Economic Backdrop and Financial Performance Objectives
FY2023: Track record of delivering value to our shareholders*
Financial performance objectives measure our performance against our goal of maximizing total shareholder returns
Profitability
Medium-Term Objectives (1)
Diluted EPS growth
ROE(3)
7%+
16%+
Capital
Management
Capital ratios (CET1 ratio)(3)
Strong
Dividend payout ratio
40% - 50%
Average as of 2023 (2)
3-Year
5-Year
10%
5%
16.4%
16.0%
13.6%
13.1%
45.0%
47.2%
Dividend (4) and Earnings per Share ($)
Book Value (5) & Tangible Book Value Per Share ($) (6)
2013-23 CAGR
Earnings per share: 17%
11.06 11.06
10.50
Dividend per share: 18%
8.75
8.36
2019-23 CAGR: BVPS 10% & TBVPS 11%
7.56
7.82
6.73 6.78
68.7
6.00
5.49
62.7
2013-23 Average Dividend
Payout ratio of 47%
56.4
45.8
48.0
5.34
4.96
2.53 2.84
3.08
3.24
3.48
3.77
4.07 4.29 4.32
54.4
56.8
64.6
72.9
78.8
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-Earnings per share (diluted) Dividend per share
*Note above amounts have not been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. These are presented in accordance with previous accounting policies (IFRS 4).
2019
2020
2021
2022
2023
Book value per share Tangible book value per share
Achieved Solid Total Shareholder Return (TSR) (7) Performance
RBC
Peer Average
3-Year
13%
13%
5-Year
10%
9%
10-Year
9%
7%
20-Year
11%
9%
(1) A medium-term (3-5 year) objective is considered to be achieved when the performance goal is met in either a 3- or 5-year period. These objectives assume a normal business environment and our ability to achieve them in a period may be adversely
affected by the macroeconomic backdrop. (2) Diluted Earnings Per Share (EPS) growth is calculated using a Compound Annual Growth Rate (CAGR). ROE, CET1 and dividend payout ratio are calculated using an average. (3) The CET1 ratio is
calculated using OSFI's CAR guideline. ROE is calculated as net income available to common shareholders divided by average common equity for the period; for further information refer to slide 61. (4) Our quarterly dividend declared per common share
is $1.38. (5) Book Value Per Share (BVPS) is calculated as common equity divided by common shares outstanding. (6) Tangible Book Value Per Share (TBVPS) is calculated as common equity excluding goodwill and other intangibles (excluding
software) net of deferred tax on spot basis divided by common shares outstanding. This is a non-GAAP measure. Refer to slide 60 for reconciliation and slide 61 for more information. (7) Annualized TSR is calculated based on the TSX common share
price appreciation plus reinvested dividend income. Source: Bloomberg, as at January 31, 2024. RBC is compared to our global peer group. The peer group average excludes RBC; for the list of peers, please refer to our 2023 Annual Report.
ABOUT RBC
8
RBCView entire presentation