Canada
Best bank Royal Bank of Canada
Royal Bank of Canada stands out as the top bank in virtually every sector it is involved in in Canada and is again the top dealer of the Canadian dollar. Helped by the strength of the Canadian economy it has also registered a very strong financial performance: its return on equity last year of 19% was the best in Canada.
To its traditional strengths of mortgages and business loans it is now adding a successful virtual-banking capability. Its telephone banking service, launched in December 1995, has so far attracted 1.1 million customers, and the PC and Internet banking services introduced at the end of 1996 are growing in popularity. The aim is not just to keep ahead of the competition, but also to be a market leader in products that will contribute greatly to reducing costs.
After the recession the bank's asset quality definitely lagged behind its competitors, but its capital ratios and low proportion of bad debts are now regarded as one of its main strengths.
Analysts consider RBC to be focused on achieving shareholder value: there have been four dividend increases since late 1995, and a share buy-back programme was started late last year.