Economic Backdrop and Financial Performance Objectives
PCL on impaired loans: Trending higher, as expected
Total RBC ($ millions, bps)
Wealth Management ($ millions, bps)
Average historical loss rate (1): 30 bps
17
21
31
FY19: 12 bps
25
23
14
13
10
24
14
$685
$69
$499
$539
$441
$42
$357
$38
$38
$26
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Provisions were up $146MM QoQ due to higher provisions in
Canadian Banking and Capital Markets, partially offset by lower
provisions in Wealth Management
Canadian Banking ($ millions, bps)
Provisions were down $31MM QoQ, due to the partial reversal of a
provision in the Telecom and Media sector taken last quarter
This quarter, provisions were primarily in Real Estate and Related,
with a large provision on a previously impaired office loan
Capital Markets ($ millions, bps)
32
FY19: 30 bps
FY19: 26 bps
24
32
22
20
18
14
$489
$356
$302
$302
$259
44
45
31
$158
$161
$113
$112
$53
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
"
Retail: Provisions of $363MM were up $74MM QOQ, with higher
provisions across all products
Provisions were up $49MM QoQ
Commercial: Provisions of $125MM were up $58MM QoQ, due
primarily to a large provision taken this quarter on a loan in the
Automotive sector
(1) Average annual actual loss rate from fiscal 2003 through to the most recent full year. The information is updated on an annual basis and is based on consolidated results.
28 RISK REVIEW
This quarter, provisions were primarily in Real Estate and Related,
with large provisions taken on a newly impaired office loan and on a
previously impaired multi-family loan, both in the U.S.
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