EX-12.1 8 ex12_1.htm EXHIBIT 12.1

 

Exhibit 12.1

 

Statement regarding the computation of consolidated ratio of earnings to fixed charges

 

Royal Bank of Canada and Subsidiaries - IFRS
Ratio of Earnings to Fixed Charges and Preferred Dividends

 

  Nine
Months
Ended
July 31		     Year
Ended
October
31		     Year
Ended
October
31		     Year
Ended
October
31		     Year
Ended
October
31		     Year
Ended
October
31		    
  2018     2017     2016     2015     2014     2013    
(Canadian dollars in millions)                                    
Excluding Interest on Deposits                                    
Net Income before income taxes $11,820     $14,672     $13,299      $12,623      $11,710      $10,447    
Less: Income/(loss) from equity investees (Note 1)  (9)      (331)      (184)      (146)      (162)      (139)   Note 1
Fixed Charges:                                    
    Interest expense (excl. Deposits) $3,729     $3,200     $2,454      $2,235      $2,030      $2,205    
    Estimated interest within rental expenss  174      241      220      193      177      169    
Total Fixed charges  3,903      3,441      2,674      2,428      2,207      2,374    
Preferred dividend requirements (Note 2)  276      385      374      240      277      317   Note 2
Fixed charges and preferred dividends  4,179      3,826      3,047      2,668      2,484      2,691    
Earnings  15,714      17,782      15,788      14,905      13,755      12,682    
Ratio of earnings to fixed charges  4.03      5.17      5.90      6.14      6.23      5.34    

Ratio of earnings to fixed charges and

preferred dividends

  3.76      4.65      5.18      5.59      5.54      4.71    
                                     

Including Interest on Deposits                                    
Net Income before income taxes  $11,820      $14,672      $13,299      $12,623      $11,710      $10,447    
Less: Income/(loss) from equity investees (Note 1)  (9)      (331)      (184)      (146)      (162)      (139)   Note 1
Fixed Charges:                                    
    Interest expense (incl. Deposits)  $10,569      $9,764      $7,921      $7,958      $7,903      $7,899    
    Estimated interest within rental expense  174      241      219      193      177      169    
Total fixed charges  10,743      10,005      8,140      8,151      8,080      8,068    
Preferred dividend requirements (Note 2)  276      385      374      240      277      317   Note 2
Fixed charges and preferred dividends  11,019      10,390      8,514      8,391      8,357      8,385    
Earnings  22,554      24,346      21,255      20,628      19,628      18,376    
Ratio of earnings to fixed charges  2.10      2.43      2.61      2.53      2.43      2.28    

Ratio of earnings to fixed charges and

preferred dividends

  2.05      2.34      2.50      2.46      2.35      2.19    
                                     
Note (1)

Nine

Months

Ended

July 31,

2018

     2017     2016     2015     2014     2013    

Equity in Undistributed Earnings of

Unconsolidated Subsidiaries Calculation

(C $’000s):

                                    
Associated Corporations                                    
    (equity accounted investments)  13      335      176      149      162      159    
    Impairment of investments in JV and associates  (4)      (4)      8      (3)     -      (20)    
   9      331      184      146      162      139    
Note: Losses are presented with a negative sign in this calculation.  
                                     
Note (2)                                    

Preferred Dividend Requirements

Calculation (C $ millions):

                                    
Preferred Dividends (per Income Statement)  214      300     294      191     213     253    
Taxable Equivalent Gross-up                                    
    (1-Effective Tax Rate for period) 77.7 %   78.2 %   78.6 %   79.4 %   76.9 %   79.9 %  
Preferred Dividend Requirement  276      385     374      240     277     317    
Effective Tax Rate 22.3 %   21.8 %   21.4 %   20.6 %   23.1 %   20.1 %