TORONTO, Oct. 16 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced its intention, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange, to renew its normal course issuer bid through the facilities of the Toronto Stock Exchange and to repurchase for cancellation up to 20 million common shares, representing approximately 1.4 per cent of the bank's outstanding common shares as at October 14, 2009. The bank intends to file a notice of intention with the Toronto Stock Exchange in this regard.
Purchases may commence after the Toronto Stock Exchange has accepted the notice of intention and may continue for a period of one year. The amount and timing of any purchases will be determined by the bank. The price paid for any repurchased shares will be the market price of such shares on the TSX at the time of acquisition. The bank will only initiate purchases under the bid after consulting with the Office of the Superintendent of Financial Institutions (OSFI).
The proposed share repurchase will enable the bank to balance the imperatives of maintaining strong capital ratios with the ongoing need to generate shareholder value. On July 31, 2009, the bank's Tier 1 and Total capital ratios were 12.9 per cent and 14.4 per cent, respectively.
The bank currently has a normal course issuer bid in place through which no common shares have been repurchased as of October 14, 2009. This bid will expire on October 31, 2009.
For further information: For further information: Investor contact: Alethea Rasquinha, (416) 955-7807; Media contact: Stephanie Lu, (416) 974-5506