Reimagining our shared future - RBC

1 Reimaginingour sharedfutureRBC client Kathy Cheng, owner of Redwood Classics ApparelToronto, OntarioOur PurposeHelping clients thrive and communities prosperGuided byour Visionto be among the world smost trusted and successful financial institutions,and driven byour Purpose,weaimtobe:> The undisputed financial services leader inCanada> The preferred partner to corporate, institutionaland high-net-worth clients and their businessesin the > A leading financial services partner valued forour expertise in select global financial centresWe are guided byour Values.

2 > Client First> Collaboration> Accountability> Diversity & Inclusion> IntegrityTable of Contents22020 Highlights14 Management s Discussion and Analysis4 CEO Letter117 Enhanced Disclosure Task Force7 Chair LetterRecommendations IndexReimagining our shared future118 Reports and Consolidated Financial Statements8 Helping Clients Thrive221 Ten-Year Statistical Review9 Our Tech and Data Strategy222 Glossary10 Transforming the Employee Experience225 Shareholder Information11 Driving Diversity & Inclusion12 Taking Action on Sustainability13 Supporting and Inspiring YouthConnect with the client Kathy Cheng on the production floor of her family-ownedbusiness, Redwood Classics Apparel, a textiles and manufacturingcompany based in Toronto, we areRoyal bank of canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading success comes from the 86,000+ employees who leverage theirimaginations and insights to bring our vision.

3 Values and strategy tolife so we can help our clients thrive and communities prosper. AsCanada s biggest bank , and one of the largest in the world based onmarket capitalization, we have a diversified business model with afocus on innovation and providing exceptional experiences to our17 million clients in canada , the and 34 other create value has always been as important as what weachieve. This was even more pronounced in 2020 as the impacts ofthe COVID-19 pandemic took hold and continue to reverberatearound the world. In our annual report, you ll read about how we arenavigating these unprecedented times and leveraging our scale andfinancial strength to deliver for our clients, communities, employees,and invest?

4 > Diversified business modelwith scale and market-leading client franchises> Resilient earnings with apremium ROE and dividendstability> Robust capital and liquidityposition> Disciplined approach to riskand expense management> Differentiated technologyinvestments and digitalcapabilities> Recognized leader in ESGand corporate citizenshipBY THE NUMBERS86,000+employees17 millionclients36countriesAll figures included in the front section of the annual report are from fiscal 2020 unless otherwise bank of CanadaAnnual Report 20201 Some 2020 highlights across our balanced scorecardClients620,000+ clientshave benefitted fromRBC Client Relief programs5 millionactive mobile users, up 12% year-over-year(1)Celent ModelBank of the Yearaward winner, demonstratingindustry-leading practices thatdrive digital success in banking#1 market sharein investment banking in canada (2)

5 A+ scoreon RBC Global Asset Management sresponsible investing activities, asassessed by the UN Principles forResponsible Investment(3)$ billionin financing for sustainable bondsand loans, representing 64% growthover 2019 Outstanding GlobalPrivate Bankin North America for the fifth yearinarow(4)Customer ServiceAward Winnerand 10 out of 11 top rankings amongthe big five Canadian banks in the2020 Ipsos Financial ServiceExcellence AwardsEmployees#4 globallyin the 2020 Refinitiv Diversity &Inclusion Index, ranking over9,000 publicly-listed companiesWomenrepresented51% of new hires(5)52% of promotions(5)(6)46% of executives(7)Black, Indigenous andPeople of Colour (BIPOC)represented35% of new hires(8)40% of promotions(6)(8)23% of new executive appointments,surpassing our goal of 20% forthe year(7)18% young people(9)

6 When asked about their well-beingduring the COVID-19 pandemic(10):91% of employees feelwell-supported by RBC90% of employees see theirwork as meaningful92% of employees indicatedthat they have the informationthat matters to themCommunities$201 millionprovided through RBC future Launch ,reaching over million Canadianyouth through 500+ partner programssince 2017$ millionraised by employees and retirees for4,300+ charities through our annualEmployee Giving Campaign in canada $142 milliongiven globally through cash donationsand community investments.

7 Includingsupport to mitigate the economicimpact of the COVID-19 pandemic(11)$ millionraised to support youth and children scharities globally through the firstvirtual versions of RBC Race for the Kidsand RBC Trade for the Kids$ billionin support of our communities asone of the largest taxpayers in canada ,and as a taxpayer in other countrieswhereweoperate(12)1st financial institutionin Canadato sign a renewable energyPower Purchase Agreement(1)90-day active mobile users in Canadian Banking only(2)Dealogic, YTD as at October 31, 2020(3)See RBC GAM s Responsible Investing Transparency Report and the PRI Assessment Methodologyfor more details(4)Private Banker International Global Wealth Awards 2020(5)Global; excludes summer interns, students and co-ops(6)Defined as upward change in position level or HR Class(7)Represents data for our businesses in canada governed by theEmployment Equity Act(8)North America.

8 Excludes summer interns, students and co-ops(9)Headcount under 30 globally, excluding City National and BlueBay Asset Management employees(10) Well-being surveys conducted from April to June 2020. The average participation rate was 55%(11) Includes employee volunteer grants and gifts in kind, as well as contributions to non-profits andnon-registered charities. Figure includes sponsorships(12) Refer to page 95 for additional information2 royal bank of CanadaAnnual Report 2020 Shareholders$ averagepercentile rankingdiluted earnings per share (EPS),return on equity (ROE),down from $ in 2019down from in 2019on priority ESG indices(2)63% $ billionof profits returned to our shareholderscommon equity tier 1 (CET1) ratio,remainder of our profit availablethrough dividends(1)

9 And repurchasesup from in 2019to reinvest in future growth$ declared per share,increased by $ since 2019 EarningsEarnings by business segment(4)Annualized Dividend Increase of:5%One year8%Ten year(3)net income (C$ billion)20192020$ $ & Commercial BankingCapital MarketsWealth ManagementInsuranceInvestor & Treasury Services24%19%5%7%45%Financial performance metricsMEDIUM-TERM OBJECTIVES(5)3-YEAR(6)5-YEAR(6)Diluted EPS growth of 7%+1%3%ROE of 16%+ capital ratio (CET1)(7)12% payout ratio of 40% 50%49%48%Total shareholder return(8)3-YEAR5-YEARRBC1%9%Global peer average(6)%3%(1)Includes dividends paid on both common and preferred shares.

10 Dividends were $ billion on common shares and $ billion on preferred shares(2)Average percentile ranking compiled from our four top-tier ESG ratings/rankings, including Sustainalytics, MSCI ESG Rating, FTSE4 Good and RobecoSAM s Corporate Sustainability Assessment (informing the DJSI)(3)Compound Annual Growth Rate(4)Excludes Corporate Support(5)A medium-term (3-5 year) objective is considered to be achieved when the performance goal is met in either a 3- or 5-year period. These objectives assume a normal business environment and our ability to achieve them ina period may be adversely affected by extraordinary developments such as the COVID-19 pandemic and the current low interest rate environment(6)Diluted EPS growth is calculated using a Compound Annual Growth Rate.