TORONTO, May 30, 2024
/CNW/ - Royal Bank of Canada (the
Bank) (TSX: RY) (NYSE: RY) today announced its intention, subject
to the approval of the Toronto Stock Exchange (TSX) and the Office
of the Superintendent of Financial Institutions (OSFI), to commence
a normal course issuer bid and to repurchase for cancellation up to
30 million of its common shares. The Bank intends to file a notice
of intention with the TSX in this regard.
Purchases may commence on June 12,
2024, provided the TSX has accepted the notice of intention,
and may continue until June 11, 2025,
when the bid expires or such earlier date as the Bank may complete
its purchases pursuant to the notice of intention. Purchases may be
made through the TSX, the New York Stock Exchange and other
designated exchanges and alternative Canadian trading systems. The
price paid for any repurchased shares will be the prevailing market
price at the time of acquisition. The timing and amount of any
purchases under the program are subject to regulatory approvals and
to management discretion based on factors such as market conditions
and capital adequacy.
The shares that may be repurchased represent approximately 2.12
per cent of the Bank's outstanding common shares as at May 15, 2024. On May 15,
2024, there were 1,414,943,252 common shares
outstanding.
The proposed normal course issuer bid will give us the
flexibility to manage the Bank's capital position while generating
shareholder value. On April 30, 2024,
the Bank's Common Equity Tier 1, Tier 1 and Total capital ratios
were 12.8 per cent, 14.1 per cent and 16.1 per cent,
respectively.
Caution regarding forward-looking
statements
This press release contains forward-looking statements within
the meaning of certain securities laws, including the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995 and any applicable Canadian
securities legislation, with respect to RBC's beliefs, plans,
expectations and estimates. Forward-looking statements in this
press release may include, but are not limited to, statements with
respect to the normal course issuer bid by Royal Bank of
Canada. Forward-looking statements
are typically identified by words such as "believe", "expect",
"suggest", "seek", "foresee", "forecast", "schedule", "anticipate",
"intend", "estimate", "goal", "commit", "target", "objective",
"plan", "outlook", "timeline" and "project" and similar expressions
of future or conditional verbs such as "will", "may", "might",
"should", "could", "can" or "would" or negative or grammatical
variations thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, which give rise
to the possibility that our predictions, forecasts, projections,
expectations or conclusions will not prove to be accurate, that our
assumptions may not be correct, that our forward-looking
statements, including statements about the proposed normal course
issuer bid by Royal Bank of Canada, will not be achieved and that our
actual results may differ materially from such predictions,
forecasts, projections, expectations or conclusions.
We caution readers not to place undue reliance on our
forward-looking statements as a number of risk factors could cause
our actual results to differ materially from the expectations
expressed in such forward-looking statements. These factors – many
of which are beyond our control and the effects of which can be
difficult to predict – include: credit, market, liquidity and
funding, insurance, operational, regulatory compliance (which could
lead to us being subject to various legal and regulatory
proceedings, the potential outcome of which could include
regulatory restrictions, penalties and fines), strategic,
reputation, legal and regulatory environment, competitive, model,
systemic risks and other risks discussed in the risk sections of
our annual report for the fiscal year ended October 31, 2023 (the 2023 Annual Report) and the
Risk management section of our Q2 2024 Report to Shareholders,
including business and economic conditions in the geographic
regions in which we operate, Canadian housing and household
indebtedness, information technology, cyber and third-party risks,
geopolitical uncertainty, environmental and social risk (including
climate change), digital disruption and innovation, privacy and
data related risks, regulatory changes, culture and conduct risks,
the effects of changes in government fiscal, monetary and other
policies, tax risk and transparency, and our ability to anticipate
and successfully manage risks arising from all of the foregoing
factors. Additional factors that could cause actual results to
differ materially from the expectations in such forward-looking
statements can be found in the risk sections of our 2023 Annual
Report and the Risk management section of our Q2 2024 Report to
Shareholders, as may be updated by subsequent quarterly
reports.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. When relying on our forward-looking statements to make
decisions with respect to us, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events, as well as the inherent uncertainty of
forward-looking statements. Material economic assumptions
underlying the forward-looking statements contained in this press
release are set out in the Economic, market and regulatory review
and outlook section and for each business segment under the
Strategic priorities and Outlook headings in our
2023 Annual Report, as updated by the Economic, market and
regulatory review and outlook section of our Q2 2024 Report to
Shareholders. Such sections may be updated by subsequent quarterly
reports.
Any forward-looking statements contained in this press release
represent the views of RBC only as of the date hereof. Except as
required by law, RBC does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by us or on our behalf.
SOURCE Royal Bank of Canada