#1Royal Bank of Canada Investor Presentation Q1/2024 All amounts are in Canadian dollars unless otherwise indicated and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Effective November 1, 2023, we adopted IFRS 17 Insurance Contracts (IFRS 17) and comparative amounts have been restated from those previously presented. Totals may not add and percentage changes may not reflect actual changes due to rounding. For an explanation of defined terms used in this presentation, refer to the Glossary on slides 58-59. Our Q1 2024 Report to Shareholders and Supplementary Financial Information are available on our website at: http://www.rbc.com/investorrelations RBC Ⓡ#2Caution regarding forward-looking statements 2 From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. We may make forward-looking statements in this document, in other filings with Canadian regulators or the SEC, in reports to shareholders, and in other communications. In addition, our representatives may communicate forward- looking statements orally to analysts, investors, the media and others. Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, the economic, market and regulatory review and outlook for Canadian, U.S. and European economies and the expected closing of the transaction involving HSBC Bank Canada (HSBC Canada), including plans for the combination of our operations with HSBC Canada and the financial, operational and capital impacts of the transaction, such as expected synergies, cross-sell opportunities and acquisition and integration costs. The forward-looking statements contained in this document represent the views of management and are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision, strategic goals and priorities and anticipated financial performance, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "suggest", "seek", "foresee”, “forecast”, "schedule", "anticipate", "intend", "estimate", "goal", "commit”, “target”, “objective", "plan", "outlook", "timeline" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could", "can" or "would" or negative or grammatical variations thereof. By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, that our financial performance, environmental & social or other objectives, vision and strategic goals will not be achieved, and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions. We caution readers not to place undue reliance on our forward-looking statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors - many of which are beyond our control and the effects of which can be difficult to predict include, but are not limited to: the possibility that the proposed transaction does not close when expected or at all because of the occurrence of any event, change or other circumstances, the possibility that the anticipated benefits from the proposed transaction, including creating cross-sell opportunities are not realized, the possibility that the business of RBC and HSBC Canada may not perform as expected or in a manner consistent with historical performance, the ability to promptly and effectively integrate HSBC Canada, our ability to achieve our capital targets, our ability to cross-sell more products to customers, the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, credit, market, liquidity and funding, insurance, operational, regulatory compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, legal and regulatory environment, competitive, model, systemic risks and other risks discussed in the risk sections of our annual report for the fiscal year ended October 31, 2023 (the 2023 Annual Report), including business and economic conditions in the geographic regions in which we operate, Canadian housing and household indebtedness, information technology, cyber and third-party risks, geopolitical uncertainty, environmental and social risk (including climate change), digital disruption and innovation, privacy and data related risks, regulatory changes, culture and conduct risks, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and our ability to anticipate and successfully manage risks arising from all of the foregoing factors. Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the risk sections of our 2023 Annual Report and the Risk management section of our Q1 2024 Report to Shareholders, as may be updated by subsequent quarterly reports. We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook sections in our 2023 Annual Report and outlook section of our Q1 2024 Report to Shareholders, as such sections may be updated by subsequent quarterly reports. Assumptions about RBC's and HSBC Canada's current and expected financial performance, expected closing date of the proposed transaction, expected expense synergies (and timing to achieve), acquisition and integration costs and future regulatory capital requirements were considered in making the forward-looking statements in this document including the expected capital impact to RBC. Except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf. Additional information about these and other factors can be found in the risk sections of our 2023 Annual Report and the Risk management section of our Q1 2024 Report to Shareholders, as may be updated by subsequent quarterly reports. Information contained in or otherwise accessible through the websites mentioned does not form part of this document. All references in this document to websites are inactive textual references and are for your information only. RBC#3About RBC RBC Ⓡ#4The RBC story Diversified business model with scale and market- leading franchises Leading presence in Canada and an established multi- platform U.S. strategy Differentiated tech and innovation investments that go beyond banking Premium ROE and disciplined expense management Strong balance sheet and prudent risk management ■ Well-diversified across businesses, geographies and client segments Able to capitalize on opportunities created by changing market dynamics and economic conditions ■ A full suite of products, advice and services to meet our clients' financial needs and build deep, long-term relationships ■ #1 or #2 market share in all key product categories in Canadian Banking with superior cross-sell ability Largest branch network, the most ATMs and one of the largest mobile sales forces across Canada 10th largest global investment bank (1), #1 in Canada and #1 Canadian investment bank in the U.S.(2) Largest retail mutual fund company in Canada based on assets under management (AUM) (3) 6th largest full-service wealth advisory firm in the U.S. as measured by assets under administration (AUA)(3) ■ #1 High Net Worth and Ultra High Net Worth market share in Canada City National is a U.S.-based relationship bank serving the entertainment industry, mid-market businesses, High Net Worth individuals and other clients who value personalized banking relationships One of the largest Canadian bank-owned insurance organizations (4) Long history of innovation and proven ability to adapt to industry trends; ongoing investments in technology to deliver exceptional experiences and differentiated value for clients Focused on simplifying, digitizing and personalizing our products to make it easier for clients and employees to do business, and to lower costs RBCXTM supports 3,500+ tech and innovation clients and in-house ventures like MydohⓇ (used by 140,000+ Canadians to build financial literacy), OwnrⓇ (trusted by 130,000+ Canadian businesses), Houseful TM (formerly OJO CanadaⓇ, supporting 11 million+ of Canadians in their home ownership journey) and Dr. BillⓇ (serving 14,000 physicians since 2020) ■ Track record of earnings and dividend growth while maintaining a disciplined approach to risk and cost management ■ 16%+ ROE(5) medium-term objective Strong capital position and a high-quality liquid balance sheet; 40-50% dividend payout ratio (6) medium-term objective Credit ratings amongst the highest globally A disciplined approach and diversification have underpinned credit quality Leading Canadian core deposit franchise that serves as a stable source of funding (1) Dealogic, based on global investment banking fees LTM Q1/24. (2) Based on market share (fiscal 2023), Dealogic. (3) Refer to the Glossary on slides 58-59. (4) On a total revenue basis. (5) Return on Equity (ROE) is calculated as net income available to common shareholders divided by average common equity for the period. For further information refer to slide 61. (6) Dividend payout ratio is calculated as common dividends as a percentage of net income available to common shareholders. 4 | ABOUT RBC RBC#5Market leader with a focused strategy for growth Largest in Canada (1) Top 10 Globally(1) A market leader across all key businesses One of the 10 largest global banks by market capitalization with operations in 29 countries >17 Million Clients Served by 94,000+ employees worldwide Purpose Help clients thrive and communities prosper Vision To be among the world's most trusted and successful financial institutions Strategic Goals In Canada: To be the undisputed leader in financial services In the United States: To be the preferred partner to corporate, institutional and high net worth clients and their businesses In Select Global Financial Centres: To be a leading financial services partner valued for our expertise (1) Based on market capitalization as at January 31, 2024. 5 | ABOUT RBC RBC#6Diversified business and geographic model with client-leading franchises Earnings by Business Segment(1)(2) Last 12 months ended January 31, 2024 Revenue by Geography Last 12 months ended January 31, 2024 Insurance 5% Wealth Management 14% International 13% U.S. Capital Markets 27% Personal & Commercial Banking 54% 26% Canada 61% (1) Amounts exclude Corporate Support. (2) Certain amounts have been revised from those previously presented to conform to our new basis of segment presentation. For more information, refer to the about Royal Bank of Canada section of our 2023 Annual Report. 6 ABOUT RBC RBC#7Strong financial profile Maintaining a strong capital position with a disciplined approach to risk Resilient Earnings Net income ($ billions) Premium Return on Equity Adjusted Net Income(1): $15.8BN Adjusted Net Adjusted Net PCL (2) (0.10)% 0.06% NIM (3) 1.48% 1.48% 0.29% 0.25% 0.37% 1.50% 1.47% 1.41% Income(1): $4.3BN Income(1): $4.1BN 16.1 15.8 18.6% Adjusted ROE(1): 15.5% Adjusted Adjusted ROE(1): 17.2% ROE(1): 14.9% 14.6 16.4% 14.3% 13.1% 12.6% 3.6 3.1 2021 2022 Strong Capital Position 2023 Q1/2023 Q1/2024 2021 2022 2023 Q1/2023 Q1/2024 18.1% 17.3% 17.6% 16.8% Strong Leverage and Liquidity Ratios Leverage Ratio (4) Liquidity Coverage Ratio (4) 4.4% 132% 15.7% 13.7% 14.1% 14.5% 14.9% Credit Ratings Amongst the Highest Globally 12.7% Moody's+ S&P‡ DBRS+ Fitch+ Legacy senior long-term debt(5) Senior long-term debt(6) Aa1 AA- AA (high) AA A1 A AA AA- Outlook Stable Stable Stable Stable Q1/23 Q2/23 ■Total Capital Q3/23 Q4/23 Q1/24 ■Common Equity Tier 1 (CET1) (4) (1) Adjusted net income is calculated by adding back to net income the after-tax amount of amortization of intangibles, any goodwill impairment, and other significant items that may impact a given period. Adjusted ROE is calculated as adjusted net income available to common shareholders divided by average common equity. These are non-GAAP measures. Refer to slide 60 for reconciliation and slide 61 for more information. (2) Provision for credit losses (PCL) on loans as a % of average net loans and acceptances. (3) Net interest margin (NIM) (average earning assets, net). Refer to the Glossary on slides 58-59. (4) The leverage ratio is calculated using OSFI's LR guideline. The Liquidity Coverage Ratio is calculated using OSFI's LAR guideline. The CET1 ratio is calculated using OSFI's CAR guideline. (5) Ratings (as at February 27, 2024) for senior long-term debt issued prior to September 23, 2018 and senior long-term debt issued on or after September 23, 2018, which is excluded from the Canadian Bank Recapitalization (Bail-in) regime. (6) Ratings (as at February 27, 2024) for senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the Bail-in regime. 7 | ABOUT RBC RBC#8FY2023: Track record of delivering value to our shareholders* Financial performance objectives measure our performance against our goal of maximizing total shareholder returns Profitability Medium-Term Objectives (1) Diluted EPS growth ROE(3) 7%+ 16%+ Capital Management Capital ratios (CET1 ratio)(3) Strong Dividend payout ratio 40% - 50% Average as of 2023 (2) 3-Year 5-Year 10% 5% 16.4% 16.0% 13.6% 13.1% 45.0% 47.2% Dividend (4) and Earnings per Share ($) Book Value (5) & Tangible Book Value Per Share ($) (6) 2013-23 CAGR Earnings per share: 17% 11.06 11.06 10.50 Dividend per share: 18% 8.75 8.36 2019-23 CAGR: BVPS 10% & TBVPS 11% 7.56 7.82 6.73 6.78 68.7 6.00 5.49 62.7 2013-23 Average Dividend Payout ratio of 47% 56.4 45.8 48.0 5.34 4.96 2.53 2.84 3.08 3.24 3.48 3.77 4.07 4.29 4.32 54.4 56.8 64.6 72.9 78.8 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -Earnings per share (diluted) Dividend per share *Note above amounts have not been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. These are presented in accordance with previous accounting policies (IFRS 4). 2019 2020 2021 2022 2023 Book value per share Tangible book value per share Achieved Solid Total Shareholder Return (TSR) (7) Performance RBC Peer Average 3-Year 13% 13% 5-Year 10% 9% 10-Year 9% 7% 20-Year 11% 9% (1) A medium-term (3-5 year) objective is considered to be achieved when the performance goal is met in either a 3- or 5-year period. These objectives assume a normal business environment and our ability to achieve them in a period may be adversely affected by the macroeconomic backdrop. (2) Diluted Earnings Per Share (EPS) growth is calculated using a Compound Annual Growth Rate (CAGR). ROE, CET1 and dividend payout ratio are calculated using an average. (3) The CET1 ratio is calculated using OSFI's CAR guideline. ROE is calculated as net income available to common shareholders divided by average common equity for the period; for further information refer to slide 61. (4) Our quarterly dividend declared per common share is $1.38. (5) Book Value Per Share (BVPS) is calculated as common equity divided by common shares outstanding. (6) Tangible Book Value Per Share (TBVPS) is calculated as common equity excluding goodwill and other intangibles (excluding software) net of deferred tax on spot basis divided by common shares outstanding. This is a non-GAAP measure. Refer to slide 60 for reconciliation and slide 61 for more information. (7) Annualized TSR is calculated based on the TSX common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at January 31, 2024. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our 2023 Annual Report. ABOUT RBC 8 RBC#9Capital: Strong position supports strategic deployment and shareholder returns CET1 (1) Movement 67 bps (34) bps 13 bps 12 bps (23) bps (2) bps 6 bps 14.5% +33 bps Net internal capital generation, 14.9% Q4/2023 (2) Net Dividends Income Fair Value OCI DRIP Adjustments RWA (1) Increase (Excluding FX) Net Regulatory Updates Other Q1/2024 (2) RWA (1) Movement ($ billions) CET1 ratio (1) of 14.9%, up 40 bps QoQ, reflecting: + Net internal capital generation + Unrealized mark-to-market gains on OCI securities + DRIP shares issued from treasury Higher RWA(1) (excluding FX) from business growth and net credit migration Leverage ratio(1) of 4.4%, up 10 bps QoQ, reflecting net capital accretion, unrealized mark-to-market gains on OCI securities 12.2 + 596.2 (7.2) 3.9 (5.1) (9.7) 590.3 + 40.5 79.9 31.0 84.6 475.8 $8.9BN or 23 bps 474.7 ☐ RWA(1) decreased $6.0BN, mainly reflecting: Favourable FX translation of $6.0BN - Lower RWA(1) from net regulatory updates, primarily Basel III reforms, mainly in trading portfolios Net credit migration, mainly in wholesale portfolios Operational RWA increase from continued revenue growth Loan growth in Canadian Banking Credit risk Operational risk Market risk + Q4/2023 (2) Credit & Op. Risk (Excl. Credit Migration Market Risk (Excl. Reg. Updates) Net Credit Migration Net Regulatory Updates Foreign Exchange Q1/2024 (2) + Lower RWA(1) from credit card securitization Lower market risk driven by reduced inventories & Other & Reg. Updates) (1) The CET1 ratio and RWA are calculated using OSFI's CAR guideline. The leverage ratio is calculated using OSFI's Leverage Requirements (LR) guideline. (2) For more information, refer to the Capital Management section of our Q1/2024 Report to Shareholders. 9 | ABOUT RBC RBC#10Balanced capital deployment driving sustainable long-term shareholder value Diversified organic growth (1)(3) (RWA $BN) Strong capital ratio (CET1) (1) Medium-term objective ROE (2) of 16%+ Medium-term objective 10% 3-Year BVPS (2) CAGR 6.1 7.5 1.6 (1.6) 5.0 2.1 2.3 06 3.8 2.7 1.1 4.7 5.6 2.6 1.6 2.3 2.3 0.2 (1.9 (3.5) (6.2) (4.2) Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 ■Capital Markets Wealth Management P&CB ■ Other (4) Committed to sustainable dividend growth (Q1/24) Common share dividends $1.9BN Dividend payout Ratio(2) 55% 49% +6% YoY reported adjusted (5) Capital generation creates optionality RBC Brewin Dolphin £1.6BN completed acquisition HSBC Canada $13.5BN announced acquisition (6) (1) The CET1 ratio and RWA are calculated using OSFI'S CAR guideline. (2) Refer to Glossary on slides 58-59 for explanation of composition of this measure. (3) Organic growth reflects growth in RWA excluding impacts of model & methodology updates, asset quality, acquisitions & disposals, FX and intercompany transfer of deferred tax assets. (4) Includes Insurance and Corporate Support. (5) Calculated as common share dividends ($1,944 million) divided by adjusted net income available to common shareholders ($4,006 million). This is a non-GAAP measure. For more information, see slide 61. (6) Cash purchase price at announcement for acquisition of 100% of the common shares of HSBC Bank Canada (HSBC Canada). 10 ABOUT RBC RBC#11Client assets and activity: Momentum in market sensitive businesses Canadian Banking average gross loans and acceptances ($ billions) Canadian Banking average deposits ($ billions) City National (CNB) average loans and deposits (US$ billions) 7% 2-YR CAGR(1) 6% YOY 605 573 528 519 128 112 97 431 461 8% 2-YR CAGR 9% YOY 8% 2-YR CAGR Flat YOY 609 558 271 253 252 56 338 477 268 $77BN growth over 2 years 306 $90BN growth over 2 years 83 76 75 65 65 US$9BN loan growth over 2 years Q1/2022 Q1/2023 ■ Retail ■ Wholesale (2) Q1/2024 Wealth Management (non-U.S.) AUA (34) and AUM (3) (4) ($ billions) Q1/2022 Q1/2023 ■ Personal ■ Business Q1/2024 U.S. Wealth Management (incl. CNB) AUA (4) and AUM (4) (US$ billions) Q1/2022 Q1/2023 Q1/2024 ■Loans ■ Deposits Capital Markets loans and market share ($ billions; %) (5) (6) 13% 2-YR CAGR 10% YOY 879 817 783 796 561 725 628 3% 2-YR CAGR 12% YOY +2% YOY LTM (7) GIB (8) league ranking 10th 9th 598 536 120 122 2.1% 1.8% $168BN AUA growth and $38BN in AUA net flows over 2 years $96BN AUM growth over 2 years Q1/2022 Q1/2023 Q1/2024 ■ AUA ■ AUM US$16BN of AUA net flows over 2 years 181 Q1/2022 170 195 Q1/2023 Q1/2024 ■ AUA ■ AUM Average Loans Outstanding LTM market share Advisory & Origination Market Share ■ Q1/2023 ■ Q1/2024 (1) Compound Annual Growth Rate. (2) Wholesale includes small business. (3) Refer to Glossary on slides 58-59 for explanation of composition of these measures. AUA and AUM reflect the inclusion of $79.8BN and $72.4BN, respectively, related to the acquisition of RBC Brewin Dolphin, which closed on September 27, 2022. Excludes IS. (4) Spot balances. (5) Dealogic market share for Equity Capital Markets (ECM), Debt Capital Markets (DCM), loan syndications, and Advisory. (6) Average loans outstanding includes wholesale loans, acceptances, and off balance sheet letters of credit and guarantees for our Capital Markets portfolio, on a single name basis. Excludes mortgage investments, securitized mortgages and other non-core items. (7) Last twelve months (LTM). (8) Global Investment Banking (GIB). 11 ABOUT RBC RBC#12Business Segments RBC Ⓡ#13Personal & Commercial Banking ■ The financial services leader in Canada - #1 or #2 market share in all key retail and business product categories - Largest branch network, the most ATMs and one of the largest mobile sales forces across Canada - Superior cross-sell ability ■ In 9 countries and territories in the Caribbean " - 3rd largest bank by assets (1) in English Caribbean Innovative direct banking to U.S. cross-border clients Ongoing investments to further digitize our banking channels Q1/2024 Highlights Clients (MM) ~15 Branches 1,184 ATMs 4,275 Active Digital (Online and Mobile) Users (2) (MM) 9.2 Employees (FTE) 37,373 Net Loans & Acceptances(3) ($BN) 614.1 Deposits (3) ($BN) 630.6 362.7 AUA(4) ($BN) Net Income ($ millions) 8,370 8,266 7,847 346 344 227 8,024 7,922 7,620 2,126 2,061 70 94 2,056 1,967 2021 2022 ■Canadian Banking 2023 Q1/2023 ■Caribbean & U.S. Banking Q1/2024 Revenue by Business Line (5) Canadian Banking 95% Personal Banking 67% Business Banking 28% Caribbean & U.S. Banking 5% (1) Based on spot balances. For Caribbean Banking, ranking based on annual peer review (completed April 30, 2023; peers include Republic Bank, BNS and CIBC). (2) This figure represents the 90-day active customers in Canadian Banking only. (3) Based on average balances. (4) AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at January 31, 2024 of $14 billion and $6 billion, respectively. (5) For quarter ended January 31, 2024. 13 BUSINESS SEGMENTS RBC#14Personal & Commercial Banking Strategic Priorities - Building A Digitally-Enabled Relationship Bank™ Accelerate Client Growth and Deepen Relationships Transform sales, advice and service, while digitizing to unlock productivity Build Sustainable Communities Attract, grow, and retain future-ready talent Recent Awards CIAL SERVICE FINANCARE Ipsos EXCELLENCE ■ ■ Grow commercial market share through delivering world-class capabilities to business clients ■ Grow personal market share and deepen relationships through expansion of Avion Rewards program, expanding access to all Canadians regardless of where they bank or shop ■ Continue to increase client acquisitions including key segments: such as youth and young adults, newcomers, business owners, healthcare professionals, retirees, and High Net Worth clients ■ Continue to deliver leading digital capabilities and functionality through our award-winning mobile app ■ Create partnerships to innovate, making it easier to bank with RBC Change or eliminate products and processes that do not add economic or client value ■ Contribute to EV market expansion through launch of RBC EV cost calculator and established exclusive relationships with two EV manufacturers ■ Continued support to key client segments, including the path to prosperity of Black Entrepreneurs Invested in future skills development, elevating performance and fostering a culture of inclusive leadership Helped employees achieve their work and life goals and supported health and wellbeing BOREALIS AI NOMI Forecast: Leveraging Artificial Intelligence for forecasting and personal financial management. J.D. POWER Ex CSI RBC maintained #1 position; for the third consecutive year, RBC was the big 5 leader sweeping all 11 award categories and awarded solo wins in 5 of 11 categories (1) AVION REWARD S™ "International Loyalty Program of the Year" and "Best Loyalty/Benefits in a Financial Product" for Avion Rewards (2) Digital Banker Digital CX Awards, recognizing pioneering innovation in Digital Customer Experience in Financial Services ecosystem: "Best Use of Al for Customer Experience" for NOMI Forecast (3) RBC #1 in Customer Satisfaction for Retail Banking Advice, 2023 (4) (1) Ipsos, 2023. (2) ILA, 2023 (3) Digital Banker Digital CX Awards 2023 (4) JD Power, 2023. 14 | BUSINESS SEGMENTS RBC#15Personal & Commercial Banking - Canadian Banking Canadian Banking client acquisition (1) Cumulative clients added ~2.00MM Superior Cross-Sell Ability Percentage of clients with transaction accounts, investments, borrowing and credit card products (2) COVID-19 ~1.35MM ~0.95MM ~0.75MM ~0.60MM ~0.30MM 2018 2019 2020 2021 2022 Net new clients 2023 ■Cumulative net new clients Top Market Share in All Key Categories (3) 18% RBC 12% (2) Peer average Continued Efficiency Improvements While Investing For Growth NIE CAGR (9) FTE CAGR (10) Product Market share Rank RBC 5.4% Peer Average 6.6% RBC 2.3% Peer Average 3.0% Personal Lending (4) 24.7% 1 Efficiency ratio (11) Personal Core Deposits + Guaranteed 48.9% 21.6% 1 Investment Certificates (GICs) 47.7% Peer Average (12) 47.1% 47.2% Credit Cards(5) 43.2% 27.0% 1 42.0% Long-Term Mutual Funds (6) 32.0% 1 40.5% 40.4% 39.2% RBC Business Loans ($0-$25MM)(7) 25.9% 1 Business Deposits (8) 24.1% 1 2020 2021 2022 2023 Q1/2024 (1) 2018 Investor Day Target: 2.5MM net new Canadian Banking clients by 2023. (2) Canadian Financial Monitor by Ipsos - approx. 18,000 Canadian individuals - data based on Financial Group results for the 12-month period ending January 2024. TFSA is considered an investment. Peers include BMO, BNS, CIBC, TD, National Bank, Desjardins and HSBC Canada. (3) Market share is calculated using most current data available from OSFI (M4), Investment Funds Institute of Canada (IFIC) and Canadian Bankers Association (CBA), and is as at November 2023 and September 2023 except where noted. Market share is of total Chartered Banks except where noted. (4) Personal Lending market share of 6 banks (RBC, BMO, BNS, CIBC, TD and NA) and includes residential mortgages (excl. acquired portfolios) and personal loans as at September 2023, excludes Credit Cards. (5) Credit cards market share is based on 6 banks (RBC, BMO, BNS, CIBC, TD and NA) as at November 2023. (6) Long-term mutual fund market share is compared to 7 banks (RBC, BMO, BNS, CIBC, TD, NA, and HSBC) and is at November 2023. (7) Business Loans market share is of 6 Chartered Banks (RBC, BMO, BNS, CIBC, TD and NA) on a quarterly basis and is as at June 2023. (8) Business Deposits market share excludes Fixed Term balances and is as at November 2023. (9) Non-interest expense representing FY20 to FY23 CAGR. Peers include BMO, BNS, CIBC and TD. (10) Number of employees (full-time equivalent) representing FY20 to FY23 CAGR. Peers include BMO, BNS, CIBC and TD. (11) Refer to the Glossary on slides 58-59. (12) Peers include BMO, BNS, CIBC, TD and NA; 2020 through 2023 reflects annual numbers. 15 BUSINESS SEGMENTS RBC#16Planned acquisition of HSBC Canada: Updated transaction expectations Transaction Assumptions at Announcement Updated Expectations Expense Synergies $740MM of estimated expense synergies - 20% realized in Year 1 (2024) >95% realized in Year 2 (2025) Revenue Synergies Cross-sell opportunities identified Integration Costs ■ Pre-tax acquisition and integration costs of -$1.0BN Expected to incur 25% by close; remaining 75% in Year 1 Capital Impact ■ Pro forma CET1 ratio expected to exceed 11.5% at close Approvals & Timing ■ Anticipated closing by late-2023 subject to customary closing conditions including regulatory approvals 16 BUSINESS SEGMENTS Fiscal Year F2024 Oct-24 F2025 Oct-25 $740MM Realized Synergies 25% 60% 80% 100% Deal Year Year 1 Mar-25 Year 2 Mar-26 ■ Given the close-and-convert nature of the acquisition, shared services, functions and IT costs drive ~60% of the realized synergies in F2024, and are largely realized in Year 1 Synergies related to distribution, product support and other direct costs are largely realized in F2025 Cross-sell opportunities identified Pre-tax acquisition and integration costs of ~$1.5BN - Have incurred - $650MM of pre-tax acquisition and integration costs to-date (~40%) Expected to incur ~65% by close and ~90% by the end of 2024 ■ Pro forma CET1 ratio expected to be ~12.5% at close ▪ Received regulatory approvals, including by the Competition Bureau and the Finance Minister Targeted close date of March 28, 2024 RBC#17Wealth Management Strategic Priorities ■ Global Asset Management: Deliver investment performance and extend leadership position in Canada, while continuing to build and grow internationally ■ Canadian Wealth Management: Continue to deepen client relationships and deliver a differentiated client experience that is increasingly digitally-enabled and supported by data-driven insights ■ U.S. Wealth Management: Leverage the combined strengths of City National Bank, RBC Wealth Management U.S. and Capital Markets ■ International Wealth Management: Successful integration of RBC Brewin Dolphin to enhance client value proposition and consolidate position in local market. Continue to drive growth in Asia's global families by leveraging the global strengths and capabilities of RBC ■ Investor Services: Grow relationships with Canadian asset managers, investment counsellors, pension funds and insurance companies, deliver new products to meet growing client demand and enhance our core capabilities in Canada to improve the client experience Cash Earnings ($ millions) (1) (2) 3,374 164 2,673 246 During the year ended October 31, 2023, we recognized impairment losses of $177MM (before-tax $242MM) on our interest in an associated company 3,210 2,427 895 65 661 55 830 606 2022 2023 Q1/2023 Q1/2024 ■Net income ■ Amortization Total Recent Awards Outstanding Global Private Bank - North America (PBI Global Wealth Awards, 2023) Best Private Bank for Digitally Empowering RM's in N. America (Financial Times PWM Wealth Tech Awards, 2023) Best Private Bank in N. America (Family Wealth Report Awards, 2023) Best for HNW Individuals in N. America (Euromoney Global Private Banking Awards, 2023) Best Private Bank in Canada - 12th consecutive year (PWM/The Banker Global Private Banking Awards, 2023) Best Fund Recognition in 6 Refinitiv Individual Categories (Refinitiv Lipper Fund Awards Canada, 2023) RBC DS was rated #1 in advisor satisfaction amongst all bank-owned full-service brokerage firms (Investment Executive Brokerage Report Card, 2023) AUA and AUM ($ billions) (3) (4) 5,295 3,982 5,412 4,108 LL LL 2022 992 2023 1,059 1,043 Q1/2023 1,141 Q1/2024 ■ AUA ■ AUM (1) Cash earnings exclude the after-tax effect of amortization of intangibles. This is a non-GAAP measure. Refer to slide 60 for reconciliation and slide 61 for more information. (2) Effective the fourth quarter of 2023, we moved the Investor Services lending business from our Wealth Management segment to our Capital Markets segment. Therefore, comparative adjusted results for the three months ended January 31, 2023 have been revised from those previously presented. We completed the partial sale of RBC Investor Services operations in Europe (other than U.K.) and Jersey to CACEIS on July 3, 2023 and December 1, 2023, respectively. (3) Spot Balances. (4) Decline in AUA this quarter includes the impact from the partial sale of RBC Investor Services operations which closed on July 3, 2023. 17 BUSINESS SEGMENTS RBC#18Wealth Management - Global Asset Management Building a high-performing global asset management business Driving top-tier profitability in our largest Wealth Management business $581.2BN in client assets (as at Q1/24) Investor asset mix of 52% retail / 48% institutional client assets Extending our lead in Canada - Largest retail mutual fund company in Canada, ranked #1 in market share capturing 32.0% amongst banks and 15.7% all-in(1)(2) Strategic alliance between RBC Global Asset Management and BlackRock Canada connects clients to the largest and broadest ETF lineup in Canada 4th largest institutional manager of Canadian pension assets (3) Delivering strong investment capabilities to support growth - Top performing investment firm with -79% of AUM outperforming the benchmark on a 3-year basis (4) Continued growth of investment capabilities and innovative solutions for both institutional clients and retail investors Canadian Retail Mutual Fund AUM ($ billions) 16.2% 16.1% 16.1% 16.0% 15.8% 15.8% 15.8% 15.7% Diversified Asset Mix Q1/2024 AUM by Client Segment (5) 323.7 287.8 282.0 289.2 298.4 300.2 304.9 289.7 16% ■Canadian Retail 13% ■Canadian Institutional $581.2BN 52% ■U.S. Institutional 19% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Canadian Mutual Fund Balance (1) All-In Market Share(1) ■International Institutional (1) Investment Funds Institute of Canada (IFIC) in December 2023 and RBC reporting. Comprised of long-term funds and money market prospectus-qualified mutual funds sold to Retail and Institutional clients. (2) Market share amongst entire industry (i.e. all fund companies in Canada that report to IFIC). (3) Benefits Canada, published in November 2023. (4) As at December 2023, gross of fees. (5) RBC GAM, based on period-end spot balances. 18 BUSINESS SEGMENTS RBC#19Wealth Management Canadian Wealth Management ■ Maintain profitable growth with strong pre-tax margin RBC Dominion Securities: Fee-based Assets per Advisor(1) ($ millions) ■ #1 High Net Worth and Ultra High Net Worth market share in Canada(1) ■ ■ Canadian leader in fee-based assets per advisor(1) Consistently driving revenue per advisor of over $2.0MM per year, 32% above Canadian industry average (1) Strong asset growth complemented by favourable market conditions Leveraging enterprise linkages to extend market share gains U.S. Wealth Management (including City National) RBC Wealth Management-U.S. ■ 6th largest U.S. full-service wealth advisory firm ranked by assets under administration (2) 1.62x the Peer Average 156 96 RBC Cdn Peer Average Enhancing the client-advisor experience through a digitally-enabled, goals-based planning approach, and strengthening the range of advisory solutions and product offerings Continuing to attract and onboard new advisors, as well as new clearing relationships for our Clearing & Custody business, while enhancing advisor productivity and operational efficiency City National ■ A premier U.S. private and commercial bank Operates with a high-touch, branch-light client service model in select markets, including: Los Angeles, the San Francisco Bay area, Orange County, San Diego, New York, Washington D.C., Atlanta and Las Vegas Launched a National Corporate Banking division in 2021 that specializes in meeting the complex banking and corporate finance needs of mid- corporate-sized companies across the country International Wealth Management ■ ■ Growing market share in target markets by being advice-led and creating maximum value for clients with a broad suite of solutions Enhancing talent capabilities by unlocking meaningful career opportunities for our people and embedding an inclusive culture of trust and pride Enhancing business effectiveness and efficiency through digital enablement, including developing market-leading digital capabilities (1) Investor Economics, September 2023. (2) Source: U.S. wealth advisory firms quarterly earnings releases (10-Q). 19 BUSINESS SEGMENTS RBC#20CNB: Strengthening CNB's operational infrastructure remains a top priority Deposits (US$ BN) Assets (US$ BN) City National's balance sheet has more than doubled in size since the acquisition in Q1/2016 32 Q1/16 39 ~2.5x +$42BN 11% CAGR 73 Q1/24 ~2.5x +$56BN 12% CAGR 96 12 20 64 Investments to remediate certain non-financial risks and standards to strengthen operational infrastructure ■ Over the course of the last few years, CNB has put in place a new management team with a depth of experience from larger U.S. financial institutions, including: ☐ o Executive Chair o President & Chief Executive Officer 。 Chief Financial Officer o Chief Risk Officer Governance, Risk, and Controls (GRC) Program was established in 2022 to strengthen CNB's operating environment, commensurate with the bank's size and complexity, resulting in significant investments in technology, staff and support services 。 ~25% of the growth in RBC's professional fees over the last 2 years was attributed to CNB ■ CNB's LTM professional fees are ~3x higher than in 2021 。 Risk Management, Compliance and Internal Audit staff more than doubled in size through this period to over 800 FTE 5 10 24 Q1/16 Q1/24 (1) ■Loans ■ Securities ■ Other (1) Reflects all other assets on CNB's Balance Sheet including Interest-bearing balances due from depository institutions. 20 BUSINESS SEGMENTS RBC#21Capital Markets ■ A premier global investment bank with core operations across Canada, the U.S., the U.K., Europe and Asia-Pacific " - 10th largest global investment bank by fees(1) Strategically positioned in the largest financial centres, focused on the world's largest and most mature capital markets encompassing ~81% of the global investment banking fee pool(1) Recognized by the most significant corporations, institutional investors, asset managers, private equity firms and governments around the globe as an innovative, trusted partner with in-depth expertise in capital markets, banking and finance Revenue by Business ($ millions) (3) Revenue by Geography (2) Net Income ($ millions) (3) 412 312 ■ Canada 5% 4,491 433 279 323 407 294 276 26% 349 311 19% ■ U.S. 836 872 823 811 840 488 497 ■U.K. & Europe 540 465 573 1,040 1,023 838 811 646 ■Australia, Asia & Other 50% Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 ■Global Equities ■Lending & Other ■FICC ■Treasury Services & Funding ■Investment Banking 4,139 3,368 1,241 1,154 2021 2022 2023 Q1/23 Q1/24 (1) Dealogic, based on global investment banking fees LTM Q1/24. (2) For three months ended January 31, 2024. (3) Certain amounts have been revised from those previously presented to conform to our new basis of segment presentation. For more information, refer to the About Royal Bank of Canada section of our Q1 2024 Report to Shareholders. 21 BUSINESS SEGMENTS RBC#22Capital Markets Strategic Priorities Grow and deepen client relationships Lead with advice and extend capabilities Leverage digital and data to deliver innovative solutions Prioritize and align for impact Drive agility and ease of doing business Engage, enable and empower our talent Notable Awards THE BOND BUYER Deal of the Year ■ Deliver holistic coverage to clients and drive multi-product client relationships Expand client coverage in underpenetrated sectors and products Grow Advisory & Origination capabilities inclusive of structured solutions ■ Advance Sustainable Finance, Energy Transition and Private Capital solutions ▪ Enhance Sales and Trading client value from scaled electronic and digital strategy Generate differentiated insights and thought leadership leveraging data and analytics Strategically deploy talent, technology and financial resources to areas of greatest opportunity Align business and functional strategies to improve execution, build scale and maximize impact Simplify functional processes to improve client and employee experience ■ Drive cross-platform and geographic collaboration across businesses and asset classes ■ Invest in talent through scaled development programs, increased mobility, senior hiring and promotions Deepen our culture of inclusion and accelerate progress on diverse representation Notable Deal Highlights THE J.M. SMUCKER CO Hostess BRANDS KFW BainCapital Awarded for 4 RBC led deals, including Deal of the Year Award #1 Senior Manager of negotiated municipal bonds1 IR magazine #1 Broker for in-person roadshows, and Joint #2 for virtual roadshows for North American companies Lead Financial Advisor and Committed Financing on J.M. Smucker Co. US$5.6Bn Acquisition Joint Lead Manager on A$1.5Bn 5.5-Year Green Bond BRP Sole Underwriter on BRP's C$182MM Registered / Prospectus Block Trade (1) Source: Bloomberg, as at Dec 31, 2023 22 BUSINESS SEGMENTS RBC#23Capital Markets Capital Markets Total Average Assets ($ billions) (3) 1,193 Flat YoY Geographic Diversification Across Loan Book Average Loans Outstanding by Region ($ billions)(1)(3) 551 534 544 526 534 120 122 122 123 122 1,195 1,141 1,090 34 33 32 32 32 31 1,002 54 54 55 54 55 56 33 55 35 36 35 35 35 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 Q1/2023 Canada Q2/2023 U.S. Q3/2023 Q4/2023 Q1/2024 Other International -Lending Revenue ($ millions) Risk-Weighted Assets, Spot ($ billions)(3) YoY 11% Earnings Volatility vs. Canadian and U.S. Peers (Standard Deviation/Avg Earnings) (2) 242 228 225 220 19.2% 216 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 RBC 30.1% 27.8% Canadian Peers U.S. Peers (1) Average loans outstanding includes wholesale loans, acceptances, and off balance sheet letters of credit and guarantees for our Capital Markets portfolio, on single name basis. Excludes mortgage investments, securitized mortgages and other non-core items. This chart has been restated to exclude certain intergroup exposures that are not part of the corporate lending business. (2) Reflects pre-provision, pre-tax earnings, which is revenue net of PBCAE and non-interest expenses. This is a non-GAAP measure. Canadian peers include BMO, TD, CIBC, BNS and NA, US peers include JPM, GS, BAC, Citi and MS. (3) RWA is calculated in accordance with OSFI's Capital Adequacy Requirements guideline. Certain amounts have been revised from those previously presented to conform to our new basis of segment presentation. For more information, refer to the About Royal Bank of Canada section of our Q1 2024 Report to Shareholders. 23 BUSINESS SEGMENTS RBC#24Insurance Strategic Priorities ■ Harness the power of RBC and the RBC Brand to grow our Insurance business ■ Deliver a market-leading client experience ■ Lead in digital, data and technology ■ Drive operational excellence through automation and streamlined processes ■ Attract, develop and retain future-ready talent Highlights One of the largest Canadian bank-owned insurance organizations (1) serving 4.8 million clients #2 in individual disability new business sales (2) #2 in group annuity new business sales (2) #1 in creditor protection (3) #5 in term new business sales (2) Net Income ($ millions) 889 857 546 220 66 2021 2022 2023 (IFRS17) Q1/23 (IFRS17) Q1/24 Contractual Service Margin ($ millions) 1,767 1,804 1,894 1,956 1,977 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 (1) On a total revenue basis. (2) As measured by insured balance reported by CAFII and Supplementary Financial Reports. (3) LIMRA Canadian Insurance Survey, YTD 3rd Quarter 2023. BUSINESS SEGMENTS 24 RBC#25Risk Review RBC Ⓡ#26U.S. 19% Canada 75% Personal Loans 11% Prudent risk management A disciplined approach and diversification have underpinned credit quality Loan Book Diversified by Portfolio (1) Credit Cards 3% _Small Business 2% PCL Ratio on Impaired Loans (bps) (2) Wholesale 35% Residential Mortgages 49% 422022505 35 30 PCL ratio on impaired loans Average historical actual loss rate (3) 30 bps 31 25 23 21 24 17 15 11 12 8 9 10 7 16 9 8 Breakdown by Region of Total Loans and Acceptances (1) Other International 6% Breakdown of Canadian Total Loans and Acceptances (1) Manitoba/ Sask. 5% Atlantic 5% (1) Loans and acceptances outstanding as at January 31, 2024. Does not include letters of credit or guarantees. (2) PCL on impaired loans represents Stage 3 PCL under IFRS 9 and PCL on impaired loans under IAS 39. Stage 3 PCL under IFRS 9 is comprised of lifetime credit losses of credit-impaired loans, acceptances and commitments. (3) Average annual actual loss rate from fiscal 2003 through to the most recent full year. The information is updated on an annual basis and is based on consolidated results. 26 RISK REVIEW RBC Q2/2021 Quebec 12% Alberta 12% Ontario 49% B.C. and Territories 17% Q3/2021 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024#27Allowance for Credit Losses: Prudent reserve increases on performing loans Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) ($ millions) L&A $847BN ACL to L&A 0.53% 4,449 L&A $880BN ACL to L&A 0.61% 5,348 160 PCL on Performing Loans of $133MM (49) 22 L&A $880BN (536) ACL to L&A 0.64% 685 5,630 Q1/23 ACL Q4/23 ACL Credit Quality Macroeconomic Outlook Portfolio Growth PCL on Impaired Loans Net write-offs, FX & Other Q1/24 ACL ■ ACL on loans and acceptances increased $282MM or 3 bps QoQ ACL on performing loans of $4.3BN has increased $1.2BN or 37% since Q2/22, with reserve additions in 7 consecutive quarters ■ We took $133MM of provisions on performing loans this quarter (down $61MM QoQ) Provisions were primarily in Canadian Banking, driven by increasing delinquencies and lower Canadian housing price forecasts Capital Markets took modest provisions this quarter, while Wealth Management released reserves, reflecting improvement to our macroeconomic outlook in the U.S. 27 RISK REVIEW RBC#28PCL on impaired loans: Trending higher, as expected Total RBC ($ millions, bps) Wealth Management ($ millions, bps) Average historical loss rate (1): 30 bps 17 21 31 FY19: 12 bps 25 23 14 13 10 24 14 $685 $69 $499 $539 $441 $42 $357 $38 $38 $26 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Provisions were up $146MM QoQ due to higher provisions in Canadian Banking and Capital Markets, partially offset by lower provisions in Wealth Management Canadian Banking ($ millions, bps) Provisions were down $31MM QoQ, due to the partial reversal of a provision in the Telecom and Media sector taken last quarter This quarter, provisions were primarily in Real Estate and Related, with a large provision on a previously impaired office loan Capital Markets ($ millions, bps) 32 FY19: 30 bps FY19: 26 bps 24 32 22 20 18 14 $489 $356 $302 $302 $259 44 45 31 $158 $161 $113 $112 $53 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 " Retail: Provisions of $363MM were up $74MM QOQ, with higher provisions across all products Provisions were up $49MM QoQ Commercial: Provisions of $125MM were up $58MM QoQ, due primarily to a large provision taken this quarter on a loan in the Automotive sector (1) Average annual actual loss rate from fiscal 2003 through to the most recent full year. The information is updated on an annual basis and is based on consolidated results. 28 RISK REVIEW This quarter, provisions were primarily in Real Estate and Related, with large provisions taken on a newly impaired office loan and on a previously impaired multi-family loan, both in the U.S. RBC#29Gross Impaired Loans: New formations higher in Canadian Banking Gross Impaired Loans (GIL) ($ millions, bps) FY19:46 bps 42 38 34 31 48 $4,198 $3,704 $3,284 $2,893 $2,599 Key Drivers of GIL (QoQ) ■ Total GIL increased $494MM (up 6 bps QoQ) Canadian Banking GIL of $2,103MM increased $519MM QOQ, with higher new formations 。 Commercial new formations were primarily in Automotive (driven by 1 large impairment) and Real Estate and Related o Retail GIL and new formations were higher across all products Capital Markets ■ GIL of $1,242MM decreased $43MM QoQ. GIL balances remain concentrated in Real Estate and Related, and during the quarter, new formations were largely due to impairment of a loan secured by office properties in Houston Wealth Management (including CNB) Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 ■ New Formations ($ millions) (1) As a % of L&A 0.15% GIL of $554MM increased $40MM QoQ. New formations increased across several sectors as well as residential mortgages (at CNB) Net Formations ($ millions) As a % of L&A: 0.17% 1,494 1,255 201 (52) (165) (610) 1,494 (173) 139 1,063 236 937 874 13 167 61 767 164 610 261 384 99 191 177 46 36 30 31 1,044 4,198 25 3,704 489 466 475 589 456 FY/19 Quarterly Average Q1/23 Q2/23 Q3/23 ■Canadian Banking ■Capital Markets Q4/23 ■Caribbean & U.S. Banking Wealth Management Q1/24 Q4/23 GIL New Formations Returning to Repayments Write-Offs Performing Other Q1/24 GIL (1) New formations for collectively assessed portfolios in Canadian Banking and Caribbean Banking are net of amounts returned to performing, repayments, sales, FX, and other movements, as amounts are not reasonably determinable. 29 RISK REVIEW RBC#30Canadian Banking: Credit outcomes impacted by higher rates, as anticipated Canadian Banking (CB) PCL on Impaired Loans and Gross Impaired Loans CB Retail FICO Score Distribution (Q1/24) Q1/24 Avg PCL on Impaired Loans Loan Balances (bps) (1) Gross Impaired Loans (bps) Avg <620 3.3% FICO Score 620- ($BN) Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 (Q1/24) 680 6.9% 681- Residential Mortgages (2) 377.6 1 3 3 11 13 16 791 720 9.7% Personal Lending(3) 77.1 52 72 78 26 31 35 774 Credit Cards 22.5 199 223 260 75 (4) 78 (4) 90 (4) 735 786 weighted average Small Business 13.9 63 (15) 81 132 178 191 n.a. Commercial 114.0 10 25 45 44 56 81 n.a. Total 605.1 18 24 32 21 26 35 786(5) >720 80.1% In Q4/23, the PCL ratio in Small Business benefitted from a reversal of provisions taken on government guaranteed HASCAP (6) loans CB Delinquencies by Days Past Due (bps) (7) CB 30-89 Day Delinquencies by Product (bps) (7) 40 ■30-59 Days ■ 60-89 Days 160 35 140 30 25 20 GNN 13 120 11 100 9 7 9 80 60 15 22 40 22 22 10 18 19 20 16 5 20 0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 ■ Q1/23 ■ Q2/23 ■ Q3/23 ■ Q4/23 Residential Mortgages HELOCS Personal Lending (Excluding HELOCs) Q1/24 Cards Small Business Commercial (1) Calculated using average loans and acceptances, net of allowance. (2) Includes $11.7BN of mortgages on multi-unit residential buildings originated in P&CB Business Banking. (3) Personal Lending includes Indirect Lending, Overdraft, Personal Loans and HELOC. (4) Represents 90+ Days Past Due, as there are no GIL balances for Credit Cards. (5) Average FICO is balance weighted for all retail products. (6) HASCAP - Highly Affected Sectors Credit Availability Program (7) Includes restrained accounts, where loans 30-59 days past due resulting from administrative processes, such as mortgage loans, where payments have been restricted pending payout due to sale or refinancing. 30 | RISK REVIEW RBC#31Canadian residential portfolio: Strong underlying credit quality Canadian Residential Mortgage Portfolio (1) ($ billions) $199.6 85% ■ Insured Uninsured Canadian Banking RESL Portfolio (2) Total $401BN Uninsured $339BN Mortgage Balance $366BN $304BN $89.2 (22%) $308.9 (78%) $74.1 HELOC Balance $35BN $35BN LTV at Origination 71% 68% CCLTV 51% 50% GVA 47% 47% $41.3 $43.5 84% GTA 51% 51% 55% 73% $20.3 $19.3 Average FICO Score 802 806 15% 58% 56% 45% FICO > 800 51% 52% 16% 27% 42% 44% CCLTV >80% & FICO < 680 1.42% 0.75% Ontario B.C. & Territories Alberta Quebec Manitoba & Sask. Atlantic 90+ Days Past Due (3) 19 bps 17 bps 51% 48% 55% CCLTV - Canadian Banking Residential Lending Portfolio only (2) Canadian Banking RESL Portfolio (2) GVA 13 bps 13 bps 52% 54% 53% GTA 17 bps 16 bps Average Duration CCLTV >80% 7% 17% 65%-80% FICO Scores >720 681-720 ■620-680 ■ <620 Remaining Mortgage Amortization(4) 24 years 26 years Original Term(5) 41 months 39 months Remaining Term 25 months 25 months Portfolio Mix Variable Rate Mortgage 27% 30% 21% 50%-65% Fixed Rate Mortgage 73% 70% Owner Occupied 86% 83% 38% <50% 0% 10% 20% 30% 40% 50% Non-Owner Occupied Detached Condo 14% 17% 72% 73% 12% 12% % of Total Canadian Banking RESL Portfolio (1) Canadian residential mortgage portfolio of $398BN comprised of $366BN of residential mortgages in Canadian Banking, $3BN in other Canadian business platforms, $12BN of mortgages with commercial clients ($9BN insured) and $18BN of residential mortgages in Capital Markets held for securitization purposes (all insured). (2) Real estate secured lending includes residential mortgages and HELOCS. Based on $366BN in residential mortgages with non-commercial clients and $35BN in HELOC in Canadian Banking. Based on spot balances. Weighted by mortgage balances and adjusted for property values based on the Teranet-National Bank National House Price Indext. (3) The 90+ day past due rate includes all accounts that are either 90 days or more past due or are in impaired status. (4) Excluding interest only mortgages. (5) Original term for booking during the quarter. 31 RISK REVIEW RBC#32Commercial Real Estate (CRE): Well-diversified portfolio ■ Total CRE exposure of $85.3BN represents 9.7% of total L&A ■ The portfolio was originated with sound lending standards, and remains well-diversified by geography, business and property type Impairments and losses are manageable The portfolio is well provisioned Since the start of the current rate-hiking cycle (Q3/22): ■ Cumulative new formations of impaired loans of $1.35BN represent < 2% of CRE L&A and < 0.2% of Total L&A ■ Cumulative PCL on impaired loans of $373MM represent 1% of PPPT Earnings ■ The implied loss rate on impaired loans is 28%, as tangible collateral and guarantees help mitigate losses ■ The CRE ACL ratio on performing loans is ~3x higher than pre-pandemic levels and -4x higher in the U.S. than in Canada ■ Our downside provisioning scenarios account for a reduction in CRE prices of 25% to 40% Spotlight on U.S. CRE Exposure ($28BN or 3% of total L&A) Other 1% U.S. Office (1) Exposure (0.6% of total L&A) ■ 57% of exposure is in Wealth Management, where loans are typically smaller (average < US$15 MM) and benefit from amortization and additional recourse outside of the asset (e.g. guarantees or other collateral) ■ The remaining 43% is in Capital Markets, where loans are larger (average < US$75MM) and exposure is backed by strong financial sponsors (1) Office exposure includes traditional office and life sciences buildings. 32 RISK REVIEW Retail 14% Office 20% Industrial & Warehouse 36% Multifamily 29% ■ The Office segment continues to be impacted by supply/demand imbalance and has accounted for a majority of our PCL on impaired CRE loans since Q3/22 U.S. Multifamily Exposure (0.9% of total L&A) Segment generally performing well with pockets of geographic weakness ■ Since Q3/22, provisions on impaired loans have been largely limited to loans secured by a portfolio of properties in San Francisco ■ No material exposure to rent-stabilized apartments in New York RBC#33Technology @ RBC RBC Ⓡ#34Investors value RBC for its industry-leading franchises and innovative approach ■ 9.2 MM active digital users (1) Creating More Value for Clients ■ 4.1 MM clients have activated their personalized plans through MyAdvisor (2) ■ 7.0 MM active mobile clients (1) on the RBC Mobile app Data & Artificial Intelligence Insights ■ 4 Borealis Al labs connected with top universities across Canada, with 40+ PhDs ■ 4.4BN+ insights viewed by clients on NOMIⓇ in the RBC Mobile app(3) Driving Efficiency & Operational Excellence ■ 711MM Transactions volumes (4) Innovation Ecosystem & ■ 6 innovation labs globally ■ RBCX Ventures, including Partnerships ■ OwnrⓇ, Dr.BillⓇ, MydohⓇ and Houseful™ Among Canada's Top 100 Employers and Best Workplaces in 2023(5) (6) (1) These figures (in millions) represent the 90-Day Active customers in Canadian Banking only and are spot values. (2) As of January 31, 2024. (3) Insights read on a launch-to-date basis. (4) Represent the count of the system level transactions. (5) Media Corp Canada Inc. (6) Great Place to Work Institute. 34 TECHNOLOGY @ RBC RBC#35We have developed a rich innovative ecosystem that attracts top talent 188888 888880 6 Innovation Labs around the world Fostering Engineering & Innovation Culture 35 | TECHNOLOGY @ RBC Unique Partnerships (FinTech, Big Tech) RBC 8== Digital RBC dh Research Institutions Toronto Metropolitan University Western UNIVERSITY CANADA UNIVERSITY OF TORONTO RBCX Ventures, Incubators and Accelerators CREATIVE DESTRUCTION Entrepreneurship MONTREAL VECTOR INSTITUTE キ RBC#36Canadian Banking: Our ~15MM clients continue to adopt our digital channels Active Digital Users (000s) (1) Digital Personal Adoption Rate (2) Active Mobile Users (000s) (1) 7% 120 bps 12% Pre- pandemic 9,016 9,192 8,579 7,354 Pre- pandemic 54.4% 62.5% 62.0% 61.3% Pre- pandemic 7,038 6,865 6,287 4,619 Q1/20 Q1/23 Q4/23 Q1/24 Q1/20 Q1/23 Q4/23 Q1/24 Q1/20 Q1/23 Q4/23 Q1/24 Mobile Sessions (millions) (3) 22% Self-Serve Transactions (4) Branches 60 bps Pre- pandemic (1)% 162 154 94.1% 94.3% 94.7% 1,206 133 Pre- pandemic 88.8% Pre- I pandemic 77 Jan-20 Jan-23 Oct-23 Jan-24 Q1/20 Q1/23 Q4/23 Q1/24 1,157 1,143 1,145 Q1/20 Q1/23 Q4/23 Q1/24 (1) These figures (in 000s) represent the 90-Day Active customers in Canadian Banking only and are spot values. (2) Digital Personal Adoption rate calculated using 90-day digital active personal clients. (3) These figures represent the total number of application logins using a mobile device. (4) Financial transactions only. 36 | TECHNOLOGY @ RBC RBC#37RBCX RBC Ⓡ#38RBC fuels innovation in Canadian tech ecosystem through four business pillars. Our expertise and network in the innovation ecosystem spans four distinct areas to be the go-to source for tech founders and investors. Banking Capital Platform Ventures Our suite of financial products, services, and expertise is tailored for tech companies- from startup to IPO-to help manage your day-to-day needs, scale alongside your business, and propel you to the next phase in growth. 3,500+ Tech clients, from startups to scale ups in areas such as fintech, cleantech, agtech and more 100+ Experienced Relationship Managers located coast-to-coast Through our investment management and fund finance arm, we build strategic partnerships with leading venture capital funds and growth firms that power innovation across tech, life sciences and climate sectors. 18 VC fund investments Our network of specialists advises on your company's growth operations and strategy and helps sharpen your competitive edge with access to insights, webinars and offers throughout your company lifecycle. 150+ in Canadian-focused software, life Engineers, architects and sciences and climate funds, among other areas 30+ Specialized fund finance facilities administered to leading Canadian-focused venture capital firms developers 75+ Growth marketers, CX researchers and product designers 50+ (1) SMEs in data science, sales, finance and operations As founders and builders of our own tech companies, we acquire and scale businesses strategically important to RBC, providing a reservoir of real-world entrepreneurial experience for other startups to tap into. ownr Registered or incorporated 130,000+ Canadian businesses since inception Dr.Bill. Processed $4.1 billion in medical billings for 14,000+ physicians since 2020 MYDOH™ Ⓡ Helped 140,000+ Canadians build financial literacy houseful™ (formerly OJO Canada) Supporting over 11 million Canadians annually on their home ownership journey (1) SME stands for small and midsize enterprise. 38 | RBCX RBC#39Economic Backdrop RBC Ⓡ#40Canada's strong fiscal position Strong rating as a result of fiscal prudence, conservative bank lending practices and a solid economy ■ Lowest net debt-to-GDP ratio among G7 peers(1) Net Debt as % of GDP (1) (2024 forecast as of October 2023) Canadian GDP by Industry (2) (November 2023) 14.6 45.7 99.6 100.1 100.7 93.1 132.5 158.5 8% རྩ ༔ ཎྱེ་ཚ་ཟླ་ཕ་ཟ་ཟླ 8% 6% 4% 11% 21% 10% 13% 10% ■Finance, Insurance & Real Estate ■Manufacturing ■ Wholesale and Retail Trade ■Scientific, Technical & Educational Services ■Public Administration and Utilities Mining, Oil & Gas Extractions ■Construction 11% ■Health Care ■Transportation, Warehousing (1) Net debt refers to General Government net debt. International Monetary Fund October 2023 World Economic Outlook database. (2) Statistics Canada, RBC Economics. 40 | ECONOMIC BACKDROP Other RBC#41Central bank interest rate hikes to slow consumer and business spending ■ Inflation is still running above the Bank of Canada's (BOC) 2% target, but the pace has slowed and the breadth of price growth has narrowed after peaking earlier in calendar 2022. Global inflation pressures have dissipated on lower commodity prices and easing supply chain pressures. Three-month average growth in the BoC's preferred median and trim inflation measures are still running above the BoC's 1% to 3% target range. ■The BoC held the overnight rate steady at 5% in January, extending a pause after the last hike in July 2023. But a softening economic backdrop signals further easing in inflation pressures. With the Canadian population growing rapidly, GDP is tracking a sixth consecutive quarterly decline in per-capita output in calendar Q4 2023. The unemployment rate has edged higher over the last calendar year with increased employment counts no longer keeping up with surging population growth. Interest rates are already at levels that are high enough to restrict economic activity, and we expect slower price growth alongside a weakening economic backdrop will push the BoC to start the rate cuts by mid-year. High interest rates are exerting a growing toll on Canada's housing markets. The uptick seen in early results from local estate boards was from depressed levels in most cases and did little to alter the generally soft state of affairs in the housing sector (with a few key exceptions). But it suggests the downturn that started in the spring of 2022 may have run its course. ■ GDP growth is expected to slow in the U.S. in the first half of Calendar 2024, and to remain low in Canada. Contingent on slow economic growth and further easing in inflation pressures, the BoC and U.S. Federal Reserve are expected to pivot to gradual interest rate cuts by mid-year. Canadian Inflation (YoY) (1) Canadian Labour Markets (YoY) (2) 7 -1 -2 89654321012 2000 2001 2002 2003 2004 2005 2006 2007 2008 Headline 2009 2010 2011 2012 2013 2014 2015 BoC Target 2021 2022 2023 (1) Statistics Canada, RBC Economics Research. (2) Statistics Canada, Bureau of Labor Statistics, RBC Economics Research. 41 ECONOMIC BACKDROP 13 9 7 2210 2 8 1654 11 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Employment growth (YOY% - RHS) Unemployment rate (% - LHS) RBC 7 2 -3 -8 -13 12#422024 Economic Outlook Projected Economic Indicators for 2024(1) GDP Growth Inflation Unemployment Rate Interest Rate (3 mth T-bills) Current Account Balance/GDP (2) Budget Surplus/GDP (3) Canada 0.7% 2.4% 6.5% 3.85% (1.0)% (0.6)% U.S. 1.8% 2.6% 4.2% 3.98% (3.0)% (7.4)% Euro Area 0.2% 2.4% 7.5% N.A. 1.2% (2.7)% Canada U.S. Canadian headline inflation increased to 3.4% in December (from 3.1% in November) on rising energy inflation, but the scope of inflation pressures continues to narrow, suggesting on balance that price pressures were still gradually easing. We expect the BoC to start gradually lowering the policy rate by middle of calendar year 2024, contingent on further slowing in inflation and a weakening economic backdrop. GDP is expected to tick up 0.5% and 0.3% in Q4 of 2023 and Q1 of 2024, respectively, following a negative growth of 1.1% in the third quarter of 2023. But that implies further declines on a per-capita basis with population still growing rapidly. The U.S. unemployment rate held steady at 3.7% in January, unchanged since November last year. Inflation remains above the Federal Reserve's 2% objective but is expected to slow further as lower job openings bring labour markets into better balance. We continue to expect higher interest rates will slow labour demand, pushing unemployment rate moderately higher this year. We anticipate growth in the U.S. economy will slow into the first half of 2024, and gradually bounce back during the second half. We expect the Federal Reserve to pivot to interest rate cuts by the middle of calendar year 2024, contingent on inflation pressures continuing to subside. Euro Area GDP in the Euro area is expected to grow but at a slow pace in calendar 2024 with higher interest rates adding to growth headwinds from inflation and disruptions from the war in Ukraine. We expect GDP to increase 0.2% in calendar 2024. The European Central Bank left the deposit rate unchanged at 4% at its January meeting and we expect the ECB to pivot to interest rate cuts by the middle of calendar year 2024. (1) RBC Economics as of February 13, 2024 and reflects forecasts for calendar 2024. (2) RBC Economics Research, IMF WEO (October 2023). (3) IMF Fiscal Monitor (October 2023). 42 | ECONOMIC BACKDROP RBC#43Canadian Housing Market RBC Ⓡ#44Structural backdrop to the Canadian and U.S. housing markets Regulation Consumer Behaviour Lender Behaviour Lenders' Recourse ■ ☐ Canada (1) Government influences mortgage underwriting policies primarily through control of insurance eligibility rules Fully insured if loan-to-value (LTV) is over 80% - Must meet 5-year fixed rate mortgage standards Government-backed, on homes under $1MM Down-payment over 20% on non-owner occupied properties Minimum down payment for new government-backed insured mortgages is 10% for portion of the value of a home being purchased that is between $500,000 - $999,000, and 5% below $500,000 Re-financing cap of 80% on non-insured Mortgage interest not tax deductible Greater incentive to pay off mortgage Strong underwriting discipline; extensive documentation Most mortgages are held on lenders' balance sheet Conservative lending policies have historically led to low delinquency rates Ability to foreclose on non-performing mortgages, with no stay periods Full recourse against borrowers (2) U.S.(1) Agency insured only if conforming and LTV under 80% No regulatory LTV limit - can be over 100% Not government-backed if private insurer defaults Mortgage interest is tax deductible Less incentive to pay down mortgage Wide range of underwriting and documentation requirements Most mortgages securitized Stay period from 90 days to one year to foreclose on non-performing mortgages Limited recourse against borrowers in key states (1) Current regulation and lenders recourse. (2) Alberta and Saskatchewan have some limited restrictions on full recourse. 44 | CANADIAN HOUSING MARKET RBC#45- Legislation and policies – promoting a healthy Canadian housing market February 2024 - Government of Canada Ban on foreign buyers of non-recreational residential properties extended to January 2027. September 2023 - Government of Canada Enhancement to the GST New Residential Rental Property rebate, raising the rebate percentage to 100% and eliminating the ceiling on qualified rental units' value ■ The move was matched by New Brunswick, Newfoundland & Labrador, Nova Scotia, Ontario and PEI on their portion of the HST January 2023 - Government of Canada Two-year ban on foreign buyers of non-recreational residential properties came into effect Anti-flipping tax applying to capital gains made on principal residences bought and sold within less than 12 months came into effect October 2022 - Government of Ontario ■ Raised the non-resident speculation tax from 20% to 25% April 2022 Government of Canada All assignment sales of newly constructed homes became fully taxable for GST/HST purposes on May 7, 2022 Federal government will engage with provinces and territories to develop and implement a buyer's bill of rights March 2022 Government of Ontario ■ - Expanded the non-resident speculation tax to the entire province and raised the rate from 15% to 20% March 2022 - Government of Nova Scotia ■ Introduced a 5% non-resident provincial deed transfer tax (effective April 1, 2022) June 2021 - OSFI, Department of Finance The stress test qualifying rate for insured and uninsured mortgages changed to the client rate plus 2 percentage points or 5.25%, whichever is greater 45 CANADIAN HOUSING MARKET RBC#46Legislation and policies - promoting a healthy Canadian housing market July 2020 CMHC ■ Minimum credit score for CMHC insured mortgages raised from 600 to 680 Gross debt service ratio reduced to 35%; total debt service ratio reduced to 42% to qualify for CMHC insured mortgage CMHC tightened rules on admissible down payment sources February 2018 - Government of British Columbia ■ The BC government introduced a 30-point plan to address housing affordability issues. It included a new speculation tax (2% of assessed value) on homeowners who do not pay income tax in the province and increased the foreign buyer tax to 20% from 15% January 2018 - OSFI Qualifying rate for uninsured mortgages raised to 2 percentage points above the contract rate or the five-year posted rate, whichever is higher April 2017 Government of Ontario ■ Introduced the 'Fair Housing Plan': 16 measures to address risks in the housing market including a 15% speculation tax on non-residents purchasing homes in the Greater Golden Horseshoe region January 2017 - City of Vancouver ■ Vancouver introduced a tax of 1% of the assessed value of each home which is vacant (principal residence is exempt) October 2016 – Department of Finance ■ Qualifying rate for high-ratio mortgages with a term of five years or more is changed to the 5-year posted rate Portfolio-insured low-ratio mortgage loans must meet the eligibility criteria of high-ratio insured mortgage ■ A principal residence sale must be reported in the seller's tax return, even if any capital gain is protected by the principal residence exemption July-August 2016 - OSFI & the Government of British Columbia ☐ OSFI increased scrutiny on mortgage underwriting standards: greater emphasis on internal controls, risk management practices and market developments BC government introduced a property transfer tax of 15% on foreign buyers registering the purchase of a home in Metro Vancouver 46 | CANADIAN HOUSING MARKET RBC#47Legislation and policies - promoting a healthy Canadian housing market December 2015 - Department of Finance ■ Minimum down payment for new government-backed insured mortgages increased from 5% to 10% for portion of the value of a home being purchased that is between $500,000 and $999,999 (came into effect February 2016) April 2014 CMHC Discontinued offering mortgage insurance on 2nd homes and to self-employed individuals without 3rd party income validation July 2012 CMHC Maximum amortization on government-backed insured mortgages reduced to 25 years from 30 years Maximum amount that can be borrowed on a mortgage refinancing lowered to 80% from 85% ■ CMHC insurance availability is limited to homes with a purchase price of <$1 million lowered from $3.5 million Set the borrower's maximum gross debt service ratio at 39% and maximum total debt service ratio at 44% March 2011 - CMHC ■ Maximum amortization on government-backed insured mortgages reduced to 30 years from 35 years ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 85% from 90% February 2010 - Department of Finance Borrowers with insured mortgage terms of less than five years must meet the standards for a five-year fixed rate mortgage ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 90% from 95% Minimum 20% down payment is required in order to qualify for government-backed mortgage insurance on non-owner-occupied properties July 2008 Department of Finance ▪ Maximum amortization on government-backed insured mortgages reduced to 35 years from 40 years ■ A minimum 5% down payment is required in order to qualify for government-backed insured mortgages Minimum credit score requirements, new loan documentation standards, setting a maximum of 45% on borrowers' total debt service ratio 47|CANADIAN HOUSING MARKET RBC#48The Toronto and Vancouver downtown condo markets ■ Constraints on undeveloped land around Toronto / Vancouver have contributed to a shift to higher-density condo housing Provincial growth plan, including ‘Green belt' surrounding Toronto, contains urban sprawl and favours condo development Vancouver is restricted in its ability for urban sprawl due to land constraints away from the city centre ■ Canada has one of the highest per capita rates of permanent immigration in the world(1) - - In 2021, 8.3+ million people, or almost one-quarter (23.0%) of the population, were, or had ever been, a landed immigrant or permanent resident in Canada – the highest among the G7(1) - - 53.4% of recent immigrants to Canada settled in Toronto, Montreal or Vancouver (1) ■ RBC's exposure to condo development is limited - about 4.7% of our Canadian commercial loan book (2) - Condo exposure is 12% of Canadian residential lending portfolio (2)(3) "Green Belt" Surrounding Greater Toronto Area Vancouver Limited by Mountains, Sea, U.S. Border о Mt Seymour Provincial Park Lake Simcoe cal Reserve North Vancouver District Lake Ontario CANADA USA 1A VANCOUVER Pacific Spirit Regional Park 99 91A Richmond 17 Belcarra Regional Park Pinecone Lake-Burke Mountain Park Coquitlam Maple Ridge New Westminster Langley Twp Surrey 10 Delta 99 Point Roberts White Rock Campbell Valley Regional Park 13 15 (1) Statistics Canada, 2021 Census. (2) As at January 31, 2024. (3) Based on $366BN in residential mortgages with non commercial clients and $35BN in HELOC in Canadian Banking. Based on spot balance. 48 | CANADIAN HOUSING MARKET 539 RBC#49Canada's housing market: still adjusting to high interest rates ■ The market cooled again in the fall of 2023 after the Bank of Canada's additional rate hikes in June and July—as well as expectations that it will keep rates high for longer-sent many buyers to the sidelines. Home resales have softened back to historically low levels in most markets (with some exceptions in the Prairies). They are likely to stay weak until interest rates come down materially (RBC Economics expects our central bank to start cutting around mid-2024). That said, early signs of an upturn have emerged as 2024 rolled in, which suggests the correction may have run its course. The sharp loss of affordability during the pandemic, however, continues to weigh on property values. RBC Economics expects them drift lower over the first half of 2024. ■ Canada's longer-term housing market fundamentals remain solid. Immigration (for which targets will rise to 500,000 annually by 2025 and 2026) will be a major driver of housing demand for years to come. Already-low housing inventories could fall further if homebuilding continues lag demand. Significantly boosting housing supply will be a challenge amid skilled trade shortages, lengthy (and costly) project approval processes and often restrictive zoning regulations across Canada. ■ Lenders maintain strong underwriting discipline and require extensive documentation. Most mortgages held on balance sheet and conservative lending policies have led to low delinquency rates. Demand-supply conditions have rebalanced Sales-to-New Listings Ratio (1) (Residential unit sales to new residential listings) Higher rates are keeping debt service costs elevated Household Debt Service Costs (2) (Mortgage & non-mortgage principal & interest payments as a % of household disposable income) 1.00 16 0.90 0.80 Seller's market 14 0.70 12 0.60 0.50 Balanced market 10 0.40 0.30 8 Buyer's market 0.20 6 0.10 0.00 4 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 (1) Canadian Real Estate Association, RBC Economics. (2) Statistics Canada, RBC Economics. 49 | CANADIAN HOUSING MARKET 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 RBC#50Recovery in property values to stall temporarily Home prices are back above year-ago levels... Composite MLS (1) Home Price Index Annual % change 40 30 20 20 10 -10 ...in most markets Composite MLS(1) Home Price Index Annual % change 40 -Vancouver -Calgary 30 -Toronto -Montreal 20 10 -10 -20 -20 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 Source: Canadian Real Estate Association, RBC Economics 2016 -Small markets -Large markets 2017 2018 2019 2020 2021 2022 2023 Source: Canadian Real Estate Association, RBC Economics Poor affordability is poised to restrain demand growth... Housing affordability: Canada Ownership costs of an average home as % of median household income ...and keep prices stagnant near term Home price forecast: Canada RPS aggregate home price benchmark, $ 900,000 Forecast 850,000 60 Less affordable to own a home 800,000 750,000 50 700,000 650,000 40 600,000 550,000 30 More affordable to own a home 500,000 450,000 20 400,000 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Source: RPS, Statistics Canada, Bank of Canada, RBC Economics 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: RPS, RBC Economics (1) MLS: Multiple Listing Service. 50 | CANADIAN HOUSING MARKET RBC#51Canadians have significant equity ownership in their homes ■ Canadians carry a significant share of equity in their homes. ■ Growth in residential mortgages reached a 14-year high in the early months of 2022, but the housing market downturn has since moderated the pace materially. Mortgage delinquency rates remain exceptionally low in Canada and have been stable through recent credit cycles. ■ RBC monitors its residential mortgage and broader retail portfolios closely, and performs stress tests for dramatic movements in house prices, GDP, interest rates and unemployment rates. Canadians maintain high levels of equity in their homes 85 80 75 70 65 56 60 55 50 Equity Ownership (1) (Owners' equity as a % of total value of residential real estate assets) -Canada <-U.S. 45 40 35 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Growth in residential mortgages is slowing again Residential Mortgage Growth (2) 16 (Year-over-year % change) The mortgage delinquency rate still near a 30-year low in Canada Mortgage Delinquencies (3) 6 (Mortgages 90+ days in arrears as a % of total mortgages) -Canada -U.S. 14 12 10 8 6 4 2 5 4 3 2 1 0 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (1) Statistics Canada, Federal Reserve Board, RBC Economics. (2) Bank of Canada, RBC Economics. (3) Canadian Bankers Association, Mortgage Bankers Association, RBC Economics. 51 | CANADIAN HOUSING MARKET RBC#52Appendix - Liquidity & Funding RBC Ⓡ#53Funding: Well-diversified ☐ As at January 31, 2024, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were $847 billion or 52% of our total funding (including short-term repo funding) Short and long-term wholesale funding comprises 35% of the total liabilities & capital in both unsecured and secured formats Wholesale funding generally supports capital markets activity Wholesale funding is well-diversified across products, currencies, investor segments and geographic regions LCR (1) (total adjusted value, $BN) High-quality liquid assets Less Net Cash Outflows = Surplus ~$94BN 393 298 Total Loss Absorbing Capacity (1) TLAC Composition ($BN) TLAC Ratio 186 31.4% External TLAC 6.3% instruments 79 3.5% ■Tier 2 instruments 11 8 ■Additional Tier 1 instruments 21.6% ■CET1 Capital (1) 88 Q1/2024 Q1/2024 T DSB(2) Minimum Q1/2024 Q1/2024 Long-term debt (3) - funding mix Unsecured funding 62% By product By currency of issuance U.S. dollar Canadian dollar 24% 47% $228BN Cards securitization 3% $228BN Covered bonds 24% Subordinated debentures 5% MBS/CMB (4) 6% Euro and Other 29% (1) The CET1 Capital is calculated using OSFI's CAR guideline. The Liquidity Coverage Ratio is calculated using OSFI'S LAR guideline. The TLAC Ratios are calculated using OSFI's TLAC guideline. (2) Domestic Stability Buffer (DSB). OSFI's DSB can range from 0% to 4% of total RWA and is currently set at 3.5%. (3) Includes unsecured and secured long-term funding and subordinated debentures with an original term to maturity greater than 1 year. (4) Mortgage- backed securities (MBS) and Canada Mortgage Bonds (CMB). 53 | APPENDIX RBC#54Net Interest Income: Net interest margins and Interest rate sensitivity All-Bank: Impact of 100 bps change across the curve (1) Impact of 25 bps decrease (2) Net interest income ($MM) Increase Short-term rates (2) Decrease Revenue ($MM) Across the curve (2) Q4/23 Q1/24 Q4/23 Q1/24 Canada $296 $(331) Canadian Banking $(40) $(40) $(120) $(110) U.S. $239 $(291) Total $535 $(622) U.S. Wealth Management (incl. CNB) ~US$(55) ~US$(50) ~US$(60) -US$(65) ☐ Sensitivity for Canada includes segments other than Canadian Banking Interest rate risk measures are based on current on and off-balance sheet positions which can change over time in response to business activity and management actions Canadian Banking NIM on Average Earning Assets (3) CNB NIM on Average Earning Assets 0.04% (0.02)% Lower FHLB Balances (0.01)% 2.72% 2.71% 0.13% (0.14)% 0.24% (0.03)% 2.98% 2.78% Primarily deposit pricing Q4/23 NIM Rate Impacts Competitive Pricing Product Mix/Other Q1/24 NIM Q4/23 NIM Intercompany Transaction Asset Yields Funding Costs Q1/24 NIM (1) Represents the 12-month revenue exposure (before-tax) to a 100 bps immediate and sustained shift in interest rates. (2) Represents the 12-month revenue exposure (before-tax) to a 25 bps immediate and sustained shift in interest rates. (3) Refer to Glossary on slides 58-59 for explanation of composition of this measure. 54 APPENDIX RBC#55Strength of a high-quality liquid balance sheet $1,974 Billion (as at January 31, 2024) Assets Liabilities & Capital Unsecured Funding 35% Cash and Reverse Repos 45% Liquid Assets 128% coverage Secured Funding Loan Portfolio Represents 43% of Total Balance Sheet Excluding Allowances and Including Sold MBS as per IFRS Derivatives are on Balance Sheet as per IFRS Trading & Investment Securities Personal Deposits Wholesale Funding Residential Mortgages (1) 124% coverage 54% Business & Government Deposits Capital + Retail- Other Retail Loans Related Funding Wholesale Loans Other Assets (2) Securitization (1) and Covered Bonds and FHLB Capital Other Liabilities (2) (1) Securitized agency mortgage-backed securities (MBS) are on balance sheet as per IFRS. (2) Other assets include $105BN of derivative-related assets, largely offset by derivative-related liabilities in Other liabilities. Under IFRS derivative amounts without master netting agreements cannot be offset and the gross derivative assets and liabilities are reported on balance sheet. 55 APPENDIX RBC#56Well-diversified wholesale funding platform Well-diversified across products, currencies, investor segments and geographic regions ■ Raise majority of funding in international markets, preserving significant domestic capacity which can be more readily tapped in stressed market conditions Regular issuance in all major markets to promote investor engagement and secondary market liquidity Canada Canadian Shelf (C$25BN) Securitizations (Canadian mortgage bonds, NHA MBS(1) and credit cards) U.S. SEC Registered Shelf (US$75BN) ☐ Europe and Asia European Debt Issuance Program (US$75BN) Covered Bond Program (EUR 75BN) Japanese Issuance Programs (JPY 1 trillion) Well Diversified by Product (2) Sub Debt 5% CMB 6% Covered Bond 24% Golden Credit Cards 3% Unsecured 62% (1) National Housing Act Mortgage Backed Securities. (2) As at January 31, 2024. 56 | APPENDIX Diversified by Geography (2) Canada Europe and 24% Other 29% U.S. 47% Recent Deals USD $1.75 Billion 3 year unsecured at UST+77bps/SOFR+95bps ■ USD $1 Billion 5 year unsecured at UST+100bps / SOFR+126bps USD $1.25 Billion 10 year unsecured at UST+115bps / SOFR+151bps ■ CAD $2 Billion 3 year Covered Bond at GOC+76bps / SOFR+76bps USD $2 Billion 3 year Covered Bond at UST+53bps / SOFR+78bps RBC#57RBC Covered Bond Program Globally Active Active program in six different currencies: EUR, CAD, USD, CHF, AUD and GBP C$68.2BN currently outstanding Strong Issuer ☐ Largest Canadian bank by market capitalization Strong credit ratings Well capitalized and consistent historical profitability ■ Well diversified business mix Canadian Legislative Changes Canadian legislation protects claims of covered bond investors and overrides any other conflicting law related to bankruptcy and insolvency Extensive regulatory oversight and pool audit requirements Mandatory property value indexation U.S. Market ■ Active U.S. dollar covered bond issuer ☐ Several benchmark bonds outstanding Broad U.S. investor base Issued US$26.1BN across twelve deals since September 2012 57 APPENDIX - Trace eligible RBC#58Glossary Assets under administration (AUA): Assets administered by us, which are beneficially owned by clients. Services provided in respect of assets under administration are of an administrative nature, including safekeeping, collecting investment income, settling purchase and sale transactions, and record keeping. Assets under management (AUM): Assets managed by us, which are beneficially owned by clients. Services provided in respect of assets under management include the selection of investments and the provision of investment advice. We have assets under management that are also administered by us and included in assets under administration. Average balances (assets, loans and acceptances, deposits, risk capital etc.): " Calculated using methods intended to approximate the average of the daily balances for the period, as applicable. Average earning assets, net: " Average earning assets include interest-bearing deposits with other banks, securities, net of applicable allowance, assets purchased under reverse repurchase agreements and securities borrowed, loans, net of allowance, cash collateral and margin deposits. Insurance assets, and all other assets not specified are excluded. The averages are based on the daily balances for the period. Book value per share (BVPS): Calculated as common equity divided by the number of common shares outstanding at the end of the period. Common equity tier 1 (CET1) ratio: ■ A risk-based capital measure calculated as CET1 capital divided by risk-weighted assets. CET1 capital is a regulatory Basel III capital measure comprised mainly of common shareholders' equity less regulatory deductions and adjustments for goodwill and intangibles, defined benefit pension fund assets, shortfall in allowances and other specified items. Dividend payout ratio: Common dividends as a percentage of net income available to common shareholders. Efficiency ratio: " Non-interest expense divided by total revenue. Leverage ratio: " A Basel III regulatory measure, the ratio divides Tier 1 capital by the sum of total assets plus specified off-balance sheet items. Tier 1 capital comprises predominantly of CET1 capital, with additional Tier 1 items such as preferred shares, limited recourse capital notes and non-controlling interests in subsidiaries Tier 1 instruments. The leverage ratio is a non-risk based measure. Liquidity coverage ratio (LCR): " The Liquidity Coverage Ratio is a Basel III metric designed to ensure banks hold a sufficient reserve of high-quality liquidity assets to allow them to service a period of significant liquidity stress lasting 30 calendar days. 58 | APPENDIX RBC#59Glossary Net interest margin (NIM): Calculated as net interest income divided by average earning assets, net. Net yield: Net yield is calculated as total repo revenue as a percentage of average reverse repo balances. Reported diluted earnings per share (EPS): " Calculated as net income available to common shareholders divided by the average number of shares outstanding adjusted for the dilutive effects of stock options and other convertible securities. Return on common equity (ROE): Net income available to common shareholders, expressed as a percentage of average common equity. Risk-weighted assets (RWA): Assets adjusted by a regulatory risk-weight factor to reflect the riskiness of on and off balance sheet exposures. Certain assets are not risk-weighted, but deducted from capital. The calculation is defined by guidelines issued by OSFI. Total loss absorbing capacity (TLAC); TLAC ratio: The aggregate of Tier 1 capital, Tier 2 capital, and external TLAC instruments, allow conversion in whole or in part into common shares under the Canada Deposit Insurance Corporation Act and meet all of the eligibility criteria under the guideline. The risk-based TLAC ratio is defined as TLAC divided by total risk- weighted assets. Total shareholder return (TSR): TSR is a concept used to compare the performance of our common shares over a period of time, reflecting share price appreciation and dividends paid to common shareholders. 59 | APPENDIX RBC#60Empty#61Note to users We use a variety of financial measures to evaluate our performance. In addition to generally accepted accounting principles (GAAP) prescribed measures, we use certain key performance and non-GAAP measures we believe provide useful information to investors regarding our financial condition and result of operations: Measures which exclude the amount of amortization of intangibles (excluding amortization of software), any goodwill impairment, and other significant items that may impact a given period enhances comparability as transaction specific intangible assets and/or goodwill can differ widely between organizations, and impairments and other significant items can give rise to volatility in a particular period. Measures which exclude the impact of amortization and write down of other intangibles (excluding software) and goodwill enhance comparability as these excluded items can lead to volatility that could obscure trends in underlying business performance and reduce comparability with prior periods. Pre-provision, pre-tax earnings is used to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of the credit cycle. Readers are cautioned that key performance measures, such as ROE and non-GAAP measures, including adjusted basis measures, pre-provision, pre-tax earnings, cash earnings and tangible book value per share, do not have any standardized meanings prescribed by GAAP, and therefore are unlikely to be comparable to similar measures disclosed by other financial institutions. Additional information about our ROE and non-GAAP measures can be found under the “Key performance and non-GAAP measures" sections of our 2023 Annual Report dated November 29, 2023 and Q1 2024 Report to Shareholders dated February 28, 2024, which sections are incorporated by reference herein and available on the Canadian Securities Administrators' website at sedar.com, as well as in our Q1 2024 Supplementary Financial Information. Definitions can be found under the "Glossary" sections in our Q1 2024 Supplementary Financial Information and our 2023 Annual Report. Investor Relations Contacts Asim Imran, Vice President, Head of Investor Relations Marco Giurleo, Senior Director, Investor Relations www.rbc.com/investorrelations Ⓡ/TM Trademark(s) of Royal Bank of Canada. + All other trademarks are the property of their respective owner(s) 61 (416) 955-7804 (437) 239-5374 RBC