#1Royal Bank of Canada Investor Presentation Q1/2019 RB All amounts are in Canadian dollars unless otherwise indicated and are based on financial statements prepared in compliance with International Accounting Standards 34 Interim Financial Reporting, unless otherwise noted. Our Q1 2019 Report to Shareholders and Q1 2019 Supplementary Financial Information are available on our website at rbc.com/investorrelations. 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 presentation, in other filings with Canadian regulators or the SEC, in reports to shareholders, and in other communications. Forward- looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals. The forward-looking information contained in this presentation is presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "should", "could" or "would". By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors - many of which are beyond our control and the effects of which can be difficult to predict - include: credit, market, liquidity and funding, insurance, operational, regulatory compliance, strategic, reputation, legal and regulatory environment, competitive and systemic risks and other risks discussed in the risk sections of our 2018 Annual Report and the Risk management section of our Q1 2019 Report to Shareholder; including global uncertainty, Canadian housing and household indebtedness, information technology and cyber risk, regulatory changes, digital disruption and innovation, data and third party related risks, climate change, the business and economic conditions in the geographic regions in which we operate, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency and environmental and social risk. We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward- looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Material economic assumptions underlying the forward looking-statements contained in this presentation are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2018 Annual Report, as updated by the Economic, market and regulatory review and outlook section of our Q1 2019 Report to Shareholders. Except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf. Additional information about these and other factors can be found in the risk sections of our 2018 Annual Report and the Risk management section of our Q1 2019 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. About RBC 1#3About RBC RBC#4The RBC story RBC Diversified business model with leading client franchises Market leader with a focused growth strategy Financial strength underpinned by prudent risk and cost management ■ Well-diversified across businesses, geographies and client segments ■ Able to capitalize on opportunities created by changing market dynamics and economic conditions ■ Wide breadth of products and capabilities to meet our clients' financial needs and build deep, long-term relationships ■ Market leader in Canada and one of the largest financial institutions globally(1) ■ Clear strategy for continued long-term growth in Canada, the U.S. and select global markets ■ Track record of earnings and dividend growth while maintaining a disciplined approach to risk and cost management ■ Credit ratings amongst the highest globally ■ Strong capital position and a high quality liquid balance sheet Long history of innovation and proven ability to adapt to industry trends Innovation is in our DNA Leading Corporate Citizen ■ ■ Investments in technology allow us to drive efficiencies and deliver an exceptional client experience ■ Focused on simplifying, digitizing and personalizing our products to make it easier for clients and employees to do business and lower costs ■ Listed in the Bloomberg Gender Equality Index for 3rd consecutive year, obtaining the top-rank amongst Canadian peers in 2019 - ■ Through RBC's Employee Giving Campaign during Q1/2019, 23,000 Canadian employees & retirees raised $19.5 million to support over 4,000 community organizations RBC Capital Markets announced a new Sustainable Finance Group that will work closely with the growing number of clients who value ESG(2) information in their corporate strategy and investment decision-making process Through RBC Future Launch, we introduced RBC UpskillTM, a highly personalized career tool that helps youth take stock of career-relevant skills About RBC (1) Based on market capitalization as of January 31st, 2019. (2) Environmental, Social and Governance 3#5Market leader with a focused strategy for growth Largest in Canada (1) A market leader across all key businesses Top 15 Globally(1) One of the 15 largest global banks by market capitalization with operations in 35 countries 16 Million+ Clients Served by 84,000+ employees worldwide RBC 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 About RBC (1) Based on market capitalization as at January 31, 2019. 4#6Diversified business model with client leading franchises Earnings by Business Segment (1) Latest twelve months ended January 31, 2019 Revenue by Geography (1) Latest twelve months ended January 31, 2019 Investor & Treasury Services 5% Insurance 7% Wealth Management 18% Capital Markets 21% International 16% Personal & Commercial Banking 49% U.S. 23% Canada 61% About RBC (1) Amounts exclude Corporate Support. These are non-GAAP measures. For more information, refer to Results by business segment section of our 2018 Annual Report. RBC 5#7Strong financial profile Consistent earnings growth and solid ROE while maintaining a strong capital position with a disciplined approach to risk Consistent Earnings Growth Net income ($ billions) Strong Return on Equity(1) 11.5 10.5 12.4 3.0 3.2 RBC 17.6% 17.4% 17.0% 16.7% 16.3% 2016 2017 2018 Q1/18 Q1/19 2016 2017 2018 Strong Capital Position Q1/18 Q1/19 Strong Leverage and Liquidity Ratios. Leverage Ratio 4.3% 14.4% 14.6% 14.5% 14.1% 14.1% Liquidity Coverage Ratio 128% 11.5% 11.0% 10.9% 11.1% 11.4% Credit Ratings Amongst the Highest Globally Moody's S&P DBRS Fitch Legacy senior Aa2 AA- AA AA long-term debt (2) Q1/18 Q2/18 ■Total Capital Q3/18 Q4/18 Q1/19 Senior long-term debt(3) A2 A AA (low) AA ■Common Equity Tier 1 (CET1) Outlook Stable Stable Positive Stable About RBC 6 (1) Return on Equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-GAAP measures section of Q1 2019 Report to Shareholders. (2) Includes 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 (ratings as of February 21, 2019). (3) Includes senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the Bail-in regime (ratings as of February 21, 2019).#8Prudent risk management A disciplined approach and diversification have driven stable credit trends Loan Book Diversified by Portfolio (1) Credit Cards 3% Small Business 1% PCL Ratio on Impaired Loans (2) (bps) 15 45 40 40 35 30 27 Wholesale 34% Residential Mortgages 47% 25 55 22 22 20 20 Personal Loans 15% Breakdown by Region of Total Loans and Acceptances (1) U.S. 14% Other International- 4% Canada 82% 15 PCL ratio on impaired loans 10 223 23 17 23 RBC Historic Range: 30-35 bps 22 22 20 17 28 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Breakdown of Canadian Total Loans and Acceptances (1) Atlantic Manitoba/ Sask. 5% 6% Quebec 12% Ontario 47% Alberta 14% B.C. and Territories 16% 7 (1) Loans and acceptances outstanding as at January 31, 2019. Does not include letters of credit or guarantees. (2) Effective November 1, 2017, we adopted IFRS 9, which introduced a three- stage expected credit loss impairment model that differs significantly from the incurred loss model under IAS 39. Stage 3 allowances are held against impaired loans and effectively replace the allowance for impaired loans under IAS 39. Provision for Credit Losses (PCL) ratio is PCL as a percentage of average loans & acceptances (annualized). About RBC#9History of delivering value to our shareholders Financial performance objectives measure our progress against our goal of maximizing total shareholder returns Medium-Term Financial Performance Objectives Diluted EPS Growth Return on Equity Capital Ratios (CET1) Dividend Payout Ratio 7%+ 16%+ Strong 40%-50% Achieved Solid TSR (1) Performance Strong Dividend Growth (2) RBC Peer Average RBC CAGR 17% $3.77 $3.48 3 Year 16% 11% $3.24 $3.08 $2.84 $2.53 $2.28 5 Year $2.00 $2.00 $2.00 $2.08 12% 9% 10 Year 17% 14% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 About RBC 8 (1) Annualized TSR is calculated based on the TSX common share price appreciation plus reinvested dividend income. Source: Bloomberg, as at January 31st, 2019. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our 2018 Annual Report. (2) Dividends declared per common share. Our current quarterly dividend is $1.02.#10Business Segments RBC#11Personal & Commercial Banking ■ The financial services leader in Canada ■ ◉ ■ - - #1 or #2 market share in all key product categories Most branches and one of the largest mobile sales network across Canada Superior cross-sell ability In 16 countries and territories in the Caribbean 2nd largest bank by assets (1) in English Caribbean Innovative direct banking to U.S. cross-border clients Ongoing investment to digitize our banking channels Net Income ($ millions) Q1/2019 Highlights Clients (MM) RBC 13.0+ Branches 1,263 ATMs 4,495 Active Digital (Online and Mobile) Users (2) (MM) 6.8 Employees (FTE) 35,000+ Net Loans & Acceptances (1) ($BN) 438.1 382.2 264.0 Deposits (1) ($BN) AUA(1) ($BN) Revenue by Business Line (3) 6,028 5,755 168 184 5,184 182 5,860 5,571 5,002 1,521 1,571 41 27 1,544 1,480 2016 2017 ■Canadian Banking 2018 Q1/2018 ■Caribbean & U.S. Banking Q1/2019 Business Segments Canadian Banking 94% Personal Banking 71% Business Banking 23% (1) Based on average balances. (2) This figure represents the 90-day active customers in Canadian Banking only. (3) For the quarter ended January 31st, 2019. Caribbean & U.S. Banking 6% 10#12Personal & Commercial Banking - Canadian Banking TM Strategic Priorities: Building A Digitally-Enabled Relationship Bank" Transform How We Serve Our Clients Accelerate Client Growth Rapidly Deliver Digital Solutions Innovate to Become a More Agile and Efficient Bank Recent Awards ■ Make it easier for clients to access products and services digitally RBC ■ 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 Highest in Customer Satisfaction Among the Big Five Retail Banks for the 3rd consecutive year (1), Highest in Customer Satisfaction Among Mobile Banking Apps for the 2nd consecutive year (1) Business Segments RETAIL BANKER INTERNATIONAL North American Retail Bank of the year & Best Customer Facing Technology for MyAdvisor(2) CELENT MODEL BANK NOMI Insights and NOMI Find & Save won the Personal Financial Experience category; RBC's digital employee activation strategy won in Employee Productivity category (3) (1) J.D. Power, 2018. (2) Retail Banker International, 2018. (3) Celent Model Bank, 2018. (4) Digital Finance Institute, 2018. DIGITALFINANCE INSTITUTE Financial Institution of the Year for the 2nd consecutive year (4) at the Canadian FinTech & Al Awards 11#13Personal & Commercial Banking - Canadian Banking Solid Volume Growth ($ millions)(1) Superior Cross-Sell Ability Percent of households with transaction accounts, investments and borrowing products (2) 364 343 339 326 301 375 393 417 409 431 2016 2017 2018 Q1/2018 Q1/2019 ■Loans and Acceptances ■ Deposits # 1 or #2 Market Share in All Categories (3) 21% RBC 16% Peer Average Continue To Improve Our Efficiency Ratio (9) RBC Market Product Rank share Personal Lending (4) 20.5% 2 Personal Core Deposits + GICs 19.7% 2 Peer 47.6% Average (10) 46.6% Credit Cards(5) 46.4% 28.0% 1 45.7% Long-Term Mutual Funds (6) 32.9% 1 44.2% 43.2% 42.5% Business Loans ($0-$25MM)(7) 26.7% 1 41.6% RBC C Business Deposits (8) 25.6% 1 2016 2017 2018 Q1/2019 Business Segments 12 (1) Based on average balances. (2) Canadian Financial Monitor by Ipsos 10,000 Canadian households - data based on Financial Group results for the 12-month period ending October 2018; TFSA is considered an Investment. Peers include BMO, BNS, CIBC and TD. (3) Market share is calculated using most current data available from OSFI (M4), Investment Funds Institute of Canada (IFIC) and Canadian Bankers Association (CBA), and is at October 2018 except where noted. Market share is of total Chartered Banks except where noted. (4) Personal Lending market share of 6 banks (RBC, BMO, BNS, CIBC, TD and NA) and includes residential mortgages (excl. acquired portfolios) and personal loans as at August 2018. (5) Credit cards market share is based on 6 banks (RBC, BMO, BNS, CIBC, TD and NA) as at August 2018. (6) Long-term mutual fund market share is compared to total industry and is at October 2018. (7) Business Loans market share is of 6 Chartered Banks (RBC, BMO, BNS, CIBC, TD and NA) on a quarterly basis and is as of June 2018. (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.#14Stable credit quality in Canadian Banking retail portfolio Average Canadian Banking Retail Loans (1) 23% 1% 5% $354.1BN 71% Unemployment Rate 9.0% ■Residential Mortgages ■ Personal ■Credit Cards ■Small Business 8.0% Business Segments (1) Excludes Canadian Banking wholesale business loans and acceptances. 7.0% 6.0% 5.0% 4.0% Jan-16 Jan-17 Oct-16 Jul-16 Apr-16 Jul-17 Apr-17 Oct-17 RBC Alberta 6.8% Canada 5.8% Ontario 5.7% B.C. 4.7% Jan-19 Oct-18 Jul-18 Apr-18 Jan-18 Canada's unemployment rate improved, down 10 bps YoY to 5.8% ■ Ontario and B.C., which represent the largest portion of our retail portfolio, continue to perform well with unemployment rates of 5.7% and 4.7%, respectively 13#15Strong underlying credit quality in our Canadian residential portfolio Canadian Residential Mortgage Portfolio (1) As at January 31, 2019 ($ billions) LTV (2) 50% 46% 62% 57% 57% 57% $118.4 ■Insured Uninsured $102.9 (38%) $166.1 (62%) 68% $49.2 $37.5 $32.2 69% 45% $17.5 60% 32% 49% 55% 31% 40% 51% $14.2 46% 54% Ontario B.C. & Alberta Quebec Territories Manitoba & Sask. Atlantic Canadian Mortgage Portfolio ☐ ☐ RBC Average remaining amortization on mortgages of 18 years Strong underlying quality of uninsured portfolio (2) ~49% of uninsured portfolio have a FICO score >800 Greater Toronto Area and Greater Vancouver Area average FICO scores are above the Canadian average ■ Condo exposure is ~10% of residential lending portfolio Canadian Banking Residential Lending Portfolio (2) As at January 31, 2019 Total ($285.6BN) Uninsured ($205.7BN) Mortgage HELOC LTV (2) GVA GTA Average FICO Score (2) 90+ Days Past Due(2)(3) $246.0BN $166.1BN $39.6BN $39.6BN 52% 51% 43% 43% 48% 48% 789 796 21 bps 17 bps 9 bps 7 bps GVA GTA Business Segments 8 bps 7 bps 14 (1) Canadian residential mortgage portfolio of $269BN comprised of $246BN of residential mortgages, $7BN of mortgages with commercial clients ($4BN insured) and $16BN of residential mortgages in Capital Markets held for securitization purposes. (2) Based on $246BN in residential mortgages and HELOC in Canadian Banking ($39.6BN). Based on spot balances. Totals may not add due to rounding. (3) The 90+ day past due rate includes all accounts that are either 90 days or more past due or are in impaired status.#16Wealth Management Strategic Priorities ■ Global Asset Management: Deliver investment performance and extend leadership position in Canada, while continuing to build and grow in the U.S. and other key global markets Canadian Wealth Management: Continue to deepen client relationships and deliver a differentiated client experience that is increasingly digitally-enabled and supported by data-driven insights U.S. Wealth Management: Leverage the combined strengths of City National Bank, RBC Wealth Management and Capital Markets to accelerate growth in the U.S. International Wealth Management: Continue to leverage the strengths and capabilities of RBC to drive growth in HNW and UHNW client segments(1) Net Income ($ millions) Recent Awards Outstanding Global Private Bank (Overall) (Private Banker International Global Wealth Awards, 2018) Outstanding Global Private Bank - North America (Private Banker International Global Wealth Awards, 2018) Outstanding Wealth Planning and Trust Provider (Private Banker International Global Wealth Awards, 2018) Best Private Bank in Canada (PWM and The Banker Global Private Banking Awards, 2018) Best Private Bank for Digital Client Communications - North America (PWM Global Wealth Tech Awards, 2018) Cash Earnings ($ millions) (2) 2,265 1,838 1,473 2016 2017 2018 597 597 Q1/18 Q1/19 2,458 2,017 1,656 2016 2017 2018 643 646 Q1/18 Q1/19 RBC Business Segments (1) High Net Worth (HNW) and Ultra High Net Worth (UHNW). (2) Cash earnings (refer to adjusted net income) exclude the after-tax effect of amortization of intangibles. This is a non-GAAP measure. For more information see slide 40. 15#17Wealth Management - Global Asset Management Building a high-performing global asset management business ■ Driving top-tier profitability in our largest Wealth Management business ■ - - $429.6BN in client assets Investor asset mix of 52% Retail / 48% Institutional client assets Extending our lead in Canada - Largest retail fund company in Canada, ranked #1 in market share capturing 31.7% amongst banks and 15.4% all-in (1) 3rd largest institutional pension asset manager in Canada(2) ■ Delivering strong investment capabilities to support growth - - Top performing investment firm with ~82% of AUM outperforming the benchmark on a 3-year basis (3) Continued growth of investment capabilities and innovative solutions for both institutional clients and retail investors Canadian Retail AUM ($ billions) 14.9% 14.9% 15.0% 15.1% 15.1% 15.1% 15.1% 15.4% Diversified Asset Mix Q1/2019 AUM by Client Segment ($ billions) (4) 206.8 210.6 213.8 222.5 223.9 228.8 230.6 218.8 18% ■Canadian Retail 9% ■Canadian Institutional $429.6BN 52% ■U.S. Institutional 21% ■International Institutional RBC Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Canadian Mutual Fund Balance (1) All-In Market Share(1) January 2019 Canadian retail AUM was $226.9BN, up from $218.8BN the previous month mainly due to market appreciation Business Segments 16 (1) Investment Funds Institute of Canada (IFIC) as at December 2018 and RBC reporting. Comprised of long-term funds and money market funds. (2) Benefits Canada as at November 2018. (3) As at December 2018, gross of fees. (4) RBC GAM, based on period-end spot balances.#18Wealth Management Canadian Wealth Management Maintaining profitable growth Generating 26.6% of RBC Wealth Management earnings with strong pre- tax margin Fee-based Assets per Advisor (2) ($ millions) - #1 HNW(1) market share in Canada(2) Driving strong advisor productivity Canadian leader in fee-based assets per advisor(2) $106 Consistently driving revenue per advisor of over $1.47MM per year, 33% above Canadian industry average(2) Leveraging enterprise linkages to extend market share gains 1.8x the Peer Average $60 RBC Cdn Peer Average U.S. Wealth Management (including City National) RBC Wealth Management U.S. RBC ■ 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(3) 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, and Washington DC Expanding the CNB business model to selected high growth markets International Wealth Management ■ ■ Enhancing advisor and product capabilities to accelerate organic client acquisition Continuing to focus on high-priority client segments across HNW and UHNW(¹), especially in select target markets where we have scale Leveraging RBC's global capabilities to bring the best of RBC to our clients Business Segments (1) High Net Worth (HNW) and Ultra High Net Worth (UHNW). (2) Strategic Insight (formerly Investor Economics), October 2018. (3) Source: U.S. wealth advisory firms quarterly earnings releases (10-Q). 17#19Insurance Strategic Priorities ■ Improve Distribution Effectiveness and Efficiency: By enhancing our proprietary distribution channels and focusing on the delivery of technology and operational solutions Deepen Client Relationships: By continuing to be an innovative, client-focused provider of a full suite of insurance solutions for mass underserved, mass affluent and HNW clients Simplify. Agile. Innovate.: By accelerating our digital initiatives’ time-to-market, improving quality and cost effectiveness Pursue Select International Opportunities: Within our risk appetite, with the aim of continuing to grow our core reinsurance business Net Income ($ millions) (3) 900 Highlights Among the largest Canadian bank-owned insurance organizations, serving more than four million clients globally #1 in individual disability sales with 41% (1) market share #2 in Segregated fund net sales & one of fastest growing segregated fund providers(2) RBC Guaranteed Investment Funds continue to be one of the fastest growing segregated fund providers in Canada with a year over year growth of 21% (2) RBC Continued to deliver on our goal to affirm our position as a key market player (#4 with a 13% market share YTD, September 30, 2018)(1) in the pension de-risking business in Canada Wellness Program launched to group health clients as a value-added service Access to new technology and expanded set of insurance solutions for our clients through partnership with Aviva Efficiency Ratio (4) 775 726 14.7% 12.6% 12.8% 11.6% 166 127 2016 2017 2018 Q1/18 Q1/19 2016 2017 2018 Q1/19 Business Segment 18 (1) LIMRA Canadian Insurance Survey, 3rd Quarter, 2018. (2) Strategic Insights, Insurance Advisory Service Report, October 2018. (3) 2016 net income includes the gain on sale of RBC General Insurance Company. (4) Efficiency Ratio calculated by dividing non-interest expense by total revenue (excludes fair value changes on investments backing policyholder liabilities for every year/quarter, and $287MM pre-tax gain on sale of RBC General Insurance Company in 2016).#20Investor & Treasury Services ■ Specialist provider of asset services, a leader in Canadian cash management and transaction banking services, and a provider of treasury services to institutional clients worldwide Rated by clients as the #1 Global Custodian for the eighth consecutive year(1) Ranked the #1 Fund Administrator overall for the sixth consecutive year(2) Ranked the #1 Fund Administrator in Ireland and Luxembourg(2) Named Best Trade Finance Bank in Canada for the seventh consecutive year(3) ■ Short-term funding and liquidity management for RBC Net Income ($ millions) Strategic Priorities RBC Grow income and market share among Canadian asset managers, investment counsellors, pension funds, insurance companies and transaction banking clients Develop long-term partnerships with sophisticated and fast- growing asset managers Automate and scale our business to support our clients' growth ambitions Employ sound risk management practices and commercial insights to mitigate risks in the pursuit of profitable growth Design and deliver digitally-enabled products and services to transform the way we interact with our clients Inspire and develop a change-ready workforce Efficiency Ratio 741 741 613 2016 2017 2018 219 161 Q1/18 Q1/19 66% 64% 62% 60% 2016 2017 2018 Q1/19 Business Segments (1) Global Investor/ISF Global Custody Survey, 2018. (2) R&M Fund Accounting and Administration Survey, 2018. (3) Global Finance, 2019. 19#21Capital Markets ■ A leading North American investment bank with core markets across Canada, the U.S. and the U.K./Europe 10th largest global investment bank by fees(1) RBC ☐ Strategically positioned in the largest financial centers, focused on the world's largest and most mature capital markets encompassing ~80% of the global investment banking fee pool (2) ■ A premier global investment bank providing expertise in banking, finance and capital markets to corporations, institutional investors, asset managers, governments and central banks around the world ■ We believe in making a positive impact in the communities we live and work. This is reflected in our long-standing tradition of supporting local charities and our signature global initiatives: RBC Race for the Kids and RBC Trade for the Kids. In 2018, we gave back over USD$20 million to our communities through donations, sponsorships, and direct investments. Net Income ($ millions) 2,270 2,525 2,777 III Revenue by Geography (3) Canada 27% 14% 748 653 53% U.S. 2016 2017 2018 Q1/18 Q1/19 Business Segments (1) Dealogic-Fiscal 2019 Q1. (2) Thomson Reuters, Global Investment Banking Review, full year 2018. (3) For the quarter ended January 31, 2019. U.K./Europe 6% Asia Pacific & Other 20 20#22Capital Markets Strategic Priorities Create valued relationships with our clients by being an innovative and trusted partner Continue to grow our Global Investment Banking and Global Markets franchises Optimize Capital Use to Earn High Risk- Adjusted Returns on Assets and Equity ■ Focus on long-term client relationships aligned with our global capabilities ☐ Support our clients by partnering with them to understand their strategic objectives and delivering solutions to achieve their goals ■ Collaborate to deliver clients our full suite of global products and services ■ ■ RBC Continue to grow and strengthen our senior coverage teams in the U.S., U.K. and Europe Drive technology innovation in our Global Markets businesses through electronification, algorithmic trading, and other initiatives Focus capital and coverage to deepen relationships with clients that are the most significant users of Capital Markets Partner with other enterprise segments to bring clients One RBC solution, specifically, with U.S. Wealth Management Optimize capital use to earn high risk-adjusted returns by maintaining both a balanced approach between investment banking and trading revenue and a disciplined approach to managing the risks and costs of our business Recent Awards the technical analyst AWARDS 2018 WINNER GREENWICH ASSOCIATES Greenwich Excellence GLOBAL FINANCE Institutional Investor PFI AWARDS 2018 Best Bank for Fixed Income Research (1) #1 for Canadian Equity Trading Market Share (2) Best Investment Bank in Canada (3) Top 10 All-American Research Team (4th Consecutive Year) (4) Transport Deal of the Year (Gordie Howe International Bridge) (5) Business Segments (1) The Technical Analyst Awards, 2018. (2) Greenwich Associates, 2018. (3) Global Finance, 2018. (4) Institutional Investor, 2018. (5) Project Finance International, 2018. 21#23Capital Markets Diversified Global Markets Revenue (1) ($ millions) Corporate & Investment Banking Revenue ($ millions) RBC 4,361 4,466 4,496 4,000 4,113 3,694 1,101 1,129 1,238 1,147 1,084 1,860 2,006 1,802 1,136 1,221 1,227 994 927 2,113 2,253 2,122 322 338 1,892 2,140 2,107 302 484 399 520 597 490 510 407 2016 2017 2018 Q1/18 Q1/19 2016 2017 ■Investment Banking 2018 Q1/18 Q1/19 ■Lending and Other ■ FICC ■Global equities Repo and Secured financing Risk-Weighted Assets ($ billions) 183 Q1/18 207 208 201 201 Q2/18 Q3/18 Q4/18 Q1/19 Geographic Diversification Across Loan Book Average loans outstanding by region ($ billions) (2) 84 80 74 75 77 13 13 13 13 14 35 36 38 40 44 26 25 26 27 27 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 ■ Canada ■ U.S. ■Other International 22 Business Segments (1) Global Markets segment revenue has been restated to align select portfolios previously disclosed in Repo and Secured Financing to FICC and Global Equities. (2) 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 40.#24Economic Backdrop RBC#25Canada's 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) ■ Growth in the economy has slowed in part due to transitory disruptions to activity in the energy sector, but also because of rising interest rates and limited remaining slack in the economy. GDP is expected to increase at a more moderate pace in 2019 and 2020. Net Debt as % of GDP (1) (2017) Canadian GDP by Industry (2) (Nov 2018) 27.7 44.9 Canada Germany U.K. 77.9 U.S. 78.8 85.8 G7 Average France 87.5 Italy 119.5 Japan 154.9 8% 8% 5% 5% 13% 20% 9% 12% 11% ■Finance, Insurance & Real Estate ■Manufacturing ■ Wholesale and Retail Trade Scientific, Technical & Educational Services ■Public Administration and Utilities ■Mining, Oil & Gas Extractions ■Construction 10% ■ Health Care ■Transportation, Warehousing Economic Backdrop (1) Net debt refers to General Government net debt. International Monetary Fund October 2018 Fiscal Monitor. (2) Statistics Canada, RBC Economics Research. ■ Other 24 24 RBC#26-1 -2 5 4 3 2 1 Growth in economy to slow with economy hitting capacity Headline inflation eased to 2.0% on average in Q4 but has slipped below that in early 2019 due to lower energy prices than the previous year. Underlying inflation trends continue to be around the Bank of Canada's 2% midpoint target with limited slack in the economy keeping a floor under prices. ■ Labour markets have continued to improve. The unemployment rate fell to a new cycle-low 5.6% on average in calendar Q4 - the lowest in more than 4 decades. The unemployment rate in Alberta dipped to 6.6% on average in Q4. That is still above the national average but is down more than two percentage points from a recent peak of 9.0% in late 2016. RBC ■ GDP growth appears to have slowed to 2.0% from the unsustainable 3.0% increase in 2017. We expect trend-like growth of 1.7% in 2019 and 1.8% in 2020. 2000 2001 2001 2002 2003 2004 2005 2006 Canadian Inflation (YoY)(¹) سکتا 2006 2007 2008 2009 2010 2011 2011 2012 2013 2014 2015 2016 2016 2017 2018 Headline -BOC Target 6 5 13 12 11 10 9 8 7 Canadian Labour Markets (YoY)(2) 1991- 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Employment growth (YOY% - RHS) Economic Backdrop (1) Statistics Canada, RBC Economics Research. (2) Statistics Canada, Bureau of Labor Statistics, RBC Economics Research. Unemployment rate (% - LHS) 25 25 3 2 1 0 -1 -2 -3#272019 Economic Outlook Canada U.S. Euro Area Canada U.S. Euro Area Projected Economic Indicators for 2019 (1) RBC Unemployment Interest Rate Current Account GDP Growth Inflation Rate (2) (3 mth T-bills) Balance/GDP (2) Budget Surplus/GDP (3) 1.7% 1.6% 5.9% 2.20% (2.9%) (1.1%) 2.4% 1.9% 3.7% 2.9% (2.3%) (5.0%) 1.1% 1.8% 8.0% NA 2.9% (0.6%) ■The Canadian economy is forecast to grow by 1.7% in 2019 following a 2.0% increase in 2018 and a 3.0% gain in 2017. This year likely got off to a slow start due to weakness in the energy sector. Housing activity has continued to slow due to the ongoing impact of policy changes and rising interest rates. Consumer spending has also increased at a more moderate pace, though the labour market remains healthy. Rising exports and government spending will provide some offset, keeping growth near its underlying 'trend' rate. ■ The Bank of Canada continues to indicate that interest rates are likely to move toward a more neutral level over time. But we expect they will hold monetary policy steady in the near-term to evaluate the impact of lower oil prices, ongoing slowing in housing, and trade policy developments. We expect they will get enough clarity on those issues, and confirmation that the economy is operating close to full capacity, to raise interest rates twice over the second half of 2019. That would leave the overnight rate at 2.25% at the end of the year. ■ The U.S. economy is forecast to grow by 2.4% in 2019 following a 2.9% gain in 2018. Both are above the economy's longer run trend. Consumer spending is likely to increase at a more moderate rate as the effects of income tax cuts continue to fade, though a strong labour market and rising wages will support spending. Business investment is expected to continue to increase but could be dampened somewhat by market volatility and concerns about trade policy and global growth. ■ With interest rates now closer to ‘neutral' the U.S. Federal Reserve has signaled a pause in their tightening cycle, giving policymakers time to assess financial market stability, inflation developments, and the global growth environment. Our forecast assumes two rate increases this year in June and December. Euro area GDP growth is expected to slow to a 1.1% pace in 2019 following a 1.8% increase in 2018. Some of the recent loss of momentum reflects political uncertainty, as well as slowing global growth on the industrial sector. Growth is expected to remain slightly below-trend early this year before returning to a more trend-like pace over the second half of the year. ■ Inflation remains low despite the strengthening economic backdrop, though wage growth picked up in 2018. The European Central Bank ended net asset purchases at the start of the year, and could begin gradually raising interest rates from current, negative levels later this year if activity rebounds as we expect. Economic Backdrop 26 (1) RBC Economics Research as of February 8, 2019 and reflect forecasts for calendar 2019. (2) RBC Economics Research. (3) IMF Fiscal Monitor (October 2018), Congressional Budget Office FY2018, European Commission, RBC Economics Research.#28Canadian Housing Market RBC#29Structural backdrop to the Canadian housing market Regulation " Canada (1) Government influences mortgage underwriting policies primarily through control of insurance eligibility rules - Fully insured if loan-to-value (LTV) is over 80% Must meet 5-year fixed rate mortgage standards Government-backed, on homes under $1MM Down-payment over 20% on non-owner occupied properties CMHC last increased mortgage loan insurance premiums in 2017 by ~15% for new mortgages with LTV over 90% Minimum down payment for new government-back insured mortgages is 10% for portion of the value of a home being purchased that is between $500,000 - $999,000, and 5% below $500,000 Re-financing cap of 80% on non-insured ☐ ☐ U.S.(1) RBC Agency insured only if conforming and LTV under 80% No regulatory LTV limit - can be over 100% Not government-backed if private insurer defaults Consumer Mortgage interest not tax deductible Behaviour ■ Greater incentive to pay off mortgage ☐ Mortgage interest is tax deductible ■ Less incentive to pay down mortgage ☐ Strong underwriting discipline; extensive documentation ☐ Lender Behaviour ☐ Most mortgages are held on balance sheet ■ ■ Conservative lending policies have historically led to low delinquency rates Wide range of underwriting and documentation requirements Most mortgages securitized ■ Lenders' Recourse Ability to foreclose on non-performing mortgages, with no stay periods ■ Stay period from 90 days to one year to foreclose on non-performing mortgages Canadian Housing Market Full recourse against borrowers (2) ☐ Limited recourse against borrowers in key states 28 (1) Current regulation and lenders recourse. (2) Alberta and Saskatchewan have some limited restrictions on full recourse.#30- Legislation and policies – promoting a healthy housing market February 2018 - Government of British Columbia ◉ RBC The B.C. government's 2018 budget included a 30-point plan to address housing affordability issues in several areas of the province. The most significant changes are a new speculation tax (rising from 0.5% of assessed value in 2018 to 2% in 2019) that will apply to homeowners who do not pay income tax in the province, as well as an increase 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 16 measures in a 'Fair Housing Plan' to address mounting risks in the housing market including a 15% Non-Resident Speculation Tax on the purchase price of 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 ◉ Any sale of a principal residence must be reported in the seller's tax return for the year of sale, even if the entire gain is fully protected by the principal residence exemption July-August 2016 - OSFI & the Government of British Columbia ■ OSFI increased scrutiny on mortgage underwriting standards and indicated it will place a greater emphasis on confirming internal controls and risk management practices are sound, and take into account market developments ■ Foreign buyers registering the purchase of residential homes in Metro Vancouver become subject to an additional property transfer tax of 15% under legislation introduced by the British Columbia government Canadian Housing Market 29 29#31- Legislation and policies – promoting a healthy housing market December 2015 – Department of Finance RBC ■ Minimum down payment for new government-backed insured mortgages increased from 5% to 10% for portion of the value of a home being purchased that is between $500,000 and $999,999 (came into effect February 2016) April 2014 CMHC Discontinued offering mortgage insurance on 2nd homes and to self-employed individuals without 3rd party income validation July 2012 CMHC ■ Maximum amortization on government-backed insured mortgages reduced to 25 years from 30 years ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 80% from 85% ☐ CMHC insurance availability is limited to homes with a purchase price of <$1 million lowered from $3.5 million ■ Set the borrower's maximum gross debt service ratio at 39% and maximum total debt service ratio at 44% March 2011 - CMHC ■ Maximum amortization on government-backed insured mortgages reduced to 30 years from 35 years ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 85% from 90% February 2010 - Department of Finance ■ Borrowers with insured mortgage terms of less than five years must meet the standards for a five-year fixed rate mortgage ■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 90% from 95% ■ Minimum 20% down payment is required in order to qualify for government-backed mortgage insurance on non-owner-occupied properties July 2008 Department of Finance ■ Maximum amortization on government-backed insured mortgages reduced to 35 years from 40 years ■ A minimum 5% down payment is required in order to qualify for government-backed insured mortgages ■ Additional - minimum credit score requirements, new loan documentation standards, setting a maximum of 45% on borrowers total debt service ratio Canadian Housing Market 30#32The Toronto and Vancouver downtown condo markets RBC ■ 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 center ■ Canada has one of the highest per capita rates of permanent immigration in the world (1) ― 22% of Canada's population is foreign born (7.5 MM), highest proportion among the G8 nations (1) 56% of all new immigrants to Canada move to Toronto, Vancouver or Montreal(1) ■ RBC's exposure to condo development is limited - about 3% of our Canadian commercial loan book Condo exposure is about 10% of our Canadian residential mortgage portfolio (2)(3) "Green Belt" Surrounding Greater Toronto Area (2) Vancouver Limited by Mountains, Sea, U.S. Border Mt Seymour Provincial Park Canadian Housing Market Lake Simcoe P Lake Ontario CANADA cal Reserve 1A North Vancouver District Belcama Regional Park Pinecone Lake-Burke Mountain Park Coquitlam VANCOUVER Pacific Spint Regional Park 99 91A Richmond Maple Ridge New Westminster Langley Twp Surrey 10 Delta 99 Point Roberts White Rock Campbell Valley Regional Park 15 13 (1) Statistics Canada, 2016 Census. (2) As at October 31, 2018. (3) Based on $243BN in residential mortgages and $40.1BN in HELOC in Canadian Banking. 530 31#33Canadian housing market risks remain localized RBC ■ The stress test introduced on January 1st 2018 for uninsured mortgages, had a cooling impact across Canada. The stress test, along with increases in interest rates, caused home resales to decline for a second-straight year by 11% in 2018. In 2017, regulatory changes at the federal and provincial levels in BC and Ontario contributed to a nearly 5% decline in home resales in Canada. To a large extent, this is a 'soft landing' engineered by policy makers Demand-supply conditions, however, remain balanced nationally and in most local markets including Toronto where prices have now stabilized after softening in 2017 on the heels of Ontario's Fair Housing Plan. Property values are generally on a modest rise in Canada except in Vancouver and oil producing regions where market conditions are currently weak ■ Solid population growth, household income gains and low unemployment rates lower the risk of a downward spiral ■ Poor housing affordability is being skewed at the national level by severe conditions in Vancouver and Toronto. Affordability is in line with historical norms in most other markets across Canada, albeit the trend is deteriorating Canada's household debt service ratio showed a small uptick in 2018 — and is poised to rise further going forward ▪ Lenders maintaining strong underwriting discipline and require extensive documentation Most mortgages held on balance sheet and conservative lending policies have led to low delinquency rates Sales-to-New Listings Ratio (1) (Residential unit sales to new residential listings) 16 Household Debt Service Costs (2) (Mortgage & non-mortgage principal & interest payments as a % of household disposable income) 1.00 0.90 0.80 Seller's market 14 0.70 12 12 0.60 0.50 Balanced market 10 0.40 8 0.30 Buyer's market 0.20 6 0.10 4 ד ד 0.00 T 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 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Canadian Housing Market (1) Canadian Real Estate Association, RBC Economics Research. (2) Statistics Canada, RBC Economics Research. PDI: Personal Disposable Income. 32#34Canadians 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 slowed markedly since early-2017 to a 17-year low in 2018 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 80 75 70 65 60 55 50 45 40 Equity Ownership (1) (Owners' equity as a % of total value of residential real estate assets) -Canada -U.S. 20 18 16 14- 12 10 8 6 4 2 Residential Mortgage Growth (2) (Year-over-year % change) س 35 6 5 4 3 2 1 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 Mortgage Delinquencies (3) (Mortgages 90+ days in arrears as a % of total mortgages) -Canada -U.S. 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 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 Canadian Housing Market RBC 33 (1) Statistics Canada, Federal Reserve Board, RBC Economics Research. (2) Bank of Canada, RBC Economics Research. (3) Canadian Bankers Association, Mortgage Bankers Association, RBC Economics Research.#35Appendix A - Liquidity & Funding RBC#36Strength of a high quality liquid balance sheet Assets $1,366 Billion (as at January 31, 2019) Liabilities & Capital RBC Unsecured Funding Cash and Reverse Repos 45% Liquid Assets 126% coverage 36% Wholesale Funding Secured Funding Loan Portfolio Represents 43% of Total Balance Sheet Excluding Allowances and Including Sold MBS as per IFRS Derivatives are on Balance Sheet as per IFRS Trading & Investment Securities Personal Deposits Residential Mortgages (1) 122% coverage Business & Government Deposits Other Retail Loans 53% Capital + Retail- Related Funding Wholesale Loans Other Assets (2) Securitization (1) and Covered Bonds Capital Other Liabilities(2) Appendix (1) Securitized agency mortgaged back securities (MBS) are on balance sheet as per IFRS. (2) Other assets include $85BN of derivatives related assets, largely offset by derivatives related liabilities in Other liabilities. Under IFRS derivative amounts with master netting agreements cannot be offset and the gross derivative assets and liabilities are reported on balance sheet. 35#37Average Balances ($B CAD) Strong deposit growth RBC Leveraging the strength of our distribution channels and successful deposit initiatives to drive growth Canadian relationship deposits ■ Initiated successful strategies to grow relationship deposit base ■ Canadian relationship deposits continue to grow ▪ RBC Canadian personal deposit market share is at 19.7% as of Oct 2018 ☐ RBC Canadian commercial demand deposit market share is at 25.6% as of Oct 2018 Appendix RBC Canadian Deposits (1) ($BN) 190 170 Cdn Personal Deposits 150 130 110 90 70 90 50 Cdn Business Deposits (2) 30 4.33% CAGR RBC Relationship Deposits ($BN) Q1 2019 Q1 2018 HISA (3) $34 $32 Advisory Channel Deposits (4) $33 $31 Other Personal Deposits $198 $184 7.61% CAGR Business Deposits Total Deposits $286 $275 $551 $522 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 (1) Sourced from Canadian deposit market share, which is based on OSFI (M4 report). (2) Canadian Business deposits reflect all platform demand deposits and Canadian Banking term deposit balances only. (3) High Interest Savings Account; Includes CAD and USD deposits. (4) Sourced largely from RBC Wealth Management network. 36#38RBC Wholesale funding strategy Large retail deposit base complemented by well diversified wholesale funding mix ■ Well diversified across products, currencies, investor segments and geographic regions " Raise majority of funding in international markets to preserve significant domestic capacity which can be tapped in stressed market conditions ■ Regular issuance in all major markets to promote investor engagement and secondary market liquidity ■ Well balanced maturity profile that is reflective of the maturity profile of our asset base Diversified by Geography (1) 30 Europe 32% Canada 28% 32 20 U.S. 40% Appendix (1) RBC term unsecured and covered bonds, as of January 31, 2019. Well Balanced Maturity Profile ($ billions) (1) 10 all... 2019 2020 2021 2022 2023 2024 >2024 37#39Well diversified wholesale funding platform ☐ Variety of programs allows for greater diversification and cost effectiveness Canada ■ Canadian Shelf (C$25BN) ■ Securitizations (Canadian mortgage bonds, NHA MBS(1) and credit cards) Well Diversified by Product (2) Golden Credit Card Trust 7% CMB 13% U.S. ■ SEC Registered Shelf (US$40BN) European Medium Term Note 8% Recent Deals ■ Europe and Asia European Debt Issuance Program (US$40BN) ■ Covered Bond Program (EUR 32BN) Japanese Issuance Programs (JPY 1 trillion) RBC US$600MM 2-year unsecured (bail-in) at LIBOR + 40bps ■ €1.75BN 5-year covered bond at LIBOR + 42bps ■ €500MM 2-year unsecured (bail-in) at LIBOR + 52bps US$550MM 2-year Golden Credit Card at LIBOR+33bps Yankee CD & 3a2 4% Covered Bond Canadian Deposit Note 18% 29% U.S. Medium Term Note 21% Appendix (1) National Housing Act Mortgage Backed Securities. (2) As at January 31, 2019. 38#40RBC Covered Bond Program Globally Active ■ Active program in six different currencies: EUR, CAD, USD, CHF, AUD and GBP C$39BN currently outstanding Strong Issuer ☐ Largest Canadian bank by market capitalization Strong credit ratings RBC 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$17.2BN across eight deals since September 2012 Appendix - Trace eligible 39#41Note to users RBC We use a variety of financial measures to evaluate our performance. In addition to generally accepted accounting principles (GAAP) prescribed measures, we use certain key performance and non-GAAP measures we believe provide useful information to investors regarding our financial condition and result of operations. Readers are cautioned that key performance measures, such as ROE and non-GAAP measures, including amounts excluding Corporate Support, average loans and acceptances excluding certain items, and cash earnings excluding the after-tax effect of amortization of intangibles, do not have any standardized meanings prescribed by GAAP, and therefore are unlikely to be comparable to similar measures disclosed by other financial institutions. Additional information about our ROE and non-GAAP measures can be found under the “Key performance and non-GAAP measures" sections of our 2018 Annual Report and Q1 2019 Report to Shareholders, as well as in our Q1 2019 Supplementary Financial Information. Definitions can be found under the "Glossary" sections in our Q1 2019 Supplementary Financial Information and our 2018 Annual Report. Note to users Investor Relations Contacts Dave Mun, SVP & Head Asim Imran, Senior Director (416) 974-4924 (416) 955-7804 Jennifer Nugent, Senior Director (416) 955-7805 www.rbc.com/investorrelations 40 40