Royal Bank of Canada has launched its normal course issuer bid to purchase for cancellation up to 18 million of its common shares through the facilities of The Toronto Stock Exchange.

RBC says the purchase of common shares under the normal course issuer bid will enable the bank to balance the imperatives of maintaining strong capital ratios with the ongoing need to generate shareholder value.

The shares that may be repurchased represent approximately 2.6% of the 684,211,465 common shares outstanding following the bank’s acquisition of Centura Banks, Inc. of Rocky Mount N.C. on June 5, 2001.

Purchases under the normal course issuer bid may commence on June 22, 2001 and continue for a period of one year. The amount and timing of any such purchases will be determined by the bank.

During the 12 months ended May 31, 2001, the bank purchased 4,097,820 common shares at an average price of $43.17 under certain stock-based compensation or purchase plans and under the bank’s previous normal course issuer bid completed in June 2000.