Royal Bank of Canada (RBC) chalked up a record 39.6% increase in net profits last year, a direct result of a corporate restructuring begun in the latter part of 2004. This restructuring was designed to reduce overall costs, so that these savings could be invested in the bank’s frontline staff. The changes enabled the bank to sharpen its focus on providing a more effective and responsive service to clients. The investments made in the group’s client-facing staff supported its shift to a more client-centric culture.
With leadership across all products in the Canadian market, the bank is focused on leveraging its strengths to accelerate international growth with a number of targeted acquisitions and initiatives to expand its business globally. Its goal is to increase its share of international earnings, which now accounts for more than a third of all earnings.
Last year, RBC created a permanent performance management centre of expertise to provide relevant and timely performance management tracking and report progress of major strategic initiatives. It also created a wealth management segment. Double-digit growth in clients’ assets was also a key contributor to earnings, and wealth management has become an important part of the group’s growth strategy for the future.
“Our superior client service, good corporate governance and profitable growth have allowed RBC to deliver total shareholder returns that rank among the best in the world for large banks over the short and long term,” says president and chief executive Gordon Nixon. “The geographic diversity of our banking, wealth management, capital markets and insurance businesses has been and will continue to be a core strength and competitive advantage for RBC.”
