Economic Backdrop and Financial Performance Objectives
Capital: Strong position supports strategic deployment and shareholder returns
CET1 (1) Movement
67 bps (34) bps
13 bps
12 bps (23) bps (2) bps
6 bps
14.5%
+33 bps
Net internal
capital generation,
14.9%
Q4/2023 (2) Net
Dividends
Income
Fair Value
OCI
DRIP
Adjustments
RWA (1)
Increase
(Excluding
FX)
Net
Regulatory
Updates
Other
Q1/2024 (2)
RWA (1) Movement ($ billions)
CET1 ratio (1) of 14.9%, up 40 bps QoQ, reflecting:
+ Net internal capital generation
+ Unrealized mark-to-market gains on OCI
securities
+
DRIP shares issued from treasury
Higher RWA(1) (excluding FX) from business
growth and net credit migration
Leverage ratio(1) of 4.4%, up 10 bps QoQ, reflecting
net capital accretion, unrealized mark-to-market
gains on OCI securities
12.2
+
596.2
(7.2)
3.9
(5.1)
(9.7)
590.3
+
40.5
79.9
31.0
84.6
475.8
$8.9BN or 23 bps
474.7
ā
RWA(1) decreased $6.0BN, mainly reflecting:
Favourable FX translation of $6.0BN
-
Lower RWA(1) from net regulatory updates,
primarily Basel III reforms, mainly in trading
portfolios
Net credit migration, mainly in wholesale portfolios
Operational RWA increase from continued
revenue growth
Loan growth in Canadian Banking
Credit risk
Operational risk
Market risk
+
Q4/2023 (2)
Credit & Op. Risk
(Excl. Credit
Migration
Market Risk
(Excl. Reg.
Updates)
Net Credit
Migration
Net
Regulatory
Updates
Foreign
Exchange
Q1/2024 (2)
+
Lower RWA(1) from credit card securitization
Lower market risk driven by reduced inventories
& Other
& Reg. Updates)
(1) The CET1 ratio and RWA are calculated using OSFI's CAR guideline. The leverage ratio is calculated using OSFI's Leverage Requirements (LR) guideline. (2) For more information, refer to the Capital Management section of our
Q1/2024 Report to Shareholders.
9 | ABOUT RBC
RBCView entire presentation