TECHNOLOGY @ RBC

COVID-19 vulnerable sector spotlights Commercial Real Estate (CRE) $57.6 billion in Loans & acceptances outstanding as of Q4/2020 76% Canada; 20% USA; 3% Other International Industrial & Warehouse 15.6 Consumer Discretionary $16.5 billion in Loans & acceptances outstanding as of Q4/2020 - 60% Canada; 39% USA; 1% Other International Restaurants 5.5 Office Retail 10.5 Multi Family High Rise Condo 2.8 Other 5.6 9.4 13.8 Retail 3.0 1.5 Recreation 1.8 Public golf courses and camp sites Hotels 1.5 (1) Other 3.1 0.2- Dress clothes, luggage, and jewelry ■ Our overall CRE exposure is well diversified by industry segment and region ■ Our vulnerable CRE exposure is retail-related and represents 18% of our CRE exposure and 1.5% of total loans and acceptances outstanding ■ Rent collection has been most challenged for enclosed malls and smaller independent retailers, which have faced closures and reduced foot traffic - Just 13% of the retail-related portfolio is to non-investment grade enclosed malls, where low LTVs, guarantees and debt service coverage built to withstand high vacancy rates, serve as mitigants Grocery-anchored retail properties have not been as impacted, as a result of higher grocery-related traffic 32 RISK REVIEW ■ Our vulnerable exposure to the consumer discretionary sector represents 63% of our consumer discretionary sector exposure and 1.5% of total loans and acceptances outstanding ■ Dine-in restaurants; retailers with limited online presence; hotels, which continue to see low occupancy rates; and recreational companies have been negatively impacted by COVID-19 restrictions. However: Retailers of groceries and home goods have benefitted from social distancing measures and make up a majority of our retail exposure - A large portion of our restaurant exposure operates in the quick-service segment Hotel exposure is mostly investment grade or secured by real estate (1) Includes: Durable Consumer Goods, Textiles & Apparel, and Other. RBC

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