Royal Bank (Symbol-RY)

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Re: Royal Bank (Symbol-RY)

Post by mpav »

This will likely have no impact....

Since it was annouced it was underreview their funding and price at which they issue debt has not changed. They still are ranked as strong or stronger than other banks....plus it really just gets Moody's in line with hte other rating agencies.

If you think hard enough this actually may be a positive, as the other big banks took a hit, which may make RBC a much better counterparty....
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Re: Royal Bank (Symbol-RY)

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Royal Bank says it will soon start repurchasing up to 30 million of its common shares. How will this affect the price of the stock now, and during the repurchase?
TORONTO, Oct. 12, 2012 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced its intention, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange, to commence a normal course issuer bid through the facilities of the Toronto Stock Exchange and to repurchase for cancellation up to 30 million of its common shares, representing approximately 2.1 per cent of the bank's outstanding common shares as at September 28, 2012. On September 28, 2012, there were 1,444,700,692 common shares outstanding. The bank intends to file a notice of intention with the Toronto Stock Exchange in this regard.
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Re: Royal Bank (Symbol-RY)

Post by tidal »

skepticus wrote:Royal Bank says it will soon start repurchasing up to 30 million of its common shares. How will this affect the price of the stock now, and during the repurchase?
TORONTO, Oct. 12, 2012 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) today announced its intention, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange, to commence a normal course issuer bid through the facilities of the Toronto Stock Exchange and to repurchase for cancellation up to 30 million of its common shares, representing approximately 2.1 per cent of the bank's outstanding common shares as at September 28, 2012. On September 28, 2012, there were 1,444,700,692 common shares outstanding. The bank intends to file a notice of intention with the Toronto Stock Exchange in this regard.
If it is like most years, it will mean that existing shareholders will be diluted, after all is said and done.

All the big Canadian banks announce a similar repurchase program every year, and are required to announce them if they contemplate making them. But you can look at the annual reports. Most of them are in net issuance over time, in spite of whatever repurchases are undertaken...

Edit add: Here are the common share counts ('000's) for RBC the last few years. There were similar (maybe even identical) share repurchase agreements in place every year, as far as I know... Note, especially, that when the shares got hammered in the 2008-2009 timeframes, the share counts went up, not down...

2007 1,276,260
2008 1,341,260
2009 1,417,610
2010 1,424,922
2011 1,438,376

This is pretty par for the course for most companies that announce share repurchase programs... A few, like BRK.A, mean it when they say it... subject to pricing, of course...
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Re: Royal Bank (Symbol-RY)

Post by A1Stocktrader »

Anyone else been shorting RY as of late day trading? I have. Looking forward to banks selling off. Economy is in a mess despite what Fraud Street pumps. Had fast fun shorting RY near the close yesterday, in and out for 20 cent swing down.
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Re: Manulife (Symbol-MFC)

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shorting ry today, tight trades, g'rr, such hopium bullsh-t that the DOW is up ridiculously high today.
look out below!
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Re: Royal Bank (Symbol-RY)

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An unfortunately common theme among the Big Banks in recent years, but this time it's RBC in the spotlight.

Royal Bank to cut 450 jobs, mostly at head office, in banking's shifting landscape
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Re: Royal Bank (Symbol-RY)

Post by Peculiar_Investor »

Look who's now on the 'too big to fail' list ... Royal Bank deemed 'too big to fail' by global banking watchdog - Business - CBC News
The Royal Bank of Canada has been added to a list of 30 of the world's most systemically important banks.

The designation, by the Swiss-based Financial Stability Board, means that Canada's largest lender is big enough and important enough to have a major impact on the global financial system, but the downside is that the bank is now held to a higher standard than other banks in terms of how much capital it must keep on hand to ensure its own stability.

The FSB puts the world's top 30 banks into five pools of globally systemically important banks (or G-SIBs.) Those at the top, known as category five, must hold an additional 3.5 per cent of capital on hand, in addition to the requirements placed on all banks. The next group, four, must keep 2.5 per cent on hand. Category threes are required to keep two per cent, category twos at 1.5 per cent, and category ones, one per cent.
RBC is in the Category 1 list.

The complete list for 2017 and the FSB's press release FSB publishes 2017 G-SIB list - Financial Stability Board for those interested in more details.
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Re: Royal Bank (Symbol-RY)

Post by kcowan »

This seems to be one of those good news/bad news developments. On the one hand, they are rich successful and big. OTOH they must maintain a higher reserve capital, making them less efficient.
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Re: Royal Bank (Symbol-RY)

Post by Profit not Prophet »

Saw 'A1 trader' interest in shorting Royal in June of 2013 about five posts up. Price was a hair under $60 then. Never been that low since then.
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Re: Royal Bank (Symbol-RY)

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kcowan wrote: 22 Nov 2017 07:30 This seems to be one of those good news/bad news developments. On the one hand, they are rich successful and big. OTOH they must maintain a higher reserve capital, making them less efficient.
Agree. However, RY already meets this higher capital level so the effect will be minimal at worst. TD may get “promoted “ as well, although they have less “global reach” than RY due to less international wholesale activity.
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Re: Royal Bank (Symbol-RY)

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It seems that the banks managed to get people to invest in their long term financing with too much premium. I was amazed but then I am not much of a bond guy so I never paid much attention. I tend to stick to utilities because they pay more.
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Re: Royal Bank (Symbol-RY)

Post by Thegipper »

I have been fairly committed to holding a position in RY. This has given me some pause. Thinking I should sell and buy TD.
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Re: Royal Bank (Symbol-RY)

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I am a holder in 4 banks and I don't see that changing throughout the rest of my life, unless and until I need to tap into capital to fund my lavish lifestyle :lol:
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Re: Royal Bank (Symbol-RY)

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Thegipper wrote: 22 Nov 2017 13:07 I have been fairly committed to holding a position in RY. This has given me some pause. Thinking I should sell and buy TD.
I don’t think this news should cause such a change in heart. TD is certainly a good investment though. As is RY.
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Re: Royal Bank (Symbol-RY)

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kcowan wrote: 22 Nov 2017 12:57 It seems that the banks managed to get people to invest in their long term financing with too much premium. I was amazed but then I am not much of a bond guy so I never paid much attention. I tend to stick to utilities because they pay more.
Yes, I agree. When working at the bank I was in charge of raising capital. I was always surprised at how cheaply we could raise non equity capital. Also, how expensive common equity was. Long ago I decided to invest only in the equity. Just so much better as an investment over the years.
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Re: Royal Bank (Symbol-RY)

Post by SQRT »

Profit not Prophet wrote: 22 Nov 2017 10:47 Saw 'A1 trader' interest in shorting Royal in June of 2013 about five posts up. Price was a hair under $60 then. Never been that low since then.
Betting against the Canadian banks takes a lot of guts (and money). It has seldom worked out well.
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Re: Royal Bank (Symbol-RY)

Post by kcowan »

SQRT wrote: 22 Nov 2017 18:08When working at the bank I was in charge of raising capital. I was always surprised at how cheaply we could raise non equity capital. Also, how expensive common equity was. Long ago I decided to invest only in the equity. Just so much better as an investment over the years.
I remember considering bank preferred shares when I was trying to decide what is better and common won over preferred because of the increase in dividends with capital appreciation as a bonus.
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Re: Royal Bank (Symbol-RY)

Post by SQRT »

kcowan wrote: 23 Nov 2017 08:27
SQRT wrote: 22 Nov 2017 18:08When working at the bank I was in charge of raising capital. I was always surprised at how cheaply we could raise non equity capital. Also, how expensive common equity was. Long ago I decided to invest only in the equity. Just so much better as an investment over the years.
I remember considering bank preferred shares when I was trying to decide what is better and common won over preferred because of the increase in dividends with capital appreciation as a bonus.
Exactly.
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Re: Royal Bank (Symbol-RY)

Post by jay »

PAA Research is betting against banks: Short seller takes aim at RBC, CIBC.
And in a worst-case scenario for the banks that PAA says could take three years to play out, a mix of factors including sagging home prices, tighter credit conditions and fallout from highly-leveraged consumers could force the lenders to issue stock and ultimately see their stocks plunge by 50 per cent or more.
“It’s an annual ritual we had for the last several years,” Ed Devlin, PIMCO’s head of Canadian portfolio management, said about the shorts in an interview with BNN.
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Re: Royal Bank (Symbol-RY)

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jay wrote: 29 Nov 2017 09:24 PAA Research is betting against banks: Short seller takes aim at RBC, CIBC.
And in a worst-case scenario for the banks that PAA says could take three years to play out, a mix of factors including sagging home prices, tighter credit conditions and fallout from highly-leveraged consumers could force the lenders to issue stock and ultimately see their stocks plunge by 50 per cent or more.
“It’s an annual ritual we had for the last several years,” Ed Devlin, PIMCO’s head of Canadian portfolio management, said about the shorts in an interview with BNN.
Good luck to them. Seems like a highly improbable scenario. 50%? Maybe more? Indeed!!

Ry’s Results today look OK. Fourth quarter results often are not spectacular as it often tends to be a “clean up “ quarter which trues up the estimates of the previous quarters.

I’m eagerly awaiting TD’s results tomorrow. A reasonable chance of a surprise to the upside, I think.
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Re: Royal Bank (Symbol-RY)

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No personal bias there? :wink:
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Re: Royal Bank (Symbol-RY)

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AltaRed wrote: 29 Nov 2017 11:07 No personal bias there? :wink:
Maybe a little biased. Stood me well over the years though.
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Re: Royal Bank (Symbol-RY)

Post by SQRT »

TD’s results were a surprise all right. To the downside though, I think the market sentiment was the other way. This AM’s market reaction seems a little “over” to me though. Fourth quarters have a way of disappointing for some reason.

On the other hand the CM results look very strong.
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Re: Royal Bank (Symbol-RY)

Post by kcowan »

I view a miss as a short-term buying opportunity. After all, it is missing the projections of The Street, not the company projections.
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Re: Royal Bank (Symbol-RY)

Post by Peculiar_Investor »

As we do the typical FWF drift away from discussion of Royal Bank I would reminder/nudge readers/posters that as well as stock specific topics for each of the banks, there is also the catch all Canadian Banks topic.
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