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Economic Impact

 

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.

Related Links
  Financial Performance

In the News
  RBC and Imagine H20 announce winners of first global water prize (10.03.08)
  RBC hosts 18 banks at Oil Sands “Day of Learning” (10.03.01)
  RBC releases 2009 Corporate Responsibility Report and Public Accountability Statement (10.02.26)
  More >>

12/04/2009 09:47:53