Economic Backdrop and Financial Performance Objectives
Strong financial profile
Maintaining a strong capital position with a disciplined approach to risk
Resilient Earnings
Net income ($ billions)
Premium Return on Equity
Adjusted Net
Income(1):
$15.8BN
Adjusted Net Adjusted Net
PCL (2)
(0.10)% 0.06%
NIM (3) 1.48%
1.48%
0.29%
0.25%
0.37%
1.50%
1.47%
1.41%
Income(1):
$4.3BN
Income(1):
$4.1BN
16.1
15.8
18.6%
Adjusted
ROE(1): 15.5%
Adjusted
Adjusted
ROE(1): 17.2% ROE(1): 14.9%
14.6
16.4%
14.3%
13.1%
12.6%
3.6
3.1
2021
2022
Strong Capital Position
2023
Q1/2023
Q1/2024
2021
2022
2023
Q1/2023
Q1/2024
18.1%
17.3%
17.6%
16.8%
Strong Leverage and Liquidity Ratios
Leverage Ratio (4)
Liquidity Coverage Ratio (4)
4.4%
132%
15.7%
13.7%
14.1%
14.5%
14.9%
Credit Ratings Amongst the Highest Globally
12.7%
Moody's+
S&P‡
DBRS+
Fitch+
Legacy senior
long-term debt(5)
Senior long-term
debt(6)
Aa1
AA-
AA (high)
AA
A1
A
AA
AA-
Outlook
Stable
Stable
Stable
Stable
Q1/23
Q2/23
■Total Capital
Q3/23
Q4/23
Q1/24
■Common Equity Tier 1 (CET1) (4)
(1) Adjusted net income is calculated by adding back to net income the after-tax amount of amortization of intangibles, any goodwill impairment, and other significant items that may impact a given period. Adjusted ROE is calculated as adjusted net income available to
common shareholders divided by average common equity. These are non-GAAP measures. Refer to slide 60 for reconciliation and slide 61 for more information. (2) Provision for credit losses (PCL) on loans as a % of average net loans and acceptances. (3) Net interest
margin (NIM) (average earning assets, net). Refer to the Glossary on slides 58-59. (4) The leverage ratio is calculated using OSFI's LR guideline. The Liquidity Coverage Ratio is calculated using OSFI's LAR guideline. The CET1 ratio is calculated using OSFI's CAR
guideline. (5) Ratings (as at February 27, 2024) for senior long-term debt issued prior to September 23, 2018 and senior long-term debt issued on or after September 23, 2018, which is excluded from the Canadian Bank Recapitalization (Bail-in) regime. (6) Ratings (as at
February 27, 2024) for senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the Bail-in regime.
7 | ABOUT RBC
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