TORONTO, Oct. 17 /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 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 1.5 per cent of the bank's outstanding common
shares as at October 15, 2008. 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 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, 2008, the bank's Tier 1 and Total
capital ratios were 9.5 per cent and 11.7 per cent, respectively.
The bank currently has a normal course issuer bid under way through which
approximately 1.1 million of an allowed 20 million common shares have been
repurchased as of October 15, 2008. This bid will expire October 31, 2008.
RBC intends to establish a plan under which its broker, RBC Dominion
Securities Inc., would repurchase RBC shares pursuant to the bid. Such a plan
would define a pre-arranged set of criteria, in accordance with which share
repurchases would be made automatically, until the plan is terminated by RBC
or the bid expires. RBC would not be entitled to vary, suspend or terminate
the plan except in accordance with its terms.
For further information:
For further information: Investor contact: Josie Merenda, (416)
974-2044; Media contact: Beja Rodeck, (416) 974-5506