Royal Bank of Canada (NYSE:RY) Q1 2015 Earnings Conference Call - Preliminary Transcript

Feb 24, 2015 • 04:00 pm ET

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Royal Bank of Canada (NYSE:RY) Q1 2015 Earnings Conference Call - Preliminary Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions].

Our first question is from John Aiken from Barclays. Please go ahead.

Analyst
John Aiken

Good morning, Mark, quick question for you. Well, actually, first off, thank you very much. The expanded disclosure on oil and gas. But of course, it leads to other questions to let us know what the undrawn commitments were as at the end of Q4 for oil and gas.

Executive
Mark Hughes

Yes. If you if they're about --12 billion for oil and gas plus an incremental of about a 1 billion and a half for trading lines.

Analyst
John Aiken

Great, thank you very much. And then in terms of wealth management, we we talked about some of the expenses -- and growing the business drawing, impeding some of the profitability, but we have seen revenues lagging the [Indecipherable] a growth is there Can you give us some sense of outlook for the remainder of the year what so what we should be seeing on revenues and whether or not we we can expect to see heightened expenses coming through on these lines as you do try to try to grow the business.

Executive
George Lewis

Thanks very much, john. I'll take it George Lewis a couple of points. I think, first of all, in terms of our quarterly results, as Dave and Janice mentioned, we did have very solid underlying growth, and particularly in our global asset management business where we are seeing year over year increases in earnings in line with our [Phonetic]ADM, growth of 17% in that business, so that's not only a future growth business for us, but a very solid contributor to the segment. Secondly, we we did have elevated expenses. I would say that, overall, from a wealth management segment point of view, we had strong client asset growth, but we were disappointed that we were not able to deliver more of that to the bottom line. And that had two components to it. One was the restructuring charge for our US international wealth business.

And I would say, you recall that that program will take some time we incurred to charge in Q4, I'd say we're about 50% of the way through that program. We expect to the largely complete in 2015. But even excluding that restructuring charge, we only generated modest positive operating leverage this quarter. So we are very focused on aligning our expense structure, particularly as we narrow our international footprint to bring that rate of expense growth down down into generate higher operating leverage for our -- core earnings going forward.

Analyst
John Aiken

Thanks George and in terms of the the restructuring that you're doing on the on the international side, what can we expect in terms of the headwind [Indecipherable] coming out of that?

Executive
George Lewis

John, I think that that will be a matter that you're already seeing a bit of an impact from that this quarter. As we exit some locations. I think the important thing to note there is that I would say there, the revenue per a way that we're exiting