2020 Economic Outlook

Prudent risk management A disciplined approach and diversification have driven stable credit trends Loan Book Diversified by Portfolio (1) Credit Cards 3% Small Business 1% PCL Ratio on Impaired Loans (2) (bps) 45 40 40 35 30 Average historical actual loss rate (3) 33 bps 29 28 27 25 Wholesale 34% 25 23 22 Residential Mortgages 48% 20 21 210 20 17 15 PCL ratio on impaired loans Personal Loans 14% 10 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Breakdown by Region of Total Loans and Acceptances (1) Other International U.S. 12% 4% Canada 84% Breakdown of Canadian Total Loans and Acceptances (1) Atlantic 5% Manitoba/ Sask. 6% Quebec 12% Ontario 48% Alberta 13% B.C. and Territories 16% (1) Loans and acceptances outstanding as at January 31, 2020. Does not include letters of credit or guarantees. (2) Effective November 1, 2017, we adopted IFRS 9, which introduced a three-stage expected credit loss impairment model that differs significantly from the incurred loss model under IAS 39. Stage 3 allowances are held against impaired loans and effectively replace the allowance for impaired loans under IAS 39. Provision for Credit Losses (PCL) ratio is PCL as a percentage of average net loans & acceptances (annualized). (3) Average annual actual loss rate from fiscal 2003 through to the most recent full year. The information is updated on an annual basis and is based on consolidated results. The Average historical actual loss rate on a continuing operations basis is 0.33%. 7 | ABOUT RBC RBC

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