Royal Bank Of Canada · TSX:RY
Royal Bank Of Canada — Q2 2026 Earnings Presentation
54 slides from Royal Bank Of Canada's earnings presentation, May 28, 2026
Slide 1: Royal Bank of Canada Second Quarter Results
Royal Bank of Canada Second Quarter Results May 28, 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, an
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: Creating shareholder value: Q2/26 Key Messages
Q2/26 Key Messages: Driving premium profitability and strong value creation Reported NIAT Adjusted PPPT(1)(4) Diluted Earnings per Share Diluted EPS growth Strong results underpinned by solid growth across our 27% 25% 25% 14% $3.85 (EPS) $3.90 businesses YoY Earnings growth Reported Adjusted(1) Repo
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 Under Administration(1)(2) | $BN Acceptances and Deposits | $BN Loans and Market Share(3) | $BN Loans & Assets under +3% Capital Markets
Slide 6: Creating long-term shareholder value
Creating long-term shareholder value Earnings growth and internal capital generation Driving shareholder returns through dividend increases and tactical share buybacks 0.83% 0.87% 0.90% Historical average of annualized share buybacks Adjusted(1) Adjusted(1) Adjusted(1) over opening common shares out
Slide 7: Financial Review
Financial Review Katherine Gibson Chief Financial Officer 7
Slide 8: Q2/26: Strong results underpinned by solid revenue growth
Q2/26: Strong results underpinned by solid revenue growth and ~3% operating leverage(1) Financial Results Reported Earnings $ MM (except for EPS) Q2/2026 YoY QoQ ▪ Net income up 25% YoY Revenue 17,453 11% (3)% Net Interest Income 8,506 6% (1)% ▪ Adjusted net income(2) up 23% YoY Non-Interest Income
Slide 9: Capital: Strong position supports continued investment
Capital: Strong position supports continued investment in businesses and shareholder returns CET1(1) Movement ▪ CET1 ratio(1) of 13.5%, down 20 bps QoQ, reflecting: 75 bps (33) bps (19) bps (23) bps (6) bps + Strong net internal capital generation (7) bps − Higher RWA, mainly from strong client-driv
Slide 10: Net interest income: Volume growth and higher spreads
Net interest income: Volume growth and higher spreads All-Bank Net Interest Income | $ MM Average Earning Assets | $ BN All-Bank NIM (AEA)(1) Decomposition 1.64% YoY +10% Q1/26 All Bank NIM 1.55% 1.58% YoY 2.13% 2,212 ex-Trading (6) bps 2,191 2,011 81 84 8,585 +6% +18% 8,506 71 Capital Markets (0.02
Slide 11: Non-interest expense: Higher staff-related costs
Non-interest expense: Higher staff-related costs, including higher variable compensation Drivers of expense growth | $ MM Drivers of expense growth | $ MM % of LTM NIE Q2/25 Expenses 8,730 Q2/25 8,730 33% Salaries & benefits 41 Salaries Salary and other staff related costs 1.7% Variable compensation
Slide 12: Personal Banking: Strong results and lower PCL
Personal Banking: Strong results underpinned by prudent expense management and lower PCL Key Metrics(1) Q2/2026 Highlights Reported Personal Banking $ MM (unless otherwise stated) Q2/2026 YoY QoQ ▪ Net income up 17% YoY on a reported and up 16% on an adjusted(2) basis; PPPT(2) up 7% YoY Revenue 5,04
Slide 13: Commercial Banking: Strong results and lower PCL
Commercial Banking: Strong results reflecting solid revenue growth and lower PCL Key Metrics(1) Q2/2026 Highlights Reported $ MM (unless otherwise stated) Q2/2026 ▪ Net income up 43% or 42% YoY adjusted(2); PPPT(2) up 5% YoY YoY QoQ ▪ Revenue up 5% YoY Revenue 2,159 5% (2)% Net interest income 1,844
Slide 14: Wealth Management: Revenue growth supported by fee-based client assets
Wealth Management: Revenue growth supported by strong growth in fee-based client assets Key Metrics(1) Q2/2026 Highlights Reported $ MM (unless otherwise stated) Q2/2026 ▪ Net income up 28% or 22% YoY adjusted(2); PPPT(2) up 21% YoY YoY QoQ Revenue 5,954 10% (2)% ▪ Revenue up 10% YoY Net interest in
Slide 15: Capital Markets: Record NIAT underpinned by strong PPPT
Capital Markets: Record NIAT underpinned by strong PPPT(1) earnings growth Key Metrics(2) Q2/2026 Highlights Reported $ MM (unless otherwise stated) Q2/2026 YoY QoQ ▪ Net income up 23% YoY; PPPT(1) up 30% YoY Revenue 3,943 19% (2)% ▪ Revenue up 19% YoY Corporate & Investment Banking 1,861 17% 8% + C
Slide 16: Insurance: Solid performance reflecting strong investment result
Insurance: Solid performance reflecting strong insurance investment result Key Metrics(1) Q2/2026 Highlights Reported ▪ Net income up 3% YoY $ MM (unless otherwise stated) Q2/2026 YoY QoQ ▪ Revenue up 2% YoY Revenue 345 2% 2% Insurance Service Result 217 (3)% (10)% + Insurance investment result up 1
Slide 17: Risk Review
Risk Review Graeme Hepworth Chief Risk Officer 17
Slide 18: Allowance for Credit Losses: Maintaining prudent reserve levels
Allowance for Credit Losses: Maintaining prudent reserve levels on performing loans Q2/26 Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) | $ MM L&A: $1,062BN L&A: $1,086BN ACL to L&A: 0.73% ACL to L&A: 0.72% PCL on Performing Loans of $18MM 899 (865) (21) 38 12 (11) Refer to Slide 20
Slide 19: Gross Impaired Loans
Gross Impaired Loans: Continue to reflect an uncertain economic environment Gross Impaired Loans (GIL) | $ MM | BPS Key Drivers of GIL (QoQ) 90 ▪ Total GIL increased $623MM QoQ (up 4 bps), primarily due to higher impaired loans in 88 85 86 83 Capital Markets and Wealth Management. New formations dec
Slide 20: PCL on Impaired Loans: Trended lower across most segments
PCL on Impaired Loans: Trended lower across most segments Total RBC | $ MM | BPS Wealth Management (including CNB) | $ MM | BPS ▪ Wealth Management: Provisions were up $18MM QoQ due H1/26 PCL to higher provisions in the Utilities and Other sectors, Average historical loss rate(1): 30 bps 37 bps part
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 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Loans 5.50% 5.49% 5.45% 5.26% 5.23% Loans 1,006 1,014 1,033 1,050 1,068 Securities 3.88% 3.83% 3.72% 3.46% 3.50% Securities 512 524 568 615 617 R
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 Q1/26 Q2/26 Revenue Short-term rates(2) Across the curve(2) Net Interest Income Increase Decrease Increase Decrease Q1/26 Q2/26 Q1/26 Q2/26 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 0.08% 0.03% 0.01% (0.04)% (0.06)% (0.07)% +4 bps 3.05% 2.99% 2.99% 3.00% +0 bps (5) bps Q1/26 NIM Rates Impact Product Mix, PPA Q2/26 NIM Q1/26 NIM Asset Yields Liabilities Cos
Slide 25: Non-Interest Income: Markets and client activity driving growth
Non-Interest Income: Markets and client activity driving growth Non-Interest Income | $ MM Q2/2026 Highlights ▪ Non-interest income up 17% YoY Q2/25 Non-interest income 7,616 + Higher investment management & custodial fees driven by higher fee-based client assets Investment, brokerage & custodial fe
Slide 26: Canadian Banking: Leading Money-In franchise
Canadian Banking: Leading Money-In franchise and a ~37% efficiency ratio Key Metrics – Q2/2026(1) Reported Personal Banking – $ millions (unless otherwise stated) Commercial Banking Canadian Banking Canada YoY QoQ Revenue 4,736 2,159 6,895 5% (3)% Net interest income 3,468 1,844 5,312 6% (3)% Non-in
Slide 27: Canadian Banking: Clients continue to adopt 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% Flat +6% 10,176 10,398 10,563 64.2% 63.2% 64.2% 8,452 8,563 8,067 Q2/25 Q1/26 Q2/26 Q2/25 Q1/26 Q2/26 Q2/25 Q1/26 Q2/26 Mobile
Slide 28: U.S. Region: Solid growth across business lines
U.S. Region: Solid growth across business lines driving efficiency ratio improvement Key Metrics Q2/2026 Highlights | US$ MM US$ MM (unless otherwise stated) Q2/2026 YoY QoQ ▪ Net income up 47% YoY Net Income 728 47% 2% Efficiency Ratio(1) 75.4% (5.3) pts 0.7 pts ▪ Revenue ROE(1) 11.1% 3.1 pts 0.5 p
Slide 29: Corporate Support
Corporate Support Financial Performance | $ MM Q2/2026 Highlights ▪ Net income of $(102)MM, improved from $(151)MM a year ago Reported Q2/2026 Q1/2026 Q2/2025 + Prior year results included the impact from HSBC Canada transaction and integration costs of Revenue (teb(1)) 3 75 (231) $24MM after-tax U.
Slide 30: Non-Interest Expense: Market appreciation led to 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 $134MM impact on YoY expense growth $ millions (unless otherwise stated) Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Share-based compensation 397 179 235 148 378 54
Slide 31: Market Risk Trading Revenue and Trading VaR
Market Risk Trading Revenue and Trading VaR $MM 28 23 28 23 60 50 40 30 20 10 0 -10 -20 -30 -40 May 30, 2025 Jun 30, 2025 Aug 29, 2025 Sep 30, 2025 Nov 28, 2025 Dec 31, 2025 Feb 27, 2026 Mar 31, 2026 May 1, 2025 Jul 31, 2025 Oct 31, 2025 Jan 30, 2026 Apr 30, 2026 Trading Revenue (teb)(1) Trading VaR
Slide 32: Impact of foreign currency translation
Impact of foreign currency translation Estimated impact of foreign currency translation on key income statement items Relevant average exchange rates that impact our business For the three months ended Q2/26 vs. Q2/26 vs. For the three months ended ($ millions, except per share amounts) (Average for
Slide 33: 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 (Q2/26) Q2/26 PCL on Impaired Loans Gross Impaired Loans Avg Credit Avg Loan (bps)(1) (bps) Bureau 4.3% <636 Ba
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) $233.3 Total $467BN Uninsured $407BN Insured Uninsured Mortgage Balance $428BN $368BN $88.7 $412.2 (18%) (82%) HELOC Balance $39BN $39BN LTV at Origin
Slide 35: Select Non-Personal Portfolios: Strong credit quality
Select Non-Personal Portfolios: Strong credit quality Total Wholesale Exposure | $422BN; 39% of total L&A Spotlight on Select portfolios ▪ Commercial Real Estate (CRE): $106BN or 10% of total L&A Real estate and related − The portfolio was originated with sound lending standards and remains well-div
Slide 36: Allowance for Credit Losses: Prudently reserved
Allowance for Credit Losses: Prudently reserved Allocation of ACL by Product as a % of Loans & Acceptances Q2/25 Q1/26 Q2/26 Historical Actual Loss Rate(3) Product Stage 1 & 2 Total Stage 1 & 2 Total Stage 1 & 2 Total Average Peak Residential mortgages(1) 0.10% 0.15% 0.10% 0.17% 0.11% 0.18% 0.02% 0.
Slide 37: Funding: Well-diversified
Funding: Well-diversified LCR(1) | $ BN | total adjusted value ▪ As at April 30, 2026, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were High-quality Net Cash Surplus $1,016 billion or 52% of our total funding (including short-term repo Less
Slide 38: Capital: Preferred share dividends
Capital: Preferred share dividends $ millions (unless otherwise stated) Principal Currency Yield (%) Frequency Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 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 11 11 6 5 Series BI(3) $1
Slide 39: Items impacting results
Items impacting results 2026 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q2/2026 Legal provisions No Corporate Support Expenses $(84) $(62) $(0.04) Amortization of acquisition-related intangibles Yes Multiple Segments Expenses $(101) $(74) $(0.05) Q1/202
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 $461BN 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 $ millions (unless otherwise stated) 2024 2025 H1 2025 H1 2026 Q2/25 Q1/26 Q2/26 All-bank Net income 16,240 20,369 9,521 11,294 4,390 5,785 5,509 Less: Non-controlling interests (NCI) (10) (7)
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) Q2/25 Q1/26 Q2/26 $ millions (unless otherwise stated) Q2/26 All-bank All-bank Income taxes Common dividends 2,279 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) Q2/25 Q1/26 Q2/26 $ millions (unless otherwise stated) Q2/25 Q1/26 Q2/26 Corporate Support Personal Banking Revenue
Slide 53: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of PPPT Calculation of PPPT $ millions (unless otherwise stated) Q2/25 Q1/26 Q2/26 $ millions (unless otherwise stated) Q2/25 Q1/26 Q2/26 All-Bank Wealth Management Net income 4,390 5,785 5,509 Net income 929 1,295 1,185 Income taxes 1,128 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