Royal Bank of Canada : Abridged Supplementary Financial Information Q4 2022

Abridged Supplementary Financial Information Q4 2022

Issued on February 6, 2023, reflecting the announced changes to the Bank's reportable business segments

For the period ended October 31, 2022

(UNAUDITED)

For further information, please contact:

Asim Imran	Vice President, Head of Investor Relations	[phone]	[e-mail]
Marco Giurleo	Senior Director, Investor Relations	[phone]	[e-mail]
www.rbc.com/investorrelations

Table of Contents

Page

• Notes to Users

• Financial Highlights

Consolidated Results

• Statements of income

• Revenue from trading activities
• Realized gains and losses on investment securities
  7 Non-interest expense

Segment Details

• Personal & Commercial Banking
  9 Canadian Banking

1. Wealth Management

1. Insurance
2. Capital Markets
3. Corporate Support

On- and Off-Balance Sheet

1. Balance sheets (period-end balances)
2. Selected average balance sheet items

1. Assets under administration and management
2. Statements of comprehensive income
3. Statements of changes in equity

Capital

1. Flow statement of the movements in regulatory capital
2. Total capital risk-weighted assets by business segments (all-in basis)

1. Movement of total capital risk-weighted assets by risk type (all-in basis)

Page

Credit Quality

1. Loans and acceptances
2. Gross impaired loans

1. Provision for credit losses

1. Allowance for credit losses

1. Credit quality ratios

Credit Risk Exposure

1. Credit risk exposure by geography and portfolio
2. Actual losses vs. estimated losses

1. Basel Pillar 3 back-testing (Internal ratings based)
2. Fair value of derivative instruments

1. Derivatives - Notional amounts
2. Derivatives - Related credit risk
3. Calculation of ROE and RORC
4. Key performance and Non-GAAP measures

1. Glossary

1. Sector definitions

(i)

Notes to Users

The Consolidated Financial Statements are prepared in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and International Accounting Standard (IAS) 34, Interim Financial Reporting unless otherwise noted. Unless otherwise stated, monetary amounts are stated in Canadian dollars. This document is not audited and should be read in conjunction with our 2022 Annual Report. Certain comparative amounts have been amended to conform to the current period's presentation.

Commencing Q1 2023, RBC has revised its financial reporting structure to align with management reporting changes in its Investor & Treasury Services reporting segment. Investor Services is now reported under the Wealth Management segment as a separate line of business. Treasury Services and Transaction Banking is now reported under the Capital Markets segment as part of the Global Markets and Corporate and Investment Banking businesses.

Capital Disclosure Requirements related to Basel III Pillar 3

Capital main features disclosure provides qualitative disclosure and sets out summary information and the full terms and conditions for each of our capital instruments and can be found on our Investor Relations website. Refer to our Basel III Pillar 3 report for all other Pillar 3 capital disclosures.

EDTF Disclosures

The Financial Stability Board's Enhanced Disclosure Task Force (EDTF) issued a report titled "Enhancing the Risk Disclosures of Banks " in October 2012. The following index lists the disclosure related to these recommendations contained in this document.

Type of Risk	Recommendation
Capital adequacy and risk-weighted assets	11
	13
	16
	17
Credit risk	26
	28
	29

Disclosure

Flow statement of the movements in regulatory capital Risk-weighted assets (RWA) by business segments Movement of risk-weighted assets by risk type Basel Pillar 3 back-testing

Bank's credit risk profile

Reconciliation of the opening and closing balances of impaired loans and impairment allowances during the year Quantification of gross notional exposure for OTC derivatives or exchange-traded derivatives

Page 19 20 20 31

21-31

23,28

32

For a full index of where to find all EDTF related disclosures, refer to our 2022 Annual Report.

-1-	ROYAL BANK OF CANADA
4th Quarter 2022 - Supplementary Financial Information

REVENUE FROM TRADING ACTIVITIES 1	Q4/22	Q3/22	Q2/22	Q1/22	Q4/21	Q3/21	Q2/21	Q1/21	Q4/20	2022	2021
(Millions of Canadian dollars)
Total trading revenue
Net interest income 2	403	465	531	625	529	534	541	626	609	2,024	2,230
Non-interest income 3	451	(128)	289	314	103	179	377	524	224	926	1,183
Total	854	337	820	939	632	713	918	1,150	833	2,950	3,413
Trading revenue by product
Interest rate and credit 3	430	(71)	329	459	328	381	463	732	473	1,147	1,904
Equities	179	229	274	269	169	187	326	253	249	951	935
Foreign exchange and commodities	245	179	217	211	135	145	129	165	111	852	574
Total	854	337	820	939	632	713	918	1,150	833	2,950	3,413
Trading revenue (teb) by product
Interest rate and credit 3	430	(71)	329	459	328	381	463	732	473	1,147	1,904
Equities	305	359	405	398	278	304	447	366	360	1,467	1,395
Foreign exchange and commodities	245	179	217	211	135	145	129	165	111	852	574
Total (teb)	980	467	951	1,068	741	830	1,039	1,263	944	3,466	3,873
Trading revenue (teb) by product - Capital Markets
Interest rate and credit 3	385	(130)	291	416	284	334	429	661	402	962	1,708
Equities	308	347	384	412	277	303	434	385	361	1,451	1,399
Foreign exchange and commodities	226	160	201	195	123	131	118	151	113	782	523
Total (teb)	919	377	876	1,023	684	768	981	1,197	876	3,195	3,630

• Amounts have been revised from those previously presented, including to conform to our new basis of segment presentation.

• Reflects net interest income arising from trading-related positions, including assets and liabilities that are classified or designated at FVTPL.
  3 Includes loan underwriting commitments.

REALIZED GAINS AND LOSSES ON INVESTMENT SECURITIES	Q1/23	Q4/22	Q3/22	Q2/22	Q1/22	Q4/21	Q3/21	Q2/21	Q1/21	2022	2021
(Millions of Canadian dollars)
Realized gains	39	38	24	17	23	9	86	41	58	118	159
Realized losses	(62)	(10)	(1)	(2)	(3)	(1)	(4)	-	(3)	(75)	(8)
Net gains (losses) on investment securities	(23)	28	23	15	20	8	82	41	55	43	151
Less: Amount booked in Insurance premium, investment and fee income	-	-	-	-	-	-	-	6	32	-	6
Net gains (losses) on investment securities net of Insurance premium, investment
and fee income	(23)	28	23	15	20	8	82	35	23	43	145

-6-	ROYAL BANK OF CANADA
4th Quarter 2022 - Supplementary Financial Information

WEALTH MANAGEMENT 1	Q4/22	Q3/22	Q2/22	Q1/22	Q4/21	Q3/21	Q2/21	Q1/21	Q4/20	2022	2021
(Millions of Canadian dollars, except percentage amounts)
Income Statement
Net interest income	1,210	1,051	878	853	775	774	754	761	781	3,992	3,064
Non-interest income	3,098	2,971	3,123	3,165	3,087	3,000	2,910	2,868	2,676	12,357	11,865
Total revenue	4,308	4,022	4,001	4,018	3,862	3,774	3,664	3,629	3,457	16,349	14,929
PCL on performing assets 2	52	13	(31)	(13)	(7)	(19)	(7)	(1)	49	21	(34)
PCL on impaired assets 2	11	1	-	1	12	(2)	4	(28)	-	13	(14)
Total PCL	63	14	(31)	(12)	5	(21)	(3)	(29)	49	34	(48)
Non-interest expense	3,174	2,929	2,971	2,944	3,071	2,778	2,692	2,750	2,649	12,018	11,291
Income taxes	235	258	252	265	171	232	228	219	171	1,010	850
Net income	836	821	809	821	615	785	747	689	588	3,287	2,836
Total revenue by business
Canadian Wealth Management	1,095	1,070	1,071	1,072	1,032	1,012	964	900	835	4,308	3,908
U.S. Wealth Management (including City National)	2,068	1,878	1,775	1,727	1,628	1,592	1,566	1,534	1,532	7,448	6,320
Global Asset Management	644	609	678	736	711	692	628	695	608	2,667	2,726
International Wealth Management	169	98	81	78	73	77	102	90	86	426	342
Investor Services	332	367	396	405	418	401	404	410	396	1,500	1,633
Total	4,308	4,022	4,001	4,018	3,862	3,774	3,664	3,629	3,457	16,349	14,929
Financial ratios
ROE 3	14.8%	15.7%	16.6%	16.7%	13.2%	17.6%	16.9%	15.2%	12.8%	15.9%	15.7%
NIM (average earning assets, net)	2.77%	2.59%	2.25%	2.06%	1.98%	2.15%	2.28%	2.22%	2.37%	2.42%	2.15%
Pre-tax margin	24.9%	26.8%	26.5%	27.0%	20.4%	26.9%	26.6%	25.0%	22.0%	26.3%	24.7%
Average balances
Total assets	193,600	180,900	180,200	184,900	174,000	161,300	154,700	154,900	150,600	184,900	161,300
Earning assets, net	173,100	161,300	160,000	164,100	154,900	142,700	135,900	135,800	130,900	164,700	142,400
Loans and acceptances, net 4	120,100	111,600	105,600	102,300	96,000	91,500	90,200	88,700	87,500	109,900	91,600
Retail loans 4	50,900	47,100	44,400	42,700	39,300	36,200	33,900	32,800	31,900	46,300	35,500
Wholesale loans and acceptances 4	69,500	64,800	61,500	59,900	57,000	55,700	56,700	56,300	56,000	63,900	56,400
Deposits	195,300	194,600	198,000	203,900	196,300	185,800	182,700	180,200	176,600	198,000	186,300
Attributed capital 3	22,000	20,400	19,600	19,200	18,050	17,400	17,750	17,700	17,750	20,300	17,750
Risk capital 3	13,650	13,100	12,150	11,700	10,600	10,000	10,150	9,950	9,850	12,650	10,150
Credit quality
GIL / Related loans and acceptances 3	0.23%	0.20%	0.21%	0.19%	0.24%	0.34%	0.37%	0.33%	0.38%	0.23%	0.24%
GIL on acquired credit impaired loans / Related loans and acceptances	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
PCL on performing loans (Stage 1 and 2) / Average net loans and acceptances	0.17%	0.05%	(0.12)%	(0.05)%	(0.03)%	(0.08)%	(0.03)%	0.00%	0.22%	0.02%	(0.03)%
PCL on impaired loans (Stage 3) / Average net loans and acceptances	0.04%	0.00%	0.00%	0.00%	0.05%	(0.01)%	0.02%	(0.12)%	0.00%	0.01%	(0.02)%
Net write-offs3 / Average net loans and acceptances	0.01%	0.02%	(0.01)%	(0.03)%	0.10%	(0.03)%	(0.02)%	(0.02)%	0.03%	0.00%	0.01%

• Certain amounts have been revised from those previously presented to conform to our new basis of segment presentation.

• PCL on performing assets represents Stage 1 and 2 PCL on all performing assets, except those classified or designated as FVTPL and equity securities designated as FVOCI. PCL on impaired assets represents Stage 3 PCL. Stage 3 PCL is comprised of lifetime credit losses of all credit-impaired financial assets, except those classified or designated as FVTPL and equity securities designated as FVOCI.

• See 'Glossary' beginning on page 36 for explanation of composition of this measure.

• Average total loans and acceptances are reported net of ACL. Average retail and wholesale loans and acceptance balances are reported on a gross basis (before deducting ACL).

-10-	ROYAL BANK OF CANADA
4th Quarter 2022 - Supplementary Financial Information