#1Royal Bank of Canada Investor Presentation Q1/2020 All amounts are in Canadian dollars unless otherwise indicated and are based on financial statements prepared in compliance with International Accounting Standards 34 Interim Financial Reporting, unless otherwise noted. Our Q1 2020 Report to Shareholders and Supplementary Financial Information are available on our website at: http://www.rbc.com/investorrelations. RBC#2Caution regarding forward-looking statements 1 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 presentation, in other filings with Canadian regulators or the SEC, in reports to shareholders, and in other communications. Forward-looking statements in this presentation include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals. The forward-looking information contained in this presentation is 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 and strategic goals, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "foresee”, “forecast”, “anticipate", "intend", "estimate", "goal", “plan” and “project” and similar expressions of future or conditional verbs such as "will", "may", "should", "could" or "would". By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, 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 and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these 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: credit, market, liquidity and funding, insurance, operational, regulatory compliance, strategic, reputation, legal and regulatory environment, competitive and systemic risks and other risks discussed in the risk sections of our 2019 Annual Report and the Risk management section of our Q1 2020 Report to Shareholders; including information technology and cyber risk, privacy data and third party related risks, geopolitical uncertainty, Canadian housing and household indebtedness, regulatory changes, digital disruption and innovation, climate change, the business and economic conditions in the geographic regions in which we operate, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency and environmental and social risk. 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. Material economic assumptions underlying the forward looking-statements contained in this presentation are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2019 Annual Report, as updated by the Economic, market and regulatory review and outlook section of our Q1 2020 Report to Shareholders. 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 2019 Annual Report and the Risk management section of our Q1 2020 Report to Shareholders. Information contained in or otherwise accessible through the websites mentioned does not form part of this presentation. All references in this presentation to websites are inactive textual references and are for your information only. RBC#3About RBC RBC#4The RBC story Diversified business model with leading client franchises Market leader with a focused growth strategy Financial strength underpinned by prudent risk and cost management ■ Well-diversified across businesses, geographies and client segments ■ Able to capitalize on opportunities created by changing market dynamics and economic conditions ■ Wide breadth of products and capabilities to meet our clients' financial needs and build deep, long-term relationships ■ Market leader in Canada and one of the largest financial institutions globally(1) ■ Clear strategy for continued long-term growth in Canada, the U.S. and select global markets ▪ Track record of earnings and dividend growth while maintaining a disciplined approach to risk and cost management ■ Credit ratings amongst the highest globally ☐ Strong capital position and a high-quality liquid balance sheet Long history of innovation and proven ability to adapt to industry trends Innovation is in our DNA Leading corporate citizen ☐ ■ Investments in technology allow us to drive efficiencies and deliver an exceptional client experience ■ Focused on simplifying, digitizing and personalizing our products to make it easier for clients and employees to do business, and to lower costs ■ Our approach to sustainability is central to our business and to our stated purpose, as demonstrated by our commitment to provide $100 billion in sustainable finance by 2025 ■ ■ Recognized for our sustainability practices and progress over the past three years, as shown in our ESG(2) Composite Index score (3) Diversity and inclusion at RBC are core to creating equitable opportunities for all employees to reach their full potential. Our leadership in the advancement of women has earned us recognition, including being named #3 globally in the Refinitiv Diversity & Inclusion Index, ranking over 7,000 listed companies Through RBC Future Launch, we are dedicating $500 million over the next 10 years to help young people gain meaningful employment through work experience, skills development and networking (1) Based on market capitalization as of January 31, 2020. (2) Environmental, Social and Governance. (3) Calculated as the weighted average of RBC's industry percentile ranking from top tier ESG rating agencies. 3 | ABOUT RBC RBC#5Market leader with a focused strategy for growth Largest in Canada (1) Top 15 Globally(1) A market leader across all key businesses One of the 15 largest global banks by market capitalization with operations in 36 countries 17 Million Clients Served by 85,000+ employees worldwide Purpose Help clients thrive and communities prosper Vision To be among the world's most trusted and successful financial institutions Strategic Goals In Canada: To be the undisputed leader in financial services In the United States: To be the preferred partner to corporate, institutional and high net worth clients and their businesses In Select Global Financial Centres: To be a leading financial services partner valued for our expertise (1) Based on market capitalization as at January 31, 2020. 4 ABOUT RBC RBC#6Diversified business and geographic model with client-leading franchises Earnings by Business Segment(1) Latest twelve months ended January 31, 2020 Revenue by Geography (1) Latest twelve months ended January 31, 2020 Investor & Treasury Services 3% Insurance 6% Wealth Management 20% Capital Markets 22% Personal & Commercial Banking 49% International 15% U.S. 23% Canada 62% (1) Amounts exclude Corporate Support. These are non-GAAP measures. For more information, refer to Results by business segment section of our 2019 Annual Report. 5 | ABOUT RBC RBC#7Strong financial profile Consistent earnings growth and leading ROE while maintaining a strong capital position with a disciplined approach to risk Consistent Earnings Growth Strong Return on Equity (1) Net income ($ billions) 11.5 2017 12.9 12.4 2018 Strong Capital Position 3.5 3.2 17.6% 17.0% 16.8% 16.7% 17.6% 2019 Q1/19 Q1/20 2017 2018 2019 Strong Leverage and Liquidity Ratios Q1/19 Q1/20 Leverage Ratio 14.8% 15.0% 15.2% 14.9% 14.5% Liquidity Coverage Ratio 4.2% 129% 11.8% 11.9% 12.1% 12.0% 11.4% Credit Ratings Amongst the Highest Globally Moody's S&P DBRS Fitch Legacy senior long-term debt (2) Senior long-term debt(3) Aa2 AA- AA (high) AA A2 A AA AA Q1/19 Q2/19 ■Total Capital Q3/19 Q1/20 Outlook Stable Stable Stable Stable Q4/19 ■Common Equity Tier 1 (CET1) (1) Return on Equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-GAAP measures section of Q1 2020 Report to Shareholders. (2) Ratings (as at February 20, 2020) 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. (3) Ratings (as at February 20, 2020) for senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the Bail-in regime. 6 | ABOUT RBC RBC#8Prudent risk management A disciplined approach and diversification have driven stable credit trends Loan Book Diversified by Portfolio (1) Credit Cards 3% Small Business 1% PCL Ratio on Impaired Loans (2) (bps) 45 40 40 35 30 Average historical actual loss rate (3) 33 bps 29 28 27 25 Wholesale 34% 25 23 22 Residential Mortgages 48% 20 21 210 20 17 15 PCL ratio on impaired loans Personal Loans 14% 10 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Breakdown by Region of Total Loans and Acceptances (1) Other International U.S. 12% 4% Canada 84% Breakdown of Canadian Total Loans and Acceptances (1) Atlantic 5% Manitoba/ Sask. 6% Quebec 12% Ontario 48% Alberta 13% B.C. and Territories 16% (1) Loans and acceptances outstanding as at January 31, 2020. Does not include letters of credit or guarantees. (2) Effective November 1, 2017, we adopted IFRS 9, which introduced a three-stage expected credit loss impairment model that differs significantly from the incurred loss model under IAS 39. Stage 3 allowances are held against impaired loans and effectively replace the allowance for impaired loans under IAS 39. Provision for Credit Losses (PCL) ratio is PCL as a percentage of average net loans & acceptances (annualized). (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. The Average historical actual loss rate on a continuing operations basis is 0.33%. 7 | ABOUT RBC RBC#9Track-record of delivering value to our shareholders Financial performance objectives measure our performance against our goal of maximizing total shareholder returns Medium-Term Financial Performance Objectives (3-5 years) Diluted EPS Growth (1) Return on Equity(2) Capital Ratios (CET1) Dividend Payout Ratio Achieved Solid TSR (3) Performance Strong Dividend Growth (4) 7%+ 16%+ Strong 40% - 50% RBC Peer Average 3 Year 8% 6% CAGR 17% $4.07 $3.77 $3.48 $3.24 $3.08 $2.84 5 Year 12% 10% $2.53 $2.28 $2.00 $2.00 $2.08 10 Year 11% 11% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1) Compound annual growth rate. (2) Average. (3) Annualized TSR is calculated based on the TSX common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at January 31, 2020. RBC is compared to our global peer group. The peer group average excludes RBC for the list of peers, please refer to our 2019 Annual Report. (4) Dividends declared per common share. Our current quarterly dividend is $1.08. 8 | ABOUT RBC RBC#10Business Segments RBC#11Personal & Commercial Banking The financial services leader in Canada - #1 or #2 market share in all key product categories Most branches and one of the largest mobile sales networks across Canada - Superior cross-sell ability ■ In 16 countries and territories in the Caribbean - 2nd largest bank by assets (1) in English Caribbean ■ Innovative direct banking to U.S. cross-border clients " Ongoing investments to digitize our banking channels Q1/2020 Highlights Clients (MM) Branches ATMs 14.0+ 1,258 4,546 Active Digital (Online and Mobile) Users (2) (MM) 7.4 Employees (FTE) 35,000+ Net Loans & Acceptances (1) ($BN) 466.8 Deposits (1) ($BN) 413.7 290.6 AUA(1) ($BN) Net Income ($ millions) 6,402 5,755 6,028 234 168 184 6,168 5,860 5,571 2017 2019 2018 ■Canadian Banking 1,571 27 1,544 1,686 62 1,624 Q1/19 ■Caribbean & U.S. Banking Q1/20 Revenue by Business Line (3) Canadian Banking 95% Personal Banking 72% Business Banking 23% (1) Based on average balances. (2) This figure represents the 90-day active customers in Canadian Banking only. (3) For the quarter ended January 31, 2020. 10 BUSINESS SEGMENTS Caribbean & U.S. Banking 5% RBC#12Personal & Commercial Banking - Canadian Banking Strategic Priorities - Building A Digitally-Enabled Relationship Bank TM Transform How We Serve Our Clients Accelerate Client Growth Rapidly Deliver Digital Solutions Innovate to Become a More Agile and Efficient Bank ■ Make it easier for clients to access products and services digitally ■ Create capacity and capability to focus on advice, complex servicing and sales, and problem resolution ■ Focus on innovating our branch network ■ Grow commercial market share through industry-specific credit strategies Target high-growth retirement segment and business succession planning ■ Continue to increase client acquisitions including key segments: high net worth, newcomers and students and young adults while deepening existing client relationships ■ 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 ■ Invest in research and development to understand and meet rapidly changing client expectations ■ Accelerate investments to simplify, digitize and automate for clients and employees Change or eliminate products and processes that do not add economic or client value ■ Invest in employees to enhance digital, agile and change capabilities Recent Awards RETAIL BANKER INTERNATIONAL North American Retail Bank of the year for the 2nd consecutive year (1) and Best Loyalty Rewards Strategy (1) THE INTERNATIONAL BUSINESS AWARDS Silver Stevie Award for Innovation of the Year for RBC Rewards (2) ANCIAL SERVICE Ipsos 2019 Customer Excelence CSI EXCELLENCE For the second year in a row, RBC is an award winner for all 11 Ipsos Financial Service Excellence Awards among the Big 5 Banks, including Customer Service Excellence (3) CELENT MODEL BANK Celent Model Bank 2019 Award for API Strategy and in 2018, RBC won the Personal Financial Experience and Employee Productivity categories (4) (1) Retail Banker International, 2019. (2) The International Business Awards, 2019. (3) Ipsos, 2019. (4) Celent Model Bank, 2018/2019. 11 BUSINESS SEGMENTS RBC#13Personal & Commercial Banking - Canadian Banking Solid Volume Growth ($ millions) (1) Superior Cross-Sell Ability Percent of clients with transaction accounts, investments and borrowing products (2) 396 375 364 343 326 393 417 440 459 431 2017 2018 2019 Q1/19 ■Deposits Q1/20 ■Loans and Acceptances #1 or #2 Market Share in All Key Categories (3) 18% RBC 12% Peer Average Continue to Improve Our Efficiency Ratio (9) Product Market share Rank Personal Lending (4) 23.9% 1 Peer Personal Core Deposits + GICs 19.8% 2 47.7% 46.9% Average (10) 46.4% Credit Cards (5) 28.1% 1 Long-Term Mutual Funds (6) 32.1% 1 43.2% 42.5% Business Loans ($0-$25MM)(7) 41.8% 26.9% 1 41.3% RBC Business Deposits (8) 25.1% 1 2017 2018 2019 Q1/2020 (1) Based on average balances. (2) Canadian Financial Monitor by Ipsos - 18,000 Canadian individuals - data based on Financial Group results for the 12-month period ending October 2019; Cross-sell calculation methodology has been updated from previous quarters since Q2/19.TFSA is considered an Investment. Peers include BMO, BNS, CIBC and TD. (3) Market share is calculated using most current data available from OSFI (M4), Investment Funds Institute of Canada (IFIC) and Canadian Bankers Association (CBA), and is at October 2019 and August 2019 except where noted. Market share is of total Chartered Banks except where noted. (4) Personal Lending market share of 6 banks (RBC, BMO, BNS, CIBC, TD and NA) and includes residential mortgages (excl. acquired portfolios) and personal loans as at August 2019, excludes Credit Cards. (5) Credit cards market share is based on 6 banks (RBC, BMO, BNS, CIBC, TD and NA) as at August 2019. (6) Long-term mutual fund market share is compared to 7 banks (RBC, BMO, BNS, CIBC, TD, NA, and HSBC) and is at October 2019. (7) Business Loans market share is of 6 Chartered Banks (RBC, BMO, BNS, CIBC, TD and NA) on a quarterly basis and is as of June 2019. (8) Business Deposits market share excludes Fixed Term, Government and Deposit Taking Institution balances. (9) Effective Q4/2017, service fees and other costs incurred in association with certain commissions and fees earned are presented on a gross basis in non-interest expense. Comparative amounts have been reclassified to conform with this presentation. (10) Peers include BMO, BNS, CIBC and TD; 2016 through 2019 reflects annual numbers. 12 BUSINESS SEGMENTS RBC#14Strong underlying credit quality in Canadian Banking PCL on Impaired Loans Across our Canadian Banking Business Lines 272 Q1/2020 Average balance ($ billions) 80 5 82 20 Residential Mortgages Personal Lending Credit Cards Small Business Commercial (2) Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 PCL on Impaired Loans ($MM) PCL on Impaired Loans (bps) (1) $10 $9 $10 $121 $133 $129 $116 $139 $137 $5 $11 $12 $41 $57 $12 2 1 1 59 65 64 242 283 274 42 80 88 22 28 6 90+ Days Past Due (bps) 18 18 18 31 31 33 67 69 81 94 105 111 60 50 5. 64 64 (1) Calculated using average net of allowance on impaired loans. (2) Commercial excludes Small Business. 13 | BUSINESS SEGMENTS RBC#15Canadian residential portfolio has strong underlying credit quality Canadian Residential Mortgage Portfolio (1) As at January 31, 2020 ($ billions) LTV (2) 51% $132.7 49% 62% 56% 57% 57% 73% ■Insured ■ Uninsured $98.8 (34%) $194.4 (66%) Q1/2020 Highlights Average remaining amortization on mortgages of 18 years Strong underlying quality of uninsured residential mortgage portfolio(2) - 49% of uninsured portfolio have a FICO score >800 Greater Toronto Area and Greater Vancouver Area average FICO scores are above the Canadian average Condo exposure is 10.6% of residential lending portfolio $53.3 $38.9 $35.0 73% 47% 65% $18.2 $15.0 27% 51% 53% 49% 27% 35% 49% 51% Ontario B.C. & Alberta Quebec Manitoba & Atlantic Territories Sask. Canadian Banking Residential Lending Portfolio (2) As at January 31, 2020 Mortgage Total ($306BN) $268.0BN $37.8BN Uninsured ($232BN) $194.4BN $37.8BN HELOC LTV (2) GVA GTA Average FICO Score (2) 53% 52% 47% 47% 49% 49% 791 797 90+ Days Past Due (2)(3) 20 bps 16 bps GVA 8 bps 8 bps GTA 9 bps 8 bps (1) Canadian residential mortgage portfolio of $293BN comprised of $268BN of residential mortgages, $7BN of mortgages with commercial clients ($4BN insured) and $18BN of residential mortgages in Capital Markets held for securitization purposes. (2) Based on $268BN in residential mortgages and HELOC in Canadian Banking ($38BN). Based on spot balances. Totals may not add due to rounding. (3) The 90+ day past due rate includes all accounts that are either 90 days or more past due or are in impaired status. RBC 14#16Wealth Management Strategic Priorities ■ Global Asset Management: Deliver investment performance and extend leadership position in Canada, while continuing to build and grow in the U.S. and other key global markets ■ Canadian Wealth Management: Continue to deepen client relationships and deliver a differentiated client experience that is increasingly digitally-enabled and supported by data-driven insights ■ U.S. Wealth Management: Leverage the combined strengths of City National Bank, RBC Wealth Management and Capital Markets to accelerate growth in the U.S. ■ International Wealth Management: In the British Isles, accelerate organic market share growth to be a top-tier wealth manager, providing solutions and insight to successful wealth creators. In Asia, continue to drive growth in Asia's global families by leveraging the global strengths and capabilities of RBC Net Income ($ millions) (1) Recent Awards Outstanding Global Private Bank - North America (Private Banker International Global Wealth Awards, 2019) Best Private Bank in Canada (PWM/The Banker Global Private Banking Awards, 2019) Best Private Bank for Digitally Empowering Relationship Managers, North America (PWM Wealth Tech Awards, 2019) Best Private Bank for Customer-Facing Digital Capabilities (Family Wealth Report Awards, 2019) Investment Team of the Year - U.K. (STEP Private Client Awards, 2019) Cash Earnings ($ millions) (2) 1,838 2,265 2,550 2,017 2,458 2,735 .. III.. 597 623 646 665 2017 2018 2019 Q1/19 Q1/20 2017 2018 2019 Q1/19 Q1/20 (1) 2019 net income includes the gain on sale of the private debt business of Blue Bay ($134 million after-tax). (2) Cash earnings exclude the after-tax effect of amortization of intangibles. This is a non-GAAP measure. For more information see slide 46. 15 BUSINESS SEGMENTS RBC#17Wealth Management - Global Asset Management Building a high-performing global asset management business Driving top-tier profitability in our largest Wealth Management business $486.4BN in client assets - Investor asset mix of 53% Retail / 47% Institutional client assets Extending our lead in Canada Largest retail fund company in Canada, ranked #1 in market share capturing 32.2% amongst banks and 15.8% all-in (1) Strategic alliance between RBC Global Asset Management and BlackRock Canada connects clients to the largest and broadest ETF lineup in Canada 3rd largest institutional pension asset manager in Canada(2) Delivering strong investment capabilities to support growth - Top performing investment firm with ~82% of AUM outperforming the benchmark on a 3-year basis (3) Continued growth of investment capabilities and innovative solutions for both institutional clients and retail investors Canadian Retail AUM ($ billions) Diversified Asset Mix 15.1% 15.1% 15.1% 15.4% 15.5% 15.6% 15.8% 15.8% Q1/2020 AUM by Client Segment ($ billions) (4) 250.3 258.1 244.2 237.1 223.9 228.8 230.6 218.8 16% Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Canadian Mutual Fund Balance (1) All-In Market Share(1) ■Canadian Retail 10% ■Canadian Institutional $486.4BN 53% ■U.S. Institutional 21% ■International Institutional (1) Investment Funds Institute of Canada (IFIC) as at December 2019 and RBC reporting. Comprised of long-term funds and money market funds. (2) Benefits Canada as at May 2019. (3) As at December 2019, gross of fees. (4) RBC GAM, based on period-end spot balances. 16 | BUSINESS SEGMENTS RBC#18Wealth Management Canadian Wealth Management Fee-based Assets per Advisor (1) ($ millions) 1.7x the Peer Average ■ Maintain profitable growth with strong pre-tax margin #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 $1.57MM per year, 31% above Canadian industry average (1) 113 ■ Strong asset growth complimented by favourable market conditions Leveraging enterprise linkages to extend market share gains 67 RBC Cdn Peer Average U.S. Wealth Management (including City National) RBC Wealth Management U.S. ■ 7th largest full-service wealth advisory firm in the U.S. as measured by number of financial advisors and 6th largest by assets under administration (2) 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 and clearing relationships while improving advisory productivity and operational efficiency City National ■ A premier U.S. private and commercial bank that creates a platform for long-term growth in the U.S. ☐ Operates with a high-touch, branch-light client service model in selected high-growth markets, including: Los Angeles, the San Francisco Bay area, Orange County, San Diego, New York, Boston, and Washington DC Expanding the CNB business model to selected high-growth markets International Wealth Management Growing market share in target markets Enhancing "One RBC" cross-platform connectivity Focusing on client service excellence Increasing business effectiveness and talent capabilities (1) Strategic Insight (formerly Investor Economics), October 2019. (2) Source: U.S. wealth advisory firms quarterly earnings releases (10-Q). 17 BUSINESS SEGMENTS RBC#19Insurance Strategic Priorities ☐ Improve Distribution Effectiveness and Efficiency: By enhancing our proprietary distribution channels, and focusing on the delivery of technology and operational solutions Deepen Client Relationships: By continuing to be an innovative, client-focused provider of a full suite of insurance solutions for mass underserved, mass affluent and high net worth clients Simplify. Agile. Innovate. By accelerating our digital initiatives' time-to-market, improving quality and cost effectiveness ■ Pursue Select International Opportunities: By continuing to grow our core reinsurance business within our risk tolerance Highlights Among the largest Canadian bank-owned insurance organizations, serving more than five million clients globally #1 in individual disability sales with 39% (1) market share #2 in Segregated fund net sales (2) RBC Guaranteed Investment Funds continue to be one of the fastest growing segregated fund providers in Canada with a YoY growth of 27.0% (2) #5 in sales in the Canadian group annuity market in Jul-Sep 2019(3) Net Income ($ millions) Premiums and Deposits 726 775 806 III 4,546 4,647 4,604 2,050 2,063 2,189 1,542 1,314 2,496 2,584 2,415 625 563 166 181 751 917 2017 2018 2019 Q1/19 Q1/20 2017 2018 2019 Q1/19 Q1/20 ■ Canadian ■ International (1) LIMRA Canadian Insurance Survey, 3rd Quarter, 2019. (2) Strategic Insights, Insurance Advisory Service Report, January 2020. (3) LIMRA Canadian Pension Market Survey, Q3 2019. 18 BUSINESS SEGMENTS RBC#20Investor & Treasury Services Specialist provider of asset services, a leader in Canadian cash management and transaction banking services, and a provider of treasury services to institutional clients worldwide - Ranked #1 Transfer Agent of the Year(1) Ranked #1 Asset Servicer in North America(2) Named Best Trade Finance Bank in Canada for the eighth consecutive year(3) Short-term funding and liquidity management for RBC Strategic Priorities Grow income and market share among Canadian asset managers, investment counsellors, pension funds, insurance companies, and transaction banking clients Compete in segments and markets which offer the highest risk-adjusted returns Provide our clients seamless digital journeys and secure, robust and continuous service Design and re-engineer our services to improve client satisfaction, efficiency and risk controls Use technology and data insights to solve our clients' current and future challenges Net Income ($ millions) 741 741 475 Efficiency Ratio 62% 60% 74% 67% 161 143 2017 2018 2019 Q1/19 Q1/20 2017 2018 2019 Q1/20 (1) Global Investor ISF, Investment Excellence Awards, 2019. (2) R&M Investor Services Survey, 2019. (3) Global Finance, 2020. 19 BUSINESS SEGMENTS RBC#21Capital Markets ■ A premier global investment bank with core operations across Canada, the U.S., the U.K./Europe, and APAC - 9th 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 ~80% of the global investment banking fee pool(1) ■ RBC Capital Markets is recognized by the most significant corporations, institutional investors, asset managers, private equity firms, and governments around the globe as an innovative, trusted partner with an in-depth expertise in capital markets, banking, and finance Revenue by Business ($ millions) (2) Revenue by Geography (3) Net Income ($ millions) 2,777 2,666 2,525 312 28% 15% 295 378 399 238 233 312 5% 323 338 374 542 533 535 520 533 599 436 427 882 653 407 401 52% 760 628 490 545 488 ■U.S. ■Canada U.K. & Europe Australia, Asia & Other Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 2017 2018 2019 Q1/19 Q1/20 ■ FICC ■Investment Banking Lending & Other ■Global Equities ■Repo & Secured Financing (1) Dealogic-Fiscal 2020 Q1. (2) Global Markets segment revenue has been restated to align select portfolios previously disclosed in Repo and Secured Financing to FICC and Global Equities. Revenue by business only includes Corporate & Investment Banking and Global Markets, excluding CM Other. (3) For three months ended January 31, 2020. 20 BUSINESS SEGMENTS RBC#22Capital Markets Strategic Priorities To be among the world's most successful investment banks by serving clients in the most attractive markets Deepen client relationships as an innovative, trusted partner Drive collaboration, simplify our business and optimize capital use to earn high risk- adjusted returns on assets and equity Recent Awards ■ Maintain our leadership position in Canada ■ A leader in the U.S., our largest market with the best opportunity for growth ■ A leader in the U.K., Europe and Asia-Pacific in targeted areas aligned with our global expertise Support our clients by partnering with them to understand their strategic objectives and delivering solutions to achieve their goals ■ Continue to grow and strengthen our senior coverage teams ■ Focus on long-term client relationships aligned with our global capabilities Continue to drive technology innovations through our data strategy, electronification and artificial intelligence initiatives Collaborate to deliver clients our full suite of global products and services ■ Continue to focus on deepening client relationships by driving cross business collaboration with U.S. Wealth Management (incl. City National) ■ Continue disciplined approach to managing costs and risk, maintain a balance between investment banking and trading revenue, and align our resources around top client opportunities Recent Big Deals BROADCOM® KL EUROMONEY AWARDS FOR EXCELLENCE 2019 Best Investment Bank in Canada - 12th consecutive year(1) GREENWICH ASSOCIATES Share and Quality Leader in Canadian Equities and Fixed Income (2) Institutional Investor (1) Euromoney, 2019. (2) Greenwich Associates, 2019. (3) Institutional Investor, 2019. 21 BUSINESS SEGMENTS Top 10 in the All- American Research Survey (3) Symantec RBC Capital Markets acts as Lead M&A Advisor & Joint Lead Arranger to Broadcom on its US$10.7 billion acquisition of Symantec's Enterprise Security assets DETOUR GOLD RBC Capital Markets acts as Exclusive Financial Advisor to Kirkland Lake Gold on its C$4.9 billion acquisition of Detour Gold RBC#23Capital Markets Capital Markets Total Assets, Average ($ billions) 11% YoY Growth Geographic Diversification Across Loan Book Average Loans Outstanding by Region ($ billions) (1) 140 56 25 78 79 677 696 716 87 84 86 83 83 644 649 13 14 14 14 16 44 45 45 42 41 27 28 27 27 26 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 ■ Canada ■U.S. Other International Provision for Credit Risk-Weighted Assets, Spot ($ billions) (1%) YoY Growth Losses ($ millions) Earnings Volatility vs. Canadian and U.S. Peers (Standard Deviation / Avg Earnings Trailing 12 Quarters) (2) 208 208 205 204 202 8.7% 16.7% 16.1% Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 RBC CDA Peers US 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. This is a non-GAAP measure. For more information see slide 46. (2) Canadian peers include BMO, TD, CIBC, BNS and NBC, US peers include JPM, GS, BAC and MS. 22 BUSINESS SEGMENTS RBC#24Technology @ RBC RBC#25Investors value RBC for its industry-leading franchises and innovative approach Creating More Value for Clients Data ■ 7.4 MM active digital users ■ 1.6MM clients connected with MyAdvisor & Artificial ■ 4.6 MM active mobile clients on the RBC Mobile app Intelligence Insights Driving Efficiency & Operational Excellence (1) Based on HIRED's 2019 Global Brand report. 24 TECHNOLOGY @ RBC ■ 5 Borealis Al labs connected with top universities across Canada, with 85 PhDs ■ 944MM + insights read by clients on NOMI in the RBC Mobile app ■ 600MM client transactions daily ■ $75BN in payments Innovation Ecosystem ■ 6 innovation labs globally transactions processed every day & Partnerships ■ 17 RBC Ventures in market Top 3 for places to Work in Tech in Toronto (1) RBC#26Our delivery platform is enabling all businesses to exceed client expectations NOMI P&CB ampli Wealth Management I&TS 88 AVA U.S. Client Mobile myGPS RBC One Insurance RBC Ventures Good Evening RBC Mobile App MyAdvisor A DEN eApplication for Term Life Group Insurance Platform RBC Insight Edge 25 | TECHNOLOGY @ RBC InvestEase Capital Markets RBC#27We have developed a rich innovative ecosystem that attracts top talent 888880 888880 6 Innovation Labs around the world Fostering Engineering & Innovation Culture 26 TECHNOLOGY @ RBC Unique Partnerships (FinTech, Big Tech) RBC 18== Digital RBC (db) Research Institutions Ryerson University UNIVERSITY OF WATERLO0 NEXT AI Ben-Gurion University of the Negev ||| oneeleven UNIVERSITY OF TORONTO I Western RBC Ventures, Incubators and Accelerators T ↑ VECTOR INSTITUTE O'Ramp C100 COPENHAGEN FINTECH SFU CREATIVE of DESTRUCTION RBC#28Transforming the distribution network in Canadian Banking Active Digital Users (1) Digital Adoption Rate (2) Active Mobile Users (1) 6,844 Q1/19 7% 150 bps 7,354 7,246 52.3% 52.5% 51.0% Q4/19 Q1/20 Mobile Sessions (3) 62,908 Q1/19 Q4/19 Q1/20 Self-Serve Transactions (4) 22% 170 bps 88.8% 76,633 88.2% 72,663 87.1% Q1/19 Q4/19 Q1/20 Q1/19 Q4/19 Q1/20 15% 4,619 4,491 4,014 Q1/19 Q4/19 Q1/20 Branches 0% 1,205 1,206 1,201 32,924 32,827 32,783 Q1/19 Q4/19 Total FTE Q1/20 (1) These figures (in 000s) represent the 90-Day Active customers in Canadian Banking only and are spot values. (2) Digital Adoption rate calculated using 90-day active users. (3) These figures (in 000s) represent the total number of application logins using a mobile device. (4) Financial transactions only. 27 TECHNOLOGY @ RBC RBC#29RBC Ventures RBC#30We are making great progress going 'beyond banking' 29 Ownr Sorted BUSINESS Boomerang Dr. Bill RBC Ventures WELLNESS Get Digs Propertii Garbage Day Unison RBC Smart Reno OJO HOME Renoshield Movesnap Arrive Butter Ampli Dipp Handshake Rocketman Wellspent Willgo LIFESTYLE Drive Prepped MOBILITY MyDoh RBC#31Economic Backdrop RBC#32Canada Canada's 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) (2019) Canadian GDP by Industry (2) (November 2019) 26.4 40.1 Germany U.K. 90.4 86.4 80.9 76.1 U.S. G7 Average France Italy Japan 121.3 153.8 5% 8% 8% 14% 20% 4% 10% 12% (1) Net debt refers to General Government net debt. International Monetary Fund October 2019 Fiscal Monitor. (2) Statistics Canada, RBC Economics Research. 31 ECONOMIC BACKDROP 10% ■Finance, Insurance & Real Estate ■Manufacturing ■ Wholesale and Retail Trade ■Scientific, Technical & Educational Services ■Public Administration and Utilities Mining, Oil & Gas Extractions ■Construction 10% ■Health Care ■Transportation, Warehousing Other RBC#33N N 2000 2001 2001 2002 2003 2004 2005 2006 2006 Slower global growth and capacity constraints will keep a lid on economic growth • ■ The U.S and China recently signed the 'phase 1' trade deal that prevents the introduction of further tariffs and includes a partial repeal of existing tariffs. The agreement leaves most existing tariffs still in place, but lessens downside risks to the external growth backdrop for Canada. ■ Recent domestic data has been soft in Canada. By our counts, Q4/2019 GDP growth is on track to decelerate to 0.3% from an already below-trend 1.3% increase in Q3. Transitory factors, a week-long rail transportation strike in November, for example, explain some but not all of the slowing. The pace of job growth has slowed, on balance, but labour markets still look solid. The unemployment rate was right around multi-decade lows at 5.5% in January and wage growth remained solid. This alongside lower market interest rates have eased the headwind on household spending growth from higher debt-servicing costs. Uncertainty from slower global growth, geopolitical risk and transportation capacity issues in the oil & gas sector will continue to restrain business investment. For Q1/2020, we expect the reversal of several transitory factors to be dampened by some negative spillovers to the Canadian economy from the COVID-19 outbreak. Looking ahead, we expect GDP increases of 1.4% in 2020 and 1.8% in 2021. - The blockades disrupting rail transportation in February represent some downside risk to our current quarter Canadian GDP projections. At this point, we expect the impact in Q1 will be relatively modest with a rebound in Q2 assuming that the disruptions end in the next week or two. Canadian inflation trends have been firmly anchored around the Bank of Canada's 2% target. Headline inflation and the Bank of Canada's preferred measures of underlying inflation trends both averaged 2.1% in Q4/2019. Canadian Inflation (YoY) (1) 5 4 3 2 1 0 -1 Ари Canadian Labour Markets (YoY) (2) 13 12 11 10 32208 165 9 7 543210 -1 -2 -3 Headline 2007 2008 2009 2010 2011 2011 2012 BoC Target 2013 2014 2015 2016 2016 2017 2018 2019 (1) Statistics Canada, RBC Economics Research. (2) Statistics Canada, Bureau of Labor Statistics, RBC Economics Research. 32 ECONOMIC BACKDROP 1991 Employment growth (YoY%- RHS) 1992 1993 1994 1996 1997 1998 1999 2001 2002 2003 2004 2006 2007 2008 2009 2011 2012 2013 2014 2016 2017 2018 2019 Unemployment rate (% - LHS) RBC#342020 Economic Outlook Projected Economic Indicators for 2020 (1) GDP Growth Inflation Unemployment Rate Interest Rate (3 mth T-bills) Current Account Balance/GDP (2) Budget Surplus/GDP (3) Canada 1.4% 1.6% 5.8% 1.40% (1.8%) (0.7%) U.S. 1.9% 2.0% 3.7% 1.65% (1.8%) (5.5%) Euro Area 0.9% 1.1% 7.6% ΝΑ 2.7% (0.9%) Canada U.S. Euro Area ☐ The Canadian economy is forecast to grow by 1.4% in 2020, decelerating from an expected 1.6% in 2019 and 2.0% in 2018. An easing in U.S.-China trade tensions has reduced downside external demand risks. Recent domestic economic data flow has been soft, however, and the recent COVID-19 outbreak threatens restrain growth in China and disrupt global supply chains. Labour markets still look solid, but household spending growth is still being restrained by already elevated debt levels. Soft domestic economic data in Canada, coupled with still-significant remaining go-forward external demand risks from global growth deceleration, are expected to push the Bank of Canada to lower interest rates, following earlier cuts from the U.S. Fed and other global central banks. We assume one 25 basis point cut in the overnight rate in Q2/2020. The U.S. economy is forecast to grow by 1.9% in 2020, broadly in line with its long-run structural trend rate, following a 2.3% gain in 2019. The risk of further softening in the U.S. industrial sector lessened with the signing of the phase 1 trade agreement with China in January 2020. The recent outbreak of the COVID-19 has threatened to disrupt global supply chains and could temporarily slow growth. However, labour markets remain solid and consumer spending/confidence remains elevated. In 2019, the U.S. Fed carried out a series of "insurance cuts" despite a still relatively solid economic backdrop. The moves to lower the target range were framed as being preemptive to hedge against potential future slowing amid benign inflation trends. We continue to expect the Fed to remain on the sidelines in 2020. Euro area GDP growth is expected to slow to a 0.9% pace in 2020 following a 1.2% increase in 2019. Some of the slowing reflects the impact of slower global growth on the industrial sector and political uncertainty, particularly with respect to establishing the post-Brexit trade agreement. Inflation remains low even in the midst of several monetary policy easing measures including asset purchases and lowering monetary policy rate. We are not expecting further adjustments in ECB monetary policy in 2020 despite the recent change in leadership at the central bank. (1) RBC Economics Research as of November 8, 2019 and reflect forecasts for calendar 2020. (2) RBC Economics Research, IMF WEO. (3) IMF Fiscal Monitor (October 2019), RBC Economics Research. 33 ECONOMIC BACKDROP RBC#35Canadian Housing Market RBC#36Structural backdrop to the Canadian and U.S. housing market Regulation - - 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 CMHC last increased mortgage loan insurance premiums in 2017 by ~15% for new mortgages with LTV over 90% 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 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 Consumer Mortgage interest not tax deductible Behaviour ■ Greater incentive to pay off mortgage Lender Behaviour ☐ Strong underwriting discipline; extensive documentation ☐ Lenders' Recourse Most mortgages are held on 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) ☐ 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. 35 CANADIAN HOUSING MARKET RBC#37Legislation and policies – promoting a healthy housing market April 2020 – Department of Finance ■ The benchmark rate used in the insured mortgage qualification stress test changing to the median contract rate on all insured mortgages, making the stress test more responsive to actual market rates. OSFI is considering a similar change for uninsured mortgages February 2018 - Government of British Columbia ■ The B.C. 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 in 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 36 | CANADIAN HOUSING MARKET RBC#38Legislation and policies - promoting a healthy 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 ■ Additional - minimum credit score requirements, new loan documentation standards, setting a maximum of 45% on borrowers total debt service ratio 37 | CANADIAN HOUSING MARKET RBC#39The 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) - 22% of Canada's population is foreign born (7.5 MM), highest proportion among the G8 nations (1) - - 56% of all new immigrants to Canada move to Toronto, Vancouver or Montreal(1) ■ RBC's exposure to condo development is limited – about 3% of our Canadian commercial loan book (2) - - Condo exposure is 10.6% of Canadian residential lending portfolio (2)(3) "Green Belt" Surrounding Greater Toronto Area Lake Simcoe Lake Ontario CANADA USA Vancouver Limited by Mountains, Sea, U.S. Border о cal Reserve 1A Mt Seymour Provincial Park North Vancouver District VANCOUVER Pacific Spirit Regional Park 99 91A Richmond (1) Statistics Canada, 2016 Census. (2) As at January 31, 2020. (3) Based on $268BN in residential mortgages and HELOC in Canadian Banking ($38BN). 38 | CANADIAN HOUSING MARKET 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 15 13 539 RBC#40Canadian housing market risks are localized and generally easing ■ Home resale activity is now recovering in most markets that corrected materially in the past 2-3 years. Resales were up 6.5% in Canada in 2019. A series of policy measures at the federal and provincial levels in B.C. and Ontario - including a new stress test for uninsured mortgages - along with earlier interest rate increases, caused home resales to decline back-to-back in Canada in 2017 and 2018 Demand-supply conditions have tightened nationally and in several local markets, including Toronto, where prices are now rising at an accelerating pace. Property values are generally on a modest upward trajectory in Canada, with the exception of Vancouver and oil- producing regions, where market conditions have been soft until very recently Solid population growth, household income gains and low unemployment rates limit the risk of any downward spiral ■ Poor housing affordability is being skewed at the national level by severe conditions in Vancouver and Toronto. Affordability is in line with historical norms in most other markets across Canada, though it has been deteriorating in Ottawa and Montreal ■ Canada's household debt service ratio has trended higher, but the drop in mortgage rates since early 2019 year will help stabilize it ■ Lenders maintaining 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 tightened up Sales-to-New Listings Ratio (1) Debt service ratio expected to eventually stabilize Household Debt Service Costs (2) (Mortgage & non-mortgage principal & interest payments as a % of household disposable income) (Residential unit sales to new residential listings) 1.00 16 0.90 0.80 14 Seller's market 0.70 12 0.60 0.50 10 Balanced market 0.40 8 0.30 Buyer's market 0.20 6 0.10 0.00 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 4 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 (1) Canadian Real Estate Association, RBC Economics. (2) Statistics Canada, RBC Economics. PDI: Personal Disposable Income. 39 | CANADIAN HOUSING MARKET RBC#41Canadians have significant equity ownership in their homes ■ Canadians carry a significant and stable amount of equity in their homes ■ The pace of residential mortgage accumulation accelerated slightly since mid-2019 after slowing to a 17-year low Mortgage delinquency rates remain very 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 80 1 75 70 65 60 55 50 55 50 Equity Ownership (1) (Owners' equity as a % of total value of residential real estate assets) -Canada -U.S. 45 40 40 35 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 Growth in residential mortgages is historically low Residential Mortgage Growth (2) (Year-over-year % change) The mortgage delinquency rate is at a 30-year low in Canada 6 Mortgage Delinquencies (3) (Mortgages 90+ days in arrears as a % of total mortgages) 20 18 16 14 12 10 8 6 4 2 5 4 3 2 1 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 0 -Canada -U.S. 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 (1) Statistics Canada, Federal Reserve Board, RBC Economics. (2) Bank of Canada, RBC Economics. (3) Canadian Bankers Association, Mortgage Bankers Association, RBC Economics. 40 | CANADIAN HOUSING MARKET RBC#42Appendix A - Liquidity & Funding RBC#43Strength of a high-quality liquid balance sheet Assets $1,476 Billion (as at January 31, 2020) Liabilities & Capital Unsecured Funding 35% Cash and Reverse Repos 127% coverage Wholesale Funding 44% Liquid Assets Secured Funding Loan Portfolio Represents 43% of Total Balance Sheet Excluding Allowances and Including Sold MBS as per IFRS Trading & Investment Securities Residential Mortgages(1) 124% coverage Other Retail Loans Wholesale Loans Derivatives are on Balance Sheet as per IFRS Other Assets (2) Personal Deposits 53% Capital + Retail- Related Business & Government Deposits Funding Securitization (1) and Covered Bonds Capital Other Liabilities(2) (1) Securitized agency mortgaged back securities (MBS) are on balance sheet as per IFRS. (2) Other assets include $94BN of derivatives related assets, largely offset by derivatives related liabilities in Other liabilities. Under IFRS derivative amounts with master netting agreements cannot be offset and the gross derivative assets and liabilities are reported on balance sheet. 42 APPENDIX RBC#44Strong deposit growth Leveraging the strength of our distribution channels and successful deposit initiatives to drive growth Canadian relationship deposits ■ Initiated successful strategies to grow relationship deposit base ■ Canadian relationship deposits continue to grow ■ RBC Canadian personal deposit market share is at 19.7% as of Nov 2019 ■ RBC Canadian commercial demand deposit market share is at 25.1 % as of Nov 2019 RBC Canadian Deposits (1) ($BN) Average Balances ($B CAD) 210 190 Cdn Personal Deposits 170 150 130 110 90 70 2230 50 Cdn Business Deposits (2) 5.34% CAGR 7.04% CAGR Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 RBC Relationship Deposits ($BN) Q1 2020 Q1 2019 HISA (3) $37 $34 (4) Advisory Channel Deposits $38 $30 Other Personal Deposits $227 $217 Business Deposits Total Deposits $299 $270 $601 $551 (1) Sourced from Canadian deposit market share, which is based on OSFI (M4 report). The volume change in Oct'16 was mainly due to a re-class of personal deposit to business deposits. (2) Canadian Business deposits reflect all platform demand deposits and Canadian Banking term deposit balances only. (3) High Interest Savings Account; Includes CAD and USD deposits. (4) Sourced largely from RBC Wealth Management network. 43 APPENDIX RBC#45Well-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) Well Diversified by Product (2) European U.S. SEC Registered Shelf (US$40BN) Medium Golden Credit Card Trust 5% Term Note CMB 12% 8% Canadian Deposit Note 16% U.S. Medium Term Note 20% Covered Bond 31% Yankee CD & 3a2 8%- Diversified by Geography (2) Europe 37% Canada 27% U.S. 36% Europe and Asia European Debt Issuance Program (US$40BN) Covered Bond Program (EUR 32BN) Japanese Issuance Programs (JPY 1 trillion) Recent Deals ■ CAD $2.25 Billion 7-year unsecured at LIBOR + 64bps ■ USD $1.85 Billion 3-year unsecured at LIBOR + 36bps GBP £0.35 Billion 6-year unsecured at LIBOR +56bps EUR €1.5 Billion 7-year covered bond at LIBOR +33bps GBP £1.25 Billion 5-year covered bond at LIBOR +31bps (1) National Housing Act Mortgage Backed Securities. (2) As at January 31, 2020. 44 | APPENDIX RBC#46RBC Covered Bond Program Globally Active Active program in six different currencies: EUR, CAD, USD, CHF, AUD and GBP C$44BN 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$18.7BN across eleven deals since September 2012 45 APPENDIX - Trace eligible RBC#47Note 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. Readers are cautioned that key performance measures, such as ROE and non- GAAP measures, including amounts excluding Corporate Support, average loans and acceptances excluding certain items, and cash earnings excluding the after-tax effect of amortization of intangibles, 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 2019 Annual Report and Q1 2020 Report to Shareholders, as well as in our Q1 2020 Supplementary Financial Information. Definitions can be found under the "Glossary" sections in our Q1 2020 Supplementary Financial Information and our 2019 Annual Report. 46 46 Investor Relations Contacts Nadine Ahn, SVP Wholesale Finance and Investor Relations Asim Imran, Senior Director, Investor Relations Marco Giurleo, Senior Director, Investor Relations (416) 974-3355 (416) 955-7804 (416) 955-2546 www.rbc.com/investorrelations RBC