SGS Financial Institutions 2016 By: Adam Cader, Brandon Ha, Joshua Grewal, Quinn Aquilini, Nick Chong, and Wesley Graham

Royal Bank Of Canada (TSE:RY) Currently 71.00 CAD

History Of RBC -The Royal Bank of Canada, operating as RBC Financial Group, is the largest financial institution in Canada. The bank serves 16 million clients and has 76,000 employees worldwide. -The company has operations in Canada, and 40 other countries, and has 673.2 USD Bn of assets under management - RBC is also one of the top 100 sustainable companies in the world -Was recognized as the "most respected corporation" in Canada (2008) -Analyst opinions of RBC are strong, with many prominent analysts suggesting strong buy/buy (majority strong buy).

Performance - EPS has also been increasing, from 2.18 in 2006 to 4.99 in 2013 to 5.35 now. -RBC return on equity (ROE) has been increasing from 2011 to 2014, although with recent economic turmoil its ROE decreased from 20.20% in 2014 to 19.66% now, -Institutional ownership of RBC remains strong, increasing from 2002 levels at 18 percent to 53 percent now, institutional ownership is approaching the all-time high at 57 percent. -The earning surprise for RY stock has been positive for 2 out of the 4 quarters this year -Royal Bank of Canada has an equity/debt ratio of 0.12% (a good rate should be equal to or below 2%) -RY is trading 15% within its 52 week high (15% = 12.58, 74.02 current price +12.58 = 52 week high)

Financials Royal Bank’s total net assets have risen every year since 1997 (except for 2008/2009). From 2009 to 2015 RY’s total revenue annual is at 28.42B for 2015, down from last year’s 31.31B but rose consistently from 18.12B in 2006 and from 28.01B in 2011. Royal Bank’s total operating expenses are down 1.5B from last year, which essentially means RY is able to make its general, selling and administrative cos Cash and Equivalents are up from 22.87B in 2012 to 26.71B now https://ycharts.com/financials/RY/income_statement/annual Revenue can be attributed to poor investments in the Canadian economy?

Dividend Explained -RY stock currently has a dividend yield of 4.27 percent and is paid out quarterly (which has been increasing ever since 2000) Dividend yield for as compared to some US/Canadian Large Banks: TD, 3.88% -- Bank of America, 1.64% -- Citigroup, .55% and Bank of Nova Scotia, 4.50% Sustainability of Dividend?: As stated above the dividend has been increasing since the start of the millennium starting at approximately 3% to the 4.27% it is at now.

Quick Statistics. Market Cap: 108.63 Billion Dollars (Feb 18th 2016) Price to Earnings: 10.56 1.49 BIllion Shares Outstanding .69 Beta (Movement in relation to the market) 78,000 Employees

Analysts (Something u would have said Ty) 15 Analysts from highly esteemed financials institutions have deemed Royal Bank’s stock to be above a HOLD (On Average) with half the analysts rating this a buy/strong buy. Analysts have also stated that their median price target of $79 Canadian Dollars.

Stock Graphs 3 Month 6 Month 1 Year Our Predicted Value: $85/share

Why We Should Buy -RBC’s stock represents a great long-term investment opportunity today, as because it still trades at very attractive valuations and pays a high dividend (0.79 per share) -Currently at a heavy Discount ($71.00/share) -Royal Bank earned $9.92 billion in adjusted net income last year, up 9% from 2014. That’s an insane amount of money, and it demonstrates how a balanced revenue stream can help the bank through the current economic turmoil. -Many bank investors are concerned about loans to energy companies. In its Q4 2015 report, Royal Bank said it had $7.7 billion in drawn energy exposure, which translates into 1.6% of its total loans. -RBC Recently upgraded the rating on the company from Sector Perform to Outperform, with a price target of $240. RBC expects to report 4Q15 revenues of $1,698 million and EPS of $2.91, marginally above the consensus expectations. The company’s 2015 revenues and EPS are expected at $6,399 million and $11.60, respectively.

Thank You!

Buy plan Aprox. $4000 56 shares

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