Royal Bank of Canada

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Fortune Global 500

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

World's Most Admired Companies

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-250-Royal Bank of Canada

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-223-Royal-Bank-of-Canada

As we face unprecedented collective challenges, cooperation has become a business superpower.

37.CTW20.Royal-Bank-of-Canada

The Royal Bank of Canada has helped young people land jobs—and turned them into customers to boot. In 2017, amid high youth unemployment, RBC devised a workforce prep program and invested about $380 million in the effort. “Future Launch” has since reached more than 2 million young Canadians with training courses, mentorships, networking, and internships. Canada’s youth jobless rate dropped to an all-time low of 10% in 2019. And at RBC, which had struggled to attract young customers, those ages 24 and under now account for a third of new retail clients.

Change the World

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Change The World

Impact Segment

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Get insights into Royal Bank of Canada including business profile, stock information, news, and rankings from Fortune.

Royal Bank of Canada (RY): Company Profile, Stock Price, News, Rankings

legacy

royal bank of canada

Companies

Royal Bank of Canada | Fortune

Royal Bank of Canada (RY): Company Profile, Stock Price, News, Rankings | Fortune

Andrea Barrack, Senior Vice President, Sustainability and Impact, Royal Bank of Canada Amelia DeLuca, Chief Sustainability Officer, Delta Air Lines Gayle Schueller, Senior Vice President and Chief Sustainability Officer, 3M Moderator: Molly Wood, Founder and CEO, Molly Wood Media; Co-chair Fortune Impact Initiative  

Impact Initiative 2024: Sustainability Goals - Are Market Movers On Track

Conferences

Impact Initiative 2024: Sustainability Goals: Are Market Movers On Track

Andrea Barrack, Royal Bank of Canada, Amelia DeLuca, Delta Air Lines, Gayle Schueller, 3M Moderator: Molly Wood, Molly Wood Media

Thanks for joining us. Welcome to my lovely panel. Um I am going to dive right in with the, the key question, the, the title of our session right now and I'll just sort of go down the row here. Are you market movers on track? Andrea? Ish your honesty as always is appreciated in this room. I'm glad I didn't have to go first. So now, you know what to say? That's all. Ok. I wanna say it wasn't a closed session when we're on the panel. I have my legal team is not here to tell me if I can disclose this or not. Listen, you have to be an optimist to be in this space. I'm sure all of you are here today because you're optimist. So I'm always gonna be optimistic unless I'm talking to my board and then I'm gonna have a little bit more of a realist viewpoint, but in general, I will say yes, it's very hard or we're gonna hit our targets. Exactly. Spot on. Probably not, but we're gonna make a heck of a lot of progress. And that to me is wonderful. I would say it depends on who we are because I would say three M, we've been ambitious with our goals. We really hold ourselves to a high standard in terms of developing the math path and plan. So three M is on target. In fact, a little bit ahead of what we said is our public goals. We as a planet and a society, I think we have some things to work on and we can only do it by being together. So it's great that everyone's here together to work on that flew in on Delta obviously. So also great partnership. Yes. Exactly. Exactly. Well, and I, I the reason that we put together this panel and it, it is interesting because the reason we put this panel together was to say we would love for these companies, these market movers to come here and say, you know, this is the progress that we're making here are the benchmarks that we're setting here are the standards we're creating for the industry. And also I can safely say in this room, a lot of people dropped off of this panel as we were programming it. And so I think this question of where you are in your goals is stressful for company. So Andrea not to, to make you the avatar for the entire financial sector, you no longer answer. But no, no, you know, we're just gonna keep going here. Ish is a really good answer. Um I also recently learned the phrase no, is a complete sentence. So I think that's, you know, also an acceptable answer to many questions. Um the financial sector has come under a lot of pressure. I was just reading a financial Times story today about how none of the major banks and financial institutions are at attending cop 29 in Baku. Um How do how are you thinking about balancing sustainability goals with the reality of achieving them and, and sort of the evolving role of banks in these goals? Yeah. And I love that you led with the evolving role of banks because I think that's really something that, you know, like, I don't know, sort of 2016, 2017, we were all just like, let's do the Moonshot and we're gonna be net zero by 2050 we're just gonna rely on human ingenuity to get there because we don't really know the path yet, but we believe in and we believe in innovation and that's gonna get us there fast forward to. Now we're in this exceptionally volatile and dynamic external environment. And you know, R BC has uh you know, our core markets are the US Canada and the Eu and they have vastly different landscapes when it comes to ESGDE I standard setting. And so trying to sort of thread that needle has been extraordinarily difficult. And I think the one way that we've sort of approach that is to say we have to be so tightly aligned to the business goals and to the values of our organization that is the way through, that's how we're gonna get there. And then sort of dealing, I think, then back to the reality, sort of to say, what are the societal issues that impact the success of our business today, but also in the future and that we also feel like we could have a positive influence on. So those of you who follow CS RD, it's kind of that idea of double materiality and starting to bring that in. And then what are our ambitions and then what are our contributions that we can make to get there? And we use the term contributions really deliberately because actually banks didn't cause the societal issues were challenged with, with climate change or with inequities. Um And so we have a contribution to make, but it's not the whole thing. So how do we kind of look at that and then try to balance it, needing to be ambitious, set the bar, but we have a legislative environment and a litigation environment that really punishes any sniff of greenwashing. And so we need to be careful there. And so it's trying to sort of say, be realistic, but something that allows you to stretch at the same time to because we want to spur action at the end of the day. Um A reminder that we are gonna come to you with questions. I have a couple more for the panel but start thinking of your questions and we've, you've been through a couple of sessions now, raise your hand and a Mike Renner will come to you. Um But before that, Amelia, I wanna ask you about the airline industry. Uh Delta is of course more sensitive than most to this question of greenwashing for reasons you probably can't talk about on stage today, but it does raise this sort of the idea of evolution, right? Like the idea of e the, the evolution of the, the backs on the ground when goals were set and how you work toward meeting them. Yeah, I think, and I think just to step back for a second, um, you know, aviation is a hard to decarbonize sector. And so while we're doing everything that we can today, if you flew in on dealt with some things that I'll point out that you may have seen or the sustainable packaging, many of our products are in, um, things that you did not see is how we're taking weight off the airplane, through both our catering products as well as through the structural items. How potentially we landed you with a slightly different vector to reduce fuel usage, how we maybe change the speed we flew you out for 30 seconds, all of which saves millions of gallons of fuel every year, but we burned 4 billion gallons of fuel every year and you can't take off with anything besides liquid based carbon fuel today, essentially. You know, it can't be a battery electric. And so we got a long ways to go sustainable aviation fuel is our North Star. It has been our North Star and will continue to be our North Star as an industry. I think where the evolution comes in is an understanding about the need to accelerate what we can do today and talk a lot more to our consumers, to educate them, to let them know that we're not just waiting for this moon shot, but we are getting all the fuel out of our system that we can today in really ingenious ways. While we scale sustainable aviation fuel and sustainable aviation fuel has been a really interesting product to watch evolve. It competes with the same feedstocks that on road vehicles use, whether that's in our liquid fuels today or in the future, synthetic fuels, either of those are competing feedstock resources, we're a completely new value chain. So if you think about what these fuels of the future are going to look like, I never thought as an aviation leader and this is the only career I've ever had that I would be spending my days on a farm, for example, and that I would be lobbying in the Midwest more than I'm actually home in my home base in Atlanta. And so to me, I think the evolution is building these partnerships that you may not need today. But then in 5 to 10 years from now when that breakthrough starts to come or that technological advance and is finally here that we have those relationships and those partnerships and that trust. And so to me, the evolution is that, and it's data backed and I think it's the fact that data is changing to say that, you know, a lot of money needs to go into this. Let's make sure that the money goes into the right places. And so part of that is through both our policy as well as how we spend our money just being agile and also transparent about what we're doing with that money. And when we find a better solution than we've seen in the past, we will be transparent and tell you about that switch. Yeah. And then gale three M is such an interesting case because it, it is so broad. There are so many things in scope, which is one of the conversations that we have had. How do you even determine which parts of the business to tackle and talk about what a challenge that is? Yeah. Well, we have on the order of 55,000 products, banning post it notes and command strips and scouring sponges that you might be familiar with, but also adhesives that go into aircraft and solutions that go into your electronics devices and helping batteries be safer, helping fuel economy and vehicles be more efficient and helping workers work safely every day. I mean, we became, we used to be known for Poster Notes, then it was a 95 respiration. So it's really been an evolution. We, we have, like I mentioned, we're very science based and we have this maths path and plan approach. We have systematically analyzed every one of our facilities around the world. And we're just now at a point where we're looking at every product portfolio which is a big effort. And um we've needed that at least at the facility level to look at that math path and plan. And by going systematically through the approach, whether it's the manufacturing processes, the portfolios themselves or how we source and how, how we deliver the products that's allowed us to reduce our scope one and two emissions by more than 80% since 2002. And that includes more than 43% since 2019. And so we, we just, it's taken us maybe longer than we might have liked, but we just had F BT I validation for our near term target um relatively recently and we're committed to continuing down that path. It is a lot of hard work though. Um because it means that every different business needs to be engaged in the own way that we're their most relevant, right? Um Are there questions from the audience just yet? I see a hand right in front of me. Look, look at you. Yeah, this is Khwaja Shekh uh fascinating panel. Um It is very important to, to integrate sustainability with the business strategy. And there comes the balancing both short term and long term. And if you apply the VC mindset on the venture capitalist, they are, they are very much high risk takers where they invest a lot for the long term, where they are literally creating new business models. So from the financial services industry standpoint or from the travel and transportation industry standpoint, what are your views on how do we make sure we apply the VC mindset to fundamentally create a new business models instead of just looking at the short term, only from the regulatory reporting needs trying to do minimum versus looking for the long term, any ideas you would like to offer? Interesting. Yeah, I mean, and do you want to apply a VC mindset? Yeah, so banks in North America are highly regulated um entities but, but I think you're absolutely right. If you look at what is the number one driver that banks have to try to make a positive impact in the world, it's the allocation of capital. And so we do think about how are we driving more green and even more sort of greenish brown to try to help the transition to accelerate. And you know, people set uh sustainable finance goals and you know, we've got a new one that we're putting out there. But the fact of the matter is is there's not that many things that meet our risk return profile that we can invest in that are green at this point in time. So it really does beg the question. And I think it's not just R BC, I think it's all financial institutions to say, would we consider modifying our business model a little bit looking at that risk return profile, what would that mean to be able to incent more additive kind of activity um that we could then sort of really say that we're, you know, being a market mover, I think in those kinds of things. So I don't think we're there yet, but I think financial institutions have a huge role to play in getting there. And I think maybe I'll just take it with very short, which is, you know, I think business today, it's very easy for me to argue why, what we're doing is good and we save jet fuel. That's our largest cost driver. That's easy. I don't think that it's the role of the airline to be financing these kind of risky bets when it comes to sustainable aviation fuel producers, as mentioned, that just doesn't fit in our business model nor our margins. But I just want to give an, for example, we have um a sustainable aviation fuel hub in Minnesota and it is public private partnership. It is the state. It's all the major Corporates. You've got major oil and gas, you've got a, you've got the energy company all trying to figure this out because that's the answer. Right. You're right. Everyone needs to up their risk a little bit but not one single industry or party can take that risk. I will Bill. Please go ahead. I love your question. Um In part because it gets to a core value that we have as a company. We're really focused on innovation and we've put forward a requirement since 2019. So it's five years old now that every new product we develop must have a sustainability value commitment. Now, some of these and I will tell you especially the first year, um some of them I was much more excited about than others, you know, but, but each year, so the first year we allowed, ok, if you're not packaged and recycle recyclable packaging, that can be your commitment. But the next new product has to be built on that and has to be above and beyond. And that's really led to a lot of things and in terms of venture engagement, um yeah, I could go on for a long time but I won't. Um But it's led to a lot of really interesting breakthroughs, but in terms of venture engagement, it has us leaning in stronger than ever to climate tech and so new ways. How can we bring things forward? You know, whether it's carbon capture or whether it's a hydrogen economy, all of these things because collectively, we're all trying to find solutions and increasing. I think there's a really important role for materials. And there's a material science company that's an important opportunity for us as a business that I was only going to add to that, that corporate venture capital has actually emerged as a really interesting source of some of that catalytic capital. And so you have this market mover advantage in terms of procurement, sometimes CV C certainly financing mechanisms. I know where there's a question over here uh of my lien Buckley, I represent striker Med tech company um Gail, I believe you were referencing the progress on carbon goals. And I imagine three M is it has many businesses as do probably many of our companies. So do each of your businesses have goals around carbon reduction or can you speak a little bit to how you tackle that as a major enterprise? Yeah, so we, we have goals at the prioritized portfolios. Ok. So we go through and we know where our heavy carbon footprint is. And so we challenge those businesses in particular. We don't have an internal carbon tax right now, but we make sure those businesses are very aware of what an external carbon tax might be and try to help them with that incentive and progress. And we give them special love and attention if there are higher carbon footprint areas. Great. Thanks. What have you seen? I think we're probably, we're probably out of time to take more audience questions because we will all get too excited. But um but one of the things we talked a lot about in our prep call for this panel and in the round table that preceded the main stage sessions is this idea of again the evolving landscape, right? That there are things maybe we didn't see coming such as a pandemic, if you maybe set 2025 or 2030 goals in 2018. Um New technologies, innovations, things like that. What have some of those innovations uh evolutions been? What are some of the conditions that have changed the most on the ground in the time that you may set your goals or that are making you think we're on Trek ish? Yeah, I think two things and I'll try to be brief. One is just that we're seeing far more um interest sections between ES and G. Um And so this idea that we would treat them in pillars is no longer really sufficient if we want to get there. But the second thing is that there's been a huge proliferation of regulation and disclosure standards and while some of that can be good, uh in fact, the first panel on uh de I and A that was earlier talked about, never mind the letters. Can we just do the work? And one of the things that I wonder is that companies are so busy hiring up to have people do disclosures and make sure that we're in line with regulations that we actually are pulling away people from doing the work to actually decarbonize or to increase their diversity or to have a positive impact. And so I think in this environment, particularly where it's global and regulations in Europe are far more stringent than they are in the U SI would say. And so we're seeing already companies thinking about listing rather than in Europe listing in the United States that doesn't help global emissions, right? And so if we can't be consistent in that kind of innovation and that regulation, we're not going to get anywhere either. Yeah, I think for us, there's two things. So I think the first in the short term is that it's good for business. And we've proven that out over the last couple of years, which means we actually have more money flowing into our team to spend towards fuel saving initiatives than we ever thought was possible because we proved it's good for business. We will find innovative technologies, we will use the goodness that is sustainability to just get everyone rallied around us. Whether you meet our media from a cost savings perspective or from a purpose driven perspective, everyone can get on board with what we're doing. I think the second is at least for us, our industry is bipartisan, but the concept of sustainability is often not sustainable. Aviation fuel is actually incredibly bipartisan because a lot of the fuel will come out of the Midwest. And so I think for us, the real evolving evolution is realizing we have this once in a lifetime kind of opportunity to truly shore up support on both sides so that no matter what happens in November, it will not significantly impact. And to really tell the story again about how this industry which has always done so much. Good for so many people is now gonna have new connections into agriculture and rural America which again just provides decades worth of kind of new partnerships, new opportunities and new ways to uplift communities that we didn't have before. Wonderful. Wow, great answers. I thought I had 31 was about regulations getting tougher and more reporting. One was about how the politic politicization, I don't know, becoming more political in this space when it really shouldn't be. Um But the third I would say is technologies are really advancing, you know, so you see those like there's a technology s curve concept, you know, as you come up the s curve, things start moving really fast. And so we're seeing that with renewable energy, you know, that that's becoming more and more affordable. We're seeing that with electrification, maybe not of airplanes but of other types of ground um transport. You know, we're seeing those things move, we're seeing more and more different ways of things advancing. And I think it's a matter of getting on with it. And you know, some of those first movers that you were talking about, we're going to geek out a bunch about climate tech at dinner. But that's where I have to leave this panel. Andrea Gill and Amelia. Thank you so much for the time. I appreciate it. Thank you.

Royal Bank of Canada’s leader is confident “we’ve got the tools to manage the economy”

 CEO of Canada’s biggest bank says “empathy and transparency” are key to leading through coronavirus crisis

Leadership

He says empathy and transparency are key.

Royal Bank of Canada’s CEO leads through coronavirus crisis

gave Corona virus is topic ate all around the world, the financial markets have been selling off. What do you think that this severe financial response to this health care crisis is telling us? What's the message of the market methods or uncertainty about the future when you look at ah that markets in the price of of long term bonds and you look at US 10 year yield dropping below 50 basis points down the low forties telling But uncertainty about future growth, uncertainty about credit loss on the credit cycle, fear of recession, disruption on both the demand side and on the supply side in our economy, it's huge uncertainty and fear. You run Canada's biggest bank and you have a big presence here in the United States to so, from the point of view on the banker, tell us a little bit more about what measures you would like to see. Certainly there's monetary policy. Are there things that big businesses can dio U S and other governments that you'd like to see that would instill confidence for consumers and businesses? We have a number of tools that we can use to manage the economy through this We have a number of strategic backup plans of companies to help. People were had a different location, So as far as economical as you've still a monetary policy, you can have rate cuts. Hopefully, we don't go too negative rates, but you've got a significant chemist that you can still inject into the economy. You still have fiscal policy. We can run greater deficits. We could insert cash flow into consumers and small businesses and corporate pockets to continue the economy. We've got tools to manage the economy. At the same time businesses have backup operational plans continues. He plans to protect the safety and health of their employees to continue to manage operations. And you're seeing around the world, you know, companies execute those plans. There's a lot you can do, helping customers get ahead and understand their casual challenges, the options they have to refinance, helping consumers understand their challenges that they lose their job. You know, we have skipper paying our mortgage business when the customer loses their job cash flow disruption. You sit down and talk about their options of deferring payments, managing their cash flow, helping them understand all their short term requirements, apply technology and the advice of our people to really help understand the optionality to manage the challenge is, uh, declining economy can have on your business. You know, CEOs talk a lot about leadership, and how they lead in good times were also difficult times like we're going through right now as a business leader. What are you doing internally? What kind of steps are you taking during the healthcare risk time? You really can't over communicate and communicate with transparency. I think those are the two keys so written communication they need to see you visually. They need to see you in a calm state, articulate what's going on. Empathy. It's really important that the note I sent out to employees first thing this morning was, I feel with you about a personal concern to concern for your family the same time we have to move forward a society with the contain these risk. We have to continue to operate our economy and balance the two. So I think it's empathy and transparency. Well, until all of these virus concerns, your bank has been doing extremely well recently reported record earnings. The bank announced it is raising its dividend and you told investors quote, We're starting 2020 from a position of strength, which is great. But now, knowing what you know, what is your outlook for 2020? Well, certainly changed. You know, the first thing for a bank that changes the rate environment has decreased significantly and that impact our revenues. So we're adjusting to a lower revenue environment as an industry challenges your expenses and what you can spend and how much you can growth, certainly, and were challenged by customer demand. So you would think consumers with uncertainty by Les Hommes They take last trips for sure they use your credit card. Less small businesses might borough lesser Boram or depending on their cash flows, an inventory and supply chain. So all of that normal trajectory has changed around your customer and around the market doesn't change our strategy. We still have the same ambition to grow same ambition to serve customers. But in the short term, we have to help our customers and our employees get through this period of uncertainty. I think trying to balance both of the leader, which is key. So let's talk about your strategy. You have these expansion plans into the U. S. Market. You recently said that you plan to roll out a direct to consumer bank in the U. S. Tell us what you're thinking when we look at our strength and what we can help consumers. Within the United States, we have one of the largest balance sheets of any bank in the world. We have a double A rating balancing when the few double rated banks in the world. We have a very strong technology based, so we think about the value we can bring to a specific segment of the U. S. Market. We feel we have a strong offering in a direct to consumer bank. So initially, you'll probably start as high interest savings account that will morph into different aspects of value for every day. Consumers. So we're very excited about the technology and going direct to the consumer, and strategically, for us, it helps us fund future longer. So your first foray into the U. S. Was when you bought City National Bank and you've opened up branches not only New York and Washington from other cities. How is that going? And that's what motivated you to do this Consumer bank we've doubled the balance sheet. We double the loans in the business. We're now $50 billion bank and City national. We have aspiration to double it yet again to $100 billion bank. And we've grown by expanding our geography. We have a take New York strategy. We're gonna be in Hudson Yards. We're gonna be Westchester. We're doubling the size of our operation in New York City. Expanded into Washington, Nashville, Boston of Wall continued to grow our her home base, which is the state of California. Why is the U. S so appealing to you and RBC and why it's Canada, maybe less appealing when it comes to the growth opportunities US. Such a large market is one of the deepest peoples for banks in the world, the most competitive marketplace. So you have to really be at the top of your game. So, uh, for us, that presents opportunities. When we feel there's an unserved market here, there's room for us to compete and scale. We've probably had 2000 employees to the U. S. Operation over the last four years, were very excited about the future growth opportunities

 Dave, you just bought City National. You just closed on the deal. This was a big, bold move for your bank. It's the bank for the Hollywood stars. So now what? What's next? Well, we're very excited about City National acquisition. It's the largest acquisition in our history and I think the largest acquisition in the US financial market for banks in the last decade. Yes, it's known as the Bank of the Stars, and it has some great stories about Frank Sinatra from the past and its legacy. But that's only 25% of its business. It has diversified into technology in the valley and supporting entrepreneurs, health care, a national leasing franchise. So it's really a bank of entrepreneurs serving entrepreneurs. Now that you have this in-house, what's the next most important thing that you're trying to achieve? It starts with we're going to have to hire some more people to get closer to the customers that we want to cross-sell. We're going to expand geographically. So right now, we're really focused in LA, San Francisco, and New York as the core hubs for City National where there's 74 branches. We're going to add a branch here in New York. We're looking at expanding more aggressively here in New York City. We're also looking at markets like Washington, Houston, and London, England. So you're obviously making this big push into the US. Why is that so important to RBC? It's a very attractive market from a growth perspective, from an accessibility being in Canada, being so close. It's difficult to build franchises in Asia with the time zone and the travel. And a very attractive client, we've spent a lot of time studying the high net worth mass affluent client. And it's an attractive client from a credit risk perspective. They've got very deep and broad financial wallets. They pay their bills. So it was very much a decision to focus on a customer group in a market that we really like that's close to home and a growth opportunity. I understand that you also want to expand into the jumbo mortgage market, not only here in New York but also in San Francisco and Los Angeles. As you know, this is a very competitive marketplace. What are you going to do to win over customers? It starts with having a very good low cost source of funding, which we do have. We bring that in with our existing US wealth franchise with over $20 billion of low cost funding. Certainly you look at the City National franchise and their strong core deposits, those are all the key foundations to funding a mortgage book. Second, you have to have a strong private banking service mentality to cater to the high net worth customer who is looking at that $800,000 million mortgage. So you need both together, and that's certainly a unique ingredient that we bring. You're doing this at a time that interest rates in the US are going to start going up. To what extent could that be a headwind for you? It certainly will slow the market down somewhat. But when you look at how the high net worth customer performs through a cycle, an economic cycle, there is a pretty steady level of demand. And there's some very strong examples in the market of this is a consistently strong market through credit cycles, through economic cycles, rising rates, lower rates. So we've looked at that, and it has some cyclicality to it, but still is a robust market through a cycle. 

Royal Bank of Canada CEO David McKay talks with Susie Gharib about buying the "bank for the Hollywood stars".

What Buying City National Means for RBC

CEO McKay talks buying the "bank for the Hollywood stars".

Royal Bank of Canada

Royal Bank of Canada in Coins2Day Rankings

Royal Bank of Canada stock chart

Videos