Royal Bank of Canada

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Royal Bank of Canada
Banque Royale du Canada
Type Public (TSX: RY, NYSE: RY)
Founded Halifax, Nova Scotia, Canada , 1864
Headquarters Toronto, Canada and Montreal, Canada
Key people Gordon Nixon - President & CEO
Industry Financial services
Products Financial services
Revenue 20.6 billion (2006)
Employees 60,858 (full time equivalent)
Website http://www.rbc.com/

The Royal Bank of Canada (TSX: RY, NYSE: RY) is Canada's largest chartered bank. It has over 1,400 branches across Canada, over 70,000 full-and part-time employees worldwide, and offices in over 34 countries.

Its primary marketing name is now RBC and that name is used on all its business units, which are collectively known as RBC Financial Group. Examples include RBC's capital market operations RBC Capital Markets; full service investment brokerage firm RBC Dominion Securities, and online investment site RBC Direct Investing. RBC also has a large retail banking presence in the southeastern United States, marketing itself there as RBC Centura.

RBC is incorporated in Montreal in its formal headquarters at Place Ville Marie, but now, all the decisions are made out of Toronto at the Royal Bank Plaza. RBC ranks number 83 on the Forbes Global 2000 list (2006 edition). Its market cap fluctuates at around CAD$ 63.7 billion as of October 31, 2006.

Contents

[edit] Timeline

[edit] International timeline

RBC has carved out a name for itself as a leader in the Caribbean region. RBC Royal Bank maintains a profitable base from its Caribbean operations, and has retained high brand recognition among its other top competitors. RBC is especially known in the anglophone Caribbean for its various personal and business banking services in retailing, loans, and credit offerings.

RBC now has a large retail banking presence in the southeastern United States, marketing itself there as RBC Centura. RBC Centura has unveiled plans for a move of its headquarters to Raleigh. The bank has recently merged with Flag Bank, increasing it's presence in Georgia. RBC continues to grow in the Southeast after recently acquiring 39 branches of AmSouth Bank in Alabama (previously RBC Centura had no locations in this state).

The Carolina Hurricanes and NC State Wolfpack play in the RBC Center.


[edit] Competition

Main competitors are Citigroup, Credit Suisse, Credit Agricole, BNP Paribas, Bank of America, Royal Bank of Scotland, Deutsche Bank, Goldman Sachs, HSBC Private Bank, JP Morgan, Dresdner Kleinwort, Natixis, Lehman Brothers, Morgan Stanley, and Merrill Lynch among others. Major Canadian competitors in personal markets include TD Canada Trust, Bank of Montreal, CIBC, and Bank of Nova Scotia.

[edit] Logo

Royal Bank of Canada's previous logo (the crown was removed)
Royal Bank of Canada's previous logo (the crown was removed)

The bank's symbol is a golden lion clutching a globe, on a blue background. An older version had a crown above the globe and had the lion facing to the left rather than the right. The change coincided with an expansion in United States markets.

[edit] Corporate governance

Edson Loy Pease (1856-1930), a Quebec native, was a chief executive and managing director of the bank and one of the key people in its history. An employee of the Merchants' Bank of Halifax, he built that bank's Quebec business to where Montreal became its centre of operations. His efforts saw the Bank formally relocate its head office in 1907 to St. James Street in Montreal following which he induced the prominent Montreal business magnate Herbert S. Holt to accept an appointment as the bank's new President. While at the time Holt's presidency was largely a ceremonial position, his name substantially raised the bank's profile and broadened its business connections.

The title of Royal Bank's top executive has changed several times. Initially it was styled as President. Later, it became Chief Executive Officer and one often carried additional responsibilities as Chairman of the Board, while the second-in-command was the President. Allan R. Taylor was Chairman and CEO from 1986 to 1994, and he was succeeded by John Cleghorn in that capacity from 1994-2001. Gordon Nixon is currently the President and Chief Executive Officer, as the bank decided to appoint a non-executive chairman after Cleghorn's retirement.

President

Chairman

Current members of the board of directors are: Geoffrey Beattie, George Cohon, Douglas Elix, John Ferguson, Paule Gauthier, Jacques Lamarre, Brandt Louie, Gordon Nixon, David O'Brien, Robert Peterson, Pedro Reinhard, Timothy Hearn, Kathleen Taylor, Victor Young, Michael McCain, Alice Labeige.

[edit] History of Head Offices

[edit] Media attention

On January 15, 2007, CBC Radio reported RBC is "refusing" people of certain nationalities to open U.S. dollar accounts with the bank.[1] Canadian citizens with dual citizenship in Cuba, Iran, Iraq, Myanmar, North Korea or Sudan (mostly countries with U.S. sanctions) are affected. The U.S. Treasury Department restricts certain foreign nationals from using the U.S. dollar payment system to limit terrorism and money laundering after the September 11, 2001 attacks. RBC replied that the compliance with such laws do not represent an endorsement by the bank and on January 17, clarified its position on the application of the U.S. laws, specifying that "with some exceptions" it does open accounts for dual citizens of the sanctioned countres.[2].

[edit] Memberships

RBC is a member of the Canadian Bankers Association (CBA) and registered member with the Canada Deposit Insurance Corporation (CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:

[edit] References

  • McDowall, Duncan. 1993. Quick to the Frontier: Canada's Royal Bank. Royal Bank of Canada.

[edit] External links

[edit] Historical bank notes

Commercial banks in Canada
AMEX Bank of Canada | ATB Financial | Bank of Montreal | BDC | CIBC | CTFS | Canadian Western Bank | Citibank Canada | Citizens Bank of Canada | First Nations | HSBC Bank Canada | Laurentian Bank | Manulife | National Bank | President's Choice Financial | RBC | Scotiabank | TD Canada Trust
Royal Bank of Canada

Chief Executive Officer: Gordon Nixon | FY 2006 Statistics: Net income: $4.7 billion CAD (40%) | Market capitalization: $63.8 billion CAD | Assets: $536.8 billion CAD | Employees: 60,858 | Stock symbols: TSX: RY NYSE: RY | Website: www.rbc.com

Major brands by financial service
Master: RBC | Financial group: RBC Financial Group | Canadian banking: RBC Royal Bank | U.S. banking: RBC Centura | International banking: Royal Bank of Canada Global Private Banking | Canadian mutual funds: RBC Funds | U.S. mutual funds: Tamarack Funds | Canadian brokerage: RBC Direct Investing and RBC Dominion Securities | U.S. brokerage: RBC Dain Rauscher | Canadian insurance: RBC Insurance | U.S. insurance: RBC Insurance | Capital markets: RBC Capital Markets | Custodial: RBC Dexia
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