RBC Financial Strategy and Performance
Prudent 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).
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