All amounts are in Canadian dollars and are based on financial statements presented in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our Q3 2023 Report to Shareholders and Supplementary Financial Information are available at: http://www.rbc.com/investorrelations.

Net income $3.9 Billion *Up 8% YoY*	Diluted EPS¹ $2.73 *Up 9% YoY*	Total PCL² $616 Million *PCL on loans ratio³* *down 1 bp⁴ QoQ*	ROE⁵ 14.6% *Flat YoY*	CET1 Ratio⁶ 14.1% Above regulatory requirements
Adjusted Net income⁷ $4.0 Billion *Up 11% YoY*	Adjusted Diluted EPS⁷ $2.84 *Up 11% YoY*	Total ACL⁸ $5.0 Billion *ACL on loans ratio⁹* *up 2 bps⁴ QoQ*	Adjusted ROE⁷ 15.1% *Up 30 bps YoY*	LCR¹⁰ 134% Down slightly from 135% last quarter

TORONTO, Aug. 24, 2023 /CNW/ - Royal Bank of Canada¹¹ (TSX:RY) (NYSE:RY) today reported net income of $3.9 billion for the quarter ended July 31, 2023, up $295 million or 8% from the prior year. Diluted EPS was $2.73, up 9% over the same period. Adjusted net income⁷ and adjusted EPS⁷of $4.0 billion and $2.84, respectively, were both up 11% from the prior year.

Results this quarter reflected higher provisions for credit losses, with a PCL on loans ratio of 29 bps. Results benefitted from lower taxes reflecting a favourable shift in earnings mix.

Pre-provision, pre-tax earnings⁷ of $5.2 billion were up $353 million or 7% from a year ago, mainly due to higher revenue in Capital Markets reflecting higher revenue in Corporate and Investment Banking, including the impact of loan underwriting markdowns in the prior period, as well as in Global Markets. Higher net interest income driven by higher interest rates and strong volume growth in Canadian Banking also contributed to the increase. These factors were partially offset by higher staff-related expenses, mainly due to higher salaries as well as higher variable and stock-based compensation, and higher professional fees. Ongoing technology investments and higher discretionary costs to support strong client-driven growth also contributed to higher expenses.

Compared to last quarter, net income was up 6% reflecting higher results in Personal & Commercial Banking and Insurance. Capital Markets results were relatively flat. These factors were partially offset by lower results in Wealth Management. Adjusted net income⁷ was up 7% over the same period. Pre-provision, pre-tax earnings⁷ were up 5% as higher revenue more than offset expense growth.

The number of full-time equivalent (FTE) employees was down 1% from last quarter, and we expect to further reduce FTE by approximately 1-2% next quarter.

Our capital position remains robust, with a CET1 ratio of 14.1%, supporting solid volume growth and $1.9 billion in common share dividends. We also have a strong average LCR of 134%.

"Despite a complex operating environment, our Q3 results exemplify RBC's ability to consistently deliver solid revenue and volume growth underpinned by prudent risk management. We remain focused on executing on our cost reduction strategy while leveraging our strong balance sheet and diversified business model to support our growth and bring long-term value to our clients, communities and shareholders."

– Dave McKay, President and Chief Executive Officer of Royal Bank of Canada

Q3 2023

Compared to

Q3 2022

Reported:

Net income of $3,872 million
Diluted EPS of $2.73
ROE of 14.6%
CET1 ratio of 14.1%

ROYAL BANK OF CANADA REPORTS THIRD QUARTER 2023 RESULTS