Royal Bank of Canada at RBC Capital Markets Global Financial Institutions Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Derek Neldner - RBC Capital Markets - Analyst : Exactly, exactly. So, maybe I'll start there with the theme. In terms of the macroenvironment, it now has been a year that we've all been managing with the different implications of COVID-19 around the world. Maybe we can start off, Dave, just sharing your thoughts on the short- and longer-term implications you see on the economy from the pandemic, your views on interest rates. And maybe just touch on how you see the implications varying a little bit by sector, different areas of the economy.

Question: Derek Neldner - RBC Capital Markets - Analyst : That's great, Dave. You touched on obviously a pretty strong foundation with all the liquidity in the system and light at the end of the tunnel in terms of vaccinations. So, there's a number of things that are really poised for a strong recovery. That being said, there still is some uncertainty with variants, as you mentioned, we'll have to see how this all plays out. How do you think about that in terms of where we are in terms of the credit cycle? And what does that mean for banks over the coming 12 to 24 months?

Question: Derek Neldner - RBC Capital Markets - Analyst : So, linking to that a little bit, Dave, obviously with all the liquidity that has gone into the system, the banks in general, RBC specifically, have performed very well. Capital generation has been good, the level of capital available in the businesses is very good. Can you spend a minute and just talk about how, against that backdrop, you think about capital deployment strategies, organic or inorganic, over the period ahead?

Question: Derek Neldner - RBC Capital Markets - Analyst : You talked a lot there, Dave, obviously about the opportunity for growth, the opportunity to invest organically. So maybe we can shift a little bit to some of the specific industry and business positioning. And you touched on the importance of the US as a growth market for RBC. Maybe we can start there and you can share your thoughts on future growth, future expansion plans in the US, in particular around US wealth management and City National.

Question: Derek Neldner - RBC Capital Markets - Analyst : That's a great overview, Dave. You obviously manage capital markets as well, which is a global business, but a big US footprint. Obviously the last year has been a very constructive market environment for all capital markets businesses and we've certainly benefited from that. And we are coming off an all-time record earnings for the first quarter of our fiscal year in capital markets. I honestly have my views on longer-term opportunities, but maybe, Dave, you could share your thoughts on how you think about a capital markets business in the context of RBC's diversified strategy and what you see to be the longer-term opportunity or challenges that business faces.

Question: Derek Neldner - RBC Capital Markets - Analyst : Thanks, Dave. Maybe we can switch gears for a moment and come back to two of our strongest businesses, obviously Canadian banking and wealth management. And in particular with the trends we're seeing in the market, all the liquidity in the system, what the impact has been on deposits, ongoing good activity in the mortgage space. Maybe you can share your thoughts on longer-term trends in both Canadian banking and wealth.

Question: Derek Neldner - RBC Capital Markets - Analyst : That's great -- great to hear, Dave. So, we've probably got about 3 or 4 minutes left. I am going to pivot to a few very important initiatives for RBC, but switching gears from the direct business front. And this relates to ESG, client (inaudible), diversity and inclusion. As you know, RBC hosted our inaugural ESG conference a little over a week ago. It was probably one of the most attended conferences we've had. It just really speaks to the importance of this theme in society today. So, maybe two questions around that, Dave. First, starting just with our climate strategy, climate ambition. You just announced some new goals for the Bank, quite aggressive goals. Maybe you can talk a little bit about your thoughts on our climate strategy. And in particular why you think it's important for RBC to be a leader in this area.

Question: Derek Neldner - RBC Capital Markets - Analyst : Okay, maybe one final question, Dave, switching obviously to the importance of D&I. This -- diversity and inclusion was a topic that you've been championing with the rest of the Bank for a number of years. It has increased in importance given the number of -- the tragic instances of systemic racism that we witnessed in 2020. Maybe you can just talk about some of the things we are focused on in terms of building greater diversity and leadership and just our overall D&I action plan.

Question: Derek Neldner - RBC Capital Markets - Analyst : I think that characterization is -- it is an area where we cannot fail is absolutely bang on. Lots of great initiatives but lots more to do. Well, we're at time. But, Dave, obviously thank you very much. You've shared some terrific perspectives. I do want to give you the last word though. So, any final closing messages you want to leave with our audience today?

Question: Derek Neldner - RBC Capital Markets - Analyst : Great way to close it. Thanks again, Dave, and we look forward to a couple good days of the conference. Thank you.