#1Royal Bank of Canada Investor Presentation Q2/2021 All amounts are in Canadian dollars unless otherwise indicated and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our Q2 2021 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, including statements by our President and Chief Executive Officer. Forward-looking statements in this presentation include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, investment activity in the oil & gas sector, and the potential continued impacts of the coronavirus (COVID-19) pandemic on our business operations, financial results and financial condition, and on the global economy and financial market conditions, including projected economic indicators for 2020 with respect to Canada, the United States and the Euro Area. 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 (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, legal and regulatory environment, competitive and systemic risks and other risks discussed in the risk sections and Significant developments: COVID-19 section of our annual report for the fiscal year ended October 31, 2020 (the 2020 Annual Report) and the Risk management and Impact of COVID-19 pandemic sections of our Q2 2021 Report to Shareholders; including business and economic conditions, information technology and cyber risks, Canadian housing and household indebtedness, geopolitical uncertainty, privacy, data and third party related risks, regulatory changes, environmental and social risk (including climate change), and digital disruption and innovation, culture and conduct, 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, environmental and social risk, and the emergence of widespread health emergencies or public health crises such as pandemics and epidemics, including the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business operations, and financial results, condition and objectives. 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 2020 Annual Report, as updated by the Economic, market and regulatory review and outlook and Impact of COVID-19 pandemic sections of our Q2 2021 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 and Significant developments: COVID-19 section of our 2020 Annual Report and the Risk management and Impact of COVID-19 pandemic sections of our Q2 2021 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, scale and franchises 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 leading client Market leader with a ◉ 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 focused growth strategy Financial strength underpinned by prudent risk and cost management Innovation is in our DNA Leading corporate citizen ■ 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 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 Delivering signature programs with measurable social and environmental outcomes Committed to accelerating clean economic growth - contributed $73.3 billion in 2020 towards our $500 billion sustainable financing target by 2025 to help support the net-zero transition Expanded ESG reporting suite: RBC's inaugural 2019 Enterprise Diversity & Inclusion Report, second stand-alone TCFD(2) Report, our first Human Rights Position Statement and updated our SASB(3) Index (found as an Appendix in the 2020 ESG Performance Report, page 70-76). Powered by our technology partner, FutureFit AI, RBC Upskill is assisting youth in self-discovering their career possibilities and potential by providing tailored advice on an ongoing basis, aligned to their confidentially-inputted skills, interests, and experiences $142 million given globally in 2020 through cash donations and community investments, including support to mitigate the economic impact of COVID-19 Our annual Employee Giving campaign went virtual in 2020 with 82% of employees participating in raising $23 million for over 5,000 charities across ■ Continued to invest in skills development and mentoring programs through RBC Future Launch to create meaningful opportunities for 25,000 Black, Indigenous and People of Colour (BIPOC) youth, including a new partnership with the Black Professionals in Tech Network Committing up to $10 million annually through RBC Tech for Nature, in support of universities and charities that are developing technology solutions to address climate change and related environmental issues (1) Based on market capitalization as of April 30, 2021. (2) Task Force on Climate-related Financial Disclosures. (3) Sustainability Accounting Standards Board. 3 | ABOUT RBC RBC#5Market leader with a focused strategy for growth Largest in Canada (1) Top 15 Globally(1) A market leader across all key businesses One of the 15 largest global banks by market capitalization with operations in 29 countries 17 Million Clients Served by 86,000+ employees worldwide Purpose Help clients thrive and communities prosper Vision To be among the world's most trusted and successful financial institutions Strategic Goals In Canada: To be the undisputed leader in financial services In the United States: To be the preferred partner to corporate, institutional and high net worth clients and their businesses In Select Global Financial Centres: To be a leading financial services partner valued for our expertise (1) Based on market capitalization as at April 30, 2021. 4 | ABOUT RBC RBC#6Diversified business and geographic model with client-leading franchises Earnings by Business Segment (1) Latest twelve months ended April 30, 2021 Revenue by Geography Latest twelve months ended April 30, 2021 Investor & Treasury Services 3% Insurance 6% Wealth Management 17% Personal & Capital Markets 28% Commercial Banking 46% International 16% U.S. 26% Canada 58% (1) Amounts exclude Corporate Support. These are non-GAAP measures. For more information, refer to Results by business segment section of our 2020 Annual Report and slide 58. 5 | ABOUT RBC RBC#7Strong financial profile Resilient Earnings Maintaining a strong capital position with a disciplined approach to risk Premium Return on Equity (1) Net income ($ billions) 12.9 12.4 11.4 5.0 7.9 2018 2019 2020 YTD 2020 YTD 2021 PCL (2) 0.23% 0.31% 0.63% 0.96% 0.01% NIM (3) 1.64% 1.61% 1.55% 1.60% 1.50% 19.0% 17.6% 16.8% 14.2% 12.5% 2018 2019 2020 YTD 2020 YTD 2021 Strong Capital Position 15.3% 15.5% 15.5% 15.8% 14.6% Strong Leverage and Liquidity Ratios Leverage Ratio Liquidity Coverage Ratio 5.0% 133% 12.5% 12.5% 12.8% 11.7% 12.0% Credit Ratings Amongst the Highest Globally Moody's S&P DBRS Fitch Legacy senior long-term debt(4) Aa2 AA- AA (high) AA+ Q2/20 Q3/20 ■Total Capital Q4/20 Q1/21 ■Common Equity Tier 1 (CET1) Q2/21 Senior long-term debt(5) Outlook A2 A AA AA Stable Stable Stable Negative (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 Q2 2021 Report to Shareholders. (2) Provision for credit losses (PCL) on loans as a % of average net loans and acceptances. (3) Net interest margin (NIM) (average earning assets, net). (4) Ratings (as at May 26, 2021) 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. (5) Ratings (as at May 26, 2021) 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#8Track-record of delivering value to our shareholders Financial performance objectives measure our performance against our goal of maximizing total shareholder returns Medium-Term Objectives Profitability Diluted EPS growth ROE(2) 7%+ 16%+ Capital Management Capital ratios (CET1 ratio) Dividend payout ratio Strong 40% - 50% Dividend (3) and Earnings (4) per Share ($): 2010-20 CAGR 18% 8.36 8.75 7.56 7.82 6.73 6.78 6.00 5.49 4.91 4.19 3.46 2010-20 Average Dividend Payout ratio of 47% Average (1) 3 Years 5 Years ✓ 1% 3% 16.2% 16.4% 12.0% 11.6% 49% 48% Tangible Book Value & Book Value Per Share ($) (4) 2010-20 CAGR: BVPS19% & TBVPS 10% 43.3 45.5 40.1 32.7 35.8 31.1 2.00 2.08 2.28 2.53 2.84 3.08 3.24 3.48 3.77 4.07 4.29 25.8 22.2 18.1 17.5 19.5 24.0 24.3 26.5 29.9 33.7 39.5 43.3 46.4 51.1 54.4 56.8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 - Earnings per share (diluted) - -Dividend per share Achieved Solid TSR (5) Performance 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Book value per share Tangible book value per share 3 Year 5 Year 10 Year 20 Year RBC Peer Average 11% 9% 13% 11% 11% 11% 13% 10% (1) Diluted EPS growth is calculated using a Compound Annual Growth Rate (CAGR). ROE, CET1 and dividend payout ratio are calculated using an average. (2) 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 Q2 2021 Report to Shareholders. (3) Dividends declared per common share. Our current quarterly dividendis $1.08. (4) EPS, TBVPS and BVPS for 2010 were determined under Canadian Generally Accepted Accounting Policies (CGAAP) framework. (5) Annualized TSR is calculated based on the TSX common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at April 30, 2021. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our 2020 Annual Report. 7 | ABOUT RBC RBC#9Business Segments RBC Ⓡ#10Personal & Commercial Banking ■ The financial services leader in Canada - #1 or #2 market share in all key product categories - Most branches and one of the largest mobile sales networks across Canada - Superior cross-sell ability ■ In 9 countries and territories in the Caribbean - 3rd largest bank by assets (1) in English Caribbean Innovative direct banking to U.S. cross-border clients Ongoing investments to digitize our banking channels Q2/2021 Highlights Clients (MM) Branches ATMs 14+ 1,233 4,393 Active Digital (Online and Mobile) Users (2) (MM) 7.9 Employees (FTE) 35,999 Net Loans & Acceptances (1) ($BN) 497.4 Deposits (1) ($BN) 495.0 AUA(1) ($BN) 339.0 Net Income ($ millions) 6,402 6,028 234 168 5,087 6,168 5,860 5,077 10 2018 2019 2020 ■Canadian Banking 1,908 36 1,872 532 649 -117 Q2/20 Q2/21 ■Caribbean & U.S. Banking Revenue by Business Line (3) Canadian Banking 96% Personal Banking 73% 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 April 30, 2021. 9 | BUSINESS SEGMENTS Caribbean & U.S. Banking 4% RBC#11Personal & Commercial Banking Strategic Priorities - Building A Digitally-Enabled Relationship Bank™M 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 Ipsos CELENT MODEL BANK North American Retail Bank of the year for the 3rd consecutive year; Best Latin/Caribbean Bank of the Year; Best Loyalty and Rewards Strategy for the 2nd consecutive year(1) J.D. POWER Highest in Customer Satisfaction Among the Big Five Retail Banks for a second consecutive year, a position RBC has now held for 5 out of the past 6 years (2) CSI RBC won 10 out of 11 Ipsos Financial Service Excellence Awards among the Big 5 Banks, including Customer Service Excellence (3). RBC received multiple awards from Celent for our leadership in digitally onboarding clients and transforming business payments; the awards follow our 2020 global recognition as Celent Model Bank of the Year (4) (1) Retail Banker International, 2020. (2) J.D. Power, 2021. (3) Ipsos, 2020. (4) Celent Model Bank, 2021. 10 BUSINESS SEGMENTS RBC#12Personal & Commercial Banking - Canadian Banking Solid Volume Growth ($ millions) (1) Superior Cross-Sell Ability Percent of clients with transaction accounts, investments, borrowing and Credit Cards products (2) 477 429 410 375 343 417 440 467 464 492 2018 2019 2020 Q2/20 Q2/21 ■ Deposits ■Loans and Acceptances #1 or #2 Market Share in All Key Categories (3) 19% 13% RBC Peer Average Continue to Improve Our Efficiency Ratio (9) Market Product Rank share Personal Lending(4) 24.7% 1 Personal Core Deposits + GICs 20.4% 2 47.7% 47.4% Peer Average (10 46.4% Credit Cards (5) 28.2% 1 Long-Term Mutual Funds (6) 32.4% 1 43.2% 42.5% 41.8% Business Loans ($0-$25MM) (7) RBC 26.2% 1 41.3% Business Deposits (8) 24.8% 1 2018 2019 2020 YTD 2021 (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 April 2021; 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 January 2021 and November 2020 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 November 2020, excludes Credit Cards. (5) Credit cards market share is based on 6 banks (RBC, BMO, BNS, CIBC, TD and NA) as at November 2020. (6) Long-term mutual fund market share is compared to 7 banks (RBC, BMO, BN'S, CIBC, TD, NA, and HSBC) and is at January 2021. (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 December 2020. (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; 2017 through 2020 reflects annual numbers. 11 | BUSINESS SEGMENTS RBC#13Wealth Management Strategic Priorities ■ Global Asset Management: Deliver investment performance and extend leadership position in Canada, while continuing to grow in the U.S. and EMEA/APAC ■ Canadian Wealth Management: Continue to deepen client relationships and deliver a differentiated client experience that is increasingly digitally-enabled and supported by data-driven insights ■ U.S. Wealth Management: Leverage the combined strengths of City National Bank, RBC Wealth Management-U.S. and Capital Markets 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 Cash Earnings ($ millions)(1) (2) Recent Awards Corporate Social Responsibility / Diversity Award (Wealth Briefing Europe Awards 2021) Wealth Planning and CSR Awards (Wealth Briefing Asia Awards 2021) Innovative Client Solution (Family Wealth Report Awards, 2021) Best Private Banking Services Overall - North America and Canada (Euromoney Private Banking and WM Survey, 2021) Best in Serving Business Owners - North America and Canada (Euromoney Private Banking and WM Survey, 2021) Best ESG / Impact Investing Services - Canada (Euromoney Private Banking and WM Survey, 2021) Outstanding Global Private Bank - North America (Private Banker International Global Wealth Awards, 2020) AUA and AUM ($ billions) (3) 2,458 193 2,736 186 2,327 172 2,550 2,265 2,155 2018 2019 2020 ■ Net income 729 38 468 691 44 424 Q2/20 Q2/21 ■ Amortization 1,100 1,062 971 836 756 665 2018 2019 2020 1,227 1,054 922 782 Q2/20 Q2/21 ■ AUA ■ AUM (1) Cash earnings exclude the after-tax effect of amortization of intangibles. This is a non-GAAP measure. For more information see slide 58. (2) 2019 net income includes the gain on sale of the private debt business of BlueBay ($134 million after-tax). (3) Spot Balances. 12 BUSINESS SEGMENTS RBC#14Wealth Management - Global Asset Management Building a high-performing global asset management business Driving top-tier profitability in our largest Wealth Management business - $558.9BN in client assets - Investor asset mix of 52% Retail / 48% Institutional client assets Extending our lead in Canada Largest retail fund company in Canada, ranked #1 in market share capturing 32.3% amongst banks and 16.1% all-in (1) Strategic alliance between RBC Global Asset Management and BlackRock Canada connects clients to the largest and broadest ETF lineup in Canada 3rd largest institutional manager of Canadian pension assets (2) Delivering strong investment capabilities to support growth - Top performing investment firm with ~83% of AUM outperforming the benchmark on a 3-year basis (3) Continued growth of investment capabilities and innovative solutions for both institutional clients and retail investors Canadian Retail Mutual Fund AUM ($ billions) 15.8% 15.8% 16.1% 16.1% 16.1% 16.1% 16.2% 16.1% Diversified Asset Mix Q2/2021 AUM by Client Segment ($ billions) (4) 302.9 286.5 288.0 268.3 250.3 258.1 257.6 232.5 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Jan-21 Apr-21 Canadian Mutual Fund Balance(1) All-In Market Share(1) 17% ■Canadian Retail 11% ■ Canadian Institutional $558.9BN 52% ■ U.S. Institutional ■International Institutional 20% (1) Investment Funds Institute of Canada (IFIC) in April 2021 and RBC reporting. Comprised of long-term funds and money market prospective qualified mutual funds sold to Retail and Institutional clients. (2) Benefits Canada as at November 2020. (3) As at March 2021, gross offees. (4) RBC GAM, based on period-end spot balances. 13 BUSINESS SEGMENTS RBC#15Wealth Management Canadian Wealth Management ■ Maintain profitable growth with strong pre-tax margin ■ #1 High Net Worth and Ultra High Net Worth market share in Canada (1) ■ Canadian leader in fee-based assets per advisor(1) Fee-based Assets per Advisor(1) ($ millions) 1.75x the Peer Average Consistently driving revenue per advisor of over $1.6MM per year, 28% above Canadian industry average(1) 133 ■ Strong asset growth complemented by favourable market conditions Leveraging enterprise linkages to extend market share gains U.S. Wealth Management (including City National) RBC Wealth Management-U.S. RBC 76 Cdn Peer Average ■ 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 CNB recently launched a National Corporate Banking division that will specialize in meeting the complex banking and corporate finance needs of larger commercial and mid-corporate-sized companies across the country. 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), January 2021. (2) Source: U.S. wealth advisory firms quarterly earnings rele ases (10-Q). 14 | BUSINESS SEGMENTS RBC#16Insurance Strategic Priorities ■Grow the Canadian insurance business: By focusing on the mass underserved, providing innovative and competitive products, and leveraging partnerships to expand value added client services such as virtual health and wellness ■ Maintain our leadership position in the creditor business: By investing in new digital tools, delivering new pricing and product benefits, and developing new marketing programs to improve acquisition and retention through tighter integration with bank partners ■ Grow the longevity business in Canada and the UK: By enabling client base growth, long term investment returns, and risk diversification strategies Deepen client relationships across RBCI and RBC: By focusing on new client acquisition utilizing RBCI's growing channels at lower acquisition cost Net Income ($ millions) Highlights Among the largest Canadian bank-owned insurance organizations, serving more than five million clients globally #1 in individual disability (inforce business) with 38% (1) market share #1 in individual disability net new sales with 43% (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 YoY growth of 40.2% (2) 775 806 831 III .. 2018 2019 2020 Q2/20 Q2/21 Premiums and Deposits ($ millions) 4,647 4,604 4,950 2,063 2,457 2,189 2,584 2,415 2,493 1,148 1,161 627 602 521 559 2018 2019 2020 Q2/20 Q2/21 ■ Canadian ■ International (1) LIMRA Canadian Insurance Survey, 1st Quarter, 2021. (2) Strategic Insights, Insurance Advisory Service Report, April 2021. 15 BUSINESS SEGMENTS RBC#17Investor & Treasury Services ☐ Specialist provider of asset and treasury services to institutional clients worldwide and a leader in Canadian cash management and transaction banking services - Ranked #1 Fund Administrator Overall (1) Ranked #1 Asset Servicer in North America (2) for the second consecutive year Named Best Trade Finance Bank in Canada for the ninth 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) Average Deposits ($ billions) (4) Efficiency Ratio 212 188 74% 175 185 741 161 71% 69% 536 475 149 103 116 125 123 62% 369 243 59 59 63 61 64 2018 2019 2020 YTD YTD 2018 2019 2020 YTD YTD 2018 2019 2020 YTD 2021 2020 2021 2020 2021 Client deposits ■ Wholesale funding deposits (1) R&M Fund Accounting & Administration Survey, 2020. (2) R&M Investor Services Survey, 2020. (3) Global Finance, 2021. (4) Totals may not add up due to rounding. 16 BUSINESS SEGMENTS RBC#18Capital Markets ■ A premier global investment bank with core operations across Canada, the U.S., the U.K./Europe, and APAC - 11th 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 ~86% of the global investment banking fee pool (1) Recognized by the most significant corporations, institutional investors, asset managers, private equity firms, and governments around the globe as an innovative, trusted partner with in-depth expertise in capital markets, banking and finance Revenue by Business ($ millions) (2) Revenue by Geography (3) Net Income ($ millions) 2,777 2,776 1,403 2,666 4% ■ Canada 1,136 1,166 1,605 14% 26% 1,238 1,347 2,138 ■ U.S. 2,275 2,006 2,120 906 637 1,756 607 913 ■U.K. & Europe 2,107 1,098 1,672 1,096 1,211 767 3,243 2,122 2,150 1,594 1,675 ■Australia, Asia & Other 987 56% 2018 2019 2020 YTD 2020 YTD 2021 Global Equities Lending & Other ■ Repo & Secured Financing ■Investment Banking ■ FICC 2018 2019 2020 YTD 2020 YTD 2021 (1) Dealogic-fiscal Q2 2021. (2) Global Markets segment revenue has been restated to align select portfolios previously disclosed in Repo and Secured Finan ang to FICC and Global Equities. Revenue by business only includes Corporate & Investment Banking and Global Markets, excluding CM Other. (3) For three months ended April 30, 2021. 17 BUSINESS SEGMENTS RBC#19Capital Markets Strategic Priorities Drive Deeper, Multi-Product Client Relationships Lead with Advice, Empowered by Ideas, Insights and Innovation Leverage Cross Platform Collaboration and Convergence Invest in and Engage our Talent " Gain market share across all businesses by deepening relationships and leading with differentiated content Expand client coverage and relationships in targeted sectors Grow Advisory & Origination and accelerate Sustainable Finance across all business areas Enhance Sales & Trading client value, insights and profitability from scaled electronic and digital strategy Foster cross-platform and cross-geography collaboration and convergence across businesses and asset classes Drive further connectivity with other RBC businesses Renew emerging and high potential talent development programs; execute senior hiring plan Accelerate reignited Diversity & Inclusion strategy and execute workplace of the future strategy Focus on reviewing our cost base and funding strategy to drive efficiencies Optimize our Business and Efficiently Leverage Scale Evolve our Brand as an Innovative, Trusted Partner Recent Awards ◉ Optimize balance sheet utilization and strategically reallocate resources Maintain our leadership position in Canada and strengthen our position in the U.S while continuing to be a leader in targeted areas in the U.K., Europe, and Australia, Asia & other regions aligned with our global expertise Be recognized by our clients as an innovative, trusted partner with best-in-class capabilities and expertise Recent Big Deals EUROMONEY AWARDS FOR EXCELLENCE 2020 Best Investment Bank in Canada - 13th consecutive year (1) CELENT MODEL SELL SIDE 2021 Celent Model Sell Side 2021 for AidenⓇ (2) the technical analyst AWARDS 2021 WINNER Best FX Research at the Technical Analyst Awards 2021(3) Rocket RBC Capital Markets acts as Sole Bookrunner on Rocket Software's $575MM senior notes offering Pilgrim's RBC Capital Markets Acts as Joint Bookrunner and Co-Sustainability Structuring Agent on PPC's $1.0 Billion Sustainability-Linked Senior Notes Offering (1) Euromoney, 2020. (2) Celent, 2021. (3) The Technical Analyst, 2021. 18 | BUSINESS SEGMENTS RBC#20Capital Markets Capital Markets Total Average Assets ($ billions) Geographic Diversification Across Loan Book Average Loans Outstanding by Region ($ billions) (1) 1,017 (15)% YoY 78 59 65 (23) (127) 821 777 743 709 695 100 101 87 18 20 81 80 19 17 19 52 52 51 42 38 35 30 30 26 26 26 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q2/2020 Canada Q3/2020 Q4/2020 Q1/2021 U.S. Other International Q2/2021 PCL ($ millions) Risk-Weighted Assets, Spot ($ billions) (7)% YoY Earnings Volatility vs. Canadian and U.S. Peers (Standard Deviation/Avg Earnings) (2) 31.3% 25.2% 225 217 209 212 209 19.8% Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 RBC Canadian Peers U.S. Peers (1) Average loans outstanding includes wholesale loans, acceptances, and off balance sheet letters of credit and guarantees for our Capital Markets portfolio, on single name basis. Excludes mortgage investments, securitized mortgages and other non-core items. This chart has been restated to exclude certain intergroup exposures that are not part of the corporate lending business. This is a non-GAAP measure. For more information see slide 58. (2) Reflects pre-provision, pre-tax earnings, which is revenue net of PBCAE and non-interest expenses. This is a non-GAAP measure. For more information, please refer to slide 58. Canadian peers include BMO, TD, CIBC, BNS and NA, US peers include JPM, GS, BAC, Citi and MS. 19 BUSINESS SEGMENTS RBC#21Risk Review RBC Ⓡ#22Canada 78% Prudent risk management A disciplined approach and diversification have underpinned credit quality Loan Book Diversified by Portfolio (1) Credit Cards 2% _Sm all Business 2% PCL Ratio on Impaired Loans (bps) 45 Personal Loans 13% Wholesale 32% Residential 20 Mortgages 51% 35 30 40 GGGG 25 20 17 15 PCL ratio on impaired loans 10 Q3/2018 Q4/2018 37 Average historical actual loss rate (2) 31 bps 29 28- 27 25 23 21 Breakdown by Region of Total Loans and Acceptances (1) Other International 6% U.S. 16% Breakdown of Canadian Total Loans and Acceptances (1) Manitoba/ Sask. 6% Atlantic 5% Alberta 13% Q1/2019 Q2/2019 Quebec 12% Ontario 47% Q3/2019 (1) Loans and acceptances outstanding as at April 30, 2021. Does not include letters of credit or guarantees. (2) 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 0.31%. 21 RISK REVIEW RBC B.C. and Territories 17% Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 15 Q1/2021 13 33 Q2/2021 11#23ACL reflects ongoing uncertainty related to COVID-19 Movement in Allowance for Credit Losses on Loans (1) ($ millions) ACL to L&A 0.53% 3,471 ACL (Q1/20) ACL to L&A 0.85% 5,914 ACL (Q1/21) 177 (260) (306) See slide 24 for details 63% P&CB (majority from Retail) and 33% Capital Markets ACL to L&A 0.79% 5,525 PCL on Impaired Loans PCL on Performing Loans Net write-offs, FX & Other ACL (Q2/21) ■ ACL on loans of $5.5 billion was down $389 million QoQ ■ ACL as a percentage of loans and acceptances of 0.79% was down 6 bps QoQ, but remains elevated relative to 0.53% at Q1/2020 reflecting the ongoing uncertainty related to the impact of the COVID-19 pandemic ■ The $260 million release of reserves on performing loans in Q2/2021 reflects improvements in our macroeconomic and credit quality outlook - Though we continue to move along the forecast curve into recovery and vaccine distribution progresses, defaults continue to be temporarily suppressed by government support programs - The release of reserves on performing loans is primarily driven by Canadian Banking ($155 million), largely in the Cards and Commercial portfolios, and Capital Markets ($87 million) (1) Totals may not add due to rounding. 22 RISK REVIEW RBC#24GIL below pre-pandemic levels with continued muted new formations Gross Impaired Loans (GIL) ($ millions, bps) 51 57 47 41 40 $3,857 $3,529 $3,195 $2,872 $2,777 Key Drivers of GIL (QoQ) Total GIL decreased $95 million (down 1 bp QoQ) Capital Markets GIL decreased $157 million, primarily reflecting resolution of previously impaired loans, largely in the Oil & Gas sector, partially offset by higher new formations largely in the Real Estate and Related sector Wealth Management (including CNB) GIL increased $49 million, on higher new formations at CNB, primarily in the Consumer Discretionary, and Information Technology sectors Canadian Banking GIL was stable, as relatively small increases in GIL across retail products were offset by a decrease in commercial GIL Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 New Formations ($ millions) (1) 1,265 1,308 35 230 Net Formations ($ millions) 840 511 530 605 551 21 106 53 63 70 114 35 226 56 78 461 90 398 383 307 182 2,872 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 ■Canadian Banking ■Caribbean & U.S. Banking ■Capital Markets Wealth Management 605 (52) (285) (301) (62) 2,777 Q1/21 GIL New Formations Returning to Repayments Write-Offs Performing Other Q2/21 GIL (1) New formations for collectively assessed portfolios in Canadian Banking and Caribbean Banking are net of amounts returned to performing, repayments, sales, FX, and other movements, as amounts are not reasonably determinable. 23 RISK REVIEW RBC#25PCL on impaired loans at its lowest level in over 15 years Total RBC ($ millions, bps) 37 Wealth Management ($ millions, bps) 21 8 $43 23 15 $613 13 11 $15 $398 $251 $218 $177 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 O -13 $- $3 $(27) Q4/20 Q1/21 Q2/21 Lower provisions QoQ in Capital Markets and Canadian Banking, partially offset by higher provisions in Wealth Management Higher provisions QoQ, due to a provision on a new impaired loan at CNB in the Consumer Discretionary sector, and higher recoveries in Q1/2021 Canadian Banking ($ millions, bps) Capital Markets ($ millions, bps) 94 30 23 18 16 14 25 27 $272 7 $339 $264 $217 $195 $169 -13 $73 $68 $18 $(29) Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Retail: Lower provisions QoQ, primarily in personal lending and residential mortgages, partially offset by higher write-offs on cards Commercial: Lower provisions QoQ, mainly due to a provision on an Other Services account taken in Q1/2021 Lower provisions QoQ, largely due to reversals on previously impaired loans in the Oil & Gas and Other Services sectors, partially offset by a provision on a new impaired loan in the Real Estate and Related sector 24 RISK REVIEW RBC#26Strong underlying credit quality in Canadian Banking (CB) Canadian Banking PCL on Impaired Loans and Gross Impaired Loans CB Retail FICO Score Distribution (Q2/21) Q2/21 Avg PCL on Impaired Loans Loan (bps) (1) Gross Impaired Loans (bps) <620 Avg 3% Balances FICO Score ($BN) Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21 (Q2/21) 620- 680 Residential Mortgages (2) 310.6 1 2 1 17 15 16 793 6% 681- 720 Personal Lending 75.9 70 43 37 36 27 28 780 788 10% Credit Cards 16.0 307 156 203 96 (3) 73 (3) 78 (3) 740 Small Business (4) weighted average 11.1 102 60 30 128 155 104 n.a. Commercial (4) 78.5 19 20 18 57 74 69 n.a. Total 492.1 30 18 16 28 28 28 788 >720 81% PCL on impaired loans decreased 2 bps QoQ, and remains below pre-pandemic levels due to ongoing government support Higher write-offs on cards attributed to the end of deferral programs in Q4/20, with card balances impaired after 180 days past due CB Delinquencies By Days Past Due (bps) (5) ■ Credit quality remains high with just 3% of the portfolio with a FICO score below 620 40 180 35 30 ■30-59 Days ■60-89 Days 9 CB 30-89 Day Delinquencies by Product (bps) (5) ■ Q2/20 ■ Q3/20 ■ Q4/20 ■ Q1/21 ■Q2/21 160 140 120 25 11 100 20 7 80 60 15 7 LO 25 40 10 19 17 20 11 12 0 Residential HELOCS Mortgages Personal Lending Cards Small Business Commercial Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 (Excluding HELOCs) 30-89 day delinquencies of 19 bps decreased 15 bps QoQ, with 30-59 day delinquencies down 13 bps QoQ, and 60-89 day delinquencies down 2 bps QoQ Delinquencies were lower QoQ across all retail products, as well as in commercial banking (1) Calculated using average net of allowance on impaired loans. (2) Includes $10.9BN of mortgages on multi-unit residential buildings originated in P&CB Business Banking. (3) Represents 90+ Days Past Due, as there are no GIL balances for Credit Cards. (4) In Q2/21, following capital treatment guideline change, -$5.4BN of exposure previously classified as Commercial was reclassified as Small Business exposure. (5) Includes restrained accounts, where loans 30-59 days past due result from administrative processes, such as mortgage loans where payments have been restricted pending pay out due to sale or refinancing. 25 | RISK REVIEW RBC#27Canadian residential portfolio has strong underlying credit quality Q2/2021 Highlights Strong underlying quality of uninsured residential lending portfolio(1) - - 54% of uninsured portfolio have a FICO score >800 GTA and GVA average FICO scores remain above the Canadian average Only 2% of our residential lending portfolio has an LTV >80% and FICO score of 720 or lower, and is predominately all insured Condominium outstanding balance is 11% of residential lending portfolio Canadian Banking Residential Lending Portfolio (1) Mortgage HELOC LTV (2) Uninsured ($263.7BN) $228.5BN Total ($338.5BN) $303.3BN $35.2BN $35.2BN 51% 50% GVA 46% 46% GTA 48% 48% Average FICO Score (1) 802 808 16 bps 13 bps 9 bps 8 bps 9 bps 8 bps 90+ Days Past Due (1)(3) GVA GTA Canadian Residential Mortgage Portfolio (2) ($ billions) 49% 47% 61% $157.8 LTV (1) Canadian Banking Residential Lending Portfolio (1) LTV (2) 52% 55% 54% 5% >80% FICO Scores 77% $61.3 ■ Insured ■ Uninsured $101.5 (30%) $233.4 (70%) 65%-80% 50%-65% $41.0 $38.5 77% <50% 49% 67% $19.7 $16.8 23% 23% Ontario B.C. & Territories 53% 51% 50% 33% Alberta Quebec 47% Manitoba & Sask. 50% Atlantic 0% 10% ■>720 ■681-720 20% ■620-680 21% ■ <620 20% 30% 38% 40% % of Total Canadian Banking Residential Lending Portfolio (1) Based on $303.3BN in residential mortgages and $35.2BN in HELOC in Canadian Banking. Based on spot balances. Totals may not add due to rounding. (2) Canadian residential mortgage portfolio of $335.0BN comprised of $303.3BN of residential mortgages in Canadian Banking, $2.2BN in other Canadian business platforms, $11.1BN of mortgages with commercial clients ($7.7BN insured) and $18.4BN of residential mortgages in Capital Markets held for securitization purposes. (3) The 90+ day past due rate includes all accounts that are either 90 days or more past due or are in impaired status. 26 RISK REVIEW RBC#28IFRS 9 range of macroeconomic scenario assumptions (as of April 30) Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021) Canada Real GDP ($ Trillions) (1) 11 Base case (January 31, 2021) Base case (October 31, 2020) Canada Unemployment Rate (%) (3) 2.5 2.4 2.3 33 2.2 2.1 2.0 1.9 Q4-2020 Q1-2021 Q3-2021 Q4-2021 Q2-2021 U.S. Real GDP (US$ Trillions) (2) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 22.0 21.5 21.0 20.5 20.0 19.5 19.0 18.5 18.0 Q2-2023 Q4-2025 Q1-2026 7 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 5 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 10 U.S. Unemployment Rate (%) (3) Q2-2023 Q4-2022 Q1-2023 Q3-2023 Q4-2023 Q1-2024 Q3-2025 Oil price (West Texas Intermediate in US$) Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 *Q4-2022 Q1-2023 Q4-2025 Q1-2026 8 6 4 2 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Canadian housing price index Q4-2020 Q1-2021 Q2-2021 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 In our base forecast, we expect housing prices to increase by 3.0% over the next 12 months, with a compound annual growth rate of 3.7% for the following 2 to 5 years. The range of annual housing price growth (contraction) in our alternative downside and upside scenarios is (29.6)% to 10.9% over the next 12 months and 4.2% to 11.1% for the following 2 to 5 years. RBC For further details, referto Note 5 of our Q2 2021 Report to Shareholders. (1) Represents the seasonally-adjusted annual rate indexed to 2012 Canadian dollars over the calendar quarters presented. (2) Represents the seasonally-adjusted annual rate indexed to 2012 U.S. dollars over the calendarquarters presented. (3) Represents the average quarterly unemployment level over the period. In our base forecast, we expect oil prices to average $61 per barrel over the next 12 months and $53 per barrel in the following 2 to 5 years. The range of average prices in our alternative downside and upside scenarios is $25 to $74 per barrel for the next 12 months and $35 to $55 per barrel for the following 2 to 5 years. 27 | RISK REVIEW#29Exposure to wholesale sectors most vulnerable to COVID-19 impacts ■ Our most vulnerable wholesale exposure represents $31.3 billion or 4.5% of total loans & acceptances outstanding - Vulnerable wholesale exposure is down 10% QoQ, due primarily to repayments of COVID-19 related draws Sector Group Information (Q2/21) Sector Exposure Most Vulnerable to COVID-19 (Q2/21) Select Wholesale Sectors Loans & Acceptances Outstanding PCL on Impaired Loans & Acceptances GIL Loans Outstanding Select Vulnerable Segments $BN (3) QoQ Growth $MM bps (1) $MM bps $BN QoQ Growth % of Sector Group Commercial Real $57.3 Estate (CRE) (2) (2)% $27 19 bps $382 67 bps $10.0 (6)% 18% Retail Consumer Discretionary $13.9 (7)% $20 57 bps $315 227 bps $8.4 (5)% 60% Restaurants; Recreation; Hotels; Retail (excluding grocery and home goods); Jewelry; certain Textiles & Apparel Oil & Gas $6.4 (13)% $(25) (147) bps $204 318 bps $6.4 (13)% 100% All segments Aircraft; Airlines; Airports; Passenger- Transportation $6.2 (17)% $8 48 bps $151 243 bps $3.2 (19)% 51% related Marine Transport; Transit-related Ground Transport Other Services $19.6 (6)% $1 2 bps $240 123 bps $2.1 (27)% 11% Dental; certain Retail Services; certain Business Services Telecommunications $5.1 +3% $1 8 bps $6 12 bps $1.2 (5)% 23% Film & TV Production; Theatres & Media Total $108.5 (5)% $32 12 bps $1,298 116 bps $31.3 (10)% 28% (1) Q2/21 PCL annualized. (2) Represents data for the Real Estate and Related sector group. (3) Totals may not add due to rounding. 28 | RISK REVIEW RBC#30ACL coverage: Lower-risk residential mortgages a large part of our balance sheet Allocation of ACL by Product Q1/2021 Q2/2021 % of Loans & Acceptances % of Loans & Acceptances Product Stage 1 Stage 2 Stage 1 & 2 Stage 3 Total Stage 1 Stage 2 Stage 1 & 2 Stage 3 Total (1) Residential mortgages 0.1% 1.9% 0.1% 23.3% 0.15% 0.1% 2.1% 0.1% 22.0% 0.14% Other Retail 0.9% 13.9% 2.2% 46.4% 2.36% 0.8% 12.9% 2.1% 38.4% 2.20% Personal 0.6% 9.6% 1.3% 48.8% 1.45% 0.6% 9.2% 1.3% 41.4% 1.41% Credit cards 2.7% 27.3% 7.3% 7.33% 2.4% 25.6% 6.8% 6.84% Small business 1.6% 3.6% 1.9% 40.0% 2.48% 0.9% 4.6% 1.4% 31.9% 1.70% Retail 0.2% 8.7% 0.6% 30.9% 0.68% 0.2% 8.9% 0.6% 27.7% 0.65% (1,2) Wholesale 0.5% 4.6% 1.0% 31.3% 1.24% 0.4% 4.8% 0.9% 30.6% 1.14% Total ACL 0.3% 6.4% 0.7% 31.1% 0.85% 0.3% 6.7% 0.7% 29.5% 0.79% Allocation of Loans By Product Within Each IFRS 9 Stage Q1/2021 Q2/2021 % of Loans & Acceptances % of Loans & Acceptances Product Stage 1 Stage 2 Stage 1 & 2 Stage 3 Total ($BN) Stage 1 Stage 2 Stage 1 & 2 Stage 3 Total ($BN) (1) Residential mortgages 97.3% 2.5% 99.8% 0.2% 351.7 97.8% 2.0% 99.8% 0.2% 357.8 Other Retail 89.5% 10.2% 99.7% 0.3% 112.6 89.5% 10.2% 99.7% 0.3% 118.2 Personal 91.5% 8.3% 99.7% 0.3% 90.5 91.6% 8.1% 99.7% 0.3% 90.5 Credit cards 81.1% 18.9% 100.0% 0.0% 16.4 80.9% 19.1% 100.0% 0.0% 16.6 Small business (2) 82.7% 15.8% 98.4% 1.6% 5.8 85.0% 13.9% 99.0% 1.0% 11.1 Retail 95.4% 4.3% 99.8% 0.2% 464.3 95.7% 4.0% 99.8% 0.2% 476.0 (1,2) Wholesale 87.4% 11.8% Total Loans 92.8% 6.7% 99.2% 99.6% 0.8% 221.9 88.7% 10.5% 99.2% 0.8% 212.8 0.4% 686.3 93.6% 6.0% 99.6% 0.4% 688.7 (1) Items not subject to impairment are loans held at FVTPL: Residential mortgages (Q2/21: $243MM, Q1/21: $255MM); Wholesale (Q2/21: $8.6BN, Q1/21: $10.4BN). (2) In Q2/21, $5.4BN of loans previously classified as commercial was reclassified as Small Business loans. 29 | RISK REVIEW RBC#31Technology @ RBC RBC Ⓡ#32Investors value RBC for its industry-leading franchises and innovative approach Creating More Value for Clients ■ 7.9MM active digital users (1) ■ 2.5MM clients on-boarded onto MyAdvisor with a personalized plan ■ 5.3MM active mobile clients (1) on the RBC Mobile app Data & Artificial Intelligence Insights 4 Borealis Al labs connected with top universities across Canada, with 40+ PhDs ■ 1.7BN+ insights read by clients on NOMI in the RBC Mobile app(2) Driving Efficiency & Operational Excellence ■ 643MM client transactions daily (3) Innovation Ecosystem & Partnerships ■ 5 innovation labs globally ■ 14 RBC Ventures in market ■ #1 (4) workplace in Canada to grow your career (1) These figures (in 000s) represent the 90-Day Active customers in Canadian Banking only and are spot values. (2) Insights read on a launch to date basis. (3) Daily average number of transactions. (4) Based on LinkedIn's 2021 Top Companies in Canada list 31 | TECHNOLOGY @ RBC RBC#33Our technology platforms are enabling all businesses to exceed client expectations P&CB NOMI ampli Wealth Management WealthX myDashboard I&TS RBC One AVA myGPS RBC Ventures Good (wning RBC Mobile App RBC Insight Edge MyAdvisor T&O BOREALIS AI InvestEase A DEN 32 | TECHNOLOGY @ RBC DNA DATA & ANALYTICS Data Centre Moves Capital Markets RBC Elements Insurance eApplication for Term Life Group Insurance Platform RBC#34We have developed a rich innovative ecosystem that attracts top talent 888880 88888 5 Innovation Labs around the world Fostering Engineering & Innovation Culture 33 TECHNOLOGY @ RBC Unique Partnerships (FinTech, Big Tech) RBC 8== Digital RBC Ryerson University UNIVERSITY OF WATERLOO NEXT AI (db) Ben-Gurion University of the Negev Research Institutions |||oneeleven UNIVERSITY OF TORONTO KU Western RBC Ventures, Incubators and Accelerators T ↑ VECTOR INSTITUTE O'Ramp C100 COPENHAGEN FINTECH SFU CREATIVE of DESTRUCTION RBC#35Our 14MM+ Canadian Banking clients continue to adopt our digital channels Active Digital Users (000s) (1) Digital Adoption Rate (2) Active Mobile Users (000s) (1) 4% 290 bps 7,755 7,873 56.0% 7,544 53.9% Q2/20 Q1/21 Q2/21 Mobile Sessions (000s) (3) Q2/20 Q1/21 9% 56.8% 5,171 5,266 4,819 Self-Serve Transactions (4) Q2/21 Q2/20 Q1/21 Q2/21 Branches (1)% 22% 150 bps 107,378 111,616 93.8% 93.5% 92.0% 1,205 91,649 1,200 1,193 Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21 33,716 33,689 32,750 Q2/20 Q1/21 Canadian Banking FTE (5) Q2/21 (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. (5) Full-time equivalent. 34 | TECHNOLOGY @ RBC RBC#36RBC Ventures RBC Ⓡ#37Ventures moves RBC beyond traditional banking to deliver unique value for all Canadians ROCKETMAN Public transit arrival times and locations = Smart Reno Connecting consumersto trusted contractors ojôhome New home searching made easy 36 | RBC VENTURES Home ✓ GarbageDay boomerang Helping retirees make connections Mobility PROPRIETARY REW ARDS DATA AND TECHNOLOGY SCALE DR.BILL Helping doctors with their billing needs RBC Ventures ownr Helps entrepreneurs start their business Health INNOVATIVE PRODUCT LEADER & Wellness RBC Keeping you in the know on the little things PERSONALIZED ADVICE U.S. Ventures STRATEGIC PARTNERSHIPS DIVERSIFIED DISTRIBUTION B2C B2B arrive Helping newcomers be successful in Canada prepped Finding dream jobs for recent graduates ✓ mydoh Financial literacy for kids and parents movesnap Making moving hassle free ampli.. Amplifying cash back across national brands dipp Earning cashback at local merchants RBC#38Environment, Social & Governance (ESG) RBC Ⓡ#39ESG performance highlights: Putting our Purpose into practice Royal Bank of Canada is a purpose-driven, principles-led organization How we deliver value • Building & attracting talent and driving a diverse & inclusive culture 46% women executives (1) and 42% women (1) on RBC's Board of Directors 21% of executives (1)(2) are BIPOC #4 globally in the Refinitiv Diversity & Inclusion Index, ranking over 9,000 listed companies Increasing our staffing goals for BIPOC executives from 20% to 30% with a focus on increasing Black and Indigenous representation(3) • • Sustainable finance and responsible investment $73.3 billion (4) in sustainable finance in 2020, building towards our target of $500 billion by 2025 Focused strategy to integrate ESG . across all businesses in Capital Markets led by a dedicated Sustainable Finance Group Total value of socially responsible investments and impact assets under management grew to $12.5 billion (4) Published policy restrictions on lending to sensitive sectors, including coal and the Arctic • • Climate change: accelerating clean economic growth Enterprise climate change strategy, RBC Climate Blueprint, aims to support clients in the net-zero transition Joined pilot project on climate risk scenarios stress testing led by the Bank of Canada and OSFI Joined PCAF (5) to advance the measurement of our indirect emissions Committed to net-zero emissions in our lending by 2050 and carbon neutral in our global operations since 2017 Over 125 organizations supported with over $27 million in funding through RBC Tech for Nature since 2019 • Preparing youth for the future of work Through RBC Future Launch, we are dedicating $500 million over 10 years to help young people gain meaningful employment through work experience, skills development and networking; we have reached over 2.5 million (4) Canadian youth through 500+ partner programs since 2017 Committing to invest $50 million from 2020 to 2025 to create meaningful and transformative pathways to prosperity for 25,000 BIPOC youth(3) RBC is recognized as an "Outperformer" or "Leader" by our top tier ESG rating agencies (6) and indices, including: SUSTAINALYTICS FTSE4Good Banking industry ranking in 98th percentile ESG Risk Rating of 16.9 (low risk) MSCI "A" Rating SAM Now a Part of S&P Global Overall score 78 90th percentile CDP 'A-' score for our 2020 Climate Change response (1) Represents data as at October 30, 2020 for our businesses in Canada governed by the Employment Equity Act (Canada); Board composition is reflective as of February, 2021. (2) Based on employee self-identification and aligned to the definitions of the Employment Equity Act in Canada. (3) RBC's Actions Against Systemic Racism (4) As of FY2020. (5) The Partnership for Carbon Accounting Financials (PCAF). (6) Includes Sustainalytics, FTSE4Good, MSCI, Vigeo EIRISand S&P Corporate Sustainability Assessment. As of FY2020. 38 | ESG RBC#40Our suite of ESG disclosures Annual voluntary and regulatory ESG performance disclosures Royal Bank of Canada Environment, Social and Governance (ESG) Performance Report 2020 ESG Performance Report & SASB Index Introduction Royal Bank of Canado RBC Green Bond Report April 2021 Royal Bank of Canada Public Accountability Statement 2020 Royal Bank of Canada Task Force on Climate-related Financial Disclosures Report 2020 CITY NATIONAL BANK - на кассомлену STEPPING UP... Corporate Social Report 2019 Stewardship in action 2020 Corporate Governance and Responsible Investment Annual Report Public Accountability Statement (PAS) TCFD Report City National CSR Report Royal Bank of Canada Enterprise Diversity & Inclusion Report 2019 A Chosen Journey RBC igre port 2018 RBC Employment Equity Report Corporate Governance and Responsible Investment Annual Report Task Force on Climate-related Financial Disclosures 2020 Report Royal Bank of Canada RBC Green Bond Report RBC Enterprise Diversity & Inclusion Report A Chosen Journey Report Employment Equity Report RBC GAM TCFD Report Position statements and policy and program "backgrounders" Climate Blueprint Royal Bank of Canada Human Rights Position Statement Royal Bank of Canada About Corporate Citizenship at RBC Programs, policies and practices Royal Bank of Canada Policy Guidelines for Sensitive Sectors and Activities Modern Slavery Act Statement 2020 Modern Slavery Act Statement RBC Climate Blueprint RBC Human Rights Position Statement About Corporate Citizenship suite of policy and program "backgrounders" Policy Guidelines for Sensitive Sectors and Activities (Coal and Arctic) 39 | ESG For more details, see our suite of ESG disclosures on our Corporate Citizenship Reporting website. RBC#41Economic Backdrop RBC Ⓡ#42Canada's fiscal position strong 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) (2021) Canadian GDP by Industry (2) (February 2021) 52.5 37.0 Canada Germany 108.8 106.1 109.0 97.2 144.2 ཟ་ ིི ིི ིི་ཕྲུ་ལྦ་སྦྲ 172.3 8% 8% 5% 4% 12% 22% 10% 12% (1) Net debt refers to General Government net debt. International Monetary Fund April 2021 Fiscal Monitor. (2) Statistics Canada, RBC Economics Research. 41 ECONOMIC BACKDROP ■Finance, Insurance & Real Estate ■Manufacturing ■Wholesale and Retail Trade ■Scientific, Technical & Educational Services Public Administration and Utilities 10% Mining, Oil & Gas Extractions ■Construction 11% Health Care Transportation, Warehousing Other RBC#43-2 Economy's recovery set to strengthen as containment measures ease ■ The Canadian economy continued to grow in Q1. GDP rose in January despite re-imposed containment measures weighing heavily on activity in the travel and hospitality sectors. And an easing in restrictions during the lull in virus spread between the second and third waves of COVID-19 led to further growth over February and March. Another round of containment measures implemented in the third wave will slow the pace of growth in Q2. However, government supports for households and businesses have been extended and vaccine distribution continues to ramp up. We continue to expect GDP growth will re-accelerate over the second half of 2021 as vaccine distribution reduces virus threat and allows for more easing in containment measures. Unemployment remains very elevated, but government support programs continue to provide larger than normal income replacements for those losing work. ■ CPI inflation is expected to spike higher in the near-term because of very low year-ago prices, particularly for gasoline. Excluding energy prices, inflation pressures are expected to build through the year as higher raw-material prices filter through to end-product consumer prices and consumer demand recovers over the second half of the year. ■ The recovery in the U.S. economy is expected to be boosted by rising vaccination rates and large amounts of fiscal stimulus. U.S. GDP is expected to increase 6.2% in 2021 following a 3.5% drop in 2020. Canadian Inflation (YoY) (1) Canadian Inflation (YoY) (¹) 13 5 4 3 2 1 0 -1 May спожи 12 11 10 6 8 7 6 5 2000 2001 2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 2014 2015 2016 Headline BoC Target 2017 2018 2019 2020 (1) Statistics Canada, RBC Economics Research. (2) Statistics Canada, Bureau of Labor Statistics, RBC Economics Research. 42 ECONOMIC BACKDROP Canadian Labour Markets (YoY) (2) 1991 1992 1993 1994 1996 1997 Canadian Labour Markets (YoY) (2) 2002 2003 2004 2006 Employment growth (YOY% - RHS) 2007 LUUK SUUL 2008 3000 2009 2011 2011 2012 2012 2013 2021 -Unemployment rate (% - LHS) RBC 3 21072 3 -1 5 4#442021 Economic Outlook Projected Economic Indicators for 2021 (1) GDP Growth Inflation Unemployment Rate Interest Rate (3 mth T-bills) Current Account Balance/GDP (2) Budget Surplus/GDP (3) Canada 6.3 1.9% 7.4% 0.20% 0.2% (7.8%) U.S. 6.2 2.7% 5.4% 0.25% (3.5%) (15%) Euro Area 4.1 1.6% 8.5% NA 2.8% (6.7) Canada U.S. Euro Area The Canadian economy is forecast to rebound 6.3% in 2021 following a 5.4% drop in 2020. GDP retraced almost 90% of the unprecedented 18% decline over March and April as of February 2021, but was still over 2% below year-ago levels in that month. Remaining economic weakness is disproportionately concentrated in the travel and hospitality sectors, where activity continues to be curbed by virus containment measures. Household disposable incomes have been propped up by government support for those unemployed and interest rates remain low. Renewed virus spread will slow the pace of recovery in Q2 2021 but is expected to strengthen over the second half of the year as vaccination rates ramp up and containment measures are eased. The U.S. economy is expected to grow 6.2% in 2021 after a 3.5% decline in 2020. The pace of recovery is strengthening as vaccine distribution ramps up and containment measures ease. The unemployment rate is expected to average 5.4% in 2021, still well-above pre-shock levels but much lower than the 8.1% average in 2020. The economy's recovery will be boosted as containment measures ease and by very large fiscal stimulus supports that have boosted household incomes and savings through the pandemic. As in other regions, Euro area economies have partially recovered from unprecedented declines in the second quarter of 2020. Virus spread and containment measures continue to weigh on activity but vaccine distribution is ramping up. Growth in both the Euro area and the U.K. economies is expected to strengthen in Q2 2021 and over the second half of this year as virus spread and containment measures ease. (1) RBC Economics Research as of April 9, 2021 and reflect forecasts for calendar 2021. (2) RBC Economics Research, IMF WEO (April, 2021). (3) IMF WEO (April 2021) 43 | ECONOMIC BACKDROP RBC#45Canadian Housing Market RBC Ⓡ#46Structural backdrop to the Canadian and U.S. housing markets Regulation Consumer Behaviour Lender Behaviour Lenders' Recourse ☐ ☐ Canada (1) Government influences mortgage underwriting policies primarily through control of insurance eligibility rules Fully insured if loan-to-value (LTV) is over 80% Must meet 5-year fixed rate mortgage standards Government-backed, on homes under $1MM Down-payment over 20% on non-owner occupied properties - 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 Mortgage interest not tax deductible Greater incentive to pay off mortgage Strong underwriting discipline; extensive documentation 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) U.S.(1) Agency insured only if conforming and LTV under 80% No regulatory LTV limit - can be over 100% Not government-backed if private insurer defaults Mortgage interest is tax deductible Less incentive to pay down mortgage Wide range of underwriting and documentation requirements Most mortgages securitized Stay period from 90 days to one year to foreclose on non-performing mortgages ■ Limited recourse against borrowers in key states (1) Current regulation and lenders recourse. (2) Alberta and Saskatchewan have some limited restrictions on full recourse. 45 | CANADIAN HOUSING MARKET RBC#47Legislation and policies - promoting a healthy Canadian housing market January 2021 (proposed) - Department of Finance ■ Tax of 1% on the value of non-resident, non-Canadian-owned real estate considered vacant or underused. June 2021 (proposed) - OSFI ■ The stress test qualifying rate for uninsured mortgages changing to the client rate plus 2 percentage points or 5.25%, which ever is greater. July 2020 CMHC ■ Minimum credit score for CMHC insured mortgages raised from 600 to 680 ☐ Gross debt service ratio reduced to 35%; total debt service ratio reduced to 42% to qualify for CMHC insured mortgage ■ CMHC tightened rules on admissible down payment sources February 2018 - Government of British Columbia ■ The 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 46 | CANADIAN HOUSING MARKET RBC#48Legislation and policies - promoting a healthy Canadian housing market 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 December 2015 - Department of Finance Minimum down payment for new government-backed insured mortgages increased from 5% to 10% for portion of the value of a home being purchased that is between $500,000 and $999,999 (came into effect February 2016) April 2014 CMHC Discontinued offering mortgage insurance on 2nd homes and to self-employed individuals without 3rd party income validation July 2012 CMHC - Maximum amortization on government-backed insured mortgages reduced to 25 years from 30 years Maximum amount that can be borrowed on a mortgage refinancing lowered to 80% from 85% CMHC insurance availability is limited to homes with a purchase price of <$1 million lowered from $3.5 million ■ Set the borrower's maximum gross debt service ratio at 39% and maximum total debt service ratio at 44% March 2011 - CMHC ■ Maximum amortization on government-backed insured mortgages reduced to 30 years from 35 years Maximum amount that can be borrowed on a mortgage refinancing lowered to 85% from 90% February 2010 - Department of Finance Borrowers with insured mortgage terms of less than five years must meet the standards for a five-year fixed rate mortgage ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 90% from 95% ■ Minimum 20% down payment is required in order to qualify for government-backed mortgage insurance on non-owner-occupied properties July 2008 - Department of Finance ■ Maximum amortization on government-backed insured mortgages reduced to 35 years from 40 years ■ A minimum 5% down payment is required in order to qualify for government-backed insured mortgages ■ Minimum credit score requirements, new loan documentation standards, setting a maximum of 45% on borrowers total debt service ratio 47 CANADIAN HOUSING MARKET RBC#49The 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 3.0% of our Canadian commercial loan book(2) - Condo exposure is 11% of Canadian residential lending portfolio (2)(3) "Green Belt" Surrounding Greater Toronto Area WELLINGTON Lake Simcoe Lake Ontario CANADA USA Vancouver Limited by Mountains, Sea, U.S. Border cal Reserve 1A Mt Seymour Provincial Park North Vancouver District Belcarra Regional Park VANCOUVER Pacific Spinit Regional Park 99 91A Richmond 17 (1) Statistics Canada, 2016 Census. (2) As at April 30, 2021. (3) Based on $303.3BN in residential mortgages and HELOC in Canadian Banking ($35.2BN). 48 CANADIAN HOUSING MARKET 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#50COVID-19 set Canada's housing market on record course ■ COVID-19 impacted housing markets in unsuspected ways. Home resales plunged in the spring of 2020 but then strongly rebounded to record levels in the latter stages of 2020 and early of 2021. Pent-up demand, exceptionally low interest rates, changing housing needs and high household savings proved powerful demand drivers despite elevated unemployment and renewed restrictions in the face of the second and third waves of the pandemic. ■ The strength in the housing market has been uneven. Buyers showed a strong preference for single-family homes and other low-rise categories offering more living space, putting intense pressure on little available supply. Demand for downtown condos, on the other hand, was muted throughout much of 2020 at a time when for-sale inventories have surged-a soft rental market in Canada's largest cities prompted many condo investors to divest. The downtown condo market has shown signs of a turnaround in 2021. Property value trends reflected the unevenness in the market. Single-family home prices have soared whereas downtown condo prices largely plateaued before beginning to firm up in 2021. ■ Canada's longer-term housing market fundamentals continue to be favourable despite near-term turbulence. Immigration will be a major driver of housing demand once the current in-migration pullback runs its course. ■ Lenders maintain strong underwriting discipline and require extensive documentation. - - Most mortgages held on balance sheet and conservative lending policies have led to low delinquency rates. Demand-supply conditions are generally very tight Sales-to-New Listings Ratio (1) Historic government aid temporarily lightens debt service costs 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 Seller's market 14 0.70 12 0.60 0.50 Balanced market 10 10 0.40 8 0.30 Buyer's market 0.20 6 0.10 0.00 4 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 (1) Canadian Real Estate Association, RBC Economics. (2) Statistics Canada, RBC Economics. PDI: Personal Disposable Income. 49 CANADIAN HOUSING MARKET RBC#51Canadians 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 re-accelerated 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 75 70 65 60 55 50 45 45 Equity Ownership (1) (Owners' equity as a % of total value of residential real estate assets) -Canada -U.S. 40 35 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Growth in residential mortgages has re-accelerated Residential Mortgage Growth (2) (Year-over-year % change) The mortgage delinquency rate still near a 30-year low in Canada Mortgage Delinquencies (3) 16 14 12 10 8 6 4 2 6 (Mortgages 90+ days in arrears as a % of total mortgages) -Canada -U.S. 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 21 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 (1) Statistics Canada, Federal Reserve Board, RBC Economics. (2) Bank of Canada, RBC Economics. (3) Canadian Bankers Association, Mortgage Bankers Association, RBC Economics. 50 CANADIAN HOUSING MARKET RBC#52Appendix A - Liquidity & Funding RBC Ⓡ#53Net interest income: Strong volume growth more than offset by lower interest rates Net interest income down 11% YoY as strong volume growth was more than offset by the impact of lower interest rates. Trading net interest income was impacted by lower repo & secured financing revenue All-bank NIM on average earning assets was down 11 bps YoY (flat QoQ) Liquidity Coverage Ratio of 133%, down 8 pts QoQ Net Interest Income ($ millions) Average Rates (1) 3.68% Lending NII Trading NII NIM (%) 3.37% 3.34% 3.28% 3.24% ΥΟΥ 1.61% Loan yield 1.52% 1.49% 1.50% 1.50% (11) bps 2.60% 5,465 2.36% 5,139 5,010 5,035 4,854 (11) % 1,064 1.93% 967 728 740 642 (40) % 1.77% 1.85% Securities yield 4,401 4,172 4,282 4,295 4,212 (4) % 0.99% 0.72% 0.63% Total deposit 0.58% 0.55% 0.28% 0.09% 0.09% 0.07% 0.06% costs Personal chequing & Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 savings deposit costs Canadian Banking Net Interest Income ($ millions) 2,985 Q2/20 Net Interest Income 264 City National Net Interest Income (US$ millions) (285) 100 NIM QoQ: +1 bp YoY: (15) bps 2,964 (1)% YoY 416 Volume & Mix Margins Q2/21 Net Interest Income Q2/20 Net Interest Income Volume (84) 432 +4% YoY NIM QoQ: +4 bps YoY: (48) bps Margins Q2/21 Net Interest Income (1) Loan yield calculated as interest income on loans as a percentage of average total net loans is a non-GAAP measure. Securities yield calculated as interest and dividend income on securities as a percentage of average securities, net of applicable allowance is a non-GAAP measure. Deposit costs calculated as interest expense on deposits and other as a percentage of average deposits is a non-GAAP measure. For more information, see slide 58. 52 APPENDIX RB Caft#54Well positioned for rising interest rates Lower interest rates have negatively impacted deposit margins in Canadian Banking, and asset yields at City National (CNB) Strong mortgage growth and lower credit card balances in Canadian Banking shifted the product mix towards lower-yielding assets ~50% of Canadian Banking and CNB deposit base is non-interest bearing or low-rate deposits Canadian Banking ($ billions) Spot Deposits (1) Ain Spot Loan Balances (Q1/20 to Q2/21) ■Non-Interest Bearing Interest Bearing 489 Wholesale Personal Credit cards HELOC ■Residential Mortgages 400 36 2 City National (US$ billions) Spot Deposits ■Non-Interest Bearing ■Interest Bearing 73 Ain Spot Loan Balances (Q1/20 to Q2/21) PPP Loans ■Commercial ■Residential Mortgages 12 49 37 266 +12% 238 +46% 26 41 46% non- interest +38% 223 bearing or 36 +54% 23 49% Non- Interest Bearing 162 low cost deposits Q1/20 Q2/21 pre-pandemic Canadian Banking NIM on Average Earning Assets -1 2.72% 0.06% 0.10% (0.18)% 2.55% (0.15)% Q1/20 NIM Deposit Asset mix pre-pandemic spreads Deposit growth Asset spreads Q2/21 NIM & Other Q1/20 Q2/21 pre-pandemic CNB NIM on Average Earning Assets 2.97% (0.69)% (0.38)% 5 3 0.15% 0.24% 2.29% Q1/20 NIM Loan Yields pre-pandemic Investment Deposit Costs Wholesale Q2/21 NIM Yields Funding (1) Reflects non-interest bearing deposits that are presented in Note 6 of our Q2/21 Report to Shareholders, in addition to personal deposits with an interest rate between 0.1 basis point and 5 basis points. 53 APPENDIX RB Caft#55Strength of a high-quality liquid balance sheet Assets $1,615 Billion (as at April 30, 2021) Liabilities & Capital 54 Unsecured Funding Cash and Reverse Repos 141% coverage 33% Wholesale Funding 46% Liquid Assets Secured Funding Trading & Investment Securities Loan Portfolio Represents 42% of Total Balance Sheet Excluding Allowances and Including Sold MBS as per IFRS Residential Mortgages (1) Other Retail Loans Wholesale Loans Derivatives are on Balance. Sheet as per Other Assets (2) IFRS Personal Deposits 56% 134% coverage Capital + Retail- Business & Government Deposits Related Funding Securitization (1) and Covered Bonds and FHLB Capital Other Liabilities (2) (1) Securitized agency mortgaged back securities (MBS) are on balance sheet as per IFRS. (2) Other assets include $97BN of derivatives related assets, largely offset by derivatives related liabilities in Other liabilities. Under IFRS derivative amounts without master netting agreements cannot be offset and the gross derivative assets and liabilities are reported on balance sheet. APPENDIX RB Caft#5655 Strong deposit growth Leveraging the strength of our distribution channels and successful deposit initiatives to drive growth Average Balances ($B CAD) Canadian relationship deposits ■ Canadian relationship deposits continue to grow at accelerated rate ■ RBC Canadian personal deposit market share is at 20.4% as of Jan 2021 ☐ RBC Canadian commercial demand deposit market share is at 24.8 % as of Jan 2021 RBC Canadian Deposits (1) ($BN) RBC Relationship Deposits ($BN) 270 250 Cdn Personal Deposits 7.3% CAGR Q2 2021 Q2 2020 230 210 (3) HISA $46 $38 190 (4) 170 150 Advisory Channel Deposits Other Personal Deposits $35 $42 $268 $250 130 Business Deposits $383 $344 110 11.2% CAGR 90 Total Deposits $732 $673 70 50 Cdn Business Deposits (2) 30 APPENDIX Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 (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. RBC#57Well-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) U.S. SEC Registered Shelf (US$40BN) Europe and Asia European Debt Issuance Program (US$40BN) Securitizations (Canadian mortgage bonds, NHA MBS(1) and credit cards) Well Diversified by Product (2) Golden Credit Card Trust 3% Yankee CD & 3a2 2% Covered Bond 29% ■ Covered Bond Program Diversified by Geography (2) European Medium Term Note 5% CMB 16% Canadian Senior Debt 22% U.S. Medium Term Note 23% Europe 31% Canada 39% U.S. 30% (EUR 60BN) Japanese Issuance Programs (JPY 1 trillion) Recent Deals ■ USD $1.7 Billion 5 year unsecured at LIBOR+36bps USD $300 Million SOFR FRN 5 year unsecured at LIBOR+36bps ■ CAD $1.25 Billion 5 year unsecured at LIBOR+36bps EUR $1.25 Billion 10 year covered bonds at LIBOR+31bps CAD $1 Billion 12nc7 NVCC subordinated debentures at LIBOR+73bps (1) National Housing Act Mortgage Backed Securities. (2) As at April 30, 2021. 56 APPENDIX RBC#58RBC Covered Bond Program Globally Active ■ Active program in six different currencies: EUR, CAD, USD, CHF, AUD and GBP - C$63BN 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 Trace eligible 57 APPENDIX RBC#59Note 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, pre-provision, pre-tax earnings, adjusted pre-provision and pre-tax earnings, adjusted net income, average loans and acceptances excluding certain items, cash earnings excluding the after-tax effect of amortization of intangibles, loan yield calculated as interest income on loans as a percentage of average total net loans, securities yield calculated as interest and dividend income on securities as a percentage of average securities, net of applicable allowance, and deposit costs calculated as interest expense on deposits and other than as a percentage of average deposits, 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 2020 Annual Report and Q2 2021 Report to Shareholders, as well as in our Q2 2021 Supplementary Financial Information. Definitions can be found under the "Glossary" sections in our Q2 2021 Supplementary Financial Information and our 2020 Annual Report. 58 Investor Relations Contacts Nadine Ahn, SVP Wholesale Finance and Investor Relations Asim Imran, Vice President, Investor Relations Marco Giurleo, Senior Director, Investor Relations (416) 974-3355 (416) 955-7804 (416) 955-2546 www.rbc.com/investorrelations RBC