Royal Bank of Canada today announced its intention, subject to the approval of the Office of the Superintendent of Financial Institutions and the Toronto Stock Exchange, to renew its normal course issuer bid through the facilities of the Toronto Stock Exchange and to repurchase for cancellation up to 20 million common shares, representing approximately 1.6 per cent of the bank's outstanding common shares as at October 15, 2007. The bank intends to file a notice of intention with the Toronto Stock Exchange in this regard.
Purchases may commence after the Toronto Stock Exchange has accepted the notice of intention and may continue for a period of one year. The amount and timing of any purchases will be determined by the bank.
The proposed share repurchase will enable the bank to balance the imperatives of maintaining solid capital ratios with the ongoing need to generate shareholder value. On July 31, 2007, the bank's Tier 1 and Total capital ratios were 9.3 per cent and 11.4 per cent, respectively.
The bank currently has a normal course issuer bid that will expire October 2007. Under the current bid, approximately 11.8 million of an allowed 40 million common shares have been repurchased as of October 15, 2007.
Source: Royal Bank of Canada
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