RBC Financial Performance Update slide image

RBC Financial Performance Update

IFRS 9 range of macroeconomic scenario assumptions (as of April 30) Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021) Canada Real GDP ($ Trillions) (1) 11 Base case (January 31, 2021) Base case (October 31, 2020) Canada Unemployment Rate (%) (3) 2.5 2.4 2.3 33 2.2 2.1 2.0 1.9 Q4-2020 Q1-2021 Q3-2021 Q4-2021 Q2-2021 U.S. Real GDP (US$ Trillions) (2) Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 22.0 21.5 21.0 20.5 20.0 19.5 19.0 18.5 18.0 Q2-2023 Q4-2025 Q1-2026 7 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 5 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 10 U.S. Unemployment Rate (%) (3) Q2-2023 Q4-2022 Q1-2023 Q3-2023 Q4-2023 Q1-2024 Q3-2025 Oil price (West Texas Intermediate in US$) Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 *Q4-2022 Q1-2023 Q4-2025 Q1-2026 8 6 4 2 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Canadian housing price index Q4-2020 Q1-2021 Q2-2021 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Q1-2026 In our base forecast, we expect housing prices to increase by 3.0% over the next 12 months, with a compound annual growth rate of 3.7% for the following 2 to 5 years. The range of annual housing price growth (contraction) in our alternative downside and upside scenarios is (29.6)% to 10.9% over the next 12 months and 4.2% to 11.1% for the following 2 to 5 years. RBC For further details, referto Note 5 of our Q2 2021 Report to Shareholders. (1) Represents the seasonally-adjusted annual rate indexed to 2012 Canadian dollars over the calendar quarters presented. (2) Represents the seasonally-adjusted annual rate indexed to 2012 U.S. dollars over the calendarquarters presented. (3) Represents the average quarterly unemployment level over the period. In our base forecast, we expect oil prices to average $61 per barrel over the next 12 months and $53 per barrel in the following 2 to 5 years. The range of average prices in our alternative downside and upside scenarios is $25 to $74 per barrel for the next 12 months and $35 to $55 per barrel for the following 2 to 5 years. 27 | RISK REVIEW
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