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Companies both large and small contribute to the economies
of the communities and countries in which they do business
through taxes, philanthropy, and their day-to-day business
decisions and actions. RBC aims to have a positive economic
impact by providing attractive returns to shareholders, creating
employment, supporting small business and economic development,
fostering innovation and entrepreneurship, and purchasing
responsibly.
2009 Highlights
| Priorities |
2008 Performance Highlights |
| Provide strong
returns to shareholders |
See our 2008
Annual Report to Shareholders |
| Create employment
|
Provided employment to 80,100 people,
with $7.8 billion in employee compensation and benefits.
See Workplace
Supported organizations that promote literacy and help
unemployed or underemployed people secure jobs |
| Pay fair share of taxes |
Incurred tax expense of $2.08 billion
worldwide |
| Support small
business and community
economic development |
Served more than half a million small
business clients in Canada,
the United States and the Caribbean
Contributed $99 million to community
causes worldwide |
| Foster innovation
and entrepreneurship |
Announced plans to launch the BlackBerry*
Partners Fund, a US$150 million venture capital fund,
to invest in mobile applications and services for BlackBerry
and other mobile platforms
Developed innovative financing solutions to help fund
major infrastructure projects in Canada and the United
Kingdom |
| Purchase
goods and services |
Purchased goods and services totalling
$4.7 billion from suppliers of all sizes worldwide |
Vital Statistics
| |
2008 |
2007 |
2006 |
| Revenue |
$21.58
billion
|
$22.46
billion
|
$20.64
billion
|
| Market capitalization |
$62.83
billion
|
$71.52
billion
|
$63.79
billion
|
| Taxes incurred |
$2.08
billion
|
$2.09
billion
|
$2.08
billion
|
| Employee compensation and benefits |
$7.8
billion
|
$7.9
billion
|
$7.3
billion
|
| Goods and services purchased |
$4.4
billion
|
$4.4
billion
|
$3.9
billion
|
| Debt financing for businesses in Canada
(authorized) |
$144
billion
|
$138
billion
|
$120
billion
|
Issues
The global financial crisis of 2008 substantially altered
the economic environment for many of our stakeholders. While
RBC was not able to escape 2008 without some losses related
to the market environment, we generated more than $4.5 billion
of earnings and a return on equity of 18.0%. RBC's financial
strength, sound risk management policies and diversified business
mix enabled us to withstand many of the market shocks and
pressures of 2008. Our strategy of actively managing a diversified
portfolio of businesses and the execution of our revenue and
cost-efficiency initiatives enabled us to continue to generate
value for our clients and shareholders. For more information,
see our 2008
Annual Report.
In terms of helping our clients in the United States, here
are some highlights from 2008:
- In 2008, RBC Bank™ joined other banks in the United
States to partner with the Department of Housing and Urban
Development to offer loans secured by the Federal Housing
Administration for those borrowers who will have an increased
mortgage payment as a result of an ARM (adjustable rate
mortgage) reset.
- In the United States, under the Community Reinvestment
Act, we are required to provide a certain amount in
loans to facilitate community development, and to ensure
access to banking services for low- to moderate-income groups
and small businesses. RBC Bank meets and, in many instances,
exceeds these requirements. In addition, we help stimulate
economic activity in some less prosperous communities by
providing credit and funding specialized programs. Our programs
support home ownership, financial literacy and economic
development for lower-income earners and neighbourhoods.
Shareholder returns
It is impossible to estimate the number of people who share
directly or indirectly in ownership of RBC. RBC shares are
held by pension funds, insurance, trust and investment companies
in addition to individual investors and represent a vast pool
of savings. Such widespread ownership of RBC, directly and
indirectly, heightens our responsibility to earn a reasonable
return for shareholders on their investments. By performing
profitably, RBC contributes to the financial security of millions
of people. See our 2008
Annual Report to Shareholders.
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