Royal Bank of Canada : View Presentation (Opens

Royal Bank of Canada to acquire HSBC Canada

Strategic expansion of our premium Canadian business

November 29, 2022

All amounts are in Canadian dollars unless otherwise indicated

Caution regarding forward looking information

This presentation contains 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 securities legislation, with respect to Royal Bank of Canada's (RBC) and HSBC Bank Canada's (HSBC Canada) financial

performance, beliefs, plans, expectations, and estimates. Forward-looking statements in this presentation may include, but are not limited to, statements with respect to the expected closing of the proposed transaction, plans for the combined operations of RBC and HSBC Canada, the financial, operational and capital impacts of the proposed transaction, our strategies or future actions, and our objectives and commitments. The forward-looking information contained in this presentation is presented for the purpose of assisting the holders of our securities and financial analysts in understanding the proposed transaction and may not be appropriate for other purposes. Forward looking statements are typically identified by words such as "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could" or "would". By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, that our financial performance, environmental & social or other objectives, vision and strategic goals will not be achieved, and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions.

We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors - many of which are beyond our control and the effects of which can be difficult to predict - include, but are not limited to: the possibility that the proposed transaction does not close when expected or at all because of the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the proposed transaction, including because required regulatory or other approvals and/or other conditions to closing are not received or satisfied on a timely basis or at all or are received subject to adverse conditions or requirements; the possibility that the anticipated benefits from the proposed transaction, such as being accretive to earnings per share (EPS), creating cross sell opportunities and growing our Canadian operations are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations (including changes to capital requirements) and their enforcement, and the degree of competition in the geographic and business areas in which RBC and HSBC Canada currently operate; the risk that any announcements relating to the proposed combination could have adverse effects on the market price of our shares; the possibility that the business of RBC and HSBC Canada may not perform as expected or in a manner consistent with historical performance; the ability to promptly and effectively integrate HSBC Canada; RBC's ability to achieve its capital targets; RBC's ability to cross-sell more products to customers; reputational risks and the reaction of HSBC Canada's customers and employees to the transaction; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management time on transaction-related issues; material adverse changes in economic and industry conditions; general competitive, economic, political and market conditions; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and those other factors discussed in the risks sections and Impact of COVID-19 pandemic section of RBC's 2021 Annual Report and the Risk management section of RBC's Q3 2022 Report to Shareholders, and the factors discussed in the Risk section and Impact of COVID-19 and our response section of HSBC Canada's Annual Report and Accounts 2021 and the Risk section of HSBC Canada's Third Quarter 2022 Interim Report all of which outline certain key factors and risks that may affect our future results and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Material economic assumptions underlying the forward looking-statements contained in this presentation are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook sections in RBC's 2021 Annual Report, as updated by the Economic, market and regulatory review and outlook section of RBC's

Q3 2022 Report to Shareholders. Assumptions about RBC's and HSBC Canada's current and expected financial performance including balance sheet, income statement and

regulatory capital figures, expected capital availability for the proposed transaction, expected closing date of the proposed transaction, expected expense synergies (and timing to achieve), integration and restructuring costs and process, alignment of organizational responsibilities, estimated purchase price accounting (including fair value and credit marks), foreign exchange rates, our assumed terminal value multiple, and future regulatory capital requirements, including the Office of the Superintendent of Financial Institutions' announced Basel III reforms effective in the second quarter of fiscal 2023, were considered in making the forward-looking statements in this presentation including estimating the pro forma financial impacts to RBC (i.e. the EPS accretion, EPS synergies, NIAT synergies, internal rate of return to RBC, return on tangible common equity), the expected purchase accounting impacts to RBC and the expected capital impact to RBC.

Any forward-looking statements contained in this document represent the views of RBC as of the date hereof. Except as required by law, RBC does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

2	Royal Bank of Canada

Strategic Overview

Dave McKay

President and Chief Executive Officer

Strategic expansion of our premium Canadian business

Enhanced value

proposition

across a wider

client base

• Positions RBC as the bank of choice for newcomers and commercial clients with international needs
• Well-positionedto serve affluent clients who need global banking and wealth management capabilities
• RBC clients gain access to HSBC Canada's trade finance and cash management capabilities
• Expanding product suite and distribution channels for HSBC Canada's clients

Creating long- term value for shareholders

• Strategic deployment of excess capital to drive future growth with attractive financial returns
• Value creation through significant efficiencies
• Complementary capabilities allowing for potential cross-sellopportunities
• Integration risks mitigated by market familiarity, disciplined risk management and a strong balance sheet

	 Strong cultural fit, with a shared focus on sustainability and diversity & inclusion
Helping		Commitment to offering an exceptional work experience increases likelihood of a successful integration
communities		Generating increased earnings power by adding a higher-return Canadian earnings stream

prosper	‒ RBC donates 1% of its Canadian net income before tax to help our communities grow with us
	‒ Supports dividends to shareholders, majority of whom are Canadians
	‒ RBC is one of the largest taxpayers in Canada

4	Royal Bank of Canada

HSBC Canada: A well-established, premier personal and commercial bank

Overview

Key Metrics(2)

• Operating in Canada since 1981
• Strong commercial banking capabilities
• Affluent and globally-connected clients
• Well-diversifiedloan book and an attractive deposit base
• Innovative investments to improve the digital experience
• Track record of consistent and profitable growth
• Disciplined credit and risk culture
• Purpose-drivenenterprise

Canadian Awards and Recognition(1)

Euromoney

• Trade Finance Market Leader and Best Service Awards in Canada

Cosmopolitan The Daily Business Awards

• Best Small Business Bank in Canada
• Best International Onboarding Experience

Global Private Banking Innovation Awards

• Outstanding Client Experience in Wealth Management

Well-diversified balance sheet

$134BN $76BN $82BN

Total Assets	Net Loans	Deposits
Focused market presence and distribution
~130	~4,200	~75%
Employees	Loans in B.C.
Branches
(FTE)	and Ontario

Globally connected business and affluent clients

770k+	12k+	$19BN
Retail	Commercial	Assets Under
Clients(3)	Clients(3)	Management(3)(4)
Strong profitability and balance sheet
14%		12 bps(5)	~11%
LTM ROE(4)	LTM PCL Ratio(6)	CET1 ratio(4)

Attractive funding and liquidity profile

153%	122%	93%
Liquidity Coverage	Net Stable	Loan-to-Deposit
Ratio(4)	Funding Ratio(4)	Ratio(4)

1. Data sourced from HSBC Canada's 2021 Annual Report. (2) Key HSBC Canada metrics are as at September 30, 2022 unless otherwise noted. (3) Statistics as at June 30, 2022. (4) Refer to Glossary on slides 22-23 for explanation of composition of this measure. (5) Basis points (bps). (6) See note 1 on slide 21.

5	Royal Bank of Canada