RBC Financial Performance Update

ACL reflects ongoing uncertainty related to COVID-19 Movement in Allowance for Credit Losses on Loans (1) ($ millions) ACL to L&A 0.53% 3,471 ACL (Q1/20) ACL to L&A 0.85% 5,914 ACL (Q1/21) 177 (260) (306) See slide 24 for details 63% P&CB (majority from Retail) and 33% Capital Markets ACL to L&A 0.79% 5,525 PCL on Impaired Loans PCL on Performing Loans Net write-offs, FX & Other ACL (Q2/21) ■ ACL on loans of $5.5 billion was down $389 million QoQ ■ ACL as a percentage of loans and acceptances of 0.79% was down 6 bps QoQ, but remains elevated relative to 0.53% at Q1/2020 reflecting the ongoing uncertainty related to the impact of the COVID-19 pandemic ■ The $260 million release of reserves on performing loans in Q2/2021 reflects improvements in our macroeconomic and credit quality outlook - Though we continue to move along the forecast curve into recovery and vaccine distribution progresses, defaults continue to be temporarily suppressed by government support programs - The release of reserves on performing loans is primarily driven by Canadian Banking ($155 million), largely in the Cards and Commercial portfolios, and Capital Markets ($87 million) (1) Totals may not add due to rounding. 22 RISK REVIEW RBC

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