EX-99.4

EX-99.4 5 d714428dex994.htm EX-99.4 EX-99.4

Exhibit 99.4

CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES

The tables below set forth our consolidated ratios of earnings to fixed charges, calculated in accordance with International Financial Reporting Standards (IFRS) and Canadian GAAP, as applicable, for the six months ended April 30, 2014 and five-year period ended October 31, 2013:


	IFRS								Canadian GAAP
	Six months ended April 30,		Year ended October 31,		Year ended October 31,		Year ended October 31,		Year ended October 31,		Year ended October 31,
	2014		2013 ⁽¹⁾		2012 ⁽¹⁾		2011		2010		2009
Excluding Interest on Deposits		5.94		5.34		4.88		3.47		3.55		3.28
Including Interest on Deposits		2.38		2.28		2.12		1.84		1.90		1.60

For purposes of computing these ratios, earnings represent net income plus income taxes and fixed charges (excluding capitalized interest). Fixed charges represent (i) estimated interest within rental expense, (ii) amortization of debt issuance costs, and (iii) interest (including capitalized interest), including or excluding deposit interest as indicated.

⁽¹⁾	Figures restated to reflect adoption of new accounting standards.

Royal Bank of Canada and Subsidiaries – IFRS

Ratio of Earnings to Fixed Charges and Preferred Dividends


	IFRS												CDN GAAP
	Six months ended April 30,			Year ended October 31,			Year ended October 31,			Year ended October 31,			Year ended October 31,			Year ended October 31,
	2014			2013 ⁽¹⁾			2012 ⁽¹⁾			2011			2010			2009
(Canadian dollars in millions)

Excluding Interest on Deposits
Net Income before income taxes	$	5,669		$	10,447		$	9,513		$	8,191		$	6,968		$	5,526

Less: Income/(loss) from equity investees (Note 1)		(72	)		(139	)		6			9			55			4		*Note 1*

Fixed Charges:
Interest expense (excl. Deposits)	$	1,044		$	2,205		$	2,298		$	3,164		$	2,605		$	2,275
Estimated interest within rental expense		88			169			155			156			149			146

Total fixed charges		1,132			2,374			2,453			3,320			2,754			2,421

Preferred dividend requirements (note 2)		151			317			328			326			338			325		*Note 2*


Fixed charges and preferred dividends		1,283			2,691			2,781			3,645			3,092			2,746


Earnings		6,729			12,682			11,972			11,520			9,777			7,951


Ratio of earnings to fixed charges		5.94			5.34			4.88			3.47			3.55			3.28


Ratio of earnings to fixed charges and preferred dividends		5.24			4.71			4.31			3.16			3.16			2.90


Including Interest on Deposits
Net Income before income taxes	$	5,669		$	10,447		$	9,513		$	8,191		$	6,968		$	5,526

Less: Income/(loss) from equity investees (Note 1)	$	(72	)		(139	)		6			9			55			4		*Note 1*

Fixed Charges:
Interest expense (incl. Deposits)	$	3,961		$	7,899		$	8,379		$	9,626		$	7,696		$	9,037
Estimated interest within rental expense	$	88			169			155			156			149			146

Total fixed charges		4,049			8,068			8,534			9,782			7,845			9,183

Preferred dividend requirements (note 2)		151			317			328			328			338			325		*Note 2*


Fixed charges and preferred dividends		4,200			8,385			8,862			10,110			8,183			9,508


Earnings		9,646			18,376			18,053			17,982			14,868			14,713


Ratio of earnings to fixed charges		2.38			2.28			2.12			1.84			1.90			1.60


Ratio of earnings to fixed charges and preferred dividends		2.30			2.19			2.04			1.78			1.82			1.55


*Note (1)*					2013	(1)		2012	(1)		2011			2010			2009

Equity in Undistributed Earnings of Unconsolidated Subsidiaries Calculation (C $’000s):
Associated Corporations
(equity accounted investments – IFRS)		72			139			(6	)		(8,890	)		(54,684	)		(3,922	)
JV
(proportionate consolidation Cdn. GAAP)																	(1	)

		72			139			(6	)		(8,890	)		(54,684	)		(3,923	)

Note: Losses are presented with a negative sign in this calculation.

*Note (2)*
Preferred Dividend Requirements Calculation (C $ millions):
Preferred Dividends (per Income Statement)		114			253			258			258			258			233
Taxable Equivalent Gross-up
(1-Effective Tax Rate for period)		75.7	%		79.9	%		78.9	%		78.7	%		76.4	%		71.6	%

Preferred Dividend Requirement		151			317			327			328			338			325

Effective Tax Rate		24.3	%		20.1	%		21.1	%		21.3	%		23.6	%		28.4	%

⁽¹⁾	Figures restated to reflect adoption of new accounting standards.