Fourth Quarter 2013 Earnings Release

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| Source: Royal Bank of Canada
ROYAL BANK OF CANADA REPORTS FOURTH QUARTER AND RECORD 2013 RESULTS
To view the PDF of this Earnings Release, please click on the following link:

http://www.rns-pdf.londonstockexchange.com/rns/9784U_-2013-12-7.pdf

All amounts are in Canadian dollars and are based on our audited Annual and
unaudited Interim Consolidated Financial Statements for the year and quarter
ended October 31, 2013 and related notes prepared in accordance with
International Financial Reporting Standards (IFRS). Our 2013 Annual Report
(which includes our audited annual Consolidated Financial Statements and
accompanying Management's Discussion & Analysis), our 2013 Annual Information
Form and our Supplementary Financial Information are available on our website at
rbc.com/investorrelations (http://www.rbc.com/investorrelations).

TORONTO, December 5, 2013 - Royal Bank of Canada (RY on TSX and NYSE) today
reported record net income of $8.4 billion for the year ended October 31, 2013,
up $890 million or 12% from the prior year. Our results were driven by record
earnings in Personal & Commercial Banking, Wealth Management and Capital
Markets, as well as higher earnings in Investor & Treasury Services.

Net income for the fourth quarter ended October 31, 2013 was $2.1 billion, up
11% from the prior year reflecting strong growth in Capital Markets and Personal
& Commercial Banking, and higher earnings in Investor & Treasury Services.

"With solid fourth quarter earnings of more than $2 billion, RBC delivered
record earnings of $8.4 billion in 2013. These results build on our financial
strength, diversified business mix and ability to serve clients across many
products, markets and geographies," said Gordon M. Nixon, RBC President and CEO.
"We believe our domestic leadership and focus on global growth position us well
to deliver sustainable earnings growth and build long-term value."



2013 compared to 2012             Q4 2013 compared to Q4 2012
- Net income of $8,429 million    - Net income of $2,119
(up 12% from $7,539 million)      million (up 11% from $1,911
- Diluted earnings per share      million)
(EPS) of $5.54 (up $0.61 from     - Diluted EPS of $1.40 (up
$4.93)                            $0.15 from $1.25)
-  Return on common equity (ROE)  - ROE of 18.6% (down from
of 19.4% (up from 19.3%)          18.7%)
- Basel III Common Equity Tier 1
(CET1) ratio of 9.6%

2013 Performance

Earnings of $8,429 million were up $890 million, or 12% from the prior year.
This reflects record earnings in Personal & Commercial Banking, up 9%, driven by
solid volume growth in Canadian Banking along with improved credit quality;
record earnings in Wealth Management, up 18%, due to higher average fee-based
client assets and higher transaction volumes; and record earnings in Capital
Markets, up 8%, reflecting strong growth in our corporate and investment banking
businesses, partially offset by lower trading revenue. This increase was also
due to higher earnings in Investor & Treasury Services driven by improved
business performance and a loss in the prior year related to the acquisition of
the remaining 50% interest of RBC Dexia Investor Services. Our Insurance
earnings were down 16% largely reflecting a charge of $160 million ($118 million
after-tax) as a result of proposed legislation in Canada, which would affect the
policyholders' tax treatment of certain individual life insurance policies().

Q4 2013 Performance

Earnings of $2,119 million were up $208 million or 11% from the prior year,
driven by strong growth in our corporate and investment banking businesses,
higher earnings in Canadian Banking reflecting solid volume growth of 7%, higher
average fee-based client assets in Wealth Management and improved business
performance in Investor Services. A lower effective tax rate, largely reflecting
a $124 million income tax adjustment related to prior years, and lower
provisions for credit losses (PCL) also contributed to the increase. These
factors were partially offset by a charge of $118 million after-tax in Insurance
related to the proposed legislation in Canada as noted above.

Earnings were down $185 million or 8% from the prior quarter, as strong growth
in our investment banking businesses and volume growth across all our Canadian
Banking businesses were more than offset by the charge in Insurance as noted
above, higher PCL, and moderate spread compression.

Q4 2013 Business Segment Performance

Personal & Commercial Banking net income of $1,081 million increased $47 million
or 5% from last year, largely due to earnings growth of 7% in Canadian Banking
reflecting solid volume growth of 7% which includes the contribution of our Ally
Canada acquisition, and lower PCL in our Canadian portfolios. Compared to last
quarter, net income decreased $99 million or 8%, as higher volume growth across
all our Canadian businesses was more than offset by higher PCL in our Canadian
and Caribbean banking portfolios, a provision related to post-employment
benefits and restructuring charges in the Caribbean, and moderate spread
compression.

Wealth Management net income of $205 million was relatively flat compared to the
prior year, as higher average fee-based client

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([1])    As previously announced on November 14, 2013. For further information
about the charge, refer to the Non-GAAP measures section on page 10 of this
Earnings Release.

assets, reflecting net sales and capital appreciation were more than offset by
higher PCL on a few accounts, and lower transaction volumes. Compared to the
prior quarter, net income decreased $31 million or 13% as higher average fee
-based client assets were more than offset by higher PCL and a higher effective
tax rate.

Insurance net income of $107 million decreased $87 million or 45% from last
year, and $53 million or 33% from the last quarter, primarily due to the charge
of $118 million after-tax related to the proposed legislation in Canada as noted
above. Excluding this charge, earnings were up $31 million or 16%  from the
prior year, and up $65 million or 41%1) from the prior quarter, mainly due to
favourable actuarial adjustments and a gain on the sale of our Canadian travel
agency insurance business.

Investor & Treasury Services net income of $92 million increased $20 million or
28% compared to the prior year, largely due to improved business performance in
Investor Services and continued benefits from our ongoing focus on efficiency
management activities. Compared to the prior quarter, net income decreased $12
million or 12% due to lower securities lending as the prior quarter was
favourably impacted by seasonally higher securities lending.

Capital Markets net income of $472 million increased $62 million or 15% from
last year, mainly due to strong growth in our corporate and investment banking
businesses primarily from loan syndication in the U.S., the favourable impact of
a stronger U.S. dollar, and lower PCL, partially offset by higher litigation
provisions and related legal costs. Compared to the prior quarter, net income
increased $84 million or 22%, mainly due to strong growth in loan syndication
activities and higher debt origination. Higher trading revenue also contributed
to the increase. These factors were partially offset by higher litigation
provisions and related legal costs along with higher variable compensation
reflecting improved results.

Corporate Support net income was $162 million largely reflecting net favourable
tax adjustments including a $124 million income tax adjustment related to prior
years, and asset/liability management activities.

Capital - As at October 31, 2013, Basel III CET1 ratio was 9.6%, up 40 basis
points (bps) compared to last quarter, driven by solid internal capital
generation.

Credit Quality - Total PCL of $335 million decreased $27 million or 7% from a
year ago, mainly due to lower PCL in Capital Markets and Canadian Banking
business lending and credit card portfolios. Total PCL increased $68 million
from the prior quarter, mainly due to higher PCL in both our Canadian Banking
and Caribbean portfolios and PCL on a few accounts in Wealth Management. PCL
ratio of 0.32% decreased 5 bps compared to the prior year and increased 6 bps
compared to last quarter.



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(1)    Results excluding the charge related to proposed legislation in Canada
affecting certain individual life insurance policies are non-GAAP measures. For
further information, including a reconciliation, refer to the Non-GAAP measures
section on page 10 of this Earnings Release.