Royal Bank Of Canada · TSX:RY
Royal Bank Of Canada — Q3 2026 Earnings Presentation
53 slides from Royal Bank Of Canada's earnings presentation, Aug 27, 2026
Slide 1: Royal Bank of Canada Third Quarter Results
Royal Bank of Canada Third Quarter Results August 27, 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 (U.S.) Private Securities Litigation Reform Act of 1995 and any applicable Ca
Slide 3: Overview
Overview Dave McKay President and Chief Executive Officer 3
Slide 4: Q3/26 Key Messages: Record performance showcases underlying earnings power
Q3/26 Key Messages: Record performance showcases underlying earnings power Reported NIAT Adjusted PPPT(1)(4) Diluted Earnings per Share Diluted EPS YoY growth Record results underpinned by solid growth across our 13% 11% 11% 12% $4.23 (EPS) $4.28 businesses YoY Earnings growth Reported Adjusted(1) R
Slide 5: Client assets and activity: Diversified growth across our businesses
Client assets and activity: Diversified growth across our businesses Personal Banking Average Volumes and Assets Commercial Banking Average Loans & Capital Markets Average Under Administration(1) | $BN Acceptances and Deposits | $BN Loans and Market Share(3) | $BN Loans & Assets under Loans & LTM(4)
Slide 6: Financial Review
Financial Review Katherine Gibson Chief Financial Officer 6
Slide 7: Q3/26: Record earnings underpinned by strong revenue growth and 3% operating leverage
Q3/26: Record earnings underpinned by strong revenue growth and 3% operating leverage(1) Financial Results Reported Earnings $ MM (except for EPS) Q3/2026 YoY QoQ ▪ Net income up 11% YoY Revenue 18,538 9% 6% Net Interest Income 8,744 5% 3% ▪ Adjusted net income(2) up 10% YoY Non-Interest Income 9,79
Slide 8: Capital: Strong position supports continued investment in businesses and shareholder returns
Capital: Strong position supports continued investment in businesses and shareholder returns CET1(1) Movement 80 bps (34) bps ▪ CET1 ratio(1) of 13.5%, flat QoQ, reflecting: (30) bps (21) bps 1 bp + Strong net internal capital generation − Higher RWA(1) supporting strong client-driven business growt
Slide 9: Net interest income: Higher volume growth
Net interest income: Higher volume growth All-Bank Net Interest Income | $ MM Average Earning Assets | $ BN Average Deposits | $ BN 5% +13% +10% YoY YoY YoY 8,744 2,335 1,650 8,351 8,506 2,212 1,590 481 (27)% 88 +17% 1,499 198 659 600 2,059 84 193 +8% 967 +12% 76 184 861 945 1,500 +15% 495 +23% 1,30
Slide 10: 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 Q3/25 Expenses 9,232 Q3/25 9,232 33% Salaries & benefits 233 Salaries Salary and other staff-related costs 2.3% Variable compensatio
Slide 11: Personal Banking: PPPT growth on higher revenues, partly offset by ongoing investments
Personal Banking: PPPT(1) growth on higher revenues, partly offset by ongoing investments Key Metrics Q3/2026 Highlights Reported Personal Banking $ MM (unless otherwise stated) Q3/2026 YoY QoQ ▪ Net income down 1% YoY on a reported and adjusted(1) basis; PPPT(1) up 2% YoY Revenue 5,285 4% 5% Person
Slide 12: Commercial Banking: Record NIAT underpinned by strong volume growth and lower PCL
Commercial Banking: Record NIAT underpinned by strong volume growth and lower PCL Key Metrics Q3/2026 Highlights Reported $ MM (unless otherwise stated) Q3/2026 ▪ Net income up 12% YoY and up 12% YoY on an adjusted(1) basis; PPPT(1) up 5% YoY YoY QoQ ▪ Revenue up 5% YoY Revenue 2,252 5% 4% Net inter
Slide 13: 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 Q3/2026 Highlights Reported $ MM (unless otherwise stated) Q3/2026 ▪ Net income up 32% or 26% YoY adjusted(1); PPPT(1) up 36% YoY YoY QoQ Revenue 6,412 16% 8% ▪ Revenue up 16% YoY Net interest income
Slide 14: Capital Markets: Record NIAT underpinned by strong PPPT earnings growth
Capital Markets: Record NIAT underpinned by strong PPPT(1) earnings growth Key Metrics Q3/2026 Highlights Reported $ MM (unless otherwise stated) Q3/2026 YoY QoQ ▪ Net income up 16% YoY; PPPT(1) up 21% YoY Revenue 4,212 12% 7% ▪ Revenue up 12% YoY Corporate & Investment Banking 2,045 16% 10% + Corpo
Slide 15: Insurance: Revenue growth impacted by higher longevity results in the prior year
Insurance: Revenue growth impacted by higher longevity results in the prior year Key Metrics Q3/2026 Highlights Reported ▪ Net income down 20% YoY $ MM (unless otherwise stated) Q3/2026 YoY QoQ ▪ Revenue down 11% YoY Revenue 328 (11)% (5)% Insurance Service Result 227 (19)% 5% + Insurance investment
Slide 16: Risk Review
Risk Review Graeme Hepworth Chief Risk Officer 16
Slide 17: Allowance for Credit Losses: Maintaining prudent reserve levels on performing loans
Allowance for Credit Losses: Maintaining prudent reserve levels on performing loans Q3/26 Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) | $ MM L&A: $1,086BN L&A: $1,116BN ACL to L&A: 0.72% ACL to L&A: 0.70% PCL on Performing Loans of $21MM 979 (1,038) (10) (15) 46 Refer to Slide 19
Slide 18: Gross Impaired Loans: Higher new formations driven by a few sectors in Capital Markets
Gross Impaired Loans: Higher new formations driven by a few sectors in Capital Markets Gross Impaired Loans (GIL) | $ MM | BPS Key Drivers of GIL (QoQ) 91 ▪ Total GIL increased $353MM QoQ (up 1 bp), primarily due to higher impaired loans in 86 90 85 83 Capital Markets and Wealth Management, partiall
Slide 19: PCL on Impaired Loans: Continues to normalize across most segments
PCL on Impaired Loans: Continues to normalize across most segments ▪ Capital Markets: Provisions were up $148MM QoQ, Total RBC | $ MM | BPS Wealth Management (including CNB) | $ MM | BPS largely driven by a previously impaired account in the YTD PCL Other Services sector, as well as higher provision
Slide 20: Appendices
Appendices 20
Slide 21: Net Interest Margin: Average rates and balances
Net Interest Margin: Average rates and balances Interest Income Yield(1) Average Assets | $ BN Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Loans 5.49% 5.45% 5.26% 5.23% 5.13% Loans 1,014 1,033 1,050 1,068 1,095 Securities 3.83% 3.72% 3.46% 3.50% 3.43% Securities 524 568 615 617 668 R
Slide 22: Net Interest Income: Interest rate sensitivity
Net Interest Income: Interest rate sensitivity All-Bank: Impact of 100 bps change across the curve(1) | $ MM decrease(2) Impact of 25 bps increase (2)| |$$MM MM Q2/26 Q3/26 Revenue Short-term rates(2) Across the curve(2) Net Interest Income Increase Decrease Increase Decrease Q2/26 Q3/26 Q2/26 Q3/26
Slide 23: Net Interest Margin
Net Interest Margin All-Bank NIM (AEA)(1) Decomposition Canadian Banking NIM(1) QoQ Waterfall 0.01% 0.01% (0.04)% (0.01)% (0.58)% (0.01)% 2.11% (0.03)% 2.07% 1.49% Includes impact of seasonally higher lending spreads in the 2.99% prior quarter Q2/26 Capital Personal Wealth Q3/26 Trading Q3/26 2.96%
Slide 24: Non-Interest Income: Markets and client activity driving growth
Non-Interest Income: Markets and client activity driving growth Non-Interest Income | $ MM Q3/2026 Highlights ▪ Non-interest income up 13% YoY Q3/25 Non-interest income 8,634 + Higher investment, brokerage & custodial fees driven by higher fee-based client assets 846 reflecting market appreciation a
Slide 25: Canadian Banking: Leading Money-In Franchise and a ~37% efficiency ratio
Canadian Banking: Leading Money-In Franchise and a ~37% efficiency ratio Key Metrics – Q3/2026 Reported Personal Banking – $ millions (unless otherwise stated) Commercial Banking Canadian Banking Canada YoY QoQ Revenue 4,954 2,252 7,206 4% 5% Net interest income 3,615 1,926 5,541 5% 4% Non-interest
Slide 26: Canadian Banking: Our ~17MM clients continue to adopt our digital channels
Canadian Banking: Our ~17MM clients continue to adopt our digital channels Active Digital Users(1) | ‘000 Digital Personal Adoption Rate(2) Active Mobile Users(1) | ‘000 +4% +80 bps +6% 10,138 10,563 10,534 63.4% 64.2% 64.2% 8,563 8,692 8,178 Q3/25 Q2/26 Q3/26 Q3/25 Q2/26 Q3/26 Q3/25 Q2/26 Q3/26 Mob
Slide 27: U.S. Region: Solid growth across business lines driving efficiency ratio improvement
U.S. Region: Solid growth across business lines driving efficiency ratio improvement Key Metrics Q3/2026 Highlights | US$ MM US$ MM (unless otherwise stated) Q3/2026 YoY QoQ ▪ Net income up 30% YoY Net Income 826 30% 13% Efficiency Ratio(1) 74.2% (7.3) pts (1.2) pts ▪ Revenue ROE(1) 12.1% 2.3 pts 1.
Slide 28: Corporate Support
Corporate Support Financial Performance | $ MM Q3/2026 Highlights ▪ Net income of $(18)MM, improved from $(31)MM a year ago Reported Q3/2026 Q2/2026 Q3/2025 Revenue (teb(1)) 49 3 134 ▪ Adjusted net income(2) of $(19)MM, improved from $(32)MM a year ago and $(101)MM last quarter U.S. WAP gains/(losse
Slide 29: Non-Interest Expense: Market appreciation led to an increase in share-based compensation
Non-Interest Expense: Market appreciation led to an increase in share-based compensation SBC (incl. U.S. WM WAP) had a $(194)MM impact on YoY expense growth $ millions (unless otherwise stated) Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Share-based compensation 179 235 148 378 54 32
Slide 30: Market Risk Trading Revenue and Trading VaR
Market Risk Trading Revenue and Trading VaR $MM 23 28 23 20 80 60 40 20 0 -20 -40 Aug 29, 2025 Sep 30, 2025 Nov 28, 2025 Dep 31, 2025 Feb 27, 2026 Mar 31, 2026 May 29, 2026 Jun 30, 2026 Aug 1, 2025 Oct 31, 2025 Jan 30, 2026 Apr 30, 2026 July 31, 2026 Trading Revenue (teb)(1) Trading VaR Trading VaR
Slide 31: Impact of foreign currency translation
Impact of foreign currency translation Estimated impact of foreign currency translation on key income statement items Relevant average exchange rates that impact our business For the three months ended Q3/26 vs. Q3/26 vs. For the three months ended ($ millions, except per share amounts) (Average for
Slide 32: Select Personal Portfolios: Strong client profile
Select Personal Portfolios: Strong client profile Personal Banking - Canada PCL on Impaired Loans and Gross Impaired Loans Personal Banking - Canada Retail Credit Bureau Score Distribution (Q3/26) Q3/26 PCL on Impaired Loans Gross Impaired Loans Avg Credit Avg Loan (bps)(1) (bps) Bureau 4.2% <636 Ba
Slide 33: 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) $239.2 Total $479BN Uninsured $418BN Insured Uninsured Mortgage Balance $439BN $378BN $90.2 $383.1 (19%) (81%) HELOC Balance $40BN $40BN LTV at Origin
Slide 34: Select Non-Personal Portfolios: Strong credit quality
Select Non-Personal Portfolios: Strong credit quality Total Wholesale Exposure | $434BN; 39% of total L&A Spotlight on Select portfolios ▪ Commercial Real Estate (CRE): $108BN or 10% of total L&A Real estate and related − The portfolio was originated with sound lending standards and remains well-div
Slide 35: Allowance for Credit Losses: Prudently reserved
Allowance for Credit Losses: Prudently reserved Allocation of ACL by Product as a % of Loans & Acceptances Q3/25 Q2/26 Q3/26 Historical Actual Loss Rate(3) Product Stage 1 & 2 Total Stage 1 & 2 Total Stage 1 & 2 Total Average Peak(4) Residential mortgages(1) 0.10% 0.16% 0.11% 0.18% 0.10% 0.18% 0.02%
Slide 36: Funding: Well-diversified
Funding: Well-diversified LCR(1) | $ BN | total adjusted value ▪ As at July 31, 2026, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were $1,041 High-quality Net Cash Surplus billion or 51% of our total funding (including short-term repo Less
Slide 37: Capital: Preferred share dividends
Capital: Preferred share dividends $ millions (unless otherwise stated) Principal Currency Yield (%) Frequency Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 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 11 11 6 5 5 Series BI(3) $15
Slide 38: Items impacting results
Items impacting results 2026 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q3/2026 Amortization of acquisition-related intangibles Yes Multiple Segments Expenses $(103) $(77) $(0.06) Q2/2026 Legal provisions No Corporate Support Expenses $(84) $(62) $(0.04
Slide 39: 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 40: Glossary & Additional Notes
Glossary & Additional Notes 40
Slide 41: 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 42: 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 43: Additional Notes
Additional Notes Note 1 Dealogic market share for Equity Capital Markets, Debt Capital Markets, loan syndications and Advisory. Other non-interest expenses include YoY change in non-interest expense from the following line items: Telecommunications, Postage and courier, Stationery and printing, Busi
Slide 44: 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 10 pending payout due to sale or refinancing. Canadian residential mortgage portfolio of $473BN comp
Slide 45: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios 45
Slide 46: 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 47: 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 48: 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 49: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted Net Income and Adjusted Diluted EPS $ millions (unless otherwise stated) 2024 2025 H1 2025 H1 2026 Q3/25 Q2/26 Q3/26 All-bank Net Income 16,240 20,369 9,521 11,294 5,414 5,509 6,024 Less: Non-controlling interests (NCI) (10) (7)
Slide 50: 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) Q3/25 Q2/26 Q3/26 $ millions (unless otherwise stated) Q3/26 All-bank All-bank Income taxes Common dividends 2,438 Income ta
Slide 51: 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) Q3/25 Q2/26 Q3/26 $ millions (unless otherwise stated) Q3/25 Q2/26 Q3/26 Personal Banking Corporate Support Net Inc
Slide 52: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of PPPT Calculation of PPPT $ millions (unless otherwise stated) Q3/25 Q2/26 Q3/26 $ millions (unless otherwise stated) Q3/25 Q2/26 Q3/26 All-Bank Wealth Management Net income 5,414 5,509 6,024 Income taxes 1,458 1,595 1,725 Net income 1,096
Slide 53: 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). 53