Exhibit 7
CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES
The tables below set forth our consolidated ratios of earnings to fixed charges for the five-year period ended October 31, 2015:
Year ended October 31, 2015 | Year ended October 31, 2014 | Year ended October 31, 2013 | Year ended October 31, 2012 | Year ended October 31, 2011 | ||||||||||||||||
Excluding Interest on Deposits | 6.14 | 6.23 | 5.34 | 4.88 | 3.47 | |||||||||||||||
Including Interest on Deposits | 2.53 | 2.43 | 2.28 | 2.12 | 1.84 |
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
Year Ended October 31 2015 | Year Ended October 31 2014 | Year Ended October 31 2013 | Year Ended October 31 2012 | Year Ended October 31 2011 | ||||||||||||||||
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(Canadian dollars in millions) | ||||||||||||||||||||
Excluding Interest on Deposits | ||||||||||||||||||||
Net Income before income taxes | $ | 12,623 | $ | 11,710 | $ | 10,447 | $ | 9,513 | $ | 8,191 | ||||||||||
Less: Income/(loss) from equity investees (Note 1) | (146 | ) | (162 | ) | (139 | ) | 6 | 9 | Note 1 | |||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense (excl. Deposits) | $ | 2,235 | $ | 2,030 | $ | 2,205 | $ | 2,298 | $ | 3,164 | ||||||||||
Estimated interest within rental expense | 193 | 177 | 169 | 155 | 156 | |||||||||||||||
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Total fixed charges | 2,428 | 2,207 | 2,374 | 2,453 | 3,320 | |||||||||||||||
Preferred dividend requirements (note 2) | 240 | 277 | 317 | 328 | 326 | Note 2 | ||||||||||||||
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Fixed charges and preferred dividends | 2,668 | 2,484 | 2,691 | 2,781 | 3,645 | |||||||||||||||
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Earnings | 14,905 | 13,755 | 12,682 | 11,972 | 11,520 | |||||||||||||||
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Ratio of earnings to fixed charges | 6.14 | 6.23 | 5.34 | 4.88 | 3.47 | |||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 5.59 | 5.54 | 4.71 | 4.31 | 3.16 | |||||||||||||||
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Including Interest on Deposits | ||||||||||||||||||||
Net Income before income taxes | $ | 12,623 | $ | 11,710 | $ | 10,447 | $ | 9,513 | $ | 8,191 | ||||||||||
Less: Income/(loss) from equity investees (Note 1) | (146 | ) | (162 | ) | (139 | ) | 6 | 9 | Note 1 | |||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense (incl. Deposits) | $ | 7,958 | $ | 7,903 | $ | 7,899 | $ | 8,379 | $ | 9,626 | ||||||||||
Estimated interest within rental expense | 193 | 177 | 169 | 155 | 156 | |||||||||||||||
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Total fixed charges | 8,151 | 8,080 | 8,068 | 8,534 | 9,782 | |||||||||||||||
Preferred dividend requirements (note 2) | 240 | 277 | 317 | 328 | 328 | Note 2 | ||||||||||||||
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Fixed charges and preferred dividends | 8,391 | 8,357 | 8,385 | 8,862 | 10,110 | |||||||||||||||
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Earnings | 20,628 | 19,628 | 18,376 | 18,053 | 17,982 | |||||||||||||||
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Ratio of earnings to fixed charges | 2.53 | 2.43 | 2.28 | 2.12 | 1.84 | |||||||||||||||
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Ratio of earnings to fixed charges and preferred dividends | 2.46 | 2.35 | 2.19 | 2.04 | 1.78 | |||||||||||||||
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Note (1) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Equity in Undistributed Earnings of Unconsolidated Subsidiaries Calculation (C $’000s): |
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Associated Corporations | ||||||||||||||||||||
(equity accounted investments) | 149 | 162 | 159 | 162 | (8,890 | ) | ||||||||||||||
Impairment of investments in JV and associates | (3 | ) | - | (20 | ) | (168 | ) | |||||||||||||
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146 | 162 | 139 | (6 | ) | (8,890 | ) | ||||||||||||||
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Note: Losses are presented with a negative sign in this calculation. |
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Note (2) | ||||||||||||||||||||
Preferred Dividend Requirements Calculation (C $ millions): |
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Preferred Dividends (per Income Statement) | 191 | 213 | 253 | 258 | 258 | |||||||||||||||
Taxable Equivalent Gross-up | ||||||||||||||||||||
(1-Effective Tax Rate for period) | 79.4 | % | 76.9 | % | 79.9 | % | 78.9 | % | 78.7 | % | ||||||||||
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Preferred Dividend Requirement | 240 | 277 | 317 | 327 | 328 | |||||||||||||||
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Effective Tax Rate | 20.6 | % | 23.1 | % | 20.1 | % | 21.1 | % | 21.3 | % | ||||||||||
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