Royal Bank of Canada says PricewaterhouseCoopers LLP (PwC), one of its two auditing firms for the current fiscal year ending Oct. 31, 2003, has resigned as auditor because it undertook a non-audit service that may not have been permitted under the recently revised U.S. auditor independence rules.

Deloitte & Touche LLP, the bank’s other auditing firm, has confirmed to RBC’s audit committee that it will be able to complete RBC’s 2003 audit on schedule. PwC will work with RBC and Deloitte & Touche to ensure an orderly process for RBC’s 2003 audit.

PwC’s resignation as auditor did not result from any disagreement or unresolved issues between RBC and PwC.

RBC expects to release its 2003 audited consolidated financial statements on Nov. 25, 2003 as scheduled.

PwC’s resignation came as a result of its providing non-audit services for the benefit of an RBC subsidiary in July and August of 2003. A review of the matter by RBC and PwC concluded such services may have impaired PwC’s independence under U.S. rules, though not under Canadian requirements. RBC’s auditors must satisfy the U.S. independence standards because RBC’s common shares are listed on the New York Stock Exchange and it files reports with the U.S. Securities and Exchange Commission.

“As a leading company doing business in Canada and the U.S., we take very seriously all the governance rules that we are subject to,” said RBC chairman Guy Saint-Pierre.