Royal Bank of Canada reports $1,245 million of earnings and 21.4% ROE for the first quarter of 2008



    The financial information in this earnings release is in Canadian dollars
    and is based on financial statements prepared in accordance with Canadian
    generally accepted accounting principles (GAAP), unless otherwise noted.
    Our Q1 2008 Report to Shareholders and Supplementary financial
    information are available on our website at rbc.com/investorrelations.

    
    First quarter 2008 compared to first quarter 2007

    -   Net income of $1,245 million, down 17%.
    -   Diluted earnings per share (EPS) of $0.95, down 17%.
    -   Revenue of $5,647 million, down 1%.
    -   Return on common equity (ROE) of 21.4%, down 590 basis points.
    -   Tier 1 capital ratio of 9.8%.

    First quarter 2008 compared to fourth quarter 2007

    -   Net income of $1,245 million, down 6%.
    -   Diluted EPS of $0.95, down 6%.
    -   Revenue of $5,647 million, up 1%.
    -   ROE of 21.4%, down 160 basis points.
    

    TORONTO, Feb. 29 /CNW/ - Royal Bank of Canada (RY on TSX & NYSE) today
reported net income of $1,245 million for the first quarter ended
January 31, 2008, down $249 million from record earnings a year ago. Our
Q1 2008 earnings were reduced by a writedown in Capital Markets of
$187 million after-tax and related compensation adjustments, higher impaired
loans in U.S. banking over last year, and a $45 million impact over last year
from strong appreciation of the Canadian dollar against the U.S. dollar. Also,
our Q1 2007 earnings were favourably affected by a $40 million adjustment
related to reallocation of foreign investment capital, a $25 million
cumulative valuation adjustment related to prior periods, a $14 million
foreign exchange translation gain on certain deposits, and a tax reversal.
    "Almost all of our businesses within our four segments delivered solid
performance this quarter and while a few have been affected by the difficult
market conditions, our diversified business mix, proactive approach to risk
management and rigorous operational discipline continue to underpin strong
earnings," said Gordon M. Nixon, President and CEO.
    "We are focused on building our businesses for the long term. Last year,
we aggregated all our wealth management businesses into a separate segment to
better position them for strong growth in Canada and globally. Our planned
acquisitions of Phillips, Hager & North Investment Management Ltd. (PH&N) in
Canada and Ferris, Baker Watts, Incorporated in the U.S. fit perfectly with
these objectives. Joining forces with PH&N is particularly exciting for us
because it will bring two asset management leaders together for the benefit of
our clients and will form one of the largest private sector asset managers in
Canada, as measured by assets under management. Also, in U.S. & International
Banking, we recently closed the Alabama National BanCorporation acquisition
and expect to close our pending acquisition of RBTT Financial Group in the
middle of 2008," Nixon said.
    Canadian Banking net income was $762 million, flat compared to last year
and down 15% over last quarter. Net income was up 8% over last year, excluding
the favourable impact of adjustments recorded in Q1 2007 in Global Insurance,
outlined below. Net income was up 7% over last quarter, excluding the
$269 million after-tax gain related to the Visa restructuring and a
$79 million after-tax charge to increase the credit card customer loyalty
reward program liability recorded in Q4 2007.
    Banking-related net income increased by 15% over last year. Compared to
last quarter, earnings decreased 16%, or increased 11% excluding the Visa
restructuring gain and the charge relating to the loyalty reward program
liability. Volume growth across all our banking-related businesses drove
results over both periods.
    "The excellent growth in our banking-related businesses demonstrates that
our clients are rewarding us with their business and we are successfully
executing our growth initiatives. We continue to make market share advances in
key areas such as residential mortgages and personal deposits and,
importantly, our banking-related operations are running efficiently with
operating leverage of 4.1%," Nixon said.
    Global Insurance net income was $89 million, down 52% or $96 million over
last year and down 13% or $13 million over last quarter. Our prior year net
income included the favourable impacts of a $40 million adjustment related to
the reallocation of foreign investment capital and a $25 million cumulative
valuation adjustment related to prior periods. Last quarter included a gain
related to the sale of securities in our U.S. operations.
    Wealth Management net income was $181 million, down 14% or $30 million
over last year and flat compared to last quarter. Our prior year earnings were
favourably impacted by a $14 million foreign exchange translation gain on
certain deposits and a tax reversal. Strong appreciation of the Canadian
dollar against the U.S. dollar reduced earnings by $11 million over last year.
Despite these items, we increased fee-based client assets across our business
and had solid deposit and loan growth in our international wealth management
business. Compared to the fourth quarter, net income was flat reflecting lower
revenue due to uncertainty in global financial markets.
    "We remain focused on aggressively growing this segment and, as our
recent announcements demonstrate, we are committed to pursuing opportunities
that leverage our strengths and position us to capitalize on favourable long
term trends in wealth management," Nixon said.
    U.S. & International Banking net income was $31 million, down $36 million
over last year due to higher provisions for credit losses of $61 million,
primarily on higher impaired loans in our U.S. residential builder finance
business, as well as in our commercial and retail portfolios. In U.S. dollars,
banking-related operations grew loans 12% and deposits 18% over last year
primarily reflecting acquisitions made in 2007. RBC Dexia Investor Services
(IS) continues to perform well and increased revenue over last year as a
result of higher custodian and securities lending, higher foreign exchange
transaction fees and business growth from existing and new clients. Net income
increased $10 million over the last quarter supported by business growth in
RBC Dexia IS and our U.S. banking business. Provision for credit losses was
flat relative to the last quarter.
    "Our U.S. residential builder finance business continues to face pressure
as the U.S. economy remains under stress, but we are managing the current
challenges and I am encouraged by the work being done to strengthen our retail
banking operation in the U.S. Southeast," Nixon said.
    Capital Markets net income was $304 million, down $92 million from record
results a year ago primarily due to writedowns related to losses in U.S.
subprime, the investment portfolio supporting our U.S. Municipal GIC business,
the U.S. commercial mortgage-backed securities business, and our U.S. auction
rate securities portfolio. Combined, these writedowns had an impact of
$430 million before-tax ($187 million after-tax and related compensation
adjustments). Also, appreciation of the Canadian dollar against the U.S.
dollar and British pound reduced earnings by $24 million from last year.
Compared to last quarter, net income increased $118 million due to strong
results across most businesses.
    Revenue was down from last year reflecting the writedowns noted above.
However, most of our businesses performed well compared to last year, as
declining interest rates and increased market volatility generated
opportunities in areas such as fixed income, foreign exchange and equity
derivatives trading. Compared to last quarter, revenue was up primarily on
higher fixed income and foreign exchange trading and higher loan syndication
activity. ROE was 23.9%.
    "Strong results in a number of our businesses demonstrate the importance
of having a diversified business model and robust risk management practices. I
believe we are well positioned to manage through turbulent markets, and will
maintain our focused strategy of building our business in areas where we have
strength," Nixon said.

    
    Progress on strategic goals

    We continue to make advances to strengthen our leadership position in
Canada.

    -   Wealth Management announced an agreement to acquire Phillips, Hager &
        North Investment Management Ltd. (PH&N). Together with RBC's existing
        businesses this will extend our lead in meeting the discretionary
        investment needs of high net worth private clients, will establish us
        as one of the top five institutional managers in Canada serving group
        pension plans, endowments and foundations, and will extend RBC's
        existing leadership in the Canadian retail mutual fund market.
    -   RBC Asset Management led the industry in overall net mutual fund
        sales, gathering more than $4 billion of assets in a record first
        quarter.
    -   We opened four new bank branches and continued remodelling bank
        branches to enhance our client experience and reflect our Client
        First focus of ensuring we are there when customers need us. We also
        opened two new adjacent insurance branches.
    -   Capital Markets ranked first in Canadian mergers and acquisitions,
        equity underwriting and corporate debt financing according to
        Bloomberg's 2007 League Tables.
    -   RBC Direct Investing received Dalbar's 2007 Direct Brokerage Service
        Award for providing best overall customer service.

    In the U.S., we continue to build our presence in three key areas:
banking, wealth management and capital markets.

    -   Wealth Management announced an agreement to acquire Ferris, Baker
        Watts, Incorporated, a full-service broker-dealer with 330 financial
        consultants and US$18.5 billion in assets under administration, to
        strategically expand our presence in the key Eastern, Midwest and
        Mid-Atlantic regions of the U.S. This will bring the total number of
        financial consultants to over 2,000 across our national wealth
        management network in the U.S.
    -   Subsequent to quarter end, we closed the acquisition of Alabama
        National BanCorporation, which expands our branch network to more
        than 430 locations, solidifies our market position in Alabama, opens
        new and important markets in Florida, and increases our presence in
        Atlanta.

    Internationally, we continue to build on our strengths in selected markets
and product areas.

    -   Wealth Management was recognized for the third consecutive year, as
        the number one provider of trust services in the U.K., according to
        Euromoney 2008 Private Banking Survey and also won the award for best
        offshore services in the U.K.
    -   We opened a representative office in Mumbai to provide wealth
        management services to high net worth individuals, correspondent and
        trade finance services to financial institutions in India and capital
        markets products and services to corporations.
    -   We completed our previously announced 50% investment in Royal
        Fidelity Merchant Bank & Trust Limited, which extends our growing
        financial services platform in the Caribbean.
    -   RBC Dexia IS was named the "Top-Rated" global custodian in Europe for
        2007 for the second consecutive year (Global Custodian).
    

    2008 Performance review

    The table below outlines our 2008 annual objectives that were established
at the end of 2007 based on our three strategic goals and our economic and
business outlook. As indicated last quarter, we anticipated that early 2008
would be challenging with continued financial market volatility and slower
economic growth and our first quarter results should be viewed in this
context. We still expect that economic growth in the U.S. and Canada will pick
up in the latter part of 2008 and we continue to drive towards achieving our
2008 annual objectives.

    
    -------------------------------------------------------------------------
                                                     2008          Q1 2008
                                                  Objectives     Performance
                                                 ----------------------------
    1. Diluted earnings per share (EPS) growth     7% - 10%         (17)%
    2. Defined operating leverage(1)          (greater than) 3%     (.2)%
    3. Return on common equity (ROE)                 20%+           21.4%
    4. Tier 1 capital ratio(2)                        8%+            9.8%
    5. Dividend payout ratio                      40% - 50%           52%
    -------------------------------------------------------------------------

    (1) Our defined operating leverage is a non-GAAP measure and refers to
        the difference between our revenue growth rate (as adjusted) and
        non-interest expense growth rate (as adjusted). For further
        information, including a reconciliation, refer to the Key performance
        and non-GAAP measures in our Q1 2008 Report to Shareholders.
    (2) Calculated using guidelines issued by the Office of the
        Superintendent of Financial Institutions Canada (OSFI) under the new
        Basel II framework, which changes the methodology for the
        determination of risk-adjusted assets and regulatory capital.
    

    Our first quarter diluted EPS was impacted by writedowns in Capital
Markets and higher provisions for credit losses in U.S. & International
Banking. Our three-month defined operating leverage ratio was also impacted by
the writedowns. Despite these challenges, ROE was 21.4% reflecting strong
performance across most of our businesses. Our capital position remained
strong, with a Tier 1 capital ratio comfortably above our target, now reported
under Basel II. We are maintaining our quarterly common share dividend at
$0.50 in the second quarter.
    "I would like to assure you that we remain focused on taking actions that
create value for our shareholders - growing the business profitably, watching
our costs, maintaining our risk profile within our risk appetite and deploying
our capital judiciously," Nixon said. "I would like to thank our clients for
their business and our employees for their ongoing efforts to earn the right
to be our clients' first choice".



    
    SELECTED FINANCIAL HIGHLIGHTS

    ------------------------------------------------------------------------

                                         As at or for the three months ended
                                       --------------------------------------
    (C$ millions, except per share,     January 31   October 31   January 31
     number of and percentage amounts)        2008         2007         2007
    -------------------------------------------------------------------------
      Total revenue                    $     5,647  $     5,615  $     5,698
      Non-interest expense                   3,120        3,093        3,067
      Provision for credit losses              293          263          162
      Insurance policyholder
       benefits, claims and
       acquisition expense                     616          637          516
      Net income before income
       taxes and non-controlling
       interest in subsidiaries              1,618        1,622        1,953
    Net income                         $     1,245  $     1,324  $     1,494
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Segments - net income (loss)
      Canadian Banking                 $       762  $       899  $       771
      Wealth Management                        181          180          211
      U.S. & International Banking              31           21           67
      Capital Markets                          304          186          396
      Corporate Support                        (33)          38           49
    Net income                         $     1,245  $     1,324  $     1,494
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Selected information
      Earnings per share
       (EPS) - basic                   $      0.96  $      1.02  $      1.16
      Earnings per share
       (EPS) - diluted                 $      0.95  $      1.01  $      1.14
      Return on common
       equity (ROE)(1)                       21.4%        23.0%        27.3%
      Return on risk
       capital (RORC)(2)                     35.6%        35.8%        41.6%
      Net interest margin(3)                 1.38%        1.35%        1.31%
    Capital ratios(4)
      Tier 1 capital ratio
                    - Basel II                9.8%         n.a.         n.a.
                    - Basel I                 9.2%         9.4%         9.2%
      Total capital ratio
                    - Basel II               11.2%         n.a.         n.a.
                    - Basel I                11.0%        11.5%        11.2%
    Selected balance sheet
     and other information
      Total assets                     $   632,761  $   600,346  $   571,615
      Securities                           184,348      178,255      196,851
      Retail loans                         174,779      169,462      154,333
      Wholesale loans                       72,430       69,967       65,385
      Deposits                             394,416      365,205      365,606
      Average common equity(1)              22,750       22,450       21,450
      Average risk capital(2)               13,650       14,400       14,100
      Risk-adjusted assets(4)
                    - Basel II             241,206         n.a.         n.a.
                    - Basel I              259,978      247,635      242,290
      Assets under management              165,000      161,500      157,700
      Assets under
       administration
                    - RBC(5)               607,200      615,100      621,300
                    - RBC Dexia IS(6)    2,922,000    2,713,100    2,666,400
    Common share information
      Shares outstanding (000s)
                    - average basic      1,273,862    1,273,005    1,274,354
                    - average diluted    1,286,595    1,287,442    1,293,085
                    - end of period      1,276,635    1,276,260    1,275,950
      Dividends declared per share     $      0.50  $      0.50  $      0.40
      Dividend yield                          4.0%         3.7%         3.0%
      Common share price (RY on TSX)
       - close, end of period          $     50.65  $     56.04  $     54.60
      Market capitalization (TSX)           64,662       71,522       69,667
    Business information (number of)
      Employees (full-time
       equivalent)(7)                       64,905       64,815       61,967
      Bank branches                          1,544        1,541        1,467
      Automated teller machines              4,547        4,419        4,273
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Period average US$ equivalent
     of C$1.00(8)                      $     1.002  $     1.001  $     0.861
    Period-end US$ equivalent
     of C$1.00                               0.996        1.059        0.850
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    SELECTED FINANCIAL HIGHLIGHTS

    -----------------------------------------------------------
                                                Change
                                         January 31, 2008 vs.
                                       ------------------------
    (C$ millions, except per share,     October 31   January 31
     number of and percentage amounts)        2007         2007
    ------------------------------------------------------------
      Total revenue                    $        32  $       (51)
      Non-interest expense                      27           53
      Provision for credit losses               30          131
      Insurance policyholder
       benefits, claims and
       acquisition expense                     (21)         100
      Net income before income
       taxes and non-controlling
       interest in subsidiaries                 (4)        (335)
    Net income                         $       (79) $      (249)
    ------------------------------------------------------------
    ------------------------------------------------------------
    Segments - net income (loss)
      Canadian Banking                 $      (137) $        (9)
      Wealth Management                          1          (30)
      U.S. & International Banking              10          (36)
      Capital Markets                          118          (92)
      Corporate Support                        (71)         (82)
    Net income                         $       (79) $      (249)
    ------------------------------------------------------------
    ------------------------------------------------------------
    Selected information
      Earnings per share
       (EPS) - basic                   $     (0.06) $     (0.20)
      Earnings per share
       (EPS) - diluted                 $     (0.06) $     (0.19)
      Return on common
       equity (ROE)(1)                   (160) bps    (590) bps
      Return on risk
       capital (RORC)(2)                  (20) bps    (600) bps
      Net interest margin(3)                 3 bps        7 bps
    Capital ratios(4)
      Tier 1 capital ratio
                    - Basel II                n.a.         n.a.
                    - Basel I             (20) bps        - bps
      Total capital ratio
                    - Basel II                n.a.         n.a.
                    - Basel I             (50) bps     (20) bps
    Selected balance sheet
     and other information
      Total assets                     $    32,415  $    61,146
      Securities                             6,093      (12,503)
      Retail loans                           5,317       20,446
      Wholesale loans                        2,463        7,045
      Deposits                              29,211       28,810
      Average common equity(1)                 300        1,300
      Average risk capital(2)                 (750)        (450)
      Risk-adjusted assets(4)
                    - Basel II                n.a.         n.a.
                    - Basel I               12,343       17,688
      Assets under management                3,500        7,300
      Assets under
       administration
                    - RBC(5)                (7,900)     (14,100)
                    - RBC Dexia IS(6)      208,900      255,600
    Common share information
      Shares outstanding (000s)
                    - average basic            857         (492)
                    - average diluted         (847)      (6,490)
                    - end of period            375          685
      Dividends declared per share     $         -  $      0.10
      Dividend yield                        30 bps      100 bps
      Common share price (RY on TSX)
       - close, end of period          $     (5.39) $     (3.95)
      Market capitalization (TSX)           (6,860)      (5,005)
    Business information (number of)
      Employees (full-time
       equivalent)(7)                           90        2,938
      Bank branches                              3           77
      Automated teller machines                128          274
    ------------------------------------------------------------
    ------------------------------------------------------------
    Period average US$ equivalent
     of C$1.00(8)                      $         -  $      0.14
    Period-end US$ equivalent
     of C$1.00                               (0.06)        0.15
    ------------------------------------------------------------
    ------------------------------------------------------------

    (1) Average common equity and ROE are calculated using month-end balances
        for the period.
    (2) Average amounts are calculated using methods intended to approximate
        the average of the daily balances for the period. For further
        discussion on Average risk capital and RORC, refer to the Key
        performance and non-GAAP measures section in our Q1 2008 Report to
        Shareholders.
    (3) Net interest margin (NIM) is calculated as Net interest income
        divided by Average assets. Average assets are calculated using
        methods intended to approximate the average of the daily balances for
        the period.
    (4) Commencing the first quarter of 2008, capital ratios and risk-
        adjusted assets are calculated using guidelines issued by the OSFI
        under the new Basel II framework. Comparative capital ratios and
        risk-adjusted assets are calculated using guidelines issued by the
        OSFI under the Basel I framework. For further discussion about Basel
        II, refer to the Capital Management section in our Q1 2008 Report to
        Shareholders.
    (5) Assets under administration (AUA) - RBC has been revised to include
        mutual funds sold though our Canadian branch network. Comparative
        amounts have been revised to reflect this change.
    (6) AUA - RBC Dexia IS represents the total AUA of the joint venture as
        at December 31, 2007, of which we have a 50% ownership interest.
    (7) Effective the first quarter of 2008, we have excluded statutory
        holiday pay for part-time employees from our full-time equivalent
        (FTE) calculation consistent with our management reporting framework.
        All comparative amounts reflect the change to the FTE calculation.
    (8) Average amounts are calculated using month-end spot rates for the
        period.

    n.a. not applicable
    bps basis point
    

    Key performance and non-GAAP measures

    Non-GAAP measures

    We use and report certain non-GAAP financial measures discussed below,
consistent with our management framework. These measures do not have
standardized meanings under GAAP and are not necessarily comparable with
similar information reported by other financial institutions. In the fourth
quarter of 2007, the Visa restructuring gain and the charge to increase the
credit card customer loyalty reward program liability impacted our results. In
addition, in the first quarter of 2007, the favourable impacts of an
adjustment related to the reallocation of certain foreign investment capital
and a cumulative valuation adjustment related to prior periods impacted our
results. The following table provides a reconciliation of net income for
Canadian Banking and net income and revenue for Banking-related operations of
Canadian Banking excluding these items. Management believes identifying and
adjusting for these items enhances the comparability of our financial
performance in the first quarter of 2008 relative to prior periods.

    

                                            For the three months ended
                      -------------------------------------------------------
                             January 31                 October 31
                                2008                       2007
                      -------------------------------------------------------
                       Canadian          Banking- Canadian Banking- Banking-
                        Banking Banking-  related  Banking           related
                            net  related      net      net  related      net
    (C$ millions)        income  revenue   income   income  revenue   income
    -------------------------------------------------------------------------
    GAAP reported
     amounts            $   762  $ 2,408  $   673  $   899  $ 2,566  $   797
    Exclude:
      Visa
       restructuring
       gain                   -        -        -     (269)    (326)    (269)
      Liability
       adjustment
       related to credit
       card customer
       loyalty reward
       program                -        -        -       79      121       79
      Foreign currency
       translation
       adjustment             -        -        -        -        -        -
      Cumulative
       valuation
       adjustment             -        -        -        -        -        -
    -------------------------------------------------------------------------
    Amounts excluding
     the impacts of
     items noted above  $   762  $ 2,408  $   673  $   709  $ 2,361  $   607
    -------------------------------------------------------------------------


                      ----------------------------
                               January 31
                                 2007
                      ----------------------------
                        Canadian         Banking-
                        Banking Banking-  related
                            net  related      net
    (C$ millions)        income  revenue   income
    ----------------------------------------------
    GAAP reported
    amounts             $   771  $ 2,221  $   586
    Exclude:
      Visa
       restructuring
       gain                   -        -        -
      Liability
       adjustment
       related to credit
       card customer
       loyalty reward
       program                -        -        -
      Foreign currency
       translation
       adjustment           (40)       -        -
      Cumulative
       valuation
       adjustment           (25)       -        -
    ----------------------------------------------
    Amounts excluding
     the impacts of
     items noted above  $   706  $ 2,221  $   586
    ----------------------------------------------
    

    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 United States Securities and Exchange Commission,
in reports to shareholders and in other communications. Forward-looking
statements include, but are not limited to, statements relating to our
medium-term and 2008 objectives, our strategic goals and priorities and the
economic and business outlook for us, for each of our business segments and
for the Canadian, United States and international economies. Forward-looking
statements are typically identified by words such as "believe," "expect,"
"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 objectives, strategic goals and
priorities will not be achieved. We caution readers not to place undue
reliance on these statements as a number of important factors could cause our
actual results to differ materially from the expectations expressed in such
forward-looking statements. These factors include credit, market, operational,
liquidity and funding risks, and other risks discussed in our Q1 2008 Report
to Shareholders and our 2007 Annual Report to Shareholders; general business
and economic conditions in Canada, the United States and other countries in
which we conduct business, including the impact from the continuing volatility
in the U.S. subprime and related markets and lack of liquidity in various
other financial markets; the impact of the movement of the Canadian dollar
relative to other currencies, particularly the U.S. dollar, British pound and
Euro; the effects of changes in government monetary and other policies; the
effects of competition in the markets in which we operate; the impact of
changes in laws and regulations; judicial or regulatory judgments and legal
proceedings; the accuracy and completeness of information concerning our
clients and counterparties; our ability to successfully execute our strategies
and to complete and integrate strategic acquisitions and joint ventures
successfully; changes in accounting standards, policies and estimates,
including changes in our estimates of provisions and allowances; and our
ability to attract and retain key employees and executives.
    We caution that the foregoing list of important 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. 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 our
Q1 2008 Report to Shareholders and in our 2007 Annual Report to Shareholders.
    Information contained in or otherwise accessible through the websites
mentioned does not form part of this document. All references in this document
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 Q1 2008 Report to Shareholders on our website at
rbc.com/investorrelations.

    Quarterly conference call and webcast presentation

    The conference call is scheduled for Friday, February 29, 2008 at
1:30 p.m. (EST). At that time, senior executives will comment on the results
for the first quarter of 2008 and respond to questions from analysts and
institutional investors. Interested parties can listen to our first quarter
results conference call with analysts and institutional investors live, and
archived, via the Internet and toll-free telephone:

    via the Internet at:
    rbc.com/investorrelations/ir_events_presentations.html

    via telephone at:
    416-641-6147 (within Toronto) or 1-866-305-1209 (toll-free outside
Toronto). Please call between 1:20 and 1:25 p.m. (EST). A recording of the
conference call can be accessed after 5:00 p.m. (EST) on February 29 until
May 30, 2008, at 416-695-5800 or 1-800-408-3053 by entering passcode 3241686
followed by the number sign.

    ABOUT RBC

    Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate
under the master brand name of RBC. We are Canada's largest bank as measured
by assets and market capitalization and one of North America's leading
diversified financial services companies. We provide personal and commercial
banking, wealth management services, insurance, corporate and investment
banking, and transaction processing services on a global basis. We employ
approximately 70,000 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 36 other countries. For more information,
please visit rbc.com.

    Trademarks used in this report include the LION & GLOBE Symbol,
    ROYAL BANK OF CANADA, RBC, RBC ASSET MANAGEMENT and RBC DIRECT INVESTING
    which are trademarks of Royal Bank of Canada used by Royal Bank of Canada
    and/or 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. RBC Dexia IS and affiliated RBC Dexia
    IS companies are licensed users of the RBC trademark.





For further information:

For further information: Media Relations Contact: Beja Rodeck, Media
Relations, beja.rodeck@rbc.com, (416) 974-5506 (within Toronto) or
1-888-880-2173 (toll-free outside Toronto); Investor Relations Contacts:
Marcia Moffat, Head, Investor Relations, marcia.moffat@rbc.com, (416)955-7803;
Bill Anderson, Director, Investor Relations, william.anderson@rbc.com, (416)
955-7804; Amy Cairncross, Director, Investor Relations,
amy.cairncross@rbc.com, (416) 955-7809


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