JPMorgan Chase for Canada

Bank of America for Canada

• Personal & Commercial Banking: Offers a wide range of financial solutions including chequing and savings accounts, credit cards, mortgages, personal loans, and business banking services for small and medium-sized enterprises.
• Wealth Management: Provides investment management, financial planning, trust and estate services, and private banking for high-net-worth and ultra-high-net-worth individuals and families.
• Capital Markets: Delivers investment banking, sales and trading, research, and corporate banking services to corporations, institutional investors, and governments globally.
• Insurance: Sells life, health, travel, home, and auto insurance products to individuals and businesses.
• Investor & Treasury Services: Offers asset servicing, custody, and payments solutions for institutional clients, along with treasury management and foreign exchange services.

Royal Bank of Canada (RY) - Major Customers

Royal Bank of Canada (RBC) is a diversified financial services company that serves a broad spectrum of clients. While it has significant corporate and institutional clients, its primary customer base for banking services, in terms of sheer volume and direct retail interaction, consists of individuals and small to medium-sized businesses. Given this, its major customer categories are:

• Retail Banking Customers: This vast category includes individuals and families who utilize RBC for everyday banking needs, such as checking and savings accounts, credit cards, personal loans, mortgages, and basic investment products. RBC operates an extensive network of branches and digital platforms to serve this segment across Canada and in select international markets.
• Wealth Management Clients: This segment comprises high-net-worth individuals, families, and trusts seeking comprehensive financial planning, private banking, investment management, and estate and trust services. RBC's wealth management services cater to clients with more complex financial needs and investment portfolios.
• Small Business Owners and Entrepreneurs: While these are businesses, they are often served through RBC's personal and commercial banking divisions and are distinct from large corporations. This category includes individual proprietors and small teams who require business accounts, operating lines of credit, term loans, merchant services, and other financial solutions tailored to the needs of their small to medium-sized enterprises (SMEs).

• Microsoft Corporation (MSFT)
• IBM (IBM)
• Alphabet Inc. (GOOGL)

Dave McKay, President & Chief Executive Officer

Dave McKay became President and CEO of RBC in 2014, leading Canada's biggest bank. He joined RBC in 1983 as a co-op student in computer programming and progressed through various senior roles in retail and business banking, group risk management, and corporate banking. As CEO, he has led strategic acquisitions, including City National Corporation in the U.S., Brewin Dolphin in the U.K., and most recently HSBC Bank Canada, expanding RBC's global presence. His father was an entrepreneur and small business owner, which instilled in him an appreciation for business growth.

Katherine Gibson, Chief Financial Officer

Katherine Gibson was appointed Chief Financial Officer of RBC in September 2024, after serving as Interim CFO since April 2024. She joined RBC over two decades ago and has held a variety of senior positions within the CFO Group, including Senior Vice President, Enterprise Finance & Controller. Prior to her extensive career at RBC, Ms. Gibson spent six years with an international accounting firm, gaining experience in both Canada and Australia.

Maria Douvas, Chief Legal and Administrative Officer

Maria Douvas is the Chief Legal and Administrative Officer and a member of RBC's Group Executive. She joined RBC in 2016 and has held progressively senior positions, including Executive Vice President & General Counsel, U.S. General Counsel, and Global Head of Litigation. Before joining RBC, Ms. Douvas was a partner at a prominent international law firm and served as a federal prosecutor in the U.S. Attorney's Office for the Southern District of New York.

Graeme Hepworth, Chief Risk Officer

Graeme Hepworth has served as Chief Risk Officer of RBC since 2018, overseeing the strategic management of risk across the enterprise. He began his career at RBC in 1997 as an analyst in Group Risk Management. His career at the bank includes various senior roles such as Vice President for Group Risk Management's Portfolio Management team, Head of Market Risk for Capital Markets in the U.S., and Chief Risk Officer for Europe & Asia.

The most significant risk to Royal Bank of Canada stems from macroeconomic conditions, including credit risk and interest rate risk. As a major financial institution with substantial lending operations, RY is highly susceptible to shifts in the broader economy. Concerns such as the potential re-emergence of inflation and subsequent changes in monetary policy, like interest rate hikes to combat inflation, are considered major risks that could negatively impact banking revenues. The bank also has significant exposure to the Canadian housing market through residential mortgages, which, despite disciplined lending practices, carries inherent default risk and sensitivity to economic downturns. The bank's financial reports consistently highlight provisions for credit losses as a factor impacting earnings, underscoring the ongoing nature of credit risk.

A second key risk involves technological disruption and cybersecurity threats. The financial sector is continually challenged by the rapid pace of technological advancements and the emergence of fintech companies and large technology firms entering the financial services space. This can lead to increased competition and pressure on traditional banking profits. Simultaneously, the increasing sophistication of cyberattacks poses a significant operational and reputational risk, as financial institutions like RBC must constantly invest in and adapt their cybersecurity measures to protect customer data and maintain service integrity.

Finally, the regulatory and legal environment risk represents a critical concern for Royal Bank of Canada. Operating as a highly regulated entity, RY is subject to complex and evolving laws, regulations, and supervisory requirements across various jurisdictions. Changes in these regulations, increased compliance costs, or adverse legal outcomes can significantly impact the bank's business model, operational costs, and profitability. The bank's annual reports consistently list legal and regulatory environment risk as a principal risk, highlighting its ongoing importance.

The intensifying competition from digital-first financial service providers (fintechs and neobanks), significantly amplified by the impending implementation of an open banking framework in Canada.

The Royal Bank of Canada (RY) is expected to drive future revenue growth over the next two to three years through several key initiatives and market dynamics:

1. Strategic Acquisition and Integration: The acquisition of HSBC Canada is a significant driver, contributing to earnings and revenue growth and generating substantial cost synergies. RBC is focused on cross-selling its personal banking products to clients acquired through this integration.
2. Growth in Personal and Commercial Banking: Strong average volume growth in both personal and commercial banking, coupled with higher spreads in personal banking, is expected to increase net interest income (NII). The bank has raised its 2025 NII growth guidance, reflecting stronger-than-expected growth in non-maturity deposits and favorable spreads on mortgages and GICs.
3. Expansion in Wealth Management: The Wealth Management segment is anticipated to continue its strong revenue growth, benefiting from higher market values, successful asset gathering, and increased client-driven transactional revenue. RBC Global Asset Management has demonstrated significant increases in assets under management.
4. Robust Capital Markets Performance: Revenue growth in Capital Markets is driven by robust client engagement and a constructive market environment, leading to higher loan syndication revenue, increased lending balances and spreads, and higher debt origination, particularly in the United States. Increased equity and foreign exchange trading across most regions also contribute to this growth.
5. Targeted Geographic and Market Expansion: Beyond the HSBC Canada acquisition, RBC aims to scale growth and unlock new revenue streams in key markets and geographies, including the United States. Its U.S. division, City National Bank, has shown momentum in net interest income due to deposit growth and improved cost control.

Share Repurchases

• Royal Bank of Canada (RBC) announced a normal course issuer bid (NCIB) to repurchase up to 30 million common shares, effective from June 12, 2024, until June 11, 2025.
• This NCIB in 2024-2025 represented approximately 2.12% of the bank's outstanding common shares as of May 31, 2024.
• RBC also announced a new NCIB to purchase up to 35 million common shares, commencing June 12, 2025, and expiring June 11, 2026.

Outbound Investments

• RBC completed the acquisition of HSBC Bank Canada for C$13.5 billion, which was approved in December 2023 and officially closed on March 28, 2024.
• In 2022, RBC acquired Brewin Dolphin for $2.1 billion, expanding its market presence in the United Kingdom and Europe.
• RBC also acquired Mdbilling in October 2022, a company specializing in OHIP Billing Software and Services.

Capital Expenditures

• RBC's capital expenditures for the fiscal years ending October 2020 to 2024 averaged C$2.465 billion.
• Capital expenditures peaked in October 2023 at C$2.73 billion and reached a 5-year low of C$2.186 billion in October 2021.
• For the latest twelve months ending July 31, 2025, RBC reported capital expenditures of C$2.365 billion.