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

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Global Capital Markets

Chuck Winograd

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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.

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GCM Rankings

Global Capital Markets has leading positions in a number of businesses.

Institutional Services

2004

Global Custodian

Top-rated custody services Top 3

International

2004 Q1 2005 Q1 2005

Bloomberg Markets Mag.

Bloomberg Bloomberg Global Bond Underwriting

Australian Debt Market Sterling Debt Market #11 #1 #4 International #1 #16 #1 #1 #20 #1 Top Top 15 Ranking Equity 2004 National Post

Underwriter of Corporate & Income Trust Financings Canada

2004 2004 Thomson Financial

Bloomberg Lead Manager of Neg. Middle Market Issues

U.S. Loan Underwriting U.S. 2004 Risk Magazine USD/CAD Trading Canada Foreign Exchange 2004 Bloomberg

Global Equity Underwriting International

2004 2004

Globe & Mail National Post

Canadian Debt Market Canadian Debt Underwriter Canada

Debt

2004 Bloomberg

Investment Banks globally RBC Capital Markets

Period Recognized By

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Global Capital Markets Revenue Breakdown

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 Q1/05 Global Markets 1 58% 24% Other 3 18%

Global Investment Banking & Equity Markets 2

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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.

mid-market 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.

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Global Capital Markets Initiatives

Dain’s Fixed Income Group and Global Debt Markets continues to integrate and leverage common opportunities

Global

Markets

Created integrated global platform for structured credit derivatives and structured

interest rate businesses. Tokyo trading platform established.

London-based team fully

operational to enhance product suite & trading capabilities in precious metals, including gold

London

Precious Metals

Structured

product

expansion

Investment

Grade build-out

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Global Capital Markets Initiatives

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.

Global

Investment

Banking &

Equity

Markets

Established investment banking business and became a trading and clearing participant on ASX to expand profit potential in Australia’s mining sector.

Other

Completed transfer of 340 high value commercial market clients from banking segment, with full team in place

assigned to all clients.

U.S.

Convertibles

ASX License /

Sydney Sales &

Trading

Owning the

Canadian

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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

• 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

Sales, Trading and Research

• 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, value-added services and client portfolio solutions

• Strategy

– Develop and sustain long-term, profitable client relationships by

achieving premier fixed income broker status with targeted clients

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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).