Royal Bank Of Canada · TSX:RY

Royal Bank Of Canada — Merger or Acquisition (January 2015)

16 slides from Royal Bank Of Canada's merger presentation, Jan 22, 2015

  1. Slide 1: RBC to acquire City National Corporation

    [PRESENTATION TITLE] Cover to come December 2014 RBC to acquire City National Corporation Enhances RBC’s U.S. presence and accelerates franchise growth 0 January 22, 2015 All financial information contained herein is in U.S. dollars unless otherwise noted

  2. Slide 2: Caution regarding forward-looking statements

    Caution regarding forward-looking statements Certain statements contained in this communication may be deemed to be forward-looking statements under certain securities laws, including the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicabl

  3. Slide 3: City National enhances RBC's U.S. presence & accelerates growth

    City National enhances RBC’s U.S. presence & accelerates growth  City National Corporation (“City National”) enhances and complements RBC’s presence in the U.S., our second home market  Deep client relationships and sharp strategic focus on two highly attractive client segments: Aligns with RBC’s

  4. Slide 4: Transaction highlights

    Transaction highlights All financial information in U.S. dollars unless otherwise stated  Total transaction value of ~$5.4B at announcement(1) (C$6.6B)(2) Purchase price  $93.80 in value per City National common share(1), 26% acquisition premium(3)  RBC will acquire 100% of City National for ~$2.

  5. Slide 5: A premier U.S. private & commercial bank

    City National – A premier U.S. private & commercial bank Overview of capabilities Unique HNW(2) and commercial client focus  Private Banking & Commercial Banking  Focused on entrepreneurs and professionals, − Delivers customized banking, credit and wealth solutions their businesses and families −

  6. Slide 6: Positioned in attractive, high growth client segments

    City National – Positioned in attractive, high growth client segments HNW client segment Commercial client segment  Fast growing and highly attractive segment  Growth of Commercial & Industrial (C&I) loans outpacing all other loans across the industry − Growth over 8x faster than total U.S. popula

  7. Slide 7: Client strategy focused in the top high growth markets

    City National – Client strategy focused in the top high growth markets Highlights Positioned in top 3 U.S. markets HNW population (2013; 000s) by MSA(3)  City National is in the top 3 U.S. markets with the highest number of HNW households  Leading franchise in Los Angeles and growing 894 presence

  8. Slide 8: Strong track record of growth

    City National – Strong track record of growth(1) Strong loan growth(2) ($B)… …~4x the industry growth ~4x 17.9% 19.3 17.2 14.8 12.3 4.5% (3) (2) 2011 2012 2013 Q3/2014 Industry City National Strong deposit growth(2) ($B)… …over 1.5x the industry growth >1.5x 12.2% 28.0 25.7 23.5 20.4 7.7% (3) (2) 20

  9. Slide 9: Well diversified and high quality loan portfolio

    City National – Well diversified and high quality loan portfolio Highly diversified loan portfolio of $19.3B(1)(2) Strong residential mortgage portfolio(3) Loans: 70% commercial, 30% consumer Average figures Real estate construction Installment 3% 1% Loan size $1.0MM Commercial real estate mortgages

  10. Slide 10: Deposit franchise well positioned for rising rates

    City National – Deposit franchise well positioned for rising rates Attractive deposit franchise Well positioned for rising rates  Branch-light footprint with deposits per branch  Highly asset-sensitive bank, set to benefit from over 4x the median of U.S. banks(1)(2) economic tailwinds and rising i

  11. Slide 11: Fast growing wealth and asset management business

    City National – Fast growing wealth and asset management business  Ranked by Barron’s as one of America’s top 40 wealth managers for the last 14 years(1)  Focused on serving HNW and institutional clients  Client assets have grown at an annualized rate of 10% since 2011(2)  Brings incremental bes

  12. Slide 12: Acquisition creates a powerful & scalable engine for growth

    Acquisition creates a powerful & scalable engine for growth Expanding into U.S. Premier private & commercial bank joins one of North America’s leading private & commercial financial services companies banking  Introducing City National’s full suite of U.S. private and commercial banking products an

  13. Slide 13: Acquisition to generate attractive long-term earnings growth

    Acquisition to generate attractive long-term earnings growth Expense synergies  Consolidation of non-client facing infrastructure across City National, RBC Wealth Management and other RBC businesses  Achieving scale benefits in procurement, technology and other functional areas  Improving product

  14. Slide 14: Transaction summary

    Transaction summary All financial information in U.S. dollars unless otherwise stated  Total transaction value of ~$5.4B at announcement(1) (C$6.6B)(2) Purchase price  $93.80 in value per City National common share(1), 26% acquisition premium(3)  RBC will acquire 100% of City National for ~$2.7B

  15. Slide 15: Enhances RBC's U.S. presence and accelerates franchise growth

    Enhances RBC’s U.S. presence and accelerates franchise growth Premier private & commercial Enhancing U.S. wealth & asset Premier commercial bank joins bank joins one of North management platform top 10 investment bank(1) America’s leading financial services companies Expanding into U.S. private & Fu

  16. Slide 16: Investor Relations Contacts

    Investor Relations Contacts Amy Cairncross, VP & Head amy.cairncross@rbc.com (416) 955-7803 Lynda Gauthier, Director lynda.gauthier@rbc.com (416) 955-7808 Stephanie Phillips, Director stephanie.phillips@rbc.com (416) 955-7809 Please visit us at: www.rbc.com/investorrelations 15 15

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