Economic Backdrop and Financial Performance Objectives slide image

Economic Backdrop and Financial Performance Objectives

Balanced capital deployment driving sustainable long-term shareholder value Diversified organic growth (1)(3) (RWA $BN) Strong capital ratio (CET1) (1) Medium-term objective ROE (2) of 16%+ Medium-term objective 10% 3-Year BVPS (2) CAGR 6.1 7.5 1.6 (1.6) 5.0 2.1 2.3 06 3.8 2.7 1.1 4.7 5.6 2.6 1.6 2.3 2.3 0.2 (1.9 (3.5) (6.2) (4.2) Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 ■Capital Markets Wealth Management P&CB ■ Other (4) Committed to sustainable dividend growth (Q1/24) Common share dividends $1.9BN Dividend payout Ratio(2) 55% 49% +6% YoY reported adjusted (5) Capital generation creates optionality RBC Brewin Dolphin £1.6BN completed acquisition HSBC Canada $13.5BN announced acquisition (6) (1) The CET1 ratio and RWA are calculated using OSFI'S CAR guideline. (2) Refer to Glossary on slides 58-59 for explanation of composition of this measure. (3) Organic growth reflects growth in RWA excluding impacts of model & methodology updates, asset quality, acquisitions & disposals, FX and intercompany transfer of deferred tax assets. (4) Includes Insurance and Corporate Support. (5) Calculated as common share dividends ($1,944 million) divided by adjusted net income available to common shareholders ($4,006 million). This is a non-GAAP measure. For more information, see slide 61. (6) Cash purchase price at announcement for acquisition of 100% of the common shares of HSBC Bank Canada (HSBC Canada). 10 ABOUT RBC RBC
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