Royal Bank of Canada Churns Largest Profit Ever

Banking fees will never go down, that would make too much sense. Royal Bank of Canada set a new profit record for a Canadian bank by earning $4.7-billion in 2006, results driven by strong performance in every division. Again, they charge you to bank with them, then they charge you again to borrow from them, great system. Somebody is getting really really rich up top at the RBC.

The bank earning more than $1-billion a quarter in a mature market, and profit up 40 per cent this year plus growth in earnings per share in the coming year.

RBC’s retail branch network, the country’s largest, made the biggest contribution to its bottom line. Profit from the unit was $2.8-billion, up 21 per cent from last year.

RBC Dominion Securities, the investment banking arm, had a record year on the back of deal-making and trading fees, with $1.4-billion in earnings, up 85 per cent from $760-million in 2005.

The bank’s overall return on equity was 23.5-per-cent, and RBC exceeded performance targets in almost every major area.

In a note that reflects healthy bonus cheques for some employees, RBC explained that its non-interest expenses rose $729-million or 7-per-cent to reflect �higher variable compensation on stronger business performance.�

In addition to targeting 10-per-cent profit growth. Mr. Nixon committed the bank to 20-per-cent-plus return on equity and a dividend payout of 40 per cent to 50 per cent of profits in 2007. RBC raised dividends twice in 2006, but did not boost the payout in the fourth quarter.

One comment

  1. Att: RBC Bank President Gordon Nixon – Salary – 11.73 Million!!

    I’m a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC account.

    There is no monthly interest payment date on the contract.
    Date of first installment payment, (Principal + interest) is approximately 1 year from the signing of my contract.
    Demand loan contracts signed by other fishermen around the same time showed a monthly interest payment date on their contract,(agreement).
    The lending policy did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
    Only problem is the loans officer was a replacement who wasn’t familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

    Phone or e-mail:
    RBC President, Gordon Nixon, Toronto (416)974-6415
    RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
    RBC President, Atlantic Provinces, Greg Grice (902)421-8112
    RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
    RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302
    RBC Vice President, Halifax Region, Tammy Holland (902)421-8112
    RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506
    RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542
    Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519

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