EX-99.4

EX-99.4 5 d904929dex994.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, 2015 and five-year period ended October 31, 2014:


	IFRS										Canadian GAAP
	Six months ended April 30, 2015		Year ended October 31, 2014		Year ended October 31, 2013 ⁽¹⁾		Year ended October 31, 2012 ⁽¹⁾		Year ended October 31, 2011		Year ended October 31, 2010
Excluding Interest on Deposits		6.40		6.23		5.34		4.88		3.47		3.55
Including Interest on Deposits		2.56		2.43		2.28		2.12		1.84		1.90

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
	2015			2014			2013⁽¹⁾			2012⁽¹⁾			2011			2010
(Canadian dollars in millions)

Excluding Interest on Deposits
Net Income before income taxes	$	6,551		$	11,710		$	10,447		$	9,513		$	8,191		$	6,968

Less: Income/(loss) from equity investees (Note 1)	$	(66	)		(162	)		(139	)		6			9			55		*Note 1*

Fixed Charges:
Interest expense (excl. Deposits)	$	1,110		$	2,030		$	2,205		$	2,298		$	3,164		$	2,605
Estimated interest within rental expense		92			177			169			155			156			149

Total fixed charges		1,202			2,207			2,374			2,453			3,320			2,754

Preferred dividend requirements (Note 2)		115			277			317			328			326			338		*Note 2*


Fixed charges and preferred dividends		1,317			2,484			2,691			2,781			3,645			3,092


Earnings		7,687			13,755			12,682			11,972			11,520			9,777


Ratio of earnings to fixed charges		6.40			6.23			5.34			4.88			3.47			3.55


Ratio of earnings to fixed charges and preferred dividends		5.84			5.54			4.71			4.31			3.16			3.16


Including Interest on Deposits
Net Income before income taxes	$	6,551		$	11,710		$	10,447		$	9,513		$	8,191		$	6,968

Less: Income/(loss) from equity investees (Note 1)		(66	)		(162	)		(139	)		6			9			55		*Note 1*

Fixed Charges:
Interest expense (incl. Deposits)	$	4,071		$	7,903		$	7,899		$	8,379		$	9,626		$	7,696
Estimated interest within rental expense		92			177			169			155			156			149

Total fixed charges		4,163			8,080			8,068			8,534			9,782			7,845

Preferred dividend requirements (Note 2)		115			277			317			328			328			338		*Note 2*


Fixed charges and preferred dividends		4,278			8,357			8,385			8,862			10,110			8,183


Earnings		10,648			19,628			18,376			18,053			17,982			14,868


Ratio of earnings to fixed charges		2.56			2.43			2.28			2.12			1.84			1.90


Ratio of earnings to fixed charges and preferred dividends		2.49			2.35			2.19			2.04			1.78			1.82


*Note (1)*					2014			2013	(1)		2012	(1)		2011			2010

Equity in Undistributed Earnings of Unconsolidated Subsidiaries Calculation (C $’000s):
Associated Corporations
(equity accounted investments – IFRS)		81			162			159			162			(8,890	)		(54,684	)
Impairment of investments in JV and associates		(15	)		-			(20	)		(168	)
JV
(proportionate consolidation Cdn. GAAP)																	-

		66			162			139			(6	)		(8,890	)		(54,684	)

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

*Note (2)*
Preferred Dividend Requirements Calculation (C $ millions):
Preferred Dividends (per Income Statement)		87			213			253			258			258			258
Taxable Equivalent Gross-up
(1-Effective Tax Rate for period)		75.7	%		76.9	%		79.9	%		78.9	%		78.7	%		76.4	%

Preferred Dividend Requirement		115			277			317			327			328			338

Effective Tax Rate		24.3	%		23.1	%		20.1	%		21.1	%		21.3	%		23.6	%

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