#1Royal Bank of Canada Investor Presentation Q1/2015 All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standards 34 Interim Financial Reporting, unless otherwise noted. Our Q1/2015 Report to Shareholders and Supplementary Financial Information are available on our website at rbc.com/investorrelations. RB Investor Relations RBC#2Caution regarding forward-looking statements RBC 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 RBC Investor Presentation, in filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (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 RBC Investor 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, and 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, regulatory compliance, operational, strategic, reputation, legal and regulatory environment, competitive and systematic risks and other risks discussed in the Risk management and Overview of other risks sections of our 2014 Annual Report and the Risk Management section of our Q1/2015 Report to Shareholders; anti-money laundering; growth in wholesale credit; the high levels of Canadian household debt; cybersecurity; the business and economic conditions in Canada, the U.S. and certain other countries in which we operate; the effects of changes in government fiscal, monetary and other policies; tax risk and transparency; our ability to attract and retain employees; the accuracy and completeness of information concerning our clients and counterparties; the development and integration of our distribution networks; model, information technology, information management, social media, environmental and third party and outsourcing 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 RBC Investor Presentation are set out in the Overview and outlook section and for each business segment under the heading Outlook and priorities in our 2014 Annual Report, as updated by the Overview Section in our Q1/2015 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 management and the Overview of other risks sections in our 2014 Annual Report and in the Risk Management section of our Q1/2015 Report to Shareholders. Information contained in or otherwise accessible through the websites mentioned does not form part of this RBC Investor Presentation. All references in this RBC Investor Presentation to websites are inactive textual references and are for your information only. Investor Relations 1#3Royal Bank of Canada SECTION I RBC#4RBC is one of the largest banks globally RBC ■ Canada's largest bank by market capitalization, with broad leadership in financial services (1) ■ Offices in Canada, United States and 39 other countries ☐ ~78,000 full- and part-time employees who serve more than 16 million clients worldwide 285 220 10 170 North American ranking (1) (Market capitalization, US$ billion) 155 #5 86 86 83 79 79 71 64 48 45 44 40 40 32 29 Wells Fargo JP Morgan Bank of America Citigroup RBC Goldman Sachs American Express US Bancorp TD Morgan Stanley Scotiabank PNC Financial Bank of NY Mellon Capital One Financial BMO State Street CIBC 285 256 220 208 Global ranking (1,2) (Market capitalization, US$ billion) 182 171 171 170 155 #15 114 103 92 90 87 86 83 79 76 67 64 Wells Fargo ICBC JP Morgan CCB Bank of China ABC HSBC Bank of America CBA Citigroup Santander Westpac Mitsubishi RBC Lloyds American Express TD Aust and Nz Banking Itau Unibanco Scotiabank Extending our lead in Canada and selectively growing globally Investor Relations (1) Market data from Bloomberg as of February 23, 2015. (2) ICBC: Industrial and Commercial Bank of China; CCB: China Construction Bank Corporation; ABC: Agriculture Bank of China; CBA: Commonwealth Bank of Australia; Santander: Banco Santander, S.A. 3#5RBC's key strengths ■ Diversified business mix, with the right balance of retail and wholesale ■ Almost two-thirds of revenue from Canada RBC ☐ Strategic approach in key businesses in the U.S. and select international markets - In January 2015, RBC announced the acquisition of City National Corp (NYSE: CYN) which will expand our presence in the U.S. adding to our Wealth Management capabilities; Expected closing in Q4 of calendar 2015 Earnings by business segment (1) Latest twelve months ended January 31, 2015 Revenue by geography (1) Latest twelve months ended January 31, 2015 Investor & Capital Markets 23% Treasury Services 5% Personal & Commercial Banking 51% Insurance 9% Wealth Management 12% International 18% U.S. 18% Canada 64% Investor Relations - Fixed Income Presentation 4 (1) Amounts exclude Corporate Support. These are non-GAAP measures. For further information, see the Business segment results and Results by geographic segment sections of our Q1/2015 Report to Shareholders and slide 23.#6Strong financial profile 30.7 29.1 Revenue ($ billions) 34.1 2012 2013 2014 Return on Equity (1) 9.6 8.5 8.3 7.5 Net Income ($ billions) 9.0 Q1/2014 Q1/2015 2012 2013 2014 2.5 2.1 RBC Q1/2014 Q1/2015 Q1/2015 Basel III Capital and Leverage ratios "All-in" basis (2) ■ Common Equity Tier 1 9.6% ■ Tier 1 Capital 11.0% 19.6% 19.7% 19.3% 19.0% 18.1% ■ Total Capital 13.0% Leverage Ratio(3) 3.8% Credit ratings (4) Moody's S&P Fitch DBRS 2012 2013 2014 Q1/2014 Q1/2015 Aa3 Negative AA- AA AA Negative Stable Stable Investor Relations 5 (1) ROE may not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions. For additional information, see slide 23. (2) Capital calculated to include all regulatory adjustments that will be required by 2019 but retaining the phase-out rules for non-qualifying capital. Refer to the Capital Management section of our 2014 Annual Report and the Capital Management section of our Q1/2015 Report to Shareholders for details on Basel III requirements. (3) Effective Q1/2015, the Leverage Ratio replaces the Asset-to-Capital multiple. (4) Based on long-term senior debt ratings as of February 23, 2015.#7History of delivering value to our shareholders Total shareholder return (TSR) (1) RBC Peer Avg. 3 Year 15% 16% 5 Year 11% 15% 10 Year 13% 8% Dividend ■ Current quarterly dividend: $0.75 Q1/2015 payout ratio of 45%, in line with our target of 40-50% Share buybacks ■ 2015 normal course issuer bid to repurchase up to 12 million common shares Annual dividend history* ($ per share) On February 25, 2015, RBC announced a quarterly dividend increase of $0.02 or 3% to $0.77 per share RBC has increased the dividend 6 times since May 2012, for a total increase of 35% $1.44 $1.18 CAGR 10% $2.53 $2.28 $2.08 $2.00 $2.00 $2.00 $1.82 $2.84 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * Dividends declared per common share. Our goal is to maximize shareholder returns by achieving TSR above our peer average Investor Relations (1) Annualized TSR is calculated based on common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at February 23, 2015. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our 2014 Annual Report. RBC 6#8Key strategic priorities aligned to our long-term goals Strategic goals In Canada, to be the undisputed leader in financial services RBC ■ Globally, to be a leading provider of capital markets, investor and wealth management solutions ■ In targeted markets, to be a leading provider of select financial services complementary to our core strengths Personal & Commercial Banking Offering a differentiated experience: value for money, advice, access and service ■ Making it easier to do business with us and be a low cost producer Converging into an integrated multi-channel network ▪ Enhancing client experience and improving efficiency in the Caribbean and U.S. ■ ■ Wealth Management Building a high- performing global asset management business Focusing on high net worth and ultra-high net worth clients to build global leadership Leveraging RBC and RBC Wealth Management strengths and capabilities Strategic priorities Insurance Improving distribution ■ efficiency and deepening client relationships through cross-sell Making it easier for clients to do business with us ▪ Pursuing select international opportunities to grow our reinsurance business ■ Investor & Treasury Services (I&TS) O Providing excellence in custody and asset servicing, with an integrated funding and liquidity management business • Focusing on organic growth through client relationships, cross- selling and promoting the RBC brand ■Leveraging I&TS as a driver of enterprise growth strategies Capital Markets ■ Maintaining our leadership position in Canada Expanding and strengthening client relationships in the U.S. Building on core strengths and capabilities in Europe and Asia Optimizing capital use to earn high risk- adjusted returns on assets and equity Investor Relations 7#9Business Segments SECTION || RBC#10Personal & Commercial Banking Overview ■ RBC continues to be the undisputed leader in financial services in Canada - Personal & Commercial Banking accounts for over 50% of total RBC earnings - #1 or #2 market share in all product categories RBC Most branches and largest sales force in Canada while maintaining an industry leading efficiency ratio vs. our peer average (1) Second largest bank by assets (2) in English Caribbean, with branches in 18 countries and territories Offering a broad range of financial products and services In the U.S., our cross-border banking business serves the needs of Canadian clients, through online channels as well as U.S. Wealth Management clients Revenue and Net Income ($ billions) Business metrics - Q1/2015 Canada Caribbean & U.S. 12.3 1.4 Net Income 24 13.7 13.0 0.9 12.4 0.8 0.8 2.4 2.3 2.1 3.1 3.0 2.9 Q1/2014: $1,071 MM Q1/2015: $1,255 MM Clients (million) Branches 1,272 93 ATMs 4,603 310 7.3 6.9 6.6 Employees (FTE) 31,135 4,625 3.4 3.6 4.4 4.5 0.2 0.2 4.1 0.6 0.7 Loans & acceptances(2) 353.6 8.6 0.8 0.8 ($ billion) 1.8 1.9 Deposits (2) ($ billion) 277.0 16.7 2012 2013 2014 Q1/2014 Q1/2015 PFS BFS CPS Caribbean & U.S. Banking Net Income Investor Relations (1) Peers include TD, CIBC, BMO and BNS. (2) Based on average balances. PFS: Personal Financial Services; BFS: Business Financial Services; CPS: Cards and Payment Solutions, and; FTE: Full-time equivalent. 9#11- Personal & Commercial Banking – Canada Offering a differentiated experience ■ Be the undisputed leader in Canada and continue to grow volume at a premium to peers RBC Demonstrate the value for money that sets RBC apart through quality of advice and service, and industry-leading convenience and access Making it easier to do business with us Maintain focus on digitizing the bank and simplifying our end-to-end processes ■ Make it simpler and easier for clients to do business with us through self, assisted and full-serve options ■ Invest in skills, accreditation and engagement of our employees to enable us to compete more effectively Converging into an integrated multi-channel network Leveraging our unparalleled distribution breadth (e.g. most branches and ATMs in Canada), internal capabilities and strategic external partnerships to maintain our market leadership and extend our sales power Adapting our distribution network to ongoing changes in client preferences, including designing new products specifically for online and mobile channels Recent awards Best Global Retail Bank of the Year 2014, following two consecutive years as being named Best Retail Bank in North America (Retail Banker International) ■ Bank of the Year in Canada 2014 (The Banker) ■ Best Trade Finance Bank in Canada 2014 for the second consecutive year (Global Finance) Best Private Banking Services in Canada, the Caribbean, Cayman Islands and Jersey 2014 (Euromoney) ■ Best Private Bank in Canada and the Caribbean 2014 (Professional Wealth Management) ■ Innovation in Customer Service 2013 (Retail Banker International) ■ Best Commercial Bank in Canada 2013 (World's Finance) ■ #1 RBC Visa Infinite Avion in overall satisfaction 2013 (MLM and Maritz) Investor Relations 10#12- Personal & Commercial Banking – Canada Volume ($ billions) CAGR 7.3% 608 631 578 538 277 264 248 230 344 354 330 308 2012 2013 ■Loans and acceptances 2014 Q1/2015 ■ Deposits RBC Cross-selling metric (Households with transaction accounts, investments and borrowing products) (1) 24% Superior cross-sell ability 16% RBC (7) Peer Average Market share (2) Industry leading Efficiency Ratio (%) (7) Market Product Rank share Peer Average (7) Consumer lending (3) 49.9% 49.7% 49.2% 23.7% Personal core deposits + GICs 20.3% 2 Long-Term Mutual Funds (4) 14.4% 1 44.7% 44.5% Business loans ($0-$25MM) (5) 25.2% 1 44.2% 43.8% RBC Business deposits (6) 26.2% 1 2012 2013 2014 Q1/2015 Investor Relations 11 (1) Canadian Financial Monitor by Ipsos Reid - 12,000 Canadian households annually - data based on Financial Group results for the 12-month period ending October 2014; TFSA is considered an Investment. (2) Market share is calculated using most current data available from OSFI (M4), Investment Funds Institute of Canada (IFIC) and Canadian Bankers Association (CBA). OSFI, IFIC and Consumer Lending CBA data is at October 2014 and October 2013, Business Loans CBA data is at September 2014 and September 2013. Market share is of total Chartered Banks except for Business Loans which is of total 7 Banks (RBC, BMO, BNS, CIBC, TD, NBC, CWB). (3) Consumer Lending market share is of 6 banks (RBC, TD, CIBC, BMO, BNS and NA). Consumer Lending comprises residential mortgages (excluding acquired portfolios), personal loans and credit cards. (4) Mutual fund market share is per IFIC and is compared to total industry. (5) Business Loans market share is of the 9 Chartered Banks that submit to CBA on a quarterly basis. (6) Business Deposits market share excludes Fixed Term, Government and Deposit Taking Institution balances. (7) Peer average is based on annual results for BMO, BNS, CIBC & TD. Information for Q1/2015 not yet available.#13Wealth Management Leveraging Canadian strengths to build global leadership ■ ■ Building a high performing global asset management business Top quartile in terms of industry profitability(1) Global Asset Management grew AUM on average 2 times faster than the industry from January 2009 through June 2014 Focusing on HNW and UHNW client segments to extend our industry- leading share of HNW client assets in Canada and expand share globally Driving strong advisor productivity as a leader in fee-based assets per advisor(2) Client assets at $1.2 trillion in Q1/2015, a 15% YoY increase Grew AUA by 14% and AUM by 17% since Q1/2014 Currently restructuring our International Wealth businesses Revenue and Net Income ($ millions) 6,313 5,487 1,697 4,835 1,373 1,117 2,430 2,225 1,977 Net Income Q1/2014: $235 MM Q1/2015: $230 MM Cash Earnings ($ millions) CAGR: 19% 953 819 1,161 Recent awards / rankings Top 5 Global Wealth Manager by assets (Scorpio) Private Bank of the Year (Spear's) RBC Outstanding Wealth Manager - Customer Relationship Service and Engagement (Private Banker International) Best Overall Fund Group (Lipper, Canada) Top 50 Global Asset Manager (Pensions & Investments / Towers Watson) Best Private Banking Services Overall - Canada, Caribbean, Cayman Islands, Jersey (Euromoney) Channel Islands Private Bank of the Year (Citywealth International Financial Centre Awards) Best Bank-owned Brokerage Firm in Canada (International Executive Brokerage Report Card) Leading Canadian Private Bank; Leading Individual Award (Family Wealth Report Awards) AUA & AUM ($ billions) AUA CAGR: -13% AUM CAGR: -17% 768 718 639 578 II. 6661 248 387 340 480 452 1,535 1,666 2,186 1,741 1,889 433 462 A 582 665 753 886 1,083 520 539 2012 2013 2014 Canadian WM U.S. & International WM Q1/2014 GAM Q1/2015 Net Income 2012 2013 2014 Q1/2015 2012 2013 2014 Q1/2015 AUA AUM Investor Relations (1) BCG Asset Management Benchmarking Survey 2013. (2) Investor Economics Report published in December 2013. HNW: High net worth; UHNW: Ultra-high net worth; AUA: Assets under administration; and, AUM: Assets under management. 12#14Wealth Management - Global Asset Management ☐ Building a high-performing global asset management business Driving top-tier profitability in our largest Wealth Management business Over $371 billion in client assets, generating -75% of RBC Wealth Management earnings on a full year basis - Investor asset mix of 44% Individual / 56% Institutional client assets - RBC Global Asset Management grew AUM on average 2 times faster than the industry from January 2009 through June 2014 Extending our lead in Canada - Largest fund company in Canada with 14.6% market share; leader in last twelve months inflows (1) Top quartile fund performance, with 77.9% of AUM in 1st or 2nd quartile (2) Third largest institutional pension asset manager in Canada(3) Expanding our global solutions and capabilities - RBC Continuing to see momentum in our international institutional business, including BlueBay, driven by market share gains in higher fee- based solutions such as equities and credit strategies Strengthening our distribution capabilities while further enhancing our global product suite to meet the needs of our clients Hired teams in London and Canada to build out our global equities team in 2014 Annual AUM Growth: RBC GAM vs. Worldwide AM Industry (4) 29% ■ RBC GAM ■Industry 27% 28% AUM by Client Segment ($ billions) (5) $371 20% 14% International Institutional ■U.S. Institutional 22% Canadian Institutional ■Canadian Retail 12% 9% 8% 1% 15% 13% 11% 7% $86 45% 100% (1%) 2009 2010 2011 2012 2013 Jun-14 2007 Q1/2015 Investor Relations 13 (1) Investment Funds Institute of Canada (IFIC) as at December 31, 2014 and RBC reporting. (2) As at January 31, 2015. Based on a blended 1/3/5 year basis, gross of fees, against RBC Global Asset Management peer group. (3) Benefits Canada as at November 30, 2014. (4) Boston Consulting Group, McKinsey. AUM of RBC GAM acquisitions deducted in year of acquisition, and thereafter. (5) Data as of January 31, 2015; includes overlay assets.#15Wealth Management Canada - Extending our industry leadership Fee-based assets per advisor (2) ($ millions) ■ Extending our #1 position Grew HNW market share by ~400 bps to 19% in the last four years(1) with momentum and anticipate reaching 20% market share by 2016 - Generating ~30% of RBC Wealth Management earnings with strong pre- tax margin, highest among North American peers(3) peer average $61 ◉ Maintaining profitable growth in a challenging market Over 1.7x the Driving strong advisor productivity Canadian leader in fee-based assets per advisor(1) Consistently driving revenue per advisor of over $1.17 million per year, 36% above Canadian industry average(1) - Competitive hires delivering strong new asset growth Leveraging Enterprise linkages to continue to extend market share gains U.S. & International RBC United States Steadily increasing advisor productivity Growing complementary distribution through successfully recruiting revenue producers and establishing new clearing relationships ■ $35 Cdn Peer Average RBC Loans (4) & Deposits Strong growth in our credit and deposit taking businesses Average Balances ($ billions) Improving operational efficiencies and leveraging RBC's global capabilities to broaden our product offering 31.9 29.2 36.2 39.7 ■ Outside North America 15.7 17.8 12.1 Refocusing on UHNW and HNW client acquisitions from select markets where we have scale 9.9 Leveraging RBC's global capabilities (Global Asset Management and Capital Markets) 2012 2013 2014 Q1 2015 ■Loans Deposits Optimizing our operating model to drive long-term performance Investor Relations (1) Investor Economics report on RBC's full wealth and investment offering in Canada (December 2013). (2) Investor Economics report (September 2014). (3) As per BCG Global Wealth Manager Benchmarking 2014, based on 2013 results. (4) Total of average loans & acceptances. 14#16Insurance RBC We provide a wide range of life, health, home, auto, travel and wealth accumulation solutions to individual and group clients across Canada and offer reinsurance solutions for clients globally ■ ■ Improving distribution efficiency Delivering multi-line "insurance advice for your life" through an integrated product portfolio Focusing on delivering strong results through efficient and effective proprietary channels and strengthening our position in profitable third-party distribution channels Deepening client relationships Providing a comprehensive suite of RBC Insurance products and services through cross-sell strategies to continue to meet our clients' unique insurance needs Simplifying the way we do business Enhancing and streamlining all processes to ensure that clients find it easy to do business with us Pursuing select international opportunities to grow our reinsurance business Pursuing niche opportunities, diversifying risks and growing our reinsurance business to generate stable and diversified earnings Revenue and Net Income Premiums and Deposits (1) ($ millions) ($ millions) 15.3% 4,897 4,964 10.0% Net Income 12.5% 1,905 2,053 Q1/2014: $157 MM 3,928 Q1/2015: $185 MM 5,164 1,966 4,849 4,924 2,487 2,580 2,745 2,992 2,911 1,892 1,962 1,282 402 781 713 713 512 1,4903) 2,362 2,344 2,419 1,276 1,238 595 770 701 645 575 593 2012 2013 2014 Q1/2014 Q1/2015 Canada International & Other Net Income Adjusted Net Income (2) 2012 Canadian Insurance 2013 2014 Q1/2015 International Insurance Acquisition Expense Ratio Q1/2014 Investor Relations (1) Acquisition Expense Ratio calculated as Total Acquisition Expense/Net Premiums. (2) Adjusted net income excludes a charge of $160MM ($118MM after-tax) as a result of new tax legislation in Canada in Q4/2013. This is a non-GAAP measure. For additional information, see slide 23. (3) Q1/15 revenue included the impact of the FV change ($755MM) due to the decline in interest rates. 15#17Investor & Treasury Services ■ Key businesses Specialist provider of asset servicing, custody and payments services for financial and other institutional investors worldwide, combined with an enterprise funding and liquidity business Top 10 global custodian by AUA - Awarded Transfer Agent of the Year(1), Best Custodian Overall, #1 Custodian in Europe and #1 Custodian in North America(2) Canadian leader in cash management, correspondent banking and trade finance for financial institutions (processing >50% of all payments into Canada) Funding and liquidity management for RBC Revenue and Net Income ($ millions) Net Income Q1/2014: $106 MM Q1/2015: $142 MM ☐ ☐ Business objectives RBC In Canada, be the #1 provider of domestic custody, asset servicing and cash management services Compete in offshore domicile markets, as a leading provider of fund services from centers of excellence in Luxembourg and Ireland Maintain a selective presence in global markets, in support of Investor & Treasury Services' global offshore strategy Operational excellence globally; providing best in class solutions with a continued focus on efficiency Assets under administration (4) ($ billions) CAGR: 12% Efficiency Ratio (%) 1,884 1,804 905 441 370 315 339 102 .. 452 3,209 2,887 3,703 3,725 77% 75% 68% 62% 506 2012 2013 2014 Q1/2014 Q1/2015 (3) 2012 2013 2014 Q1/2015 2012 2013 2014 Q12015 Revenue Net Income Adjusted Net Income Investor Relations 16 (1) Global Investor/ISF magazine's Global Custody Survey 2014. (2) Custody Risk European Awards 2014. (3) Adjusted net income excludes a loss of $224 million ($213 million after-tax) related to our acquisition of the remaining 50% stake of RBC Dexia in Q3/2012 and $44 million ($31 million after-tax) related to the integration of Investor Services in Q2/2013. These are non- GAAP measures. For additional information, see slide 23. (4) Spot balances, as at January 31, 2015#18Capital Markets A premier North American investment bank with select global reach ■ Full suite of integrated Corporate & Investment Banking and Global Markets services ☐ RBC Strategically positioned in the largest financial centers, covering 90% of global investment banking fee pool(1) Top talent with expertise and track record of excellence. Canada Full suite of products and services across all sectors United States Full service investment bank with equity and fixed income sales & trading Revenue and Net Income (2) ($ millions) 7,366 6,580 3,437 6,188 3,014 2,533 Net Income Q1/2015: 594 MM Q1/2014: 505 MM U.K. & Europe M&A advisory and origination in key sectors with fixed income, equity and FX sales & trading Asia Pacific Primarily distribution with select M&A advisory and origination Revenue by geography (Q1/2015) Asia Pacific 3% U.K. & Europe 3,896 3,538 3,314 Canada 2,033 1,810 29% 886 2,055 826 1,576 1,700 944 1,149 2012 2013 2014 Global Markets Q1/2014 Q1/2015 Corporate & Investment Banking Net Income Investor Relations (1) Thomson Reuters Global Banking Review 2014. (2) Other revenue not depicted on the graph, but included in Total revenue and Net Income. 15% U.S. 54% 17#19Capital Markets Maintaining our leadership position in Canada RBC ■ Focus on long-term client relationships and leverage our strong cross-border capabilities Improve collaboration with Wealth Management to further develop client relationships and drive operational efficiencies Expanding and strengthening client relationships in the U.S. ■ Build on our momentum and leverage broader relationships and client investments to expand origination, advisory, and distribution ■ Increase focus on deepening relationships with existing clients to drive cross-sell Building on core strengths and capabilities in UK/Europe and Asia ■ Grow prudently by developing strong client relationships and selectively adding talent to expand our capabilities ■ Continue to expand distribution capabilities in Hong Kong and selectively grow investment banking in Sydney ■ Optimizing capital use to earn high risk-adjusted returns on assets and equity Maintain mix between investment banking and lending revenue and trading revenue ■ Maintain disciplined diligence on the risks and costs of our business Recent awards / Rankings 11th largest by global investment bank fees (Thomson Reuters, 2014) ■ Global #1 Trusted Investment Bank and #2 for Expertise and Skills (The Economist, 2014) ■ Best Investment Bank in Canada across Equity, Debt and M&A for 7th consecutive year (Euromoney, 2014) ■ Best Global Issuer, Covered Bonds (Global Capital - The Cover, 2014) ■ Canadian Fixed Income Sales & Trading Quality Leader, Canadian Fixed Income Market Share Leader (Greenwich Associates, 2014) ■ Leading Canadian Equities platform - ranked #1 in 2014 for Overall Trading Quality and #1 for Sales Quality (Greenwich Associates, 2014) Top Equity Research franchise in Canada - ranked #1 for five consecutive years (Brendan Wood International, 2014) ■ Best Bank for Fixed Income Research and Strategy (Technical Analyst Awards, 2014) Investor Relations 18#20Capital Markets Global Markets Revenue ($ millions) Corporate & Investment Banking Revenue ($ millions) RBC 3,896 3,437 3,538 3,314 1,017 3,014 765 778 2,533 1,701 1,440 789 1,118 856 1,195 1,983 1,680 1,760 1,149 944 826 886 312 218 1,574 1,736 229 349 1,338 409 446 497 488 417 440 2012 2013 2014 Q1/2014 Q1/2015 2012 2013 2014 Q1/2014 Q1/2015 ■ FICC ■ Global Equities ■Repo and secured financing Capital Markets Trading Securities ($ billions, average) 118 104 106 103 105 101 99 101 ■Investment Banking Lending and Other Loans Outstanding by Region (1) ($ billions, average) 72 61 61 63 12 58 8 10 53 10 7 48 49 7 6 6 37 30 31 31 30 26 23 24 19 19 20 21 22 21 22 23 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2013 Q3/2013 Q4/2013 ■Canada Q1/2014 U.S. Other International Total Q2/2014 Q3/2014 Q4/2014 Q1/2015 Investor Relations (1) Average loans & acceptances, and letters of credit and guarantees for our Capital Markets portfolio, on single name basis. It excludes mortgage investments, securitized mortgages and other non-core items. 19#21Canadian economy SECTION III RBC#22Italy Japan Germany France Canada's strong fiscal position ■ Strong rating as a result of fiscal prudence, conservative bank lending practices and solid economy ■ Lowest net debt to GDP ratio among G7 peers (1) ■ #1 for soundness of banks for the 7th consecutive year(2) ■ A diversified economy supporting balanced economic growth 0.3 G7 Real GDP Growth (%) (3) 0.9 1.2 2000-2013 2.2 1.9 1.8 1.4 2.4 2.4 24 7% Canadian GDP by Industry (4) (November 2014) 12% 20% 4% ■Finance, Insurance & Real Estate ■Manufacturing ■ Wholesale and Retail Trade RBC ■Scientific, Technical & Educational Serv. ■ Public Administration and Utilities U.K. U.S. Canada Cda 2014F Cda 2015F 8% 7% 9% 11% Investor Relations (1) International Monetary Fund. (2) World Economic Forum, 2014. (3) National statistics offices, RBC Economics Research. (4) Statistics Canada, RBC Economics Research. 11% ■Mining, Oil & Gas Extractions ■ Construction 11% Health Care ■Transportation, Warehousing Other 24 21#23Attractive economic fundamentals RBC ■ Energy price weakness expected through 2015; Core inflation likely to remain stable around mid-point of 1-3% target range Unemployment rates are trending favourably and are indicative of underlying conditions. remaining firm ■ Labour force participation trend predominantly reflects an aging population rather than worker's voluntary exit of the labour market 5 4 3 2 1 0 -1 -2 Inflation (YoY %) (1) མེད་ཀྱི་ནད་ཤ་ར་མ་ར་ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Headline Core BoC Target Unemployment (%) (2) 68 Labour Force Participation Rate (%) (2) 13 12 67 11 10 66 66 9 65 55 8 7 64 6 5 63 4 62 3 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 1990 1992 1994 Canada U.S. Investor Relations (1) Statistics Canada, RBC Economics Research. (2) Statistics Canada, Bureau of Labor Statistics, RBC Economics Research. 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Canada U.S. 222 22#24Note 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 such as earnings and revenue excluding Corporate Support, earnings excluding specified items related to sale of RBC Jamaica as previously announced on January 29, 2014, and provisions related to post-employment benefits and restructuring charges in the Caribbean, adjusted net interest margin and Capital Markets trading and geographic revenue excluding specified items 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" section of our Q1/2015 Report to Shareholders and our 2014 Annual report. Definitions can be found under the "Glossary" sections in our Q1/2015 Supplementary Financial Information and our 2014 Annual Report. RBC Investor Relations Contacts Amy Cairncross, VP & Head Lynda Gauthier, Director Stephanie Phillips, Director (416) 955-7803 (416) 955-7808 (416) 955-7809 www.rbc.com/investorrelations 23