TECHNOLOGY @ RBC
Canadian Banking - Retail Portfolio (1)
Active Deferrals
Product
Balances
($BN)
% of Total
Avg. FICO
Avg. LTV
Balances
Balances
($BN) (2)
% Current
Expired Deferrals
% Delinquent (3)
(All Past Due)
Home Equity Finance (HEF)
$5.8
1.8%
746
60%
$45.7
98.2%
1.8%
Insured
$1.7
2.2%
726
68%
$14.3
97.7%
2.3%
Uninsured & HELOCS
$4.1
1.7%
755
57%
$31.4
98.4%
1.6%
Credit cards
$0.1
0.6%
660
$1.4
91.1%
8.9%
Personal loans (4)
$0.4
1.1%
690
$2.4
95.5%
4.5%
Total
$6.3
1.7%
741
$49.5
97.8%
2.2%
Active Deferrals
Expired Deferrals
Client Outreach
HEF Deferral
Population
Q4/2020 Credit
Performance
$6.3 billion in outstanding balances, down from $39.0 billion at Q3/2020, an 84% decrease QoQ
■ ~76% of active deferral balances at October 31 are expected to roll off their payment arrangement by December 31, with a majority of
the remainder to roll off by March 2021
Average FICO score for the active deferral population is 741, which is modestly below the average of 784 for the entire portfolio
■ 98% of balances are current, with just 2% delinquent, reflecting the resilience of the retail portfolio
-
Credit quality of the expired deferral population is strong, as reflected in the average FICO score (749), low LTV for mortgages (57%),
and ~90% of the population has a relationship with us for more than 3 years
■ Of the $1.1 billon of expired deferral balances delinquent or written off, ~32% were delinquent prior to the deferral
■ We reached out to all clients with expired deferrals through an advisor and/or electronically
The relatively low take-up rate of hardship solutions is a reflection of the resilience and low delinquency rates we see in the portfolio
■ Less than 2% of the $5.8 billion in active deferral balances are uninsured with a current LTV > 80%, versus 0.6% for the entire portfolio.
A majority of these balances are in Alberta, which has seen a decline in home prices over the last few years
Only 0.5% of the $35.3 billion in balances associated with condos is uninsured and has a current LTV >80%, with only $13 million of
these balances still in active deferral
■ New formations of GIL were down $191 million QoQ, reflecting the impact of COVID-19 related government support and Client Relief
programs
■ GIL of $602 million was down 20% QoQ, as write-offs of $230 million were partially offset by new formations of $80 million
■ PCL on impaired loans of $143 million is down 27% QoQ, reflecting lower new formations of impaired loans
■ Total ACL of $2.7 billion is 0.7% of loans and acceptances, up from 0.5% in Q1/2020
(1) Deferral statistics do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions. (2) Balances as at October 31st. Balances at the time of deferral were
$52.0BN. The $2.5BN reduction in balances includes accounts closed or written off, payments, draws, and accrued interest. (3) May include loans past due as a result of administrative processes, such as mortgage loans where
payments have been restricted pending payout due to sale or refinancing. (4) Personal Loans includes personal direct lending and auto loans.
29 RISK REVIEW
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