Economic Backdrop and Financial Performance Objectives
Allowance for Credit Losses: Prudent reserve increases on performing loans
Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) ($ millions)
L&A
$847BN
ACL to L&A
0.53%
4,449
L&A
$880BN
ACL to L&A
0.61%
5,348
160
PCL on Performing Loans of $133MM
(49)
22
L&A
$880BN
(536)
ACL to L&A
0.64%
685
5,630
Q1/23 ACL
Q4/23 ACL
Credit Quality
Macroeconomic
Outlook
Portfolio Growth
PCL on Impaired
Loans
Net write-offs,
FX & Other
Q1/24 ACL
■ ACL on loans and acceptances increased $282MM or 3 bps QoQ
ACL on performing loans of $4.3BN has increased $1.2BN or 37% since Q2/22, with reserve additions in 7 consecutive quarters
■ We took $133MM of provisions on performing loans this quarter (down $61MM QoQ)
Provisions were primarily in Canadian Banking, driven by increasing delinquencies and lower Canadian housing price forecasts
Capital Markets took modest provisions this quarter, while Wealth Management released reserves, reflecting improvement to our
macroeconomic outlook in the U.S.
27 RISK REVIEW
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