Apr 2009 Financial News

RBC provides information on goodwill impairment

Apr 16, 2009

TORONTO, April 16, 2009 — Royal Bank of Canada (RY on TSX and NYSE) today announced that it expects to record a goodwill impairment charge (on both a pre and after tax basis) of approximately US$850 million for the second quarter ending April 30, 2009. While the charge will reduce second quarter reported earnings by approximately US$850 million, it is a non-cash item and an accounting adjustment, and will not affect our ongoing operations, or our Tier 1 and Total capital ratios.

As described in our First Quarter 2009 Report to Shareholders, we conducted the first of a two-step goodwill testing process during the first quarter and determined that the goodwill assigned to our International Banking reporting unit may be impaired. We have now completed the second step of the testing process and have determined that the International Banking reporting unit goodwill is impaired, resulting in the expected charge to second quarter earnings noted above.

This expected charge reflects the impact of prolonged challenging economic conditions that have affected our International Banking reporting unit; in particular declines in the U.S. housing market, the deterioration in the overall U.S. economic environment and the decline in the market value of U.S. banks.

RBC will release its second quarter results on May 29, 2009. Information related to these results will be available at: www.rbc.com/investorrelations. A conference call is scheduled for May 29, 2009 at 1:30 p.m. (EDT) and will feature a presentation by RBC executives. Investors are invited to submit questions by email to invesrel@rbc.com. Interested parties can access the call on a listen-only basis at: www.rbc.com/investorrelations/ir_events_presentations.html or by telephone (416-340-2216 or 1-866-898-9626). Please call between 1:20 p.m. and 1:25 p.m. (EDT).

Speaker's notes will be posted on RBC's website shortly following the call. Also, a recording will be available by 5:00 p.m. (EDT) on May 29 until August 2, 2009 at www.rbc.com/investorrelations/ir_quarterly.html or by telephone (416-695-5800 or
1-800-408-3053, passcode 8321037#).

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For further information, please contact:

Investor contact:
James Colburn, Investor Relations, (416) 955-7808

Media contact:
Jackie Braden, Media Relations, (416) 974-2124


Source:
Thursday April 16, 2009
Royal Bank of Canada
www.rbc.com