Economic Backdrop and Financial Performance Objectives slide image

Economic Backdrop and Financial Performance Objectives

The RBC story Diversified business model with scale and market- leading franchises Leading presence in Canada and an established multi- platform U.S. strategy Differentiated tech and innovation investments that go beyond banking Premium ROE and disciplined expense management Strong balance sheet and prudent risk management ■ Well-diversified across businesses, geographies and client segments Able to capitalize on opportunities created by changing market dynamics and economic conditions ■ A full suite of products, advice and services to meet our clients' financial needs and build deep, long-term relationships ■ #1 or #2 market share in all key product categories in Canadian Banking with superior cross-sell ability Largest branch network, the most ATMs and one of the largest mobile sales forces across Canada 10th largest global investment bank (1), #1 in Canada and #1 Canadian investment bank in the U.S.(2) Largest retail mutual fund company in Canada based on assets under management (AUM) (3) 6th largest full-service wealth advisory firm in the U.S. as measured by assets under administration (AUA)(3) ■ #1 High Net Worth and Ultra High Net Worth market share in Canada City National is a U.S.-based relationship bank serving the entertainment industry, mid-market businesses, High Net Worth individuals and other clients who value personalized banking relationships One of the largest Canadian bank-owned insurance organizations (4) Long history of innovation and proven ability to adapt to industry trends; ongoing investments in technology to deliver exceptional experiences and differentiated value for clients Focused on simplifying, digitizing and personalizing our products to make it easier for clients and employees to do business, and to lower costs RBCXTM supports 3,500+ tech and innovation clients and in-house ventures like MydohⓇ (used by 140,000+ Canadians to build financial literacy), OwnrⓇ (trusted by 130,000+ Canadian businesses), Houseful TM (formerly OJO CanadaⓇ, supporting 11 million+ of Canadians in their home ownership journey) and Dr. BillⓇ (serving 14,000 physicians since 2020) ■ Track record of earnings and dividend growth while maintaining a disciplined approach to risk and cost management ■ 16%+ ROE(5) medium-term objective Strong capital position and a high-quality liquid balance sheet; 40-50% dividend payout ratio (6) medium-term objective Credit ratings amongst the highest globally A disciplined approach and diversification have underpinned credit quality Leading Canadian core deposit franchise that serves as a stable source of funding (1) Dealogic, based on global investment banking fees LTM Q1/24. (2) Based on market share (fiscal 2023), Dealogic. (3) Refer to the Glossary on slides 58-59. (4) On a total revenue basis. (5) Return on Equity (ROE) is calculated as net income available to common shareholders divided by average common equity for the period. For further information refer to slide 61. (6) Dividend payout ratio is calculated as common dividends as a percentage of net income available to common shareholders. 4 | ABOUT RBC RBC
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