Royal Bank Of Canada · TSX:RY
Royal Bank Of Canada — Q4 2025 Earnings Presentation
55 slides from Royal Bank Of Canada's earnings presentation, Dec 3, 2025
Slide 1: Royal Bank of Canada Fourth Quarter Results
Royal Bank of Canada Fourth Quarter Results December 3, 2025 All amounts are in Canadian dollars, unless otherwise specified, and are based on financial statements presented in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Boar
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: Q4/25 Key Messages: Record performance showcasing underlying earnings power
Q4/25 Key Messages: Record performance showcasing underlying earnings power Reported NIAT Adjusted PPPT(1)(4) Reported Adjusted(1) Reported Adjusted(1) Record results underpinned by strong Pre-Provision, Pre- $3.76 $3.85 Tax(1) Earnings growth 29% 26% 29% 25% Earnings growth Diluted Earnings per Sha
Slide 5: Client assets and activity: Diversified growth across our businesses
Client assets and activity: Diversified growth across 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 +3% LTM(2) GIB(3) +1% league ranking +5% +4% +9% 311
Slide 6: Financial Review
Financial Review Katherine Gibson Chief Financial Officer 6
Slide 7: Q4/25: Record results underpinned by strong PPPT growth
Q4/25: Record results underpinned by strong PPPT(1) growth Financial Results Reported Earnings $ MM (except for EPS) Q4/2025 YoY QoQ ▪ Net income is up 29% YoY Revenue 17,209 14% 1% Net Interest Income 8,645 13% 4% ▪ Adjusted net income(1) is up 25% YoY Non-Interest Income 8,564 16% (1)% o Adjusted
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 ▪ CET1 ratio(1) of 13.5%, up 30 bps QoQ, reflecting: (32) bps + Strong net internal capital generation 75 bps (14) bps (6) bps 6 bps ‒ Repurchase of 4.8MM shares for $987MM +43 bps ‒ Higher
Slide 9: 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 1.68% 1.62% YoY +17% 1.61% YoY 2,116 Q3/25 All Bank NIM (6) bps 2,059 2.09% 78 +18% (ex-trading)(3) 76 +13% 1,816 66 8,351 8,645 698 +28% Person
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 Q4/24 Expenses 9,019 Q4/24 9,019 33% Salaries & benefits 59 Salaries Variable compensation 213 YoY change includes: 30% Core expense
Slide 11: Personal Banking: Record revenue underpinned by our leading money-in franchise
Personal Banking: Record revenue underpinned by our leading money-in franchise Key Metrics(1) Q4/2025 Highlights Reported $ MM (unless otherwise stated) Q4/2025 Personal Banking YoY QoQ ▪ Net income up 20% or 19% YoY adjusted(2); PPPT(2) up 18% YoY Revenue 5,178 11% 2% Net interest income 3,774 13%
Slide 12: Commercial Banking: Record revenue and strong operating leverage partly offset by higher PCL
Commercial Banking: Record revenue and strong operating leverage(1) partly offset by higher PCL Key Metrics(2) Q4/2025 Highlights Reported $ MM (unless otherwise stated) Q4/2025 ▪ Net income up 5% or 4% YoY adjusted(3); PPPT(3) up 9% YoY YoY QoQ ▪ Revenue up 7% YoY Revenue 2,221 7% 3% Net interest i
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(1) Q4/2025 Highlights Reported $ MM (unless otherwise stated) Q4/2025 YoY QoQ ▪ Net income up 33% or 35% YoY adjusted(2); PPPT(2) up 32% YoY Revenue 5,900 14% 7% Net interest income 1,443 13% 9% ▪ Rev
Slide 14: Capital Markets: Strong PPPT earnings underpinned by record Q4 revenue of $3.6 billion
Capital Markets: Strong PPPT(1) earnings underpinned by record Q4 revenue of $3.6 billion Key Metrics(2) Q4/2025 Highlights Reported $ MM (unless otherwise stated) Q4/2025 ▪ Net income up 45% YoY; PPPT(1) up 62% YoY YoY QoQ Revenue 3,611 24% (4)% ▪ Revenue up 24% YoY Corporate & Investment Banking 1
Slide 15: Insurance: Annual actuarial assumption updates impacted results
Insurance: Annual actuarial assumption updates impacted results Key Metrics(1) Q4/2025 Highlights Reported ▪ Net income down 40% YoY $ MM (unless otherwise stated) Q4/2025 YoY QoQ ▪ Revenue down 25% YoY Revenue 209 (25)% (43)% Insurance Service Result 78 (55)% (72)% − Insurance service result down 5
Slide 16: Risk Review
Risk Review Graeme Hepworth Chief Risk Officer 16
Slide 17: Allowance for Credit Losses: Prudent reserve levels on performing loans
Allowance for Credit Losses: Prudent reserve levels on performing loans 2025 Allowance for Credit Losses (ACL) on Loans & Acceptances (L&A) | $ MM L&A: $987BN L&A: $1,050BN ACL to L&A: 0.64% ACL to L&A: 0.71% PCL on Performing Loans of $622MM 3,734 (3,249) 370 129 123 7,459 6,974 7,459 6,352 6,352 6
Slide 18: Gross Impaired Loans: Still elevated but stabilizing trend
Gross Impaired Loans: Still elevated but stabilizing trend Gross Impaired Loans (GIL) | $ MM | BPS Key Drivers of GIL (QoQ) ▪ Total GIL decreased $69MM QoQ (down 2 bps) due to lower impaired loans in Capital 88 Markets, partially offset by higher impaired loans in Commercial Banking, Personal 85 83
Slide 19: PCL on Impaired Loans: Provisions reflect tariff-related uncertainty
PCL on Impaired Loans: Provisions reflect tariff-related uncertainty Total RBC | $ MM | BPS Wealth Management (including CNB) | $ MM | BPS ▪ Wealth Management: Provisions were up $38MM QoQ, mainly driven by CNB, specifically in the Consumer Average historical loss rate(1): 30 bps 16 Discretionary se
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 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Loans 5.89% 5.69% 5.50% 5.49% 5.45% Loans 973 999 1,006 1,014 1,033 Securities 4.08% 3.82% 3.88% 3.83% 3.72% Securities 433 502 512 524 568 Repo
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)(7) | $ MM Impact of 25 bps decrease(2) | $ MM Q3/25 Q4/25 Revenue Short-term rates(2) Across the curve(2) Net Interest Income Increase Decrease Increase Decrease Q3/25 Q4/25 Q3/25 Q4/25 Canadian Dol
Slide 23: 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 0.05% 0.04% 0.02% 0.01% 2.99% 3.04% 2.94% 2.97% Q3/25 NIM Rate Impacts Product Mix/Other Q4/25 NIM Q3/25 NIM Liabilities Cost Mix/Other Q4/25 NIM Canadian Banking NIM(1) CNB NI
Slide 24: Non-Interest Income: Markets and client activity driving growth
Non-Interest Income: Markets and client activity driving growth Non-Interest Income | $MM Q4/2025 Highlights Q4/24 Non-interest income 7,403 ▪ Non-interest income up 16% YoY + Higher investment management & custodial fees driven by higher fee-based client assets Investment, brokerage & custodial fee
Slide 25: Canadian Banking: Strong operating leverage led to a 37% efficiency ratio
Canadian Banking: Strong operating leverage(1) led to a 37% efficiency ratio Key Metrics – Q4/2025(2) Reported Personal Banking – $ millions (unless otherwise stated) Commercial Banking Canadian Banking Canada YoY QoQ Revenue 4,860 2,221 7,081 10% 3% Net interest income 3,516 1,910 5,426 11% 3% Non-
Slide 26: 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% 9,851 10,138 10,289 62.8% 63.4% 62.9% 8,178 8,339 7,802 Q4/24 Q3/25 Q4/25 Q4/24 Q3/25 Q4/25 Q4/24 Q3/25 Q4/25 Mobi
Slide 27: U.S. Region: Strong earnings growth driven by strength across all business lines
U.S. Region: Strong earnings growth driven by strength across all business lines Key Metrics Q4/2025 Highlights | US$ MM US$ MM (unless otherwise stated) Q4/2025 YoY QoQ ▪ Net income up 54% YoY Net Income 884 54% 39% Efficiency Ratio(1) 77.3% (7.5) pts (4.2) pts ▪ Revenue ROE(1) 13.5% 3.4 pts 3.7 pt
Slide 28: Corporate Support
Corporate Support Financial Performance | $ MM Q4/2025 Highlights Reported Q4/2025 Q3/2025 Q4/2024 ▪ Net income of $(76)MM, up from $(247)MM a year ago, reflecting: Revenue (teb(1)) 90 134 (28) + Prior year results included the impact from HBCA(3) transaction and integration costs of $134MM U.S. WAP
Slide 29: Non-Interest Expense: Market appreciation led to increase in share-based compensation
Non-Interest Expense: Market appreciation led to increase in share-based compensation SBC (incl. U.S. WM WAP) had a $93MM impact on YoY expense growth $ millions (unless otherwise stated) Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Share-based compensation 243 (17) 397 179 235 148 37
Slide 30: Market Risk Trading Revenue and Trading VaR
Market Risk Trading Revenue and Trading VaR $ MM 25 24 28 23 60 50 40 30 20 10 0 -10 -20 -30 -40 Nov 29, 2024 Dec 31, 2024 Feb 28, 2025 Mar 31, 2025 May 30, 2025 Jun 30, 2025 Aug 29, 2025 Sept 30, 2025 Nov 1, 2024 Jan 31, 2025 Apr 30, 2025 Jul 31, 2025 Oct 31, 2025 Trading Revenue (teb)(1) Trading V
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 Q4/25 vs. Q4/25 vs. For the three months ended ($ millions, except per share amounts) (Average for
Slide 32: Spotlight on Select Portfolios: Disciplined risk management
Spotlight on Select Portfolios: Disciplined risk management Commercial Banking Exposure | $191BN; 18% of total L&A NBFI(1) and Financing Products Exposure | $82BN; 8% of total L&A ▪ Portfolio was originated with sound lending standards, is secured, remains diversified and ▪ Primarily Tier 1 sponsors
Slide 33: Commercial Real Estate (CRE): Well-diversified portfolio
Commercial Real Estate (CRE): Well-diversified portfolio Total CRE Exposure | $108BN | 10% of total L&A ▪ The portfolio was originated with sound lending standards and remains well- 2% Insurance & Other Other 3% Land Development diversified by geography, business and property type 10% 17% Wealth Man
Slide 34: Personal Banking - Canada: Strong client profile
Personal Banking - Canada: Strong client profile Personal Banking - Canada PCL on Impaired Loans and Gross Impaired Loans Personal Banking - Canada Retail Credit Bureau Score Distribution (Q4/25) Q4/25 PCL on Impaired Loans Gross Impaired Loans Avg Credit Avg Loan (bps)(1) (bps) Bureau 4.1% <636 Bal
Slide 35: Personal Banking - Canada: Impact at mortgage renewals
Personal Banking - Canada: Impact at mortgage renewals Mortgage Balances Renewing Over the Next 5 Years ($ BN)(1) ▪ With time, the portfolio is able to Variable Rate benefit from: 121.2 Fixed Rate 112.5 − current and future rate cuts − wage and income inflation − principal amortization − proactive c
Slide 36: 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) $229.4 Insured Uninsured Total $461BN Uninsured $399BN Mortgage Balance $422BN $360BN $89.7 $364.6 (20%) (80%) HELOC Balance $39BN $39BN LTV at Origin
Slide 37: Allowance for Credit Losses: Prudently reserved
Allowance for Credit Losses: Prudently reserved Allocation of ACL by Product as a % of Loans & Acceptances Q4/24 Q3/25 Q4/25 Product Stage 1 & 2 Total Stage 1 & 2 Total Stage 1 & 2 Total Residential mortgages(1) 0.07% 0.12% 0.10% 0.16% 0.10% 0.16% Other Retail 1.80% 2.00% 1.89% 2.11% 1.88% 2.11% Per
Slide 38: Funding: Well-diversified
Funding: Well-diversified LCR(1) | $ BN | total adjusted value ▪ As at October 31, 2025, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were High-quality Net Cash Surplus $1,009 billion or 54% of our total funding (including short-term repo Le
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: Items impacting results
Items impacting results 2024 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q4/2024 Legal provisions No Capital Markets Expenses $(93) $(93) $(0.07) Purchase accounting accretion of fair value adjustments Personal Banking and No Net Interest Income $130 $94
Slide 41: Items impacting results
Items impacting results 2024 | $ MM, except for EPS Adjusting Item Segments Line Item Before-Tax After-Tax Diluted EPS Q1/2024 $(115)/ Cost of the FDIC special assessment No Wealth Management Expenses $(159) / US$(117) $(0.08) US$(85) Amortization of acquisition-related intangibles Yes Multiple Segm
Slide 42: Glossary & Additional Notes
Glossary & Additional Notes 42
Slide 43: 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 44: 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 45: 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 Capital Markets portfolio, on a single nam
Slide 46: 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 $454BN comp
Slide 47: Non-GAAP Measures and Ratios
Non-GAAP Measures and Ratios 47
Slide 48: 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 49: Non-GAAP measures and ratios
Non-GAAP measures and ratios Non-GAAP measures Label Composition Usefulness Reconciliation Core expense growth is a useful measure to assess how efficiently costs are being managed and may enhance comparability of our financial performance and enable readers Non-interest expense year-over-year growt
Slide 50: 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 51: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted ROE Calculation of Adjusted ROE $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 All-bank All-bank Net income 4,222 5,414 5,434 Net income available to common sharehold
Slide 52: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of Adjusted Effective Tax Rate (teb) Calculation of Core Expense Growth YoY $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 $ millions (unless otherwise stated) Q4/24 Q4/25 Change All-bank All-bank Income taxes Expenses 9,019 9,374 35
Slide 53: 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) Q4/24 Q3/25 Q4/25 $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 Personal Banking Corporate Support Net In
Slide 54: Reconciliation for non-GAAP financial measures
Reconciliation for non-GAAP financial measures Calculation of PPPT Calculation of PPPT $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 $ millions (unless otherwise stated) Q4/24 Q3/25 Q4/25 All-Bank Wealth Management Net income 4,222 5,414 5,434 Net income 969 1,096 1,284 Income taxes 993 1,4
Slide 55: Investor Relations Contacts
Investor Relations Contacts 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). 55