RBC Business Segments and Market Strategy

Robust risk management A disciplined approach and diversification has driven stable credit trends Loan book diversified by portfolio (1) Residential Mortgages & Personal Loans (2) Credit Cards Small 3% Business 1% Relatively stable PCL ratio (3) over the cycle (bps) 72 bps RBC Continued low loss rates and 53 bps good LTV coverage 45 bps ~ 75% of the portfolio is secured Wholesale Residential 33 bps 34 bps 35 bps 31 bps 31 bps 32% Mortgages & Wholesale " Consistent lending standards Personal Loans 64% 21 bps 23 bps 27 bps 24 bps throughout the cycle 60% of the portfolio is investment grade 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 Global financial crisis Breakdown by region of total loans and acceptances (1) Breakdown of Canadian total loans and acceptances (1) Atlantic 6% Other International 18% U.S. 20% Canada 62% About RBC (1) Does not include letters of credit or guarantees, as at January 31, 2016. (2) Includes home equity lines of credit, auto loans, and other personal lending products. (3) PCL ratio is PCL on impaired loans as a percentage of average net loans & acceptances (annualized). Man/Sask 7% Quebec 12% Ontario 42% Alberta 16% B.C. and territories 17% 7

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