Provision for credit
losses recognized in income
|
|
(9)
|
|
(1)
|
|
(2)
|
|
|
13
|
|
(14)
|
|
|
Reclassification of
net losses (gains) on debt securities and loans at fair value
through other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income to income
|
|
(40)
|
|
(48)
|
|
(58)
|
|
|
(161)
|
|
(133)
|
|
|
|
|
(16)
|
|
700
|
|
(86)
|
|
|
(172)
|
|
45
|
|
Foreign currency
translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation gains (losses)
|
|
(426)
|
|
(2,112)
|
|
180
|
|
|
810
|
|
65
|
|
|
Net foreign currency
translation gains (losses) from hedging activities
|
|
191
|
|
716
|
|
(121)
|
|
|
(397)
|
|
5
|
|
|
Reclassification of
losses (gains) on foreign currency translation to income
|
|
-
|
|
(21)
|
|
-
|
|
|
(21)
|
|
2
|
|
|
Reclassification of
losses (gains) on net investment hedging activities to
income
|
|
-
|
|
21
|
|
(1)
|
|
|
21
|
|
1
|
|
|
|
|
(235)
|
|
(1,396)
|
|
58
|
|
|
413
|
|
73
|
|
Net change in cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivatives designated as cash flow hedges
|
|
44
|
|
88
|
|
57
|
|
|
(1,145)
|
|
(559)
|
|
|
Reclassification of
losses (gains) on derivatives designated as cash flow hedges to
income
|
|
85
|
|
(113)
|
|
(47)
|
|
|
72
|
|
(135)
|
|
|
|
|
129
|
|
(25)
|
|
10
|
|
|
(1,073)
|
|
(694)
|
Items that will
not be reclassified subsequently to income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of
employee benefit plans
|
|
498
|
|
(554)
|
|
125
|
|
|
(68)
|
|
(942)
|
|
Net fair value change
due to credit risk on financial liabilities designated as at fair
value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
through profit or
loss
|
|
(152)
|
|
(664)
|
|
(41)
|
|
|
(263)
|
|
51
|
|
Net gains (losses) on
equity securities designated at fair value through other
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
4
|
|
3
|
|
(2)
|
|
|
28
|
|
25
|
|
|
|
350
|
|
(1,215)
|
|
82
|
|
|
(303)
|
|
(866)
|
Total other
comprehensive income (loss), net of taxes
|
|
228
|
|
(1,936)
|
|
64
|
|
|
(1,135)
|
|
(1,442)
|
Total
comprehensive income (loss)
|
$
|
3,474
|
$
|
1,265
|
$
|
3,270
|
|
$
|
10,302
|
$
|
11,429
|
Total
comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
3,476
|
$
|
1,264
|
$
|
3,266
|
|
$
|
10,295
|
$
|
11,419
|
|
Non-controlling
interests
|
|
(2)
|
|
1
|
|
4
|
|
|
7
|
|
10
|
|
|
|
$
|
3,474
|
$
|
1,265
|
$
|
3,270
|
|
$
|
10,302
|
$
|
11,429
|
|
|
(1)
|
Derived from
unaudited financial statements.
|
(2)
|
Derived from audited
financial statements.
|
Consolidated
Statements of Changes in Equity
|
|
|
|
|
For the three
months ended October 31, 2020 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components
of equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and
loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at
beginning of period
|
$
|
7,448
|
$
|
17,610
|
$
|
(1)
|
$
|
(129)
|
$
|
57,805
|
$
|
(123)
|
$
|
4,866
|
$
|
(1,208)
|
$
|
3,535
|
$
|
86,268
|
$
|
106
|
$
|
86,374
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share
capital and other equity instruments
|
|
-
|
|
18
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
17
|
|
-
|
|
17
|
|
Common shares
purchased for cancellation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Redemption of
preferred shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
(1,500)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,500)
|
|
-
|
|
(1,500)
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
22
|
|
658
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
680
|
|
-
|
|
680
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(24)
|
|
(658)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(682)
|
|
-
|
|
(682)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
(2)
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,539)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,539)
|
|
-
|
|
(1,539)
|
|
Dividends on
preferred shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(74)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(74)
|
|
(2)
|
|
(76)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
1
|
|
21
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,247
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,247
|
|
(1)
|
|
3,246
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
350
|
|
(16)
|
|
(234)
|
|
129
|
|
(121)
|
|
229
|
|
(1)
|
|
228
|
Balance at end of
period
|
$
|
5,948
|
$
|
17,628
|
$
|
(3)
|
$
|
(129)
|
$
|
59,806
|
$
|
(139)
|
$
|
4,632
|
$
|
(1,079)
|
$
|
3,414
|
$
|
86,664
|
$
|
103
|
$
|
86,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended October 31, 2019 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components of
equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at
beginning of period
|
$
|
5,706
|
$
|
17,652
|
$
|
(1)
|
$
|
(59)
|
$
|
54,692
|
$
|
119
|
$
|
4,162
|
$
|
(16)
|
$
|
4,265
|
$
|
82,255
|
$
|
99
|
$
|
82,354
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share
capital and other equity instruments
|
|
-
|
|
49
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
49
|
|
-
|
|
49
|
|
Common shares
purchased for cancellation
|
|
-
|
|
(56)
|
|
-
|
|
-
|
|
(418)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(474)
|
|
-
|
|
(474)
|
|
Redemption of
preferred shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
37
|
|
1,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,537
|
|
-
|
|
1,537
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(35)
|
|
(1,499)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,534)
|
|
-
|
|
(1,534)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8)
|
|
-
|
|
(8)
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,503)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,503)
|
|
-
|
|
(1,503)
|
|
Dividends on
preferred shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(64)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(64)
|
|
(1)
|
|
(65)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
|
(1)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,201
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,201
|
|
5
|
|
3,206
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
82
|
|
(86)
|
|
59
|
|
10
|
|
(17)
|
|
65
|
|
(1)
|
|
64
|
Balance at end of
period
|
$
|
5,706
|
$
|
17,645
|
$
|
1
|
$
|
(58)
|
$
|
55,981
|
$
|
33
|
$
|
4,221
|
$
|
(6)
|
$
|
4,248
|
$
|
83,523
|
$
|
102
|
$
|
83,625
|
|
(1) Derived from unaudited financial
statements.
|
|
|
|
|
For the year ended
October 31, 2020 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components
of equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and
loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at
beginning of period
|
$
|
5,706
|
$
|
17,645
|
$
|
1
|
$
|
(58)
|
$
|
55,981
|
$
|
33
|
$
|
4,221
|
$
|
(6)
|
$
|
4,248
|
$
|
83,523
|
$
|
102
|
$
|
83,625
|
Transition
adjustment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(107)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(107)
|
|
-
|
|
(107)
|
Adjusted balance
at beginning of period
|
$
|
5,706
|
$
|
17,645
|
$
|
1
|
$
|
(58)
|
$
|
55,874
|
$
|
33
|
$
|
4,221
|
$
|
(6)
|
$
|
4,248
|
$
|
83,416
|
$
|
102
|
$
|
83,518
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share
capital and other equity instruments
|
|
1,750
|
|
80
|
|
-
|
|
-
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,825
|
|
-
|
|
1,825
|
|
Common shares
purchased for cancellation
|
|
-
|
|
(97)
|
|
-
|
|
-
|
|
(717)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(814)
|
|
-
|
|
(814)
|
|
Redemption of
preferred shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
(1,508)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,508)
|
|
-
|
|
(1,508)
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
110
|
|
4,668
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,778
|
|
-
|
|
4,778
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(114)
|
|
(4,739)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,853)
|
|
-
|
|
(4,853)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3)
|
|
-
|
|
(3)
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,111)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,111)
|
|
-
|
|
(6,111)
|
|
Dividends on
preferred shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(268)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(268)
|
|
(6)
|
|
(274)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(93)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(93)
|
|
-
|
|
(93)
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11,432
|
|
-
|
|
-
|
|
-
|
|
-
|
|
11,432
|
|
5
|
|
11,437
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(303)
|
|
(172)
|
|
411
|
|
(1,073)
|
|
(834)
|
|
(1,137)
|
|
2
|
|
(1,135)
|
Balance at end of
period
|
$
|
5,948
|
$
|
17,628
|
$
|
(3)
|
$
|
(129)
|
$
|
59,806
|
$
|
(139)
|
$
|
4,632
|
$
|
(1,079)
|
$
|
3,414
|
$
|
86,664
|
$
|
103
|
$
|
86,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
October 31, 2019 (1)
|
|
|
|
|
|
|
|
|
Treasury -
preferred
shares and
other equity
instruments
|
|
|
|
|
Other components of
equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
shares and
other equity
instruments
|
|
|
Treasury -
common
shares
|
|
|
FVOCI
securities
and loans
|
Foreign
currency
translation
|
Cash flow
hedges
|
Total other
components
of equity
|
Equity
attributable to
shareholders
|
Non-
controlling
interests
|
|
|
|
|
|
|
Common
shares
|
Retained
earnings
|
Total
equity
|
(Millions of Canadian
dollars)
|
Balance at
beginning of period
|
$
|
6,306
|
$
|
17,635
|
$
|
3
|
$
|
(18)
|
$
|
51,018
|
$
|
(12)
|
$
|
4,147
|
$
|
688
|
$
|
4,823
|
$
|
79,767
|
$
|
94
|
$
|
79,861
|
Changes in
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issues of share
capital and other equity instruments
|
|
350
|
|
136
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
486
|
|
-
|
|
486
|
|
Common shares
purchased for cancellation
|
|
-
|
|
(126)
|
|
-
|
|
-
|
|
(904)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,030)
|
|
-
|
|
(1,030)
|
|
Redemption of
preferred shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
(950)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(950)
|
|
-
|
|
(950)
|
|
Sales of treasury
shares and other equity instruments
|
|
-
|
|
-
|
|
182
|
|
5,340
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,522
|
|
-
|
|
5,522
|
|
Purchases of treasury
shares and other equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
-
|
|
-
|
|
(184)
|
|
(5,380)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,564)
|
|
-
|
|
(5,564)
|
|
Share-based
compensation awards
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(23)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(23)
|
|
-
|
|
(23)
|
|
Dividends on common
shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,840)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,840)
|
|
-
|
|
(5,840)
|
|
Dividends on
preferred shares and distributions on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other equity
instruments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(269)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(269)
|
|
(2)
|
|
(271)
|
|
Other
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
-
|
|
5
|
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,860
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,860
|
|
11
|
|
12,871
|
|
Total other
comprehensive income (loss), net of taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(866)
|
|
45
|
|
74
|
|
(694)
|
|
(575)
|
|
(1,441)
|
|
(1)
|
|
(1,442)
|
Balance at end of
period
|
$
|
5,706
|
$
|
17,645
|
$
|
1
|
$
|
(58)
|
$
|
55,981
|
$
|
33
|
$
|
4,221
|
$
|
(6)
|
$
|
4,248
|
$
|
83,523
|
$
|
102
|
$
|
83,625
|
|
(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 SEC, in other reports to shareholders, and in
other communications, including statements by our President and
Chief Executive Officer. Forward-looking statements in this
document include, but are not limited to, statements relating to
our financial performance objectives, vision and strategic goals,
and the potential continued impacts of the coronavirus (COVID-19)
pandemic on our business operations, and financial results,
condition and objectives and on the global economy and financial
market conditions. The forward-looking information contained in
this Earnings Release is presented for the purpose of assisting the
holders of our securities and financial analysts in understanding
our financial position and results of operations as at and for the
periods ended on the dates presented, as well as our financial
performance objectives, vision and strategic goals, and may not be
appropriate for other purposes. 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 our financial performance objectives, vision and
strategic goals 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 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, legal and regulatory environment, competitive and
systemic risks and other risks discussed in the risk sections and
Significant developments: COVID-19 section of our annual report for
the fiscal year ended October 31,
2020 (the 2020 Annual Report); including business and
economic conditions, information technology and cyber risks,
Canadian housing and household indebtedness, geopolitical
uncertainty, privacy, data and third party related risks,
regulatory changes, environmental and social risk (including
climate change), and digital disruption and innovation, culture and
conduct, the business and economic conditions in the geographic
regions in which we operate, the effects of changes in government
fiscal, monetary and other policies, tax risk and transparency,
environmental and social risk, and the emergence of widespread
health emergencies or public health crises such as pandemics and
epidemics, including the COVID-19 pandemic and its impact on the
global economy and financial market conditions and our business
operations, and financial results, condition and objectives.
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 headings in our 2020 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 and Significant developments: COVID-19
section of our 2020 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 2020 Annual Report at
rbc.com/investorrelations.
Quarterly conference call and webcast presentation
Our
quarterly conference call is scheduled for December 2, 2020 at 8:00
a.m. (EST) and will feature a presentation about our fourth
quarter and 2020 results by RBC executives. It will be followed by
a question and answer period with analysts. Interested parties can
access the call live on a listen-only basis at
rbc.com/investorrelations/quarterly-financial-statements.html or by
telephone (416-340-2217, 866-696-5910, passcode 9602843#). Please
call between 7:50 a.m. and 7:55 a.m.
(EST).
Management's comments on results will be posted on our website
shortly following the call. A recording will be available by
5:00 p.m. (EST) from December 2, 2020 until February 23, 2021 at
rbc.com/investorrelations/quarterly-financial-statements.html or by
telephone (905-694-9451 or 800-408-3053, passcode 5433178#).
ABOUT RBC
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 86,000+ employees who
leverage their imaginations and insights to 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 17
million clients in Canada, the
U.S. and 34 other countries. Learn more at rbc.com.
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 LION &
GLOBE Symbol, ROYAL BANK OF CANADA
and RBC which are trademarks of Royal Bank of Canada used by Royal Bank of Canada and/or by its subsidiaries under
license. All other trademarks mentioned in this earnings release,
which are not the property of Royal Bank of Canada, are owned by their respective
holders.
SOURCE Royal Bank of Canada