Royal Bank of Canada (TSX:RY)(NYSE:RY) is Canada’s largest bank measured by market capitalization. By partnering with industry leaders and retailers, the company has increased engagement and enhanced Royal Bank’s day-to-day relevance. This has expanded the company’s reach and helped it to deliver a differentiated experience for the company’s clients. This appears to be a fundamental part of Royal Bank’s growth story, as it works on building a bank of the future.
150 years ago, Royal Bank’s Halifax founders expanded aggressively westward to support the ambitions of a young and growing country. In doing so, a powerful statement was made about the kind of company it wanted to be, which included helping clients thrive and communities prosper. The same bold spirit has propelled Royal Bank forward ever since while entering new markets and geographies, expanding Royal Bank’s value proposition, and reimagining the role the company plays in Royal Bank’s clients’ lives.
Royal Bank is focused on building a better future for those it serves, which differentiates it from the other banks. Progress towards this goal can be measured by the scale and strength of Royal Bank’s franchise in Canada, the United States (U.S.), and across the company’s global footprint. It can also be measured by the engagement of Royal Bank’s people, the meaningful value it creates for clients, the investments it makes in the community and the strong financial performance it delivers every year. A balanced approach defines what a performance scorecard means to Royal Bank, which drives the company.
Trusted by clients
It is the willingness to reimagine and disrupt that helps the company creates meaningful value in Royal Bank’s clients’ lives. And as last year’s results attest, Royal Bank’s approach continues to resonate in the marketplace, reinforcing the company’s stature as one of the most trusted and successful financial institutions in the world.
The primary role of Royal Bank’s board is to support the company’s executive team to sustain the bank’s leadership position today and into the future. To this end, Royal Bank’s board act as stewards and provide oversight to ensure the bank’s strategic plans and priorities create value and align with the company’s risk appetite. Importantly, it does so on a continuous basis by constructively challenging management and monitoring initiatives.
Seizing the right business opportunities
Further, the board provide guidance to the bank’s leadership team as it anticipates the ever-evolving needs of Royal Bank’s clients while seizing the right business opportunities in a rapidly changing and increasingly competitive global marketplace. Sustaining success over the long term also requires a pipeline of qualified leaders, which Royal Bank focuses on developing.
Culture is critical in any winning organization, particularly banks. Royal Bank’s directors champion the core values underpinning the way the bank operates, both internally and externally. The company leads by setting an example for other banks. To this end, Royal Bank’s directors work with management to set the right tone and signal the behaviours each and every employee must embody. This culture is likely to serve it well.
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The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.