Royal Bank of Canada today announced its intention to repurchase up to 18 million of its common shares following the close of its acquisition of Centura Banks, Inc. of Rocky Mount, N.C.

Pursuant to that acquisition, Royal Bank expects to issue approximately 66.9 million common shares in exchange for all outstanding common shares of Centura. The bank plans to initiate a normal course issuer bid through the facilities of the Toronto Stock Exchange and will file a notice of intention with the exchange in this regard after closing of the Centura acquisition.

The acquisition of Centura, which is still subject to the receipt of Canadian regulatory approvals, is expected to close during the bank’s third quarter and the bank will proceed with the share repurchase only after the closing of that transaction.

The shares which may be repurchased represent approximately 3% of the bank’s public float prior to the Centura acquisition, and approximately 2.7% of the anticipated public float following completion of the acquisition.

Royal says the proposed share repurchase will enable the bank to balance the imperatives of maintaining strong capital ratios with the ongoing need to generate shareholder value.. At April 30, 2001 the bank’s Tier 1 and Total capital ratios were 8.8% and 12.3%.