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Press release from CNW Group

Royal Bank of Canada Reports Fourth Quarter and Record 2012 Results

Thursday, November 29, 2012

Royal Bank of Canada Reports Fourth Quarter and Record 2012 Results06:00 EST Thursday, November 29, 2012All amounts are in Canadian dollars and are based on our audited Annual and unaudited Interim Consolidated Financial Statements for the year ended October 31, 2012 and related notes prepared in accordance with International Financial Reporting Standards (IFRS). Our 2012 Annual Report (which includes our audited annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2012 Annual Information Form and our Supplementary Financial Information are available on our website at rbc.com/investorrelations.TORONTO, Nov. 29, 2012 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $7.5 billion for the year ended October 31, 2012, up $1.1 billion or 17% from the prior year. Earnings from continuing operations of $7.6 billion were up $620 million or 9% from the prior year. Our results reflected record earnings in Personal & Commercial Banking, Capital Markets and Insurance."Our record earnings from continuing operations of $7.6 billion this year were driven by exceptional growth in Canadian Banking, Capital Markets and Insurance, demonstrating the earnings power of our diversified business model," said Gord Nixon, RBC President and CEO. "This year, we extended our leadership position and executed our long-term growth strategy while maintaining our prudent risk and disciplined cost management."Strong volume growth across all of our Canadian banking businesses, higher fixed income trading and corporate and investment banking results, and improved claims experience in Insurance drove our strong earnings this year. These results were partially offset by higher costs in support of business growth, moderated by our cost management initiatives, and increased provision for credit losses (PCL) in our wholesale and Caribbean portfolios.  2012 compared to 2011Net income $7,539 million (up 17% from $6,444 million)Diluted earnings per share (EPS) of $4.93 (up $.74 from $4.19)Return on common equity (ROE) of 19.3% (up from 18.7%)Tier 1 capital ratio was 13.1%Continuing operations: 2012 compared to 2011Net income $7,590 million (up 9% from $6,970 million)Diluted EPS of $4.96 (up $.41 from $4.55)ROE of 19.5% (down from 20.3%)  Q4 2012 Performance"We ended the year strongly with results of over $1.9 billion in the fourth quarter driven by solid earnings from most of our businesses including another quarter of over $1 billion in earnings from Canadian Banking," Nixon said. "While the financial industry is expected to face headwinds in 2013, we are confident in our ability to weather these challenges given our strong financial and competitive position."  Q4 2012 compared to Q4 2011Net income $1,911 million (up 22% from $1,571 million)Diluted EPS of $1.25 (up $.23 from $1.02)ROE of 18.7% (up from 17.1%)Continuing operations: Q4 2012 compared to Q4 2011Net income $1,911 million (up 19% from $1,609 million)Diluted EPS of $1.25 (up $.20 from $1.05)ROE of 18.7% (up from 17.5%)  Earnings of $1,911 million were up $340 million or 22% from last year. Earnings from continuing operations were up $302 million or 19%, driven by stronger fixed income trading results reflecting improved market conditions as compared to challenging markets in the prior year. Solid volume growth across all our Canadian banking businesses, along with stable margins and positive operating leverage, and lower claims costs in Insurance also contributed to the increase. We had higher provisions this quarter, reflecting a single account in our wholesale portfolio and increased provisions in our Canadian personal and business lending portfolios.  Q4 2012 compared to Q3 2012Net income $1,911 million (down 15% from $2,240 million)Diluted EPS of $1.25 (down $.22 from $1.47)ROE of 18.7% (down from 22.7%)Q4 2012 compared to Q3 2012, excluding noted items(1)Net income $1,911 million (down 3% from $1,978 million)Diluted EPS of $1.25 (down $.04 from $1.29)ROE of 18.7% (down from 19.9%)  Earnings were down $329 million or 15% from the prior record quarter. Excluding certain items which had a favourable net impact of $262 million last quarter, net income was down $67 million or 3%(1). We had higher earnings in all of our retail segments, including lower claims costs in Insurance, higher average fee-based client assets and transaction volumes in Wealth Management, and volume growth in Canadian Banking. These results were more than offset by other net favourable tax adjustments in Corporate Support in the prior quarter.1  Q3/12 results included a favourable adjustment of $125 million ($92 million after-tax) related to a change in estimate of mortgage prepayment interest, a release of $128 million of tax uncertainty provisions and interest income of $72 million ($53 million after-tax) related to a refund of taxes paid due to the settlement of several tax matters with the Canada Revenue Agency (CRA) and a loss of $12 million ($11 million after-tax) related to our acquisition of the remaining 50% interest in RBC Dexia (RBC Investor Services). These measures are non-GAAP. See Key Performance and Non-GAAP Measures section of this Earnings Release for additional information.  Q4 2012 Business Segment PerformanceReflects the strategic realignment of certain business segments, announced on September 11, 2012 and effective October 31, 2012(1).Personal & Commercial Banking net income was $1,034 million, up $87 million or 9% from last year driven by solid volume growth and a lower effective tax rate in Canada, partially offset by increased costs in support of business growth and higher PCL largely in our Canadian business lending portfolio. We also achieved positive operating leverage of 1.8% in Canadian Banking. Compared to last quarter, net income was down $68 million or 6%.  Excluding the prior quarter mortgage prepayment interest adjustment, net income was up $24 million or 2%(2), driven by volume growth in Canadian Banking.Wealth Management net income was $207 million, up $28 million or 16% from last year and up $51 million or 33% from the prior quarter. Our results were driven by higher average fee-based client assets, higher transaction volumes and the increase in the fair value of our U.S. share-based compensation plan. The prior year included a favourable accounting adjustment related to a deferred compensation plan of $27 million ($16 million after-tax). The prior quarter included an unfavourable impact of $29 million ($21 million after-tax) related to certain regulatory and legal matters.Insurance net income was $194 million, down $6 million or 3% from last year, as lower claims costs in Canadian insurance products and reinsurance products were offset by lower net investment gains and no new U.K. annuity reinsurance contracts in the current quarter.  Compared to the prior quarter, net income was up $15 million or 8%, driven by lower claims costs in our reinsurance products and Canadian insurance products. The prior quarter included a favourable impact from the reduction of policy acquisition cost-related liabilities of $33 million ($24 million after-tax).Investor & Treasury Services net income was $72 million, up $32 million from last year, largely due to higher funding and liquidity trading results reflecting improved market conditions as compared to the challenging market conditions in the prior year. A full quarter of earnings reflecting our 100% ownership of RBC Investor Services also contributed to the increase although lower spreads and decreased transaction volumes continued to impact our results. Compared to the prior quarter, net income was up $21 million due to higher funding and liquidity trading results and a full quarter of earnings related to RBC Investor Services, partially offset by lower custodial and securities lending fees.Capital Markets net income was $410 million, up $285 million from the prior year, primarily reflecting higher fixed income trading results. Higher origination reflecting solid issuance activity and strong client growth in lending and increased loan syndication activity largely in the U.S. also contributed to the increase. These results were partially offset by higher PCL related to a single account and a higher effective tax rate reflecting increased earnings in the U.S. Compared to the prior quarter, net income was down $19 million or 4%, largely due to lower trading results particularly at the end of the quarter, lower loan syndication activity in the U.S. following a very strong third quarter and higher PCL as noted above. These factors were partially offset by higher equity origination volumes primarily in the U.S. and Canada.Corporate Support net loss was $6 million, mainly due to net unfavourable tax adjustments. Net income in the prior year was $118 million, reflecting net favourable tax adjustments. In the prior quarter, net income was $323 million, largely due to the settlement of several tax matters with the CRA which resulted in the release of $128 million of tax uncertainty provisions and interest income of $72 million ($53 million after-tax) related to a refund of taxes paid. The prior quarter also included other net favourable tax adjustments.Capital - As at October 31, 2012, Tier 1 capital ratio was 13.1% and Total capital ratio was 15.1%. Tier 1 capital was up 10 basis points from last quarter largely due to internal capital generation, partially offset by the phase-in of the transition impact of IFRS and higher risk-weighted assets reflecting growth in our wholesale credit portfolio. Our estimated pro-forma Basel III Common Equity Tier 1 ratio on a fully implemented basis was approximately 8.4%.Credit Quality - In the fourth quarter, total PCL was $362 million, up $86 million from last year mainly due to increased provisions in our wholesale portfolio related to a single account and in our Canadian Banking business lending portfolio. Compared to the prior quarter, PCL was up $38 million due to the increased provisions noted above, offset by lower provisions in our Caribbean portfolios.1See our 2012 Annual Report for additional information.2Q3/12 results included a favourable adjustment of $125 million ($92 million after-tax) related to a change in estimate of mortgage prepayment interest. This measure is a non-GAAP measure. See Key Performance and Non-GAAP Measures section of this Earnings Release for additional information.   SELECTED FINANCIAL AND OTHER HIGHLIGHTS 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) October 312012  July 312012  October 312011  October 312012   October 312011   Continuing operations                   Total revenue  $7,518 $7,756 $6,692 $29,772  $27,638     Provision for credit losses (PCL) 362  324  276  1,301   1,133     Insurance policyholder benefits, claims and acquisition   expense (PBCAE) 770  1,000  867  3,621    3,358     Non-interest expense 3,873  3,759  3,530  15,160    14,167     Net income before income taxes 2,513  2,673  2,019  9,690    8,980    Net income from continuing operations 1,911  2,240  1,609  7,590    6,970    Net loss from discontinued operations -  -  (38)  (51)   (526)   Net income $1,911 $2,240 $1,571 $7,539   $6,444    Segments - net income from continuing operations                   Personal & Commercial Banking$1,034 $1,102 $947 $4,088   $3,740     Wealth Management 207  156  179  763    811     Insurance 194  179  200  714    600     Investor & Treasury Services 72  51  40  85    230     Capital Markets 410  429  125  1,581    1,292     Corporate Support (6)  323  118  359    297    Net income from continuing operations 1,911  2,240  1,609 $7,590   $6,970    Selected information                    Earnings per share (EPS) - basic$1.26 $1.49 $1.03 $4.98   $4.25                                              - diluted 1.25  1.47  1.02  4.93    4.19     Return on common equity (ROE) (1), (2) 18.7% 22.7% 17.1% 19.3 %  18.7 %Selected information from continuing operations                   EPS - basic$1.26 $1.49 $1.06 $5.01   $4.62             - diluted 1.25  1.47  1.05  4.96    4.55     ROE (1), (2) 18.7% 22.7% 17.5% 19.5 %  20.3 % PCL on impaired loans as a % of average net loans and acceptances 0.37% 0.34% 0.31% 0.35 %  0.33 % Gross impaired loans (GIL) as a % of loans and acceptances 0.58% 0.55% 0.65% 0.58 %  0.65 %Capital ratios and multiples (3)       -           Tier 1 capital ratio 13.1% 13.0% 13.3% 13.1 %  13.3 % Total capital ratio 15.1% 15.0% 15.3% 15.1 %  15.3 % Assets-to-capital multiple 16.7X 16.7X 16.1X 16.7 X  16.1 X Tier 1 common ratio (2) 10.5% 10.3% 10.6% 10.5 %  10.6 %Selected balance sheet and other information                   Total assets$825,100 $824,394 $793,833 $825,100   $793,833     Securities 161,611  158,390  167,022  161,611    167,022     Loans (net of allowance for loan losses) 378,244  373,216  347,530  378,244    347,530     Derivative related assets 91,293  103,257  99,650  91,293    99,650     Deposits 508,219  502,804  479,102  508,219    479,102     Common equity 39,453  38,357  34,889  39,453    34,889     Average common equity (1) 38,850  37,700  34,400  37,150    32,600     Risk-weighted assets (RWA) 280,609  278,418  267,780  280,609    267,780     Assets under management (AUM) 343,000  327,800  308,700  343,000    308,700     Assets under administration (AUA) - RBC (4) 764,100  742,800  699,800  764,100    699,800                                                             - RBCIS (5) 2,886,900  2,670,900  2,744,400  2,886,900    2,744,400    Common share information                   Shares outstanding (000s) - average basic 1,444,189  1,443,457  1,437,023  1,442,167    1,430,722                                                 - average diluted 1,469,304  1,469,513  1,465,927  1,468,287    1,471,493                                                 - end of period 1,445,303  1,444,300  1,438,376  1,445,303    1,438,376     Dividends declared per share$0.60 $0.57 $0.54 $2.28   $2.08     Dividend yield (6) 4.4% 4.3% 4.5% 4.5 %  3.9 % Common share price (RY on TSX)$56.94 $51.38 $48.62 $56.94   $48.62     Market capitalization (TSX) 82,296  74,208  69,934  82,296    69,934    Business information from continuing operations (number of)       -           Employees (full-time equivalent) (FTE) 74,377  75,139  68,480  74,377    68,480     Bank branches 1,361  1,355  1,338  1,361    1,338     Automated teller machines (ATMs) 5,065  4,948  4,626  5,065    4,626    Period average US$ equivalent of C$1.00 (7)    $1.011 $0.982 $0.992 $0.997   $1.015    Period-end US$ equivalent of C$1.00$1.001 $0.997 $1.003 $1.001   $1.003                       (1)Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes ROE and Average common equity. For further details, refer to the How we measure and report our business segments section of our 2012 Annual Report.(2)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. See the How we measure and report our business segments section and the Key performance and Non-GAAP Measures section of this Earnings Release, our Q4 2012 Supplementary Financial Information and our 2012 Annual Report for additional information.(3)2011 comparative amounts were determined under Canadian GAAP.(4)RBC AUA includes $38.4 billion (2011 - $36 billion) of securitized mortgages and credit card loans.(5)RBC Investor Services, formerly RBC Dexia, AUA represented the total AUA of the entity, of which we had a 50% ownership interest prior to July 27, 2012.(6)Defined as dividends per common share divided by the average of the high and low share price in the relevant period.(7)Average amounts are calculated using month-end spot rates for the period.  BUSINESS SEGMENT RESULTSPersonal & Commercial Banking      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)2012 2012 2011 Net interest income$2,302 $2,391 $2,176 Non-interest income 927  909  872Total revenue  3,229  3,300  3,048 PCL 298  300  270 Non-interest expense 1,526  1,508  1,469Net income before income taxes 1,405  1,492  1,309Net income$1,034 $1,102 $947Revenue by business          Personal Financial Services$1,680 $1,768 $1,571  Business Financial Services 742  736  708  Cards and Payment Solutions 598  589  572 Canadian Banking 3,020  3,093  2,851 Caribbean & U.S. Banking 209  207  197Key ratios         ROE 32.8%  34.2%  26.9% NIM (1) 2.82%  2.97%  2.84%Selected average balance sheet information         Total assets$340,500 $335,200 $318,400 Total earning assets (2) 325,000  319,800  304,500 Loans and acceptances (2) 323,700  318,000  303,500 Deposits 250,200  245,800  233,300 Attributed capital 12,300  12,550  13,550 Risk capital 8,450  8,700  9,750Other information         AUA (3)$179,200 $173,600 $165,900 AUM 3,100  2,900  2,700 Number of employees (FTE) 38,213  38,657  38,216Credit information         Gross impaired loans as a % of average net loans and acceptances 0.56%  0.59%  0.68% PCL on impaired loans as a % of average net loans and acceptances 0.37%  0.38%  0.35%         Canadian Banking                 Total revenue $3,020 $3,093 $2,851 PCL 269  234  234 Non-interest expense 1,357  1,330  1,303Net income before income taxes 1,394  1,529  1,314Net income 1,027  1,127  948Key ratios         ROE 41.1%  43.8%  33.3% ROE adjusted (4) n.a.  38.9%  n.a. NIM (1) 2.74%  2.91%  2.75% NIM adjusted (1) (4) n.a.  2.74%  n.a. Efficiency ratio 44.9%  43.0%  45.7% Efficiency ratio adjusted (4) n.a.  44.8%  n.a. Operating leverage 1.8%  8.0%  n.a. Operating leverage adjusted (4) n.a.  3.5%  n.a.Credit information         Gross impaired loans as a % of average net loans and acceptances 0.36%  0.37%  0.43% PCL on impaired loans as a % of average net loans and acceptances 0.34%  0.30%  0.31%  (1)Calculated as net interest income divided by average total earning assets. For further discussion on NIM, see How we measure and report our business segments in our 2012 Annual Report.(2)Total earning assets and loans and acceptances include average securitized residential mortgage and credit card loans for the three months ended October 31, 2012, of $44.9 billion and $7.3 billion, respectively (July 31, 2012 - $46.1 billion and $6.1 billion; October 31, 2011 - $41.5 billion and $3.9 billion).(3)AUA includes securitized residential mortgage and credit card loans for the three months ended October 31, 2012, of $31.0 billion and $7.4 billion, respectively (July 31, 2012 - $31.8 billion and $6.1 billion; October 31, 2011 - $32.1 billion and $3.9 billion).(4)Measures for the three months ended July 31, 2012 have been adjusted for a gain from a change in estimate of mortgage prepayment interest. See the Key Performance and Non-GAAP Measures section of this Earning Release for additional information.  Q4 2012 vs. Q4 2011Net income of $1,034 million increased $87 million or 9% compared to the prior year, driven by solid volume growth of 7% across all our Canadian businesses and a lower effective tax rate in Canada. These factors were partially offset by increased costs in support of business growth and higher PCL in Canada.Total revenue increased $181 million or 6%, reflecting solid volume growth in our Canadian personal and business deposits, personal and business loans, as well as higher credit card transaction volumes.PCL increased $28 million or 10%, mainly due to higher provisions in our Canadian business lending portfolio, offset by lower provisions in our Caribbean portfolio.Non-interest expense increased $57 million or 4%, mainly due to higher costs in support of business growth and higher performance-related compensation in Canada, partially offset by our ongoing focus on cost management. In addition, the prior year included net favourable stamp tax and accounting adjustments in the Caribbean.Q4 2012 vs. Q3 2012Net income decreased $68 million or 6% compared to last quarter. Excluding a mortgage prepayment interest adjustment that favourably impacted our results last quarter, net income increased $24 million or 2%(1), largely due to volume growth in Canadian Banking.Total revenue decreased $71 million or 2%. Excluding the mortgage prepayment interest adjustment, total revenue increased $54 million or 2%(1), reflecting continued volume growth in Canada in residential mortgages, business and personal deposits and loans and higher credit card transaction volumes.PCL remained relatively flat compared to last quarter as lower provisions in our Caribbean portfolio were offset by higher provisions in our Canadian business lending portfolio.Non-interest expense increased $18 million or 1%, mainly due to higher costs in support of business growth in Canada and seasonally higher domestic marketing spend partially offset by our ongoing focus on costs management.On October 23, 2012 we announced a definitive agreement to acquire the Canadian auto finance and deposit business of Ally Financial Inc. which will add significant scale to our existing business and strengthen RBC's position as a leader in the Canadian auto finance industry. This transaction is subject to customary closing conditions and is expected to close in the first calendar quarter of 2013._____________________________1Q3/12 Canadian Banking results included a favourable adjustment of $125 million ($92 million after-tax) related to a change in estimate of mortgage prepayment interest. This measure is a non-GAAP measure. See Key Performance and Non-GAAP Measures section of this Earnings Release for additional information.           Wealth Management       As at or for the three months ended(Millions of Canadian dollars, except number of and percentage   amounts and as otherwise noted) October 312012July 312012 October 312011 Net interest income $95$98$96 Non-interest income            Fee-based revenue  769 742 726     Transactional and other revenue  397 327 329Total revenue   1,261 1,167 1,151 Non-interest expense  972 944 893Net income before income taxes  289 223 258Net income $207$156$179Revenue by business        Canadian Wealth Management $463$422$426 U.S. & International Wealth Management  509 474 466     U.S. & International Wealth Management (US$ millions)  515 466 464 Global Asset Management  289 271 259Key ratios        ROE  15.3% 11.3% 12.7% Pre-tax margin (1)  22.9% 19.1% 22.4%Selected average balance sheet information        Total assets $20,200$21,100$22,300 Loans and acceptances  10,300 10,200 8,900 Deposits  29,200 29,400 28,300 Attributed capital  5,150 5,200 5,300 Risk capital  1,400 1,400 1,400Other information        Revenue per advisor (000s) (2) $821$776$764 AUA  577,800 562,200 527,200 AUM  339,600 324,500 305,700 Average AUA  568,100 562,000 526,800 Average AUM  333,100 323,800 310,600 Number of employees (FTE)  10,670  10,619  10,564 Number of advisors (3)  4,388  4,339  4,281         (1) Pre-tax margin is defined as net income before income taxes divided by total revenue.(2) Represents investment advisors and financial consultants of our Canadian and U.S. full-service wealth businesses.(3) Represents client-facing advisors across all our wealth management businesses.  Q4 2012 vs. Q4 2011Net income of $207 million increased $28 million or 16% compared to the prior year, mainly due to higher average fee-based client assets and higher transaction volumes. The increase in fair value of our U.S. share-based compensation plan also contributed to the increase. The prior year results included a favourable accounting adjustment related to a deferred compensation plan of $27 million ($16 million after-tax).Total revenue increased $110 million or 10%, mainly due to higher average fee-based client assets reflecting capital appreciation and net sales and higher transaction volumes reflecting improved market conditions. The increase in fair value of our U.S. share-based compensation plan also contributed to the increase.Non-interest expense increased $79 million or 9%, mainly due to higher variable compensation driven by higher commission-based revenue and the increase in fair value of our U.S. share-based compensation plan. The prior year included a favourable accounting adjustment related to our deferred compensation plan as noted above.Q4 2012 vs. Q3 2012Net income increased $51 million or 33% from the prior quarter, mainly due to higher average fee-based client assets reflecting net sales and capital appreciation, higher transaction volumes, and the increase in fair value of our U.S. share-based compensation plan. These factors were partially offset by higher costs in support of business growth. The prior quarter included an unfavourable impact of $29 million ($21 million after-tax) related to certain regulatory and legal matters.               Insurance          As at or for the three months ended(Millions of Canadian dollars, except number of and percentage amounts  and as otherwise noted) October 312012 July 312012 October 312011 Non-interest income               Net earned premiums  $914 $902$897      Investment income (1)   93  363 254      Fee income   91  58 64 Total revenue   1,098  1,323 1,215      Insurance policyholder benefits and claims (1)   631  864 720      Insurance policyholder acquisition expense   139  136 147      Non-interest expense   134  126 129Net income before income taxes   194  197 219Net income  $194 $179$200Revenue by business line          Canadian insurance  $616 $873$757 International & Other insurance   482  450 458Key ratios          ROE   50.7%  47.3% 40.3%Selected average balance sheet information          Total assets  $11,900 $11,700$10,800 Attributed capital   1,500  1,500 1,950 Risk capital   1,350  1,350 1,800Other information          Premiums and deposits (2)  $1,215 $1,213$1,205      Canadian insurance   597  602 605      International & Other insurance   618  611 600 Insurance claims and policy benefit liabilities  $7,921 $7,965$7,119 Fair value changes on investments backing policyholder liabilities (1)   (35)  256 123 Embedded value (3)   5,861  5,774 5,327 AUM   300  400 300 Number of employees (FTE)   2,744  2,777 2,859           (1)Investment income can experience volatility arising from fluctuation in the fair value of Fair Value Through Profit or Loss (FVTPL) assets. 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 investment 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 and claims.(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.(3)Embedded value is defined as the sum of value of equity held in our Insurance segment and the value of in-force business policies (existing policies). For further details, refer to the Key performance and Non-GAAP Measures section of our 2012 Annual Report. Q4 2012 vs. Q4 2011Net income of $194 million decreased $6 million or 3% compared to the prior year as lower claims costs in Canadian insurance products and reinsurance products were offset by lower net investment gains and no new U.K. annuity reinsurance contracts in the current quarter.Total revenue decreased $117 million or 10%, mainly due to the change in fair value of investments backing our policyholder liabilities, which was largely offset in policyholder benefits, claims and acquisitions expense (PBCAE). In addition, the prior year included higher net investment gains. These factors were partially offset by volume growth across most products.PBCAE decreased $97 million or 11%, mainly due to the change in fair value of investments backing our policyholder liabilities as noted above, partially offset by higher costs commensurate with volume growth.Non-interest expense increased $5 million or 4%, mainly due to higher costs in support of business growth, partially offset by our ongoing focus on cost management.Q4 2012 vs. Q3 2012Net income of $194 million increased $15 million or 8% from the prior quarter, mainly due to lower claims costs in our reinsurance products and Canadian insurance products. Our prior quarter results were favourably impacted by the reduction of policy acquisition cost-related liabilities of $33 million ($24 million after-tax).    Investor & Treasury Services As at or for the three months ended(Millions of Canadian dollars, except number of and percentage   amounts and as otherwise noted)October 312012 July 312012  October 312011    Net interest income$172 $152 $163    Non-interest income 242  152  99Total revenue 414  304  262    Non-interest expense 316  226  209Net income before income taxes and NCI in subsidiaries 98  78  53Net income$72 $51 $40Key ratios            ROE 13.0%  13.9%  12.0%Selected average balance sheet information            Total assets$81,400 $69,300 $77,100    Deposits 107,200  96,600  107,100    Attributed capital 2,100  1,400  1,200Other information            Economic profit (1)$23 $29 $14    AUA 2,886,900  2,670,900  2,744,400    Average AUA 2,840,500  2,773,000  2,827,800    Number of employees (FTE) (2) 6,084  6,062  112         (1)Economic profit is a non-GAAP measure. See the Key performance and Non-GAAP Measures section of our 2012 Annual Report for additional information.(2)Effective the third quarter of 2012, we completed our acquisition of the remaining 50% of RBC Dexia (RBC Investor Services). Prior to this acquisition, FTE numbers do not include our RBC Dexia joint venture.  Q4 2012 vs. Q4 2011Net income of $72 million increased $32 million compared to the prior year, largely due to higher funding and liquidity trading results reflecting improved market conditions as compared to the challenging market conditions last year. A full quarter representing 100% ownership of RBC Investor Services earnings also contributed to the increase, although lower spreads and decreased transaction volumes negatively impacted our results.Total revenue increased $152 million or 58%, primarily due to a full quarter of RBC Investor Services revenue, partially offset by lower spreads, decreased foreign exchange activity and lower custodial fees. Higher funding and liquidity trading, driven by greater market liquidity and improved market conditions also contributed to the increase in revenue.Non-interest expense increased $107 million or 51%, mainly reflecting a full quarter of RBC Investor Services costs.  Higher variable compensation on improved results also contributed to the increase.Q4 2012 vs. Q3 2012Net income increased $21 million due to higher funding and liquidity trading results and a full quarter of RBC Investor Services earnings, partially offset by lower custodial fees, and lower securities lending as the prior quarter was favourably impacted by the European dividend season. The prior quarter was unfavourably impacted by a writedown of intangibles and costs related to the acquisition of the remaining 50% interest in RBC Dexia (RBC Investor Services) of $12 million ($11 million after-tax).     Capital Markets  As at or for the three months ended(Millions of Canadian dollars, except number of and percentage amounts   and as otherwise noted) October 312012  July 312012 October 312011 Net interest income (1)$663 $631$560 Non-interest income 893  982 408Total revenue (1) 1,556  1,613 968 PCL 63  24 5 Non-interest expense 916  932 802Net income before income taxes and NCI in subsidiaries 577  657 161Net income$410 $429$125Revenue by business        Global Markets$842 $848$534 Corporate and Investment Banking 687  732 548 Other 27  33 (114)Key ratios        ROE 12.9%  14.3% 4.7%Selected average balance sheet information        Total assets$356,100 $362,400$352,900 Trading securities 91,800  89,600 101,300 Loans and acceptances 51,300  49,400 38,900 Deposits 32,000  32,000 26,700 Attributed capital 12,050  11,350 8,950Other information        Number of employees (FTE) 3,533  3,712 3,510Credit information        Gross impaired loans as a % of average net loans and acceptances 0.76%  0.41% 0.59% PCL on impaired loans as a % of average net loans and acceptances 0.49%  0.20% 0.05%         (1)The taxable equivalent basis (teb) adjustment for the three months ended October 31, 2012 was $104 million (July 31, 2012 - $88 million, October 31, 2011 - $85 million). See the How we measure and report our business segments section of our 2012 Annual Report for additional information. Q4 2012 vs. Q4 2011Net income of $410 million increased $285 million, primarily due to higher fixed income trading results reflecting improved market conditions compared to the challenging market conditions in the prior year. Higher corporate and investment banking results primarily in the U.S. also contributed to the increase. These factors were partially offset by higher PCL and a higher effective tax rate reflecting increased earnings in the U.S. Our prior year was unfavourably impacted by a loss of $105 million ($77 million after-tax) related to a consolidated special purpose entity from which we exited all transactions during the first quarter of 2012.Total revenue of $1,556 million increased $588 million from the prior year, largely due to higher fixed income trading reflecting increased client activity, greater market liquidity and tightening credit spreads compared to the prior year. Higher equity and debt origination reflecting solid issuance activity, strong client growth in lending and increased loan syndication activity, mainly in the U.S. also contributed to the increase.PCL of $63 million increased $58 million from the prior year, largely reflecting a provision taken this quarter for a single account.Non-interest expense of $916 million increased $114 million or 14% from the prior year, largely due to higher variable compensation reflecting improved results and higher costs in support of business growth partially offset by our cost management initiatives.Q4 2012 vs. Q3 2012Net income of $410 million decreased $19 million or 4% from the prior quarter, mainly due to lower trading results particularly at the end of the quarter reflecting increased market uncertainty due to Hurricane Sandy and the U.S. presidential election, lower loan syndication activity primarily in the U.S. as compared to the robust activity in the prior quarter, and higher PCL related to a single account as noted above. These factors were partially offset by higher equity origination, primarily in the U.S. and Canada.           Corporate Support            As at or for the three months ended    October 31  July 31 October 31  (Millions of Canadian dollars)   2012  2012 2011   Net interest (loss) income (1)  $(57) $17 $(38)   Non-interest income   17   32  86   Total (loss) revenue (1)   (40)  49  48    PCL   1   -  1    Non-interest expense   9   23  28    Income taxes (recoveries)   (44)  (297) (99)  Net income (loss) (2)  $(6) $323 $118     (1)Teb adjusted.(2)Net income (loss) reflects income attributable to both shareholders and non-controlling interest (NCI).Net income attributable to NCI for the three months ended October 31, 2012 was $23 million (July 31,2012 - $24 million; October 31, 2011 - $25 million).Due to the nature of activities and consolidated adjustments reported in this segment, we believe that a comparative period analysis is not relevant. The following identifies the material items affecting the reported results in each period.Net interest income (loss) and income taxes (recoveries) in each quarter in Corporate Support include the deduction of the teb adjustments related to the gross-up of income from Canadian taxable corporate dividends recorded in Capital Markets. The amount deducted from net interest income (loss) was offset by an equivalent increase in income taxes (recoveries). The teb amount for the three months ended October 31, 2012 was $104 million as compared to $88 million in the prior quarter and $85 million in the prior year. For further discussion, refer to the How we measure and report our business segments section of our 2012 Annual Report.In addition to the teb impacts noted above, the following paragraphs identify the other material items affecting the reported results in each quarter.Q4 2012Net loss was $6 million mainly due to net unfavourable tax adjustments and a loss attributed to an equity accounted for investment. These factors were largely offset by asset/liability management activities.Q3 2012 Net income was $323 million largely due to the previously announced settlement of several tax matters with the CRA which resulted in the release of $128 million of tax uncertainty provisions and interest income of $72 million ($53 million after-tax) related to a refund of taxes paid. Our results benefitted from other net favourable tax adjustments and asset/liability management activities.Q4 2011 Net income was $118 million mainly due to net favourable tax adjustments, partially offset by a loss attributed to an equity accounted for investment.KEY PERFORMANCE AND NON-GAAP MEASURES 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 2012 Annual Report.Return on EquityWe measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics such as net income and return on equity (ROE). The following table provides a summary of our ROE calculations: Calculation of Return on equity  For the three months ended For the year ended  October 31 2012 October 31 2012(Millions of Canadian dollars, except    percentage amounts)Personal &CommercialBankingWealthManagementInsuranceInvestor &TreasuryServicesCapitalMarketsCorporateSupportTotal Total Net income available to common   shareholders from continuing operations $1,013 $198$191$67$390$(36)$1,823 $7,235 Net income available to common   shareholders from discontinued operations  - - - - - - -  (51) Net income available to common shareholders  1,013 198 191 67 390 (36) 1,823  7,184 Average common equity from continuing    operations (1) (2) $12,300$5,150$1,500$2,100$12,050$5,750$38,850 $36,750 Average common equity from discontinued   operations (1)  - - - - - - -   400 Total average common equity $12,300$5,150$1,500$2,100$12,050$5,750$38,850 $37,150 ROE from continuing operations 32.8%15.3%50.7%13.0%12.9%n.m.18.7%  19.5% ROE       18.7%  19.3%              (1)Average common equity represent rounded figures. ROE is based on actual balances before rounding.(2)The amounts for the segments are referred to as attributed capital or economic capital.n.m not meaningful Non-GAAP measuresGiven the nature and purpose of our management reporting framework, we use and report certain non-GAAP financial measures, which are not defined nor do they have a standardized meaning under GAAP and may not be comparable with similar information disclosed by other financial institutions. We believe these measures provide readers with a better understanding of our performance and should enhance the comparability of our comparative periods.                   Non-GAAP measures - Consolidated Results                For the three months ended    July 31, 2012 Items excluded     (Millions of Canadian dollars, except per share andpercentage amounts) As reported Taxsettlement (1) Mortgageprepaymentinterest (2)   Loss relatedto theacquisition ofRBC Dexia (3)   Sub-total Results andmeasures excludingitemsNet income $2,240 $(181) $(92) $11 $(262) $1,978Average number of diluted common shares (thousands)  1,469,513              1,469,513Diluted earnings per share (in dollars) $1.47 $(.12) $(.06) $- $(.18) $1.29Diluted earnings per share from continuing operations (in dollars)  1.47  (.12)  (.06)  -  (.18)  1.29Average common equity $37,700             $37,700ROE from continuing operations (4)  22.7%              19.9%                  (1)The release of tax uncertainty provisions and interest income relates to the previously announced settlement of several tax matters with the CRA. For further details, refer to the Financial performance - Results from continuing operations of our 2012 Annual Report.(2)Relates to a change in estimate of mortgage prepayment interest. See the Key Corporate events of 2012 section of our 2012 Annual Report.(3)Comprised of a writedown of other intangibles of $7 million (before- and after-tax) and other costs of $5 million ($4 million after-tax).(4)Based on actual balances before rounding.    Non-GAAP measures - Canadian Banking  For the three months ended  July 31, 2012           (Millions of Canadian dollars)As reported Mortgageprepaymentinterest adjustments (1) Adjusted  Net interest income$2,248$(125)$2,123  Non-interest income 845 -  845 Total revenue 3,093 (125) 2,968  Revenue for Personal Financial Services 1,768 (125) 1,643 Net income before taxes 1,529 (125) 1,404 Net income$1,127$(92)$1,035 Selected average balances and other information        Net income available to common shareholders$1,110$(92)$1,018  Average common equity 10,050 -  10,050  ROE 43.8%   38.9%  Net interest income$2,248$(125)$2,123  Average total earning assets 307,900 -  307,900  NIM 2.91%   2.74%  Non-interest expense$1,330$- $1,330  Total revenue 3,093 (125) 2,968  Efficiency ratio 43.0%   44.8%  Revenue growth rate 10.5%   6.0%  Non-interest expense growth rate 2.5%   2.5%  Operating leverage 8.0%   3.5%          (1)Relates to a change in estimate of mortgage prepayment interest. For further details, see the Accounting and control matterssection of our 2012 Annual Report.           Consolidated Balance Sheets        October 31  July 31 October 31(Millions of Canadian dollars) 2012 (1)  2012 (2)  2011 (1)          Assets        Cash and due from banks$12,617  $10,586  $12,428 Interest-bearing deposits with banks 10,255   11,386   6,460 Securities         Trading 120,783   117,050   128,128  Available-for-sale 40,828   41,340   38,894    161,611   158,390   167,022 Assets purchased under reverse repurchase agreements and securities borrowed 112,257   107,841   84,947 Loans         Retail 301,185   297,637   284,745  Wholesale 79,056   77,516   64,752    380,241   375,153   349,497  Allowance for loan losses (1,997)  (1,937)  (1,967)   378,244   373,216   347,530 Investments for account of segregated fund holders 383   357   320 Other         Customers' liability under acceptances 9,385   9,115   7,689  Derivatives 91,293   103,257   99,650  Premises and equipment, net 2,691   2,672   2,490  Goodwill  7,485   7,466   7,610  Other intangibles  2,686   2,649   2,115  Assets of discontinued operations -   -   27,152  Investments in associates 125   163   142  Prepaid pension benefit cost 1,049   984   311  Other assets 35,019   36,312   27,967    149,733   162,618   175,126 Total assets$825,100  $824,394  $793,833           Liabilities        Deposits         Personal$179,502  $176,698  $166,030  Business and government 312,882   308,261   297,511  Bank 15,835   17,845   15,561    508,219   502,804   479,102 Insurance and investment contracts for account of segregated fund holders 383   357   320 Other         Acceptances 9,385   9,115   7,689  Obligations related to securities sold short 40,756   43,562   44,284  Obligations related to assets sold under repurchase agreements and securities loaned 64,032   55,908   42,735  Derivatives 96,761   108,819   100,522  Insurance claims and policy benefit liabilities 7,921   7,965   7,119  Liabilities of discontinued operations -   -   20,076  Accrued pension and other post-employment benefit expense 1,729   1,631   1,639  Other liabilities  41,371   40,762   39,241    261,955   267,762   263,305 Subordinated debentures  7,615   7,646   8,749 Trust capital securities 900   900   894 Total liabilities$779,072  $779,469  $752,370           Equity attributable to shareholders          Preferred shares$4,813  $4,813  $4,813  Common shares (shares issued - 1,445,302,600, 1,444,300,306 and 1,438,376,317)  14,323   14,279   14,010  Treasury shares  - preferred (shares held - (41,632), 63,195 and 6,341) 1   (2)  -                              - common (shares held - (543,276), (261,419) and (146,075)) 30   13   8  Retained earnings 24,270   23,310   20,381  Other components of equity 830   755   490    44,267   43,168   39,702 Non-controlling interests  1,761   1,757   1,761 Total equity 46,028   44,925   41,463 Total liabilities and equity$825,100  $824,394  $793,833         (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 31October 31 October 31October 31(Millions of Canadian dollars, except per share amounts)2012 (2) 2012 (2)2011 (2) 2012 (1)2011 (1)              Interest income             Loans$4,026  $4,170 $3,874  $15,972 $15,236  Securities 913   946  1,124   3,874  4,750  Assets purchased under reverse repurchase agreements and securities borrowed 249   249  200   945  736  Deposits 14   14  18   61  91    5,202   5,379  5,216   20,852  20,813               Interest expense             Deposits 1,468   1,502  1,527   6,017  6,334  Other liabilities 475   505  635   1,977  2,723  Subordinated debentures 84   83  97   360  399    2,027   2,090  2,259   8,354  9,456 Net interest income 3,175   3,289  2,957   12,498  11,357               Non-interest income             Insurance premiums, investment and fee income 1,098   1,323  1,214   4,897  4,474  Trading revenue 258   295  (219)  1,298  655  Investment management and custodial fees 566   515  497   2,074  1,999  Mutual fund revenue 569   514  505   2,088  1,975  Securities brokerage commissions 330   292  331   1,213  1,331  Service charges 362   347  343   1,376  1,323  Underwriting and other advisory fees 375   379  277   1,434  1,485  Foreign exchange revenue, other than trading 203   129  181   655  684  Card service revenue 234   243  221   920  882  Credit fees 220   267  173   848  707  Net gain (loss) on available-for-sale securities 80   42  (2)  120  104  Share of (loss) profit in associates (1)  9  (12)  24  (7) Securitization revenue -   -  (1)  (1) -  Other 49   112  227   328  669 Non-interest income 4,343   4,467  3,735   17,274  16,281 Total revenue 7,518   7,756  6,692   29,772  27,638 Provision for credit losses  362   324  276   1,301  1,133 Insurance policyholder benefits, claims and acquisition expense  770   1,000  867   3,621  3,358               Non-interest expense             Human resources 2,332   2,313  2,032   9,287  8,661  Equipment 293   271  264   1,083  1,010  Occupancy 288   281  268   1,107  1,026  Communications 209   193  203   764  746  Professional fees 216   167  213   695  692  Outsourced item processing 55   64  64   254  266  Amortization of other intangibles 142   130  126   528  481  Impairment of goodwill and other intangibles  -   7  -   168  -  Other 338   333  360   1,274  1,285    3,873   3,759  3,530   15,160  14,167 Income before income taxes from continuing operations 2,513   2,673  2,019   9,690  8,980 Income taxes 602   433  410   2,100  2,010 Net income from continuing operations 1,911   2,240  1,609   7,590  6,970 Net loss from discontinued operations -   -  (38)  (51) (526)Net income$1,911  $2,240 $1,571  $7,539 $6,444               Net income attributable to:             Shareholders$1,888  $2,216 $1,546  $7,442 $6,343  Non-controlling interests 23   24  25   97  101   $1,911  $2,240 $1,571  $7,539 $6,444               Basic earnings per share (in dollars)$1.26  $1.49 $1.03  $4.98 $4.25 Basic earnings per share from continuing operations (in dollars) 1.26   1.49  1.06   5.01  4.62 Basic loss per share from discontinued operations (in dollars) -   -  (.03)  (.03) (.37)Diluted earnings per share (in dollars) 1.25   1.47  1.02   4.93  4.19 Diluted earnings per share from continuing operations (in dollars) 1.25   1.47  1.05   4.96  4.55 Diluted loss per share from discontinued operations (in dollars) -   -  (.03)  (.03) (.36)Dividends per common share (in dollars) .60   .57 .54  2.28  2.08(1)Derived from audited financial statements.(2)Derived from unaudited financial statements.  Consolidated Statements of Comprehensive Income   For the three-months ended For the year ended   October 31 July 31October 31 October 31October 31(Millions of Canadian dollars) 2012 (2)  2012 (2) 2011 (2)  2012 (1) 2011 (1)Net income$1,911  $2,240 $1,571  $7,539 $6,444 Other comprehensive income (loss), net of taxes             Net change in unrealized gains (losses) on available-for-sale securities              Net unrealized gains (losses) on available-for-sale securities 83   121  (52)  193  (30)  Reclassification of net (gains) losses on available-for-sale securities to income (32)  (12) (2)  (33) 13     51   109  (54)  160  (17) Foreign currency translation adjustments              Unrealized foreign currency translation gains (losses) 144   244  1,132   113  (625)  Net foreign currency translation (losses) gains from hedging activities (89)  (124) (647)  -  717   Reclassification of losses (gains) on foreign currency translation to income -   11  (1)  11  (1)    55   131  484   124  91  Net change in cash flow hedges              Net (losses) gains on derivatives designated as cash flow hedges (20)  49  142   32  298   Reclassification of (gains) losses on derivatives designated as cash flow hedges to income (11)  9  47   25  132     (31)  58  189   57  430 Total other comprehensive income, net of taxes 75   298  619   341  504 Total comprehensive income$1,986  $2,538 $2,190  $7,880 $6,948 Total comprehensive income attributable to:             Shareholders$1,963  $2,514 $2,164  $7,782 $6,847  Non-controlling interests 23   24  26   98  101    $1,986  $2,538 $2,190  $7,880 $6,948   (1)Derived from audited financial statements.(2)Derived from unaudited financial statements.                     Consolidated Statements of Changes in Equity                                 Other components of equity         (Millions of Canadian dollars)PreferredsharesCommonsharesTreasuryshares -preferredTreasuryshares -commonRetainedearningsAvailable-for-salesecuritiesForeigncurrencytranslationCashflowhedges Total Othercomponentsof equity EquityattributableShareholderNon-controllinginterestsTotal equityBalance at November 1, 2010 (1)$4,813$  13,378$(2)$(81)$  17,287$277$(20)$(271)$(14)$  35,381$2,094$  37,475Changes in equity                         Issues of share capital - 632 - - - - - - - 632 - 632 Sales of treasury shares - - 97 6,074 - - - - - 6,171 - 6,171 Purchases of treasury shares - - (95)   (5,985) - - - - -   (6,080) (324)   (6,404) Share-based compensation awards - - - - (33) - - - - (33) - (33) Dividends  - - - -   (3,237) - - - -   (3,237) (93)   (3,330) Other - - - - 21 - - - - 21 (14) 7 Net income - - - - 6,343 - - - - 6,343 101 6,444 Other components of equity                 -        Net change in unrealized gains (losses) on                  -         available-for-sale securities - - - - - (18) - - (18) (18) (2) (20)  Foreign currency translation adjustments - - - - - - 91 - 91 91 (1) 90  Net change in cash flow hedges - - - - - - - 431 431 431 - 431Balance at October 31, 2011$4,813 $  14,010 $- $8 $  20,381 $259 $71 $160 $490 $  39,702 $1,761 $  41,463 Changes in equity                         Issues of share capital - 313 - - - - - - - 313 - 313 Sales of treasury shares - - 98 5,186 - - - - - 5,284 - 5,284 Purchases of treasury shares - - (97)   (5,164) - - - - -   (5,261) -   (5,261) Share-based compensation awards - - - - (1) - - - - (1) - (1) Dividends  - - - -   (3,549) - - - -   (3,549) (92)   (3,641) Other - - - - (3) - - - - (3) (6) (9) Net income - - - - 7,442 - - - - 7,442 97 7,539 Other components of equity                 -        Net change in unrealized gains (losses) on                  -         available-for-sale securities - - - - - 160 - - 160 160 1 161  Foreign currency translation adjustments - - - - - - 124 - 124 124 - 124  Net change in cash flow hedges - - - - - - - 56 56 56 - 56Balance at October 31, 2012 (1)$4,813 $  14,323 $1 $30 $  24,270 $419 $195 $216 $830 $  44,267 $1,761 $  46,028  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 Q4 2012 Earnings Release, in other filings with Canadian regulators or the United Stated Securitized and Exchange Commission (SEC), in reports to shareholders and in other communications. Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, the economic, market and regulatory review and outlook for Canadian, U.S., European and global economies, the outlook and priorities for each of our business segments, and the risk environment including our liquidity and funding management. The forward-looking information contained in this document 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 and our financial performance objectives, vision, strategic goals and financial performance objectives, 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, operational, legal and regulatory compliance, insurance, reputation and strategic risks and other risks discussed in the Risk management and Overview of other risks sections of our 2012 Annual Report; the impact of changes in laws and regulations, including relating to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued and to be issued thereunder, the Basel Committee on Banking Supervision's global standards for capital and liquidity reform, over-the-counter derivatives reform, the payments system in Canada, consumer protection measures and regulatory reforms in the U.K. and Europe; general business and economic market conditions in Canada, the United States and certain other countries in which we operate, including the effects of the European sovereign debt crisis, and the high levels of Canadian household debt; cybersecurity; the effects of changes in government fiscal, monetary and other policies; the effects of competition in the markets in which we operate; our ability to attract and retain employees; the accuracy and completeness of information concerning our clients and counterparties; judicial or regulatory judgments and legal proceedings; development and integration of our distribution networks; and the impact of environmental issues.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 Q4 2012 Earnings Release are set out in the Overview and Outlook section and for each business segment under the heading Outlook and priorities in our 2012 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 management and Overview of other risks sections of our 2012 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 MATERIALSInterested investors, the media and others may review this Q4 2012 Earnings Release, quarterly results slides, Supplementary Financial Information and our 2012 Annual Report, 2012 Annual Information Form (AIF) and Annual Report on Form 40-F (Form 40-F) on our website at rbc.com/investorrelations. Shareholders may request a hard copy of our 2012 Annual Report, AIF and Form 40-F free of charge by contacting Investor Relations at (416) 955-7802. Our Form 40-F will be filed with the SEC.Quarterly conference call and webcast presentationOur conference call is scheduled for Thursday, November 29, 2012 at 8:00 a.m. (EDT) and will feature a presentation about our fourth quarter and 2012 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: www.rbc.com/investorrelations/ir_events_presentations.html or by telephone (416-340-2217 or 1-866-696-5910, passcode 1853457#). Please call between 7:50 a.m. and 7:55 a.m. (EDT).Management's comments on results will be posted on our website shortly following the call. Also, a recording will be available by 5:00 p.m. (EDT) on November 29, 2012 until February 27, 2013 at: www.rbc.com/investorrelations/ir_quarterly.html or by telephone (905-694-9451 or 1-800-408-3053, passcode 3629188#).ABOUT RBCRoyal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. We are Canada's largest bank as measured by assets and market capitalization, and among the largest banks in the world, based on market capitalization. We are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and wholesale banking on a global basis. We employ approximately 80,000 full- and part-time employees who serve more than 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 49 other countries. For more information, please visit rbc.com.Trademarks used in this earnings release include the LION & GLOBE Symbol, ROYAL BANK OF CANADA, RBC and RBC INVESTOR SERVICES 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 report, which are not the property of Royal Bank of Canada, are owned by their respective holders. SOURCE: RBCFor further information: Media Relations Contact Tanis Feasby, Director, Financial Communications, tanis.feasby@rbc.com, 416-955-5172 or 1-888-880-2173 (toll-free outside Toronto) Rina Cortese, Media Relations, rina.cortese@rbc.com, 416-974-5506 or 1-888-880-2173 (toll-free outside Toronto) Investor Relations Contacts Amy Cairncross, VP & Head, Investor Relations, amy.cairncross@rbc.com, 416-955-7803 Karen McCarthy, Director, Investor Relations, karen.mccarthy@rbc.com, 416-955-7809 Lynda Gauthier, Director, Investor Relations, lynda.gauthier@rbc.com, 416-955-7808 Robert Colangelo, Associate Director, Investor Relations, robert.colangelo@rbc.com, 416-955-2049