Assignment On RBC Bank

Assignment of Managerial Accounting
Analysis of Royal Bank of Canada
Submitted by- Submitted to-

Gurvinder Singh Bhatti-4302536 Rahman Sobhan
Jasmeen Kaur - 4305175
Ramandeep Kaur - 4305171
Arshveer Singh Sidhu - 4304894
Baljinder Singh Nehal- 4295934
Overview-
Royal Bank of Canada (RBC) was founded in 1864. Today, it is the country’s largest
chartered bank and financial institution. It has five divisions: Personal and
Commercial Banking, consisting of banking operations in 36 countries around the
world; RBC Wealth Management, consisting of investment products and services for
retail investors; RBC Capital Markets for international investment banking services;
RBC Insurance for individual and group clients; and Investor and Treasury Services,
providing custody services and fund administration for international clients. Royal
Bank is a public company that trades on the Toronto Stock Exchange, New York Stock
Exchange and SIX Swiss Exchange under the symbol RY. In 2018, RBC registered
$42.6 billion in revenue and $12.4 billion in profit and held $1.3 trillion in assets.
Royal Bank employs more than 84,000 people, who serve 16 million customers.
Vision-
Always earning the right to be our clients' first choice.
Mission-
Mission Statement Royal Bank of Canada endeavors to be the first choice for
consumers, businesses, institutions and governments for the greater part of their
financial needs. We aim to be the best at providing financial services all over the
globe and we believe that we surpass everyone at what we do.
Product and Services-

 Personal and Commercial Banking, consisting of banking operations in 36
countries around the world,
 RBC Wealth Management, consisting of investment products and services for
retail investors.
 RBC Capital Markets for international investment banking services.
 RBC Insurance for individual and group clients.
 Investor and Treasury Services, providing custody services and fund
administration for international clients.
Market Segmentation-
Royal Bank of Canada has created a new business segment, to be called Investor
and Treasury Services, and made adjustments to the makeup and management of
its existing business segments.
The new segment will include RBC Investor Services, Global Financial Institutions
and Treasury Services.
Some of those operations had previously been in other business segments.
The new segment’s clients will include financial institutions, sovereign wealth funds,
insurance companies, asset managers, hedge funds and pension funds.
RBC’s liquidity-
According the analysis of RBC and to answer one question, how much of the bank’s
total assets are comprised of these loans. Generally, they should make up less than
70% of total assets, which is consistent with Royal Bank of Canada’s state given its
much lower ratio of 43.25%. At this level of loan, the bank has preserved a high
level of liquidity but at the cost of producing interest income from illiquid loan.
Profitability of RBC Bank-

Royal Bank of Canada's latest quarterly earnings beat expectations with a 15 per cent
jump in net income, helped by rising interest rates and U.S. tax reforms, to cap off
a year where the lender generated a record annual profit of $12.4 billion. The bank's
profit for its fourth quarter amounted to $2.20 per diluted share, up from $1.88 per
share a year ago. On an adjusted cash basis, the bank says it earned $2.24 per share,
up from $1.92 in the same period in 2017. Analysts on average had expected
earnings per share of $2.12, During the latest quarter, the bank's personal and
commercial banking division delivered net income of $1.54 billion, up 10 per cent
from a year ago "largely reflecting improved deposit spreads from higher Canadian
interest rates." RBC also saw five per cent average volume growth in Canadian
banking, driven by growth in residential mortgages, commercial lending and deposit
products.
The bank's net income from its capital markets arm increased 14 per cent to $666
million, largely due to a lower effective tax rate under U.S. President Donald Trump's
tax reforms.
RBC's wealth management division saw a 13 per cent increase in net income to $553
million, while RBC's insurance division reported a 20 per cent year-over-year increase
in net income to $318 million.
However, the bank's investor and treasury services department's net income of $155
million was relatively flat compared with a year ago.
Net interest margins, the difference between the money they earn on the loans they
make and what they pay out to savers, in Canadian banking was up 12 basis points
year-over-year to 2.77 per cent, helped by multiple Bank of Canada rate hikes.
RBC’s Solvency-
RBC’s Values and risk-aware culture of Doing What’s Right effectively support the
long term success of the organization. RBC’s Values set the tone of organizational
culture, and translate into desired behaviors as articulated in Code of Conduct and
Leadership Model. Risk Management Principles provide a risk lens for these desired
behaviors, enabling to focus on a sub-set of behaviors and Outcomes referred to as
Conduct.
RBC defines Conduct as the manifestation of culture through the behaviors,
judgment, decisions and actions of the organization and its individuals. In the context
of this Framework, the focus of Conduct is two-fold:
1. RBC’s expectation that employees’ and the third party service providers that
RBC engages and the organization’s behaviors, judgments, decisions, and
actions lead to positive Outcomes for clients, employees, financial markets,
and RBC’s reputation.
2. RBC’s monitoring and reporting on the Conduct-related Outcomes for clients,
employees, financial markets, and RBC’s reputation.
Why I choose to working with RBC Bank?

Here are some of the reasons –
 RBC supports ongoing learning and development for employees at various
stages of their career, providing tuition subsidies for courses related and
indirectly related to an employees' current role, an extensive professional
development library, leadership development programs, and the unique RBC
Disruptors speaker series
 Along with helping employees save for the future, RBC offers a full suite of
financial benefits including a share purchase plan (available to all employees),
signing bonuses for some, and referral bonuses of up to $5,000 for individuals
who successfully refer a candidate
 Through RBC's in-house "Wellness+" program, the bank encourages
employees to adopt healthy habits, rewarding healthy behaviour with credits
for a personal wellness account -- additionally, the bank published the "RBC
Blueprint for Well-being and Mental Health", which outlines its vision for
promoting the mental health and well-being of all employees
One more important thing about Royal bank, Royal Bank of Canada was selected as
one of Canada's Top 100 Employers (2020) and Greater Toronto's Top Employers
(2020).
Conclusion-
According to the analysis of RBC bank Today, it is the country’s largest chartered
bank and financial institution. It’s five divisions: Personal and Commercial Banking,
RBC Wealth Management, RBC Capital Markets for international investment banking
services; RBC Insurance for individual and group clients; and Investor and Treasury
Services make the company number one in its segmentation. Royal Bank is a public
company that trades on the Toronto Stock Exchange, New York Stock Exchange and
SIX Swiss Exchange under the symbol RY. In 2018, RBC registered $42.6 billion in
revenue and $12.4 billion in profit. One more important thing about Royal bank, Royal
Bank of Canada was selected as one of Canada's Top 100 Employers (2020) and
Greater Toronto's Top Employers (2020).
References-
https://www.gurufocus.com/term/turnover/RY/Asset-Turnover/Royal%20Bank%20of%20Canada
https://www.statista.com/statistics/462191/shareholder-equity-of-royal-bank-of-canada/
https://www.macrotrends.net/stocks/charts/RY/royal-bank-of-canada/roa
https://www.gurufocus.com/term/netmargin/RY/Net-Margin-
Percentage/Royal%20Bank%20of%20Canada
https://www.cbc.ca/news/business/royal-bank-earnings-1.5254376
https://www.gurufocus.com/term/ltd2asset/NYSE:RY/LT-Debt-to-Total-
Asset/Royal%20Bank%20of%20Canada
https://www.gurufocus.com/term/NetInterestIncome/NYSE:RY/Net-Interest-
Income/Royal%20Bank%20of%20Canada

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Assignment of Managerial Accounting

Analysis of Royal Bank of Canada

Submitted by- Submitted to-

Product and Services-

Profitability of RBC Bank-

Why I choose to working with RBC Bank?

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