Exhibit 7
CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES
The tables below set forth our consolidated ratios of earnings to fixed charges, calculated in accordance with Canadian GAAP and U.S. GAAP, for the last five fiscal years and the latest interim period for which financial statements are presented:
Canadian GAAP | Year Ended October 31, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Excluding Interest on Deposits | 2.99 | 3.55 | 3.28 | 2.51 | 2.34 | |||||||||||||||
Including Interest on Deposits | 1.75 | 1.90 | 1.60 | 1.37 | 1.37 |
U.S. GAAP | Year Ended October 31, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Excluding Interest on Deposits | 2.88 | 3.60 | 3.36 | 2.33 | 2.36 | |||||||||||||||
Including Interest on Deposits | 1.70 | 1.89 | 1.60 | 1.32 | 1.37 |
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.
Royal Bank of Canada and Subsidiaries
Ratio of Earnings to Fixed Charges and Preferred Dividends
CDN GAAP | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | Year Ended October 31 2007 | ||||||||||||||||
(Canadian dollars in millions) | ||||||||||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||||
Net income before income taxes | $ | 6,496 | $ | 6,968 | $ | 5,526 | 6,005 | 7,025 | ||||||||||||
Less: Income from equity investees | 10 | 55 | 4 | (42 | ) | (63 | ) Note 1 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense (excl. Deposits) | $ | 3,121 | $ | 2,605 | $ | 2,275 | 3,826 | 5,075 | ||||||||||||
Estimated interest within rental expense | 156 | 149 | 146 | 129 | 128 | |||||||||||||||
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Total fixed charges | 3,277 | 2,754 | 2,421 | 3,955 | 5,203 | |||||||||||||||
Preferred dividend requirements | 338 | 338 | 325 | 131 | 110 | Note 2 | ||||||||||||||
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Fixed charges and preferred dividends | 3,615 | 3,092 | 2,746 | 4,086 | 5,313 | |||||||||||||||
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Earnings | 9,783 | 9,777 | 7,951 | 9,918 | 12,165 | |||||||||||||||
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Ratio of earnings to fixed charges | 2.99 | 3.55 | 3.28 | 2.51 | 2.34 | |||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 2.71 | 3.16 | 2.90 | 2.43 | 2.29 | |||||||||||||||
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Including Interest on Deposits | ||||||||||||||||||||
Net income before income taxes | $ | 6,496 | $ | 6,968 | $ | 5,526 | $ | 6,005 | $ | 7,025 | ||||||||||
Less: Income/(loss) from equity investees | 10 | 55 | 4 | (42 | ) | (63 | ) Note 1 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense (incl. Deposits) | $ | 8,489 | $ | 7,696 | $ | 9,037 | 15,984 | 18,845 | ||||||||||||
Estimated interest within rental expense | 156 | 149 | 146 | 129 | 128 | |||||||||||||||
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Total fixed charges | 8,645 | 7,845 | 9,183 | 16,113 | 18,973 | |||||||||||||||
Preferred dividend requirements | 338 | 338 | 325 | 131 | 110 | Note 2 | ||||||||||||||
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Fixed charges and preferred dividends | 8,983 | 8,183 | 9,508 | 16,244 | 19,083 | |||||||||||||||
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Earnings | 15,151 | 14,868 | 14,713 | 22,076 | 25,935 | |||||||||||||||
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Ratio of earnings to fixed charges | 1.75 | 1.90 | 1.60 | 1.37 | 1.37 | |||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 1.69 | 1.82 | 1.55 | 1.36 | 1.36 | |||||||||||||||
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Note (1) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Equity in Undistributed Earnings of Unconsolidated Subsidiaries Calculation (C $’000s): |
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Associated Corporations | ||||||||||||||||||||
(equity accounted investments - both GAAPS) | (9,840 | ) | (54,684 | ) | (3,922 | ) | 41,695 | 63,411 | ||||||||||||
Joint Ventures | ||||||||||||||||||||
(equity accounted investments - U.S. GAAP and proportionate consolidation Cdn. GAAP) | - | - | (1 | ) | - | - | ||||||||||||||
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(9,840 | ) | (54,684 | ) | (3,923 | ) | 41,695 | 63,411 | |||||||||||||
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Note: Losses are presented with a negative sign in this calculation. | ||||||||||||||||||||
Note (2) | ||||||||||||||||||||
Preferred Dividend Requirements Calculation (C $ millions): |
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Preferred Dividends (per Income Statement) | 258 | 258 | 233 | 101 | 88 | |||||||||||||||
Taxable Equivalent Gross-up | ||||||||||||||||||||
(1-Canadian Tax Rate for period) | 76.3 | % | 76.4 | % | 71.6 | % | 77.2 | % | 80.2 | % | ||||||||||
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Preferred Dividend Requirement | 338 | 338 | 325 | 131 | 110 | |||||||||||||||
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Effective Tax Rate for Continuing Ops | 23.7 | % | 23.6 | % | 28.4 | % | 22.8 | % | 19.8 | % |
Royal Bank of Canada and Subsidiaries
Ratio of Earnings to Fixed Charges and Preferred Dividends
U.S. GAAP | ||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||
(Canadian dollars in millions) | Restate | Restate | Restate | |||||||||||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||||||||
Net income before income taxes | $ | 6,206 | $ | 7,008 | $ | 5,563 | $ | 5,288 | $ | 7,112 | ||||||||||||||
Less: Income/(loss) from equity investees | (210 | ) | (113 | ) | (159 | ) | (264 | ) | (268 | ) | Note 1 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense (excl. Deposits) | $ | 3,036 | $ | 2,514 | $ | 2,149 | $ | 3,659 | $ | 4,913 | ||||||||||||||
Estimated interest within rental expense | 149 | 142 | 140 | 124 | 122 | |||||||||||||||||||
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Total fixed charges | 3,185 | 2,656 | 2,289 | 3,783 | 5,035 | |||||||||||||||||||
Preferred dividend requirements | 332 | 338 | 321 | 139 | 125 | Note 2 | ||||||||||||||||||
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Fixed charges and preferred dividends | 3,517 | 2,994 | 2,609 | 3,922 | 5,160 | |||||||||||||||||||
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Earnings | 9,181 | 9,551 | 7,693 | 8,806 | 11,879 | |||||||||||||||||||
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Ratio of earnings to fixed charges | 2.88 | 3.60 | 3.36 | 2.33 | 2.36 | |||||||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 2.61 | 3.19 | 2.95 | 2.25 | 2.30 | |||||||||||||||||||
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Including Interest on Deposits | ||||||||||||||||||||||||
Net income before income taxes | $ | 6,206 | $ | 7,008 | $ | 5,563 | $ | 5,288 | $ | 7,112 | ||||||||||||||
Less: Income/(loss) from equity investees | (210 | ) | (113 | ) | (159 | ) | (264 | ) | (268 | ) | Note 1 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense (incl. Deposits) | $ | 8,361 | $ | 7,590 | $ | 8,816 | $ | 15,450 | $ | 18,362 | ||||||||||||||
Estimated interest within rental expense | 149 | 142 | 140 | 124 | 122 | |||||||||||||||||||
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Total fixed charges | 8,510 | 7,732 | 8,956 | 15,574 | 18,484 | |||||||||||||||||||
Preferred dividend requirements | 332 | 338 | 321 | 139 | 125 | Note 2 | ||||||||||||||||||
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Fixed charges and preferred dividends | 8,842 | 8,070 | 9,276 | 15,713 | 18,609 | |||||||||||||||||||
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Earnings | 14,506 | 14,627 | 14,360 | 20,597 | 25,328 | |||||||||||||||||||
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Ratio of earnings to fixed charges | 1.70 | 1.89 | 1.60 | 1.32 | 1.37 | |||||||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 1.64 | 1.81 | 1.55 | 1.31 | 1.36 | |||||||||||||||||||
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Note (1) | ||||||||||||||||||||||||
Equity in Undistributed Earnings of Unconsolidated Subsidiaries Calculation (C $’000s): |
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Associated Corporations | ||||||||||||||||||||||||
(equity accounted investments - both GAAPS) | (9,840) | (54,684) | (3,923) | 41,695 | 63,411 | |||||||||||||||||||
Joint Ventures | ||||||||||||||||||||||||
(equity accounted investments - U.S. GAAP and proportionate consolidation Cdn. GAAP) | 220,182 | 167,278 | 162,693 | 222,636 | 204,679 | |||||||||||||||||||
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210,342 | 112,594 | 158,770 | 264,331 | 268,090 | ||||||||||||||||||||
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Note: Losses are presented with a negative sign in this calculation. | ||||||||||||||||||||||||
Note (2) | ||||||||||||||||||||||||
Preferred Dividend Requirements Calculation (C $ millions): |
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Preferred Dividends (per Income Statement) | 258 | 258 | 233 | 112 | 102 | |||||||||||||||||||
Taxable Equivalent Gross-up | ||||||||||||||||||||||||
(1-Canadian Tax Rate for period) | 77.8% | 76.3% | 72.7% | 80.5% | 81.4% | |||||||||||||||||||
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Preferred Dividend Requirement | 332 | 338 | 321 | 139 | 125 | |||||||||||||||||||
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Effective Tax Rate for Continuing Ops | 22.2% | 23.7% | 27.3% | 19.5% | 18.6% |