TECHNOLOGY @ RBC

Lower new formations reflect the ongoing impact of client support programs Gross Impaired Loans (GIL) ($ millions, bps) 51 46 45 57 47 $3,857 $3,529 $3,195 $2,976 $2,936 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 New Formations ($ millions) Key Drivers of GIL (QoQ) Total GIL decreased $662 million (down 10 bps QoQ) New formations were down $714 million QoQ Capital Markets GIL decreased $419 million, reflecting repayments in the oil & gas and consumer discretionary sectors, as well as loans returning to performing and write-offs, primarily in the oil & gas sector, partially offset by new impaired loans in the same sectors Canadian Banking ■ GIL decreased $144 million, with lower new formations QoQ in the retail portfolios, reflecting the impact of RBC Client Relief and government support programs Wealth Management (including CNB) ◉ GIL decreased $142 million, on lower new formations, as well as higher loans returning to performing and repayments of previously impaired loans, mainly in the U.S. Net Formations ($ millions) 1,308 35 1,265 230 (204) 551 n.m.(1) (560) (56%) QoQ 768 713 840 65 511 551 124 164 53 3,857 27 137 63 39 35 226 +47% QoQ (394) (55) (15%) QoQ (21%) QoQ 3,195 90 512 413 398 461 182 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q3/20 GIL New Returning Repayments Write-offs Formations to Performing Other Q4/20 GIL ■Canadian Banking ■Capital Markets ■Caribbean & U.S. Banking Wealth Management (1) Not meaningful. 24 | RISK REVIEW RBC

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