2011 and Fourth Quarter Results

IFRS - Estimated impact from adoption • Estimated 2011 net income from continuing operations under IFRS would have been ~3% higher than Canadian GAAP. • Tier 1 Capital impact under IFRS will be minimized as it will be phased-in over a five-quarter period and our quarterly earnings could also serve to offset the impact. Transition Impacts to Shareholders' Equity* 38,951 ($ millions) (1,364) (1,261) 35,381 (488) (255) (148) (54) Canadian Employee Goodwill GAAP Benefits Securitization Special Hedging Classification Purpose Entities IFRS and Other of Financial Instruments Oct. 31, 2010 Nov. 1, 2010 RBC 2011 AND FOURTH QUARTER RESULTS *Please see pg. Annual Report to Shareholders for further information. IFRS - Transition and ongoing impacts RBC 15 RBC Accounting Employee Benefits Securitization VIES / SPES Hedge Accounting Transition Impact • Cumulative actuarial gains/losses recognized in opening retained earnings. • Most assets in our securitization transactions will be reported on-balance sheet. • Previously recorded gains will be recognized in opening retained earnings. • Certain entities will be consolidated, and others will be deconsolidated. • Earnings previously recognized and unrecognized will be recognized in opening retained earnings. • Certain cash flow hedges on a portion of our deposit liabilities will not qualify under IFRS. • Accumulated losses on these hedged items will be recognized in retained earnings. Impact to Ongoing Earnings • Reduced expense as accumulated. unrecognized loss is no longer being amortized. • Reduced 2011 expenses under IFRS by $315MM (pre-tax). • No longer recognizing gains on securitization activities. • Recognition of earnings on the mortgages over their remaining term. • Recognition of earnings of newly consolidated entities, which could give rise to accounting volatility. • No longer recognizing earnings of deconsolidated entities. • Reduced expenses as accumulated losses are not being amortized. Going forward, ROE target revised to 18%+ from 16%-20% to reflect the reduction in average common equity RBC 2011 AND FOURTH QUARTER RESULTS 16

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