Global Capital Markets. Chuck Winograd Group Head, Global Capital Markets

Transcription

1 Global Capital Markets Chuck Winograd Group Head, Global Capital Markets Meeting with institutional investors Toronto April 8, 2005

2 Overview of Global Capital Markets Global Capital Markets (GCM) is a global business with a very different profile in each of its geographies: In Canada, we are a bulge bracket firm that is all things to all people. In the U.S., we are a wide collection of capital markets businesses. In Europe and Asia, we are a debt-driven investment bank with a number of product and market specialities. 2

3 GCM Rankings Global Capital Markets has leading positions in a number of businesses. Business Ranking Recognized By Period RBC Capital Markets Top 15 Investment Banks globally Debt Canada Top Canadian Debt Market Canadian Debt Underwriter Globe & Mail National Post U.S. #20 Lead Manager of Neg. Middle Market Issues U.S. Loan Underwriting Thomson Financial 1 #4 Global Bond Underwriting Australian Debt Market Sterling Debt Market Markets Mag. Q Q Institutional Services Top 3 Top-rated custody services Global Custodian Equity Canada Underwriter of Corporate & Income Trust Financings National Post 6 Global Equity Underwriting Foreign Exchange Canada USD/CAD Trading Risk Magazine Top 15 Top 20 Best Overall Electronic Trading 20 FX services in terms of global market share Euromoney Magazine Euromoney Magazine Electronic Trading Consist. in Top 2 European & North American Ranking Auto Ex System Ongoing 3

4 Global Capital Markets Revenue Breakdown Q1/05 Global Markets 1 58% Global Investment Banking & Equity Markets 2 24% Other 3 18% 1. Global Markets consists of the global debt (including the fixed income business of RBC Dain Rauscher), money market, foreign exchange, derivative, alternative assets, private debt and equity, and proprietary trading businesses 2. Global Investment Banking and Equity Markets consists of corporate and investment banking (including the strategic lending portfolio), and equity sales and trading businesses 3. Other consists of custody and investment administration services, correspondent banking services, commercial banking, research, the non-strategic lending portfolio and centralized management associated with our lending portfolios 4

5 Strategic Objectives Our core strategic objectives are to be: Canadian wholesale clients first choice for all financial products and services. A top-tier provider of products and services to U.S. midmarket and select investment grade clients through focused expertise. A leading provider of solutions for retail and wholesale clients utilizing sophisticated structuring capabilities focused on the convergence of markets and products. A builder of top-tier businesses offering specialized products and services to wholesale clients globally. 5

6 Global Capital Markets Initiatives Investment Grade build-out Dain s Fixed Income Group and Global Debt Markets continues to integrate and leverage common opportunities Global Markets Structured product expansion Created integrated global platform for structured credit derivatives and structured interest rate businesses. Tokyo trading platform established. London Precious Metals London-based team fully operational to enhance product suite & trading capabilities in precious metals, including gold 6

7 Global Capital Markets Initiatives Global Investment Banking & Equity Markets U.S. Convertibles ASX License / Sydney Sales & Trading Team acquired to provide origination and secondary trading for convertible securities. Fully operational and began secondary trading activities in December. Building complete origination, sales and trading team. Established investment banking business and became a trading and clearing participant on ASX to expand profit potential in Australia s mining sector. Other Owning the Canadian Mid- Market Completed transfer of 340 high value commercial market clients from banking segment, with full team in place assigned to all clients. Wholesale reorganization NIE reductions identified 7

8 FICM Growth Opportunity (1) Profile of Fixed Income Capital Markets (FICM) Group Leading middle-market fixed income business offering a full suite of financial advisory, origination, underwriting, trading, research and distribution capabilities to issuing and investing clients. There are 2 primary businesses within FICM. Fixed Income Banking Business Sales, Trading and Research 158 investment banking professionals in 28 offices Target clients Active middle market municipal issuers within targeted geographies and sectors of expertise Value proposition Provide middle market issuers with local presence, national distribution, secondary market support, client solutions and superior service Strategy Leverage long standing client relationships and sector expertise to gain additional penetration and market share in the U.S. geographies having the greatest potential for negotiated issuance volume 168 institutional sales people in 25 offices; 122 traders and underwriters and 31 research analysts Target clients Middle market institutional investors (>6,000 accounts) Value Proposition Provide a full suite of products, valueadded services and client portfolio solutions Strategy Develop and sustain long-term, profitable client relationships by achieving premier fixed income broker status with targeted clients 8

9 FICM Growth Opportunity (2) Integrating FICM with Global Capital Markets Key opportunities for growth include: Distribute U.S. dollar product (FICM) into global non-u.s. investors (GCM). Leverage (GCM) corporate debt origination capabilities with middle-market investor base (RBC Dain). Expand successful municipal derivatives (FICM) with core derivatives business (GCM). Leverage power/utilities and infrastructure expertise (GCM) within the U.S. municipal market (FICM). Create additional structured products (GCM) and distribute to broad U.S. fixed income investor base (FICM). Create a global fixed income business 9