Royal Bank Of Canada · TSX:RY
Royal Bank Of Canada — Q1 2026 Earnings Presentation
54 slides from Royal Bank Of Canada's earnings presentation, Feb 26, 2026
Slide 1: Royal Bank of Canada First Quarter Results
Royal Bank of Canada First Quarter Results February 26, 2026 All amounts are in Canadian dollars, unless otherwise specified, and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Totals may not add
Slide 2: Caution regarding forward looking statements
Caution regarding forward looking statements From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the United States’ Private Securities Litigation Reform Act of 1995 and any applicable Canadian
Slide 3: Overview
Overview Dave McKay President and Chief Executive Officer 3
Slide 4: Q1/26 Key Messages: Record performance showcases underlying earnings power
Q1/26 Key Messages: Record performance showcases underlying earnings power Reported NIAT Adjusted PPPT(1)(4) Diluted Earnings per Share Diluted EPS growth Record results underpinned by strong Pre-Provision, Pre- 14% 13% 13% 12% $4.03 (EPS) $4.08 Tax(1) Earnings growth Earnings growth Reported Adjust
Slide 5: Client assets and activity: Diversified growth across most of our businesses
Client assets and activity: Diversified growth across most of our businesses Average Loans & Acceptances and Deposits Average Loans & Acceptances and Deposits Loans and Market Share(1) Personal Banking | $BN Commercial Banking | $BN Capital Markets | $BN +5% LTM(2) GIB(3) 0% league ranking +4% +3% +
Slide 6: Creating sustainable shareholder value by driving both premium growth and profitability
Creating sustainable shareholder value by driving both premium growth and profitability Taking advantage Organic Deployment of opportunities of Capital (QoQ tomovement, strategically $BN) deploy capital to drive organic Strategic initiatives(5) to continue to drive shareholder value (1) RWA growth a
Slide 7: Financial Review
Financial Review Katherine Gibson Chief Financial Officer 7
Slide 8: Q1/26: Strong results underpinned by solid revenue growth and strong operating leverage
Q1/26: Strong results underpinned by solid revenue growth and strong operating leverage(1) Financial Results Reported Earnings $ MM (except for EPS) Q1/2026 YoY QoQ ▪ Net income up 13% YoY Revenue 17,960 7% 4% Net Interest Income 8,585 8% (1)% ▪ Adjusted net income(2) up 12% YoY Non-Interest Income
Slide 9: Capital: Strong position supports continued investment and shareholder returns
Capital: Strong position supports continued investment in businesses and shareholder returns CET1(1) Movement ▪ CET1 ratio of 13.7%, up 20 bps QoQ, reflecting: + Strong net internal capital generation 79 bps (33) bps (26) bps (13) bps 8 bps ‒ Higher RWA mainly from strong client-driven business grow
Slide 10: Net interest income: Higher spreads and average asset growth
Net interest income: Higher spreads and average asset growth All-Bank Net Interest Income | $ MM Average Earning Assets | $ BN All-Bank NIM (AEA)(1) Decomposition 1.62% YoY +11% Q4/25 All Bank NIM 1.60% 1.55% YoY 2.12% (5) bps 2,191 ex-Trading(3) 2,116 1,973 81 +8% 78 +22% 8,645 8,585 67 7,948 698 4
Slide 11: Non-interest expense: Higher staff-related costs including higher variable compensation
Non-interest expense: Higher staff-related costs including higher variable compensation Drivers of expense growth | $ MM Drivers of expense growth | $ MM % of LTM NIE Q1/25 Expenses 9,256 Q1/25 9,256 33% Salaries & benefits 153 Salaries Variable compensation 184 Salary and other staff related costs
Slide 12: Personal Banking: Record results supported by strong revenue growth and operating leverage
Personal Banking: Record results supported by strong revenue growth and operating leverage(1) Key Metrics(2) Q1/2026 Highlights Reported Personal Banking $ MM (unless otherwise stated) Q1/2026 YoY QoQ ▪ Net income up 17% YoY on a reported and adjusted(3) basis; PPPT(3) up 15% YoY Revenue 5,238 9% 1%
Slide 13: Commercial Banking: Record results underpinned by solid volume growth and lower PCL
Commercial Banking: Record results underpinned by solid volume growth and lower PCL Key Metrics(1) Q1/2026 Highlights Reported $ MM (unless otherwise stated) Q1/2026 ▪ Net income up 11% or 10% YoY adjusted(2); PPPT(2) up 5% YoY YoY QoQ ▪ Revenue up 4% YoY Revenue 2,207 4% (1)% Net interest income 1,
Slide 14: Wealth Management: Record revenue supported by strong growth in fee-based client assets
Wealth Management: Record revenue supported by strong growth in fee-based client assets Key Metrics(1) Q1/2026 Highlights Reported $ MM (unless otherwise stated) Q1/2026 ▪ Net income up 32% or 26% YoY adjusted(2); PPPT(2) up 25% YoY YoY QoQ Revenue 6,084 9% 3% ▪ Revenue up 9% YoY Net interest income
Slide 15: Capital Markets: Record PPPT earnings underpinned by strong revenue of $4.0 billion
Capital Markets: Record PPPT(1) earnings underpinned by strong revenue of $4.0 billion Key Metrics(2) Q1/2026 Highlights Reported $ MM (unless otherwise stated) Q1/2026 YoY QoQ ▪ Net income up 3% YoY; PPPT(1) up 11% YoY Revenue 4,018 7% 11% ▪ Revenue up 7% YoY Corporate & Investment Banking 1,722 0%
Slide 16: Insurance: Solid results with prior year benefiting from reinsurance contract recapture gains
Insurance: Solid results with prior year benefiting from reinsurance contract recapture gains Key Metrics(1) Q1/2026 Highlights Reported ▪ Net income down 22% YoY $ MM (unless otherwise stated) Q1/2026 YoY QoQ ▪ Revenue down 17% YoY Revenue 338 (17)% 62% Insurance Service Result 240 (16)% 208% − Ins
Slide 17: Risk Review
Risk Review Graeme Hepworth Chief Risk Officer 17
Slide 18: Allowance for Credit Losses: Maintaining prudent reserve levels on performing loans
Allowance for Credit Losses: Maintaining prudent reserve levels on performing loans Q1/26 Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) | $ MM L&A: $1,050BN L&A: $1,062BN ACL to L&A: 0.71% ACL to L&A: 0.73% PCL on Performing Loans of $28MM 1,068 (803) 64 (57) 21 Refer to Slide 19 7,
Slide 19: PCL on Impaired Loans: Increased provisions in Capital Markets
PCL on Impaired Loans: Increased provisions in Capital Markets Total RBC | $ MM | BPS Wealth Management (including CNB) | $ MM | BPS ▪ Wealth Management: Provisions were down $1MM QoQ ▪ Personal Banking: Provisions were up $27MM QoQ, Average historical loss rate(1): 30 bps driven by higher provision
Slide 20: Gross Impaired Loans: Remained elevated as new formations trended higher
Gross Impaired Loans: Remained elevated as new formations trended higher Gross Impaired Loans (GIL)(1) | $ MM | BPS Key Drivers of GIL (QoQ) 88 ▪ Total GIL increased $485MM QoQ (up 3 bps) primarily due to higher impaired loans in 85 83 86 78 Personal Banking, Wealth Management and Commercial Banking
Slide 21: Appendices
Appendices 21
Slide 22: Net Interest Margin: Average rates and balances
Net Interest Margin: Average rates and balances Interest Income Yield(1) Average Assets | $ BN Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Loans 5.69% 5.50% 5.49% 5.45% 5.26% Loans 999 1006 1014 1033 1050 Securities 3.82% 3.88% 3.83% 3.72% 3.46% Securities 502 512 524 568 615 Repo &
Slide 23: Net Interest Income: Interest rate sensitivity
Net Interest Income: Interest rate sensitivity All-Bank: Impact of 100 bps change across the curve(1)(7) | $ MM Impact of 25 bps decrease(2) | $ MM Q4/25 Q1/26 Revenue Short-term rates(2) Across the curve(2) Net Interest Income Increase Decrease Increase Decrease Q4/25 Q1/26 Q4/25 Q1/26 Canadian Dol
Slide 24: Net Interest Margin: Canadian Banking and City National Bank
Net Interest Margin: Canadian Banking and City National Bank Canadian Banking NIM(1) QoQ Waterfall CNB NIM(1) QoQ Waterfall 0.06% 0.01% 0.03% 0.18% (0.02)% (0.02)% +2 bps 3.04% 3.05% 2.99% 2.99% (0.23)% +0 bps +1 bp Q4/25 NIM Rate Impacts Competitive Product PPA Q1/26 NIM Q4/25 NIM Asset Yields Liab
Slide 25: Non-Interest Income: Markets and client activity driving growth
Non-Interest Income: Markets and client activity driving growth Non-Interest Income | $ MM Q1/2026 Highlights ▪ Non-interest income up 7% YoY Q1/25 Non-interest income 8,791 + Higher investment management & custodial fees driven by higher fee-based client assets Investment, brokerage & custodial fee
Slide 26: Canadian Banking: Strong operating leverage led to a 36% efficiency ratio
Canadian Banking: Strong operating leverage(1) led to a 36% efficiency ratio Key Metrics – Q1/2026(2) Reported Personal Banking – $ millions (unless otherwise stated) Commercial Banking Canadian Banking Canada YoY QoQ Revenue 4,923 2,207 7,130 8% 1% Net interest income 3,578 1,895 5,473 8% 1% Non-in
Slide 27: Canadian Banking: Our ~16MM clients continue to adopt our digital channels
Canadian Banking: Our ~16MM clients continue to adopt our digital channels Active Digital Users(1) | ‘000 Digital Personal Adoption Rate(2) Active Mobile Users(1) | ‘000 +4% (10) bps +7% 10,016 10,289 10,398 63.3% 62.9% 63.2% 8,339 8,452 7,917 Q1/25 Q4/25 Q1/26 Q1/25 Q4/25 Q1/26 Q1/25 Q4/25 Q1/26 Mo
Slide 28: U.S. Region: Continued improvement in the efficiency ratio partly offset by higher PCL
U.S. Region: Continued improvement in the efficiency ratio partly offset by higher PCL Key Metrics Q1/2026 Highlights | US$ MM US$ MM (unless otherwise stated) Q1/2026 YoY QoQ ▪ Net income up 2% YoY Net Income 716 2% (19)% Efficiency Ratio(1) 74.7% (2.7) pts (2.6) pts ▪ Revenue ROE(1) 10.6% (0.8) pt
Slide 29: Corporate Support
Corporate Support Financial Performance | $ MM Q1/2026 Highlights ▪ Net income of $(26)MM, down from $(8)MM a year ago Reported Q1/2026 Q4/2025 Q1/2025 o Adjusted net income(2) of $(27)MM, down from $(2)MM a year ago Revenue (teb(1)) 75 90 71 U.S. WAP gains/(losses) 90 173 112 ▪ Net income of $(26)M
Slide 30: Non-Interest Expense: Market appreciation led to a decrease in share-based compensation
Non-Interest Expense: Market appreciation led to a decrease in share-based compensation SBC (incl. U.S. WM WAP) had a $(35)MM impact on YoY expense growth $ millions (unless otherwise stated) Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Share-based compensation (17) 397 179 235 148 37
Slide 31: Market Risk Trading Revenue and Trading VaR
Market Risk Trading Revenue and Trading VaR $MM 24 28 23 28 60 50 40 30 20 10 0 -10 -20 -30 -40 Feb 28, 2025 Mar 31, 2025 May 30, 2025 Jun 30, 2025 Aug 29, 2025 Sep 30, 2025 Nov 28, 2025 Dec 31, 2025 Feb 1, 2025 Apr 30, 2025 Jul 31, 2025 Oct 31, 2025 Jan 31, 2026 Trading Revenue (teb)(1) Trading VaR
Slide 32: Impact of foreign currency translation
Impact of foreign currency translation Estimated impact of foreign currency translation on key income statement items Relevant average exchange rates that impact our business For the three months ended Q1/26 vs. Q1/26 vs. For the three months ended ($ millions, except per share amounts) (Average for
Slide 33: Personal Banking - Canada: Strong client profile
Personal Banking - Canada: Strong client profile Personal Banking - Canada PCL on Impaired Loans and Gross Impaired Loans Personal Banking - Canada Retail Credit Bureau Score Distribution (Q1/26) Q1/26 PCL on Impaired Loans Gross Impaired Loans Avg Credit Avg Loan (bps)(1) (bps) Bureau 4.3% <636 Bal
Slide 34: Canadian Residential Portfolio: Strong underlying credit quality
Canadian Residential Portfolio: Strong underlying credit quality Canadian Residential Mortgage Portfolio(1) | $ BN Canadian Banking RESL Portfolio(2) $231.7 Insured Uninsured Total $463BN Uninsured $401BN Mortgage Balance $425BN $363BN $89.2 $407.3 (18%) (82%) HELOC Balance $38BN $38BN LTV at Origin
Slide 35: Select Non-Personal Portfolios: Strong credit quality
Select Non-Personal Portfolios: Strong credit quality Total Wholesale Exposure | $407BN; 38% of total L&A Spotlight on Select portfolios ▪ Commercial Real Estate (CRE): 10% of total L&A 14% Real estate and related − The portfolio was originated with sound lending standards and remains well-diversifi
Slide 36: Allowance for Credit Losses: Prudently reserved
Allowance for Credit Losses: Prudently reserved Allocation of ACL by Product as a % of Loans & Acceptances Q1/25 Q4/25 Q1/26 Product Stage 1 & 2 Total Stage 1 & 2 Total Stage 1 & 2 Total Residential mortgages(1) 0.08% 0.13% 0.10% 0.16% 0.10% 0.17% Other Retail 1.82% 2.04% 1.88% 2.11% 1.89% 2.12% Per
Slide 37: Funding: Well-diversified
Funding: Well-diversified LCR(1) | $ BN | total adjusted value ▪ As at January 31, 2026, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were High-quality Net Cash Surplus $1,001 billion or 53% of our total funding (including short-term repo Le
Slide 38: Capital: Preferred share dividends
Capital: Preferred share dividends $ millions (unless otherwise stated) Principal Currency Yield (%) Frequency Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Preferred Shares Series BD(1) $600 CAD 3.20% Quarterly Series BF(2) $300 CAD 3.00% Quarterly Series BH(3) $150 CAD 4.90% Quarterly 16 16 11 11 6 Series BI(3) $
Slide 39: Items impacting results
Items impacting results 2026 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q1/2026 Amortization of acquisition-related intangibles Yes Multiple Segments Expenses $(102) $(76) $(0.05) Purchase accounting accretion of fair value adjustments Personal Banking
Slide 40: Items impacting results
Items impacting results 2025 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q4/2025 Amortization of acquisition-related intangibles Yes Multiple Segments Expenses $(153) $(120) $(0.09) Purchase accounting accretion of fair value adjustments Personal Banking
Slide 41: Glossary & Additional Notes
Glossary & Additional Notes 41
Slide 42: Glossary
Glossary Assets under administration (AUA): ▪ Assets administered by us, which are beneficially owned by clients, unless otherwise noted. Services provided in respect of assets under administration are of an administrative nature, including safekeeping, collecting investment income, settling purchas
Slide 43: Glossary
Glossary Net Interest Income (ex-Trading): ▪ Net interest income (ex-trading) is calculated as net interest income less trading net interest income. Net interest margin (NIM): ▪ Calculated as net interest income divided by average earning assets, net. Operating leverage: ▪ The difference between our
Slide 44: Additional Notes
Additional Notes Dealogic market share for Equity Capital Markets, Debt Capital Markets, loan syndications, and Advisory. Average loans outstanding includes wholesale loans, acceptances, and off- Note 1 balance sheet letters of credit and guarantees for our Corporate Banking portfolio, on a single n
Slide 45: Additional Notes
Additional Notes Past due loans includes restrained accounts, where loans 30-59 days past due resulting from administrative processes, such as mortgage loans, where payments have been restricted Note 11 pending payout due to sale or refinancing. Canadian residential mortgage portfolio of $458BN comp
Slide 46: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios 46
Slide 47: Non-GAAP measures and ratios
Non-GAAP measures and ratios We use a variety of financial measures and ratios to evaluate our performance. In addition to generally accepted accounting principles (GAAP) prescribed measures, we use certain key performance and non-GAAP measures and ratios we believe provide useful information to inv
Slide 48: Non-GAAP measures and ratios
Non-GAAP measures and ratios Non-GAAP measures Label Composition Usefulness Reconciliation PPPT earnings is used to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by Pre-provision, pre-tax PPPT earnings is calculated as income before income the
Slide 49: Non-GAAP measures and ratios
Non-GAAP measures and ratios Non-GAAP ratios Label Composition Usefulness Reconciliation The adjusted all-bank efficiency ratio is useful because it may Adjusted all-bank efficiency Adjusted non-interest expense divided by adjusted total enhance comparability in assessing how efficiently costs are S
Slide 50: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted Net Income and Adjusted Diluted EPS Calculation of Adjusted ROE $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 All-bank All-bank Net income 5,131 5,434 5,785 Net inco
Slide 51: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted Effective Tax Rate (teb) Calculation of Adjusted Total Payout Ratio $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 $ millions (unless otherwise stated) Q1/26 All-bank All-bank Income taxes Common dividends 2,292 Income ta
Slide 52: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted Net Income Calculation of Adjusted Non-interest Expense, PPPT, and Net Income $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 Personal Banking Corporate Support Net In
Slide 53: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of PPPT Calculation of PPPT $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 $ millions (unless otherwise stated) Q1/25 Q4/25 Q1/26 All-Bank Wealth Management Net income 5,131 5,434 5,785 Net income 980 1,284 1,295 Income taxes 1,302 1
Slide 54: Investor Relations Contact
Investor Relations Contact Asim Imran Senior Vice President, Head of Investor Relations (416) 955-7804 www.rbc.com/investorrelations ®/ Trademark(s) of Royal Bank of Canada. ‡ All other trademarks are the property of their respective owner(s). 54