6-K - RY - Equibles

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of August 2025

Commission File Number: 001-13928

Royal Bank of Canada

(Translation of registrant’s name into English)

200 Bay Street	1 Place Ville Marie
Royal Bank Plaza	Montreal, Quebec
Toronto, Ontario	Canada H3B 3A9
Canada M5J 2J5	Attention: Vice President,
Attention: Vice President,	Associate General Counsel
Associate General Counsel	& Corporate Secretary
& Corporate Secretary

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F

☐ Form 40-F

☒

This report on Form 6-K, management’s discussion and analysis and unaudited interim condensed consolidated financial statements included in exhibit 99.2, and exhibit 99.3 hereto are incorporated by reference as exhibits into the Registration Statement on Form F-3 (File No. 333-275898) and the Registration Statements on Form S-8 (File Nos. 333-12036,

333-12050,

333-13052,

333-13112,

333-117922,

333-207754,

333-207750,

333-207748,

333-252536,

333-268715,

333-287828 and 333-287969).

Table of Contents

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ROYAL BANK OF CANADA
Date: August 27, 2025	By:	/s/ Katherine Gibson
	Name:	Katherine Gibson
	Title:	Chief Financial Officer

Table of Contents

EXHIBIT INDEX

Exhibit	Description of Exhibit
99.1	Third Quarter 2025 Earnings Release
99.2	Third Quarter 2025 Report to Shareholders (which includes management’s discussion and analysis and unaudited interim condensed consolidated financial statements)
99.3	Return on Equity and Assets Ratios
	Rule<br><br><br>13a-14(a)/15d-14(a)<br><br><br>Certifications
31.1	- Certification of the Registrant’s Chief Executive Officer
31.2	- Certification of the Registrant’s Chief Financial Officer
101	Interactive Data File (formatted as Inline XBRL)
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Table of Contents

EX-99.1

Exhibit 99.1
THIRD QUARTER 2025<br><br><br>EARNINGS RELEASE
ROYAL BANK OF CANADA REPORTS THIRD QUARTER 2025 RESULTS
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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 2025 Report to Shareholders and Supplementary Financial Information are available at http://www.rbc.com/investorrelations and on https://www.sedarplus.com/.

Net income<br> <br><br> <br>$5.4 Billion<br> <br><br> <br>Up 21% YoY	Diluted EPS^1^<br><br><br><br> <br>$3.75<br><br><br><br> <br>Up 21% YoY	Total PCL^1^<br><br><br><br> <br>$0.9 Billion<br><br><br><br> <br>PCL on loans ratio^1^<br> <br>down 23bps^1^ QoQ	ROE^1^<br><br><br><br> <br>17.3%<br><br><br><br> <br>Up 180 bps YoY	CET1 ratio^2^<br><br><br><br> <br>13.2%<br><br><br><br><br><br>Above regulatory<br><br><br>requirements
Adjusted net income^3^<br> <br><br><br><br>$5.5 Billion<br><br><br><br> <br>Up 17% YoY	Adjusted diluted EPS^3^<br><br><br><br> <br>$3.84<br><br><br><br> <br>Up 18% YoY	Total ACL^1^<br><br><br><br> <br>$7.7 Billion<br><br><br><br> <br>ACL on loans ratio^1^<br> <br>remainedflat QoQ	Adjusted ROE^3^<br><br><br><br> <br>17.7%<br><br><br><br> <br>Up 130 bps YoY	LCR^4^<br><br><br><br> <br>129%<br><br><br><br> <br>Down from 131% lastquarter
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TORONTO, August 27, 2025 — Royal Bank of Canada^5^ (RY on TSX and NYSE) today reported record net income of $5.4 billion for the quarter ended July 31, 2025, up $928 million or 21% from the prior year. Diluted EPS was $3.75, up 21% over the same period, reflecting growth across each of our business segments. Adjusted net income^3^ and adjusted diluted EPS^3^of $5.5 billion and $3.84 were up 17% and 18%, respectively, from the prior year.

“This quarter’s record results demonstrate RBC’s relentless, long-term focus on our clients and our commitment to delivering on the bold growth ambitions we laid out at our recent Investor Day. We saw stronggrowth across each of our business segments reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management. Thanks to the incredibleefforts of Team RBC, we’re creating value and driving premium performance through the cycle, as we work to stay ahead of our clients’ expectations in a rapidly changing economy and world.” – DaveMcKay, President and Chief Executive Officer of Royal Bank of Canada

Record pre-provision, pre-tax earnings^3^ of $7.8 billion were up $1.7 billion or 29% from last year, mainly due to higher revenue in Capital Markets driven by strength across Corporate & Investment Banking and Global Markets and higher net interest income in Personal Banking and Commercial Banking reflecting strong average volume growth and higher spreads in Personal Banking. Higher fee-based revenue in Wealth Management reflecting market appreciation and net sales also contributed to the increase. These factors were partially offset by higher variable compensation commensurate with increased results, and continued investments in talent and technology across our businesses.

Our consolidated results reflect an increase in total PCL of $222 million from a year ago, mainly reflecting higher provisions in Capital Markets, Commercial Banking and Personal Banking, partly offset by releases in Wealth Management in the current quarter. The PCL on loans ratio of 35 bps increased 8 bps from the prior year.

Compared to last quarter, net income was up 23% reflecting growth across each of our business segments. Adjusted net income^3^ was up 22% over the same period. Pre-provision, pre-tax earnings^3^ were up $0.8 billion or 12% as higher revenues more than offset expense growth. The PCL on loans ratio of 35 bps decreased 23 bps from the prior quarter as last quarter was driven by higher provisions on performing loans reflecting the potential impacts of trade disruptions (including tariffs). The PCL on impaired loans ratio^1^ was 36 bps, up 1 bp from the prior quarter, while the PCL on performing loans ratio^1^ was (1) bp, down 24 bps from the prior quarter.

Our capital position remains robust, with a CET1 ratio^2^ of 13.2%, supporting solid volume growth and $3.1 billion of capital returned to our shareholders through common share dividends and share buybacks.

^1^	See the Glossary section of our interim Management’s Discussion and Analysis dated August 26, 2025, for the<br>nine months ended July 31, 2025, available at https://www.sedarplus.com/, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.
^2^	The Common Equity Tier 1 (CET1) ratio is calculated in accordance with Office of the Superintendent of Financial<br>Institutions’ (OSFI) Basel III Capital Adequacy Requirements (CAR) guideline.
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^3^	These are non-GAAP measures or ratios. For further information, including a<br>reconciliation, refer to the Key performance and non-GAAP measures section on pages 4 to 5 of this Earnings Release.
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^4^	The Liquidity Coverage Ratio (LCR) is calculated in accordance with OSFI’s Liquidity Adequacy Requirements (LAR)<br>guideline. For further details, refer to the Liquidity and funding risk section of our Q3 2025 Report to Shareholders.
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^5^	When we say “we”, “us”, “our”, “the bank” or “RBC”, we mean<br>Royal Bank of Canada and its subsidiaries, as applicable.
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	Reported:		Adjusted^7^:
Q3 2025	• Net income of $5,414 million	h 21%<br>	• Net income of $5,534 million	h 17%
Compared to	• Diluted EPS of $3.75	h 21%<br>	• Diluted EPS of $3.84	h 18%
Q3 2024	• ROE of 17.3%	h 180 bps<br>	• ROE of 17.7%	h 130 bps
	• CET1 ratio^6^ of 13.2%	h 20<br>bps
Q3 2025	• Net income of $5,414 million	h23%	• Net income of $5,534 million	h 22%
	Compared to	• Diluted EPS^^of $3.75	h 24%<br>	• Diluted EPS^^of $3.84	h 23%
	Q2 2025	• ROE of 17.3%	h 310 bps<br>	• ROE of 17.7%	h 300 bps
		• CET1 ratio^6^ of 13.2%	g unchanged
	YTD 2025	• Net income of $14,935 million	h24%	• Net income of $15,316 million	h 18%
Compared to	• Diluted EPS of $10.31	h 24%<br>	• Diluted EPS^^of $10.58	h 17%
YTD 2024	• ROE of 16.1%	h****170 bps	• ROE of 16.5%	h 90 bps
Personal Banking
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Net income of $1,938 million increased $352 million or 22% from a year ago, largely driven by higher net interest income reflecting higher spreads and average volume growth of 3% in Personal Banking – Canada. Higher non-interest income also contributed to the increase. Non-interest expenses remained relatively flat, which included the realization of synergies related to the acquisition of HSBC Bank Canada (HSBC Canada).

Compared to last quarter, net income increased $336 million or 21%, mainly due to lower PCL as last quarter reflected higher provisions on performing loans due to the potential impacts of trade disruptions (including tariffs). Higher net interest income reflecting the impact of three more days in the current quarter, average volume growth and higher spreads in Personal Banking – Canada also contributed to the increase.

Commercial Banking

Net income of $836 million increased $19 million or 2% from a year ago as growth in total revenue was partially offset by higher PCL. Non-interest expenses remained relatively flat, which included the realization of synergies related to the acquisition of HSBC Canada (HSBC Canada transaction).

Compared to last quarter, net income increased $239 million or 40%, largely attributable to lower PCL as last quarter reflected higher provisions on performing loans due to the potential impacts of trade disruptions (including tariffs). Higher net interest income, primarily reflecting the impact of three more days in the current quarter, as well as higher spreads also contributed to the increase.

Wealth Management

Net income of $1,096 million increased $147 million or 15% from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation.

Compared to last quarter, net income increased $167 million or 18%, mainly due to higher fee-based revenue driven by higher fee-based client assets reflecting market appreciation and net sales, as well as three more days in the quarter. The current quarter also reflected releases of provisions driven by performing loans in U.S. Wealth Management (including City National Bank), as compared to provisions taken last quarter. Higher net interest income reflecting higher spreads and three more days in the quarter also contributed to the increase. These factors were partially offset by higher variable compensation.

Insurance

Net income of $247 million increased $77 million or 45% from a year ago, primarily due to higher insurance service result driven by improved life insurance claims experience. Higher insurance investment result, largely due to lower capital funding costs, also contributed to the increase.

Compared to last quarter, net income increased $36 million or 17%, largely due to higher insurance service result driven by improved life insurance claims experience. This was partially offset by less favourable investment-related experience.

^6^	The CET1 ratio is calculated in accordance with OSFI’s CAR guideline.
^7^	These are non-GAAP measures or ratios. For further information, including a<br>reconciliation, refer to the Key performance and non-GAAP measures section on pages 4 to 5 of this Earnings Release.
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Capital Markets

Net income of $1,328 million increased $156 million or 13% from a year ago, primarily due to higher revenue in Global Markets and Corporate & Investment Banking. These factors were partially offset by higher PCL, higher compensation on increased results, as well as a higher effective income tax rate reflecting the impact of Pillar Two legislation and changes in earnings mix.

Compared to last quarter, net income increased $126 million or 10%, mainly due to higher fixed income trading revenue primarily in the U.S. and higher debt and equity origination across most regions. These factors were partially offset by lower equity trading revenue across most regions and higher compensation on increased results.

Corporate Support

Net loss was $31 million for the current quarter, primarily due to residual unallocated costs, including severance, partially offset by asset/liability management activities.

Net loss was $151 million in the prior quarter, primarily due to residual unallocated items, including severance.

Net loss was $208 million in the same quarter last year, primarily due to the after-tax impact of the HSBC Canada transaction and integration costs of $125 million, which is treated as a specified item. Unallocated costs also contributed to the net loss.

Capital, Liquidity and Credit Quality

Capital – As at July 31, 2025, our CET1 ratio^8^ of 13.2% was unchanged from last quarter, reflecting net internal capital generation that was offset by RWA growth, share repurchases, the impact of a U.S. rating downgrade and risk parameter changes.

Liquidity – For the quarter ended July 31, 2025, the average LCR^9^ was 129%, which translates into a surplus of approximately $103 billion, compared to 131% and a surplus of approximately $107 billion in the prior quarter. Average LCR^9^ decreased from the prior quarter, primarily due to loan growth, partially offset by lower funding requirements on securities and securities financing transactions and growth in deposits and funding.

NSFR^10^ as at July 31, 2025 was 114%, which translates into a surplus of approximately $137 billion, compared to 116% and a surplus of approximately $154 billion in the prior quarter. NSFR^10^ decreased compared to the previous quarter, primarily due to loan growth and higher funding requirements on securities and securities financing transactions.

Credit Quality

Q3 2025 vs. Q3 2024

Total PCL of $881 million increased $222 million or 34% from a year ago, primarily due to higher provisions in Capital Markets, Commercial Banking and Personal Banking, partially offset by releases in Wealth Management in the current quarter, as compared to provisions taken in the same quarter last year. The PCL on loans ratio of 35 bps increased 8 bps. The PCL on impaired loans ratio of 36 bps increased 10 bps.

PCL on performing loans was $(28) million, compared to $42 million a year ago, driven by favourable changes to our macroeconomic forecast, partially offset by unfavourable changes in credit quality and portfolio growth in the current quarter.

PCL on impaired loans of $913 million increased $290 million or 47%, primarily due to higher provisions in Capital Markets, Commercial Banking and Personal Banking.

Q3 2025 vs. Q2 2025

Total PCL decreased $543 million or 38% from last quarter, primarily reflecting lower provisions in Commercial Banking and Personal Banking, and releases in Wealth Management in the current quarter, as compared to provisions taken last quarter. The PCL on loans ratio decreased 23 bps. The PCL on impaired loans ratio increased 1 bp.

PCL on performing loans was $(28) million, compared to $568 million last quarter, reflecting releases in the current quarter, driven by favourable changes to our macroeconomic forecast, partially offset by unfavourable changes in credit quality and portfolio growth, as compared to provisions taken last quarter, reflecting the potential impacts of trade disruptions (including tariffs).

PCL on impaired loans increased $61 million or 7%, primarily due to higher provisions in Capital Markets, partially offset by recoveries in Wealth Management in the current quarter, as compared to provisions taken last quarter.

^8^	The CET1 ratio is calculated in accordance with OSFI’s CAR guideline.
^9^	The LCR is calculated in accordance with OSFI’s LAR guideline. For further details, refer to the Liquidity and<br>funding risk section of our Q3 2025 Report to Shareholders.
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^10^	The Net Stable Funding Ratio (NSFR) is calculated in accordance with OSFI’s LAR guideline. For further details,<br>refer to the Liquidity and funding risk section of our Q3 2025 Report to Shareholders.
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Key Performance and Non-GAAP Measures

Performance measures

We measure and evaluate the performance of our consolidated operations and each business segment using a number of financial metrics, such as net income and ROE. Certain financial metrics, including ROE, do not have a standardized meaning under generally accepted accounting principles (GAAP) and may not be comparable to similar measures disclosed by other financial institutions.

Non-GAAP measures

Non-GAAP measures and ratios do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions.

The following discussion describes the non-GAAP measures and ratios we use in evaluating our operating results.

Pre-provision, pre-tax earnings

We use pre-provision, pre-tax earnings (PPPT) to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of the credit cycle. PPPT may enhance comparability of our financial performance and enable readers to better assess trends in the underlying businesses. The following table provides a reconciliation of our reported results to PPPT and illustrates the calculation of PPPT presented:

	For the three months ended						For the nine months ended
(Millions of Canadian dollars)	July 31<br><br><br>2025		April 30<br><br><br>2025		July 31<br><br><br>2024		July 31<br><br><br>2025		July 31<br><br><br>2024
Net income	$	5,414	$	4,390	$	4,486	$	14,935	$	12,018
Add: Income taxes	****	1,458		1,128		887	****	3,888		2,629
Add: PCL	****	881		1,424		659	****	3,355		2,392
Pre-provision, pre-tax earnings	$	7,753	$	6,942	$	6,032	$	22,178	$	17,039

Adjusted results and ratios

We believe that adjusted results are more reflective of our ongoing operating results and provide readers with a better understanding of management’s perspective on performance. Specified items discussed below can lead to variability that could obscure trends in underlying business performance and the amortization of acquisition-related intangibles can differ widely between organizations. Excluding the impact of specified items and amortization of acquisition-related intangibles may enhance comparability of our financial performance and enable readers to better assess trends in the underlying businesses.

Our results for the three months ended April 30, 2025 and July 31, 2024 and nine months ended July 31, 2025 and July 31, 2024 were adjusted for the following specified item:

•	HSBC Canada transaction and integration costs. Effective the third quarter of 2025, we are no longer treating HSBC Canada transaction and integration costs as a specified item as integration activities are largely<br>complete and any remaining costs are expected to be immaterial.

Our results for the nine months ended July 31, 2024 were also adjusted for the following specified item:

•	Management of closing capital volatility related to the HSBC Canada transaction.

Adjusted ratios, including adjusted EPS (basic and diluted), adjusted ROE and adjusted efficiency ratio, which are derived from adjusted results, are useful to readers because they may enhance comparability in assessing profitability on a per-share basis, how efficiently profits are generated from average common equity and how efficiently costs are managed relative to revenues. Adjusted results and ratios can also help inform and support strategic choices and capital allocation decisions.

The following table provides a reconciliation of our reported results to our adjusted results and illustrates the calculation of adjusted measures presented. The adjusted results and ratios presented below are non-GAAP measures or ratios.

Consolidated results, reported and adjusted
	As at or for the three months ended						As at or for the nine months ended
(Millions of Canadian dollars,<br><br><br>except per share, number of and percentage amounts)	July 31<br><br><br>2025		April 30<br><br><br>2025		July 31<br><br><br>2024		July 31<br><br><br>2025		July 31<br><br><br>2024
Total revenue	$	16,985	$	15,672	$	14,631	$	49,396	$	42,270
PCL	****	881		1,424		659	****	3,355		2,392
Non-interest expense	****	9,232		8,730		8,599	****	27,218		25,231
Income before income taxes	****	6,872		5,518		5,373	****	18,823		14,647
Income taxes	****	1,458		1,128		887	****	3,888		2,629
Net income	$	5,414	$	4,390	$	4,486	$	14,935	$	12,018
Net income available to common shareholders	$	5,290	$	4,274	$	4,377	$	14,575	$	11,780
Average number of common shares (thousands)	****	1,407,280		1,411,362		1,414,194	****	1,410,854		1,411,044
Basic earnings per share (in dollars)	$	3.76	$	3.03	$	3.09	$	10.33	$	8.35
Average number of diluted common shares (thousands)	****	1,409,680		1,413,517		1,416,149	****	1,413,235		1,412,644
Diluted earnings per share (in dollars)	$	3.75	$	3.02	$	3.09	$	10.31	$	8.34
ROE	****	17.3%		14.2%		15.5%	****	16.1%		14.4%
Effective income tax rate	****	21.2%		20.4%		16.5%	****	20.7%		17.9%
Total adjusting items impacting net income(before-tax)	$	153	$	184	$	314	$	502	$	1,254
Specified item: HSBC Canada transaction and integration costs (1), (2)	****	-		31		160	****	43		783
Specified item: Management of closing capital volatility related to the HSBC Canada transaction (1)	****	-		-		-	****	-		131
Amortization of acquisition-related intangibles (3)	****	153		153		154	****	459		340
Total income taxes for adjusting items impacting net income	$	33	$	46	$	73	$	121	$	281
Specified item: HSBC Canada transaction and integration costs (1)	****	-		7		35	****	13		158
Specified item: Management of closing capital volatility related to the HSBC Canada transaction (1)	****	-		-		-	****	-		36
Amortization of acquisition-related intangibles (3)	****	33		39		38	****	108		87
Adjusted results (4)
Income before income taxes - adjusted	$	7,025	$	5,702	$	5,687	$	19,325	$	15,901
Income taxes - adjusted	****	1,491		1,174		960	****	4,009		2,910
Net income - adjusted	****	5,534		4,528		4,727	****	15,316		12,991
Net income available to common shareholders - adjusted	****	5,410		4,412		4,618	****	14,956		12,753
Average number of common shares (thousands)	****	1,407,280		1,411,362		1,414,194	****	1,410,854		1,411,044
Basic earnings per share (in dollars) - adjusted (4)	$	3.84	$	3.13	$	3.26	$	10.60	$	9.04
Average number of diluted common shares (thousands)	****	1,409,680		1,413,517		1,416,149	****	1,413,235		1,412,644
Diluted earnings per share (in dollars) - adjusted (4)	$	3.84	$	3.12	$	3.26	$	10.58	$	9.03
ROE - adjusted (4)	****	17.7%		14.7%		16.4%	****	16.5%		15.6%
Effective income tax rate - adjusted (4)	****	21.2%		20.6%		16.9%		20.7%		18.3%
(1)	These amounts have been recognized in Corporate Support.
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(2)	As at April 30, 2025, the cumulative HSBC Canada transaction and integration costs<br>(before-tax) incurred were $1.4 billion. Effective the third quarter of 2025, we are no longer treating HSBC Canada transaction and integration costs as a specified item as integration activities are<br>largely complete and any remaining costs are expected to be immaterial.
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(3)	Represents the impact of amortization of acquisition-related intangibles (excluding amortization of software), and any<br>goodwill impairment.
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(4)	See the Glossary section of our interim Management’s Discussion and Analysis dated August 26, 2025, for the<br>nine months ended July 31, 2025, available at https://www.sedarplus.com/, for an explanation of the composition of these measures. Such explanation is incorporated by reference hereto.
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Additional information about ROE and other key performance and non-GAAP measures and ratios can be found under the Key performance and non-GAAP measures section of our Q3 2025 Report to Shareholders.

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 securities legislation. We may make forward-looking statements in this document, in other filings with Canadian regulators or the SEC, in reports to shareholders, and in other communications. In addition, our representatives may communicate forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements in this document include, but are not limited to, statements by our President and Chief Executive Officer. The forward-looking statements contained in this document represent the views of management and are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision, strategic goals and priorities and anticipated financial performance, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as “believe”, “expect”, “suggest”, “seek”, “foresee”, “forecast”, “schedule”, “anticipate”, “intend”, “estimate”, “goal”, “commit”, “target”, “objective”, “plan”, “outlook”, “timeline” and “project” and similar expressions of future or conditional verbs such as “will”, “may”, “might”, “should”, “could”, “can”, “would” or negative or grammatical variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, 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 our forward-looking 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: credit, market, liquidity and funding, insurance, operational, compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, legal and regulatory environment, competitive and systemic risks, risks associated with escalating trade tensions, including protectionist trade policies such as the imposition of tariffs, and other risks discussed in the risk sections of our 2024 Annual Report and the Risk management section of our Q3 2025 Report to Shareholders, including business and economic conditions in the geographic regions in which we operate, Canadian housing and household indebtedness, information technology, cyber and third-party risks, geopolitical uncertainty, environmental and social risk, digital disruption and innovation, privacy and data related risks, regulatory changes, culture and conduct risks, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and our ability to anticipate and successfully manage risks arising from all of the foregoing factors. Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the risk sections of our 2024 Annual Report and the Risk management section of our Q3 2025 Report to Shareholders, as may be updated by subsequent quarterly reports.

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, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2024 Annual Report, as updated by the Economic, market and regulatory review and outlook section of our Q3 2025 Report to Shareholders. Such sections may be updated by subsequent quarterly reports. Any forward-looking statements contained in this document represent the views of management only as of the date hereof, and except as required by law, we do 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.

Additional information about these and other factors can be found in the risk sections of our 2024 Annual Report and the Risk management section of our Q3 2025 Report to Shareholders, as may be updated by subsequent quarterly reports. Information contained in or otherwise accessible through the websites mentioned does not form part of this document. All references in this document to websites are inactive textual references and are for your information only.

ACCESS TO QUARTERLY RESULTS MATERIALS

Interested investors, the media and others may review this quarterly Earnings Release, quarterly results slides, supplementary financial information and our Q3 2025 Report to Shareholders at rbc.com/investorrelations.

Quarterly conference call and webcast presentation

Our quarterly conference call is scheduled for August 27, 2025 at 8:00 a.m. (EST) and will feature a presentation about our third quarter results by RBC executives. It will be followed by a question and answer period with analysts. Interested parties can access the call live on a listen-only basis at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (416-340-2217, 866-696-5910, passcode 3075054#). Please call between 7:50 a.m. and 7:55 a.m. (EST).

Management’s comments on results will be posted on our website shortly following the call. A recording will be available by 5:00 p.m. (EST) from August 27, 2025 until October 31, 2025 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (905-694-9451 or 800-408-3053, passcode 6738504#).

Media Relations Contacts

Gillian McArdle, Vice President, Corporate Communications, gillian.mcardle@rbccm.com, 416-842-4231

Tracy Tong, Director, Financial Communications, tracy.tong@rbc.com, 437-655-1915

Investor Relations Contacts

Asim Imran, Senior Vice President, Head of Investor Relations, asim.imran@rbc.com, 416-955-7804

ABOUT RBC

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.

^®^ Registered Trademarks of Royal Bank of Canada.

EX-99.2

Exhibit 99.2

Royal Bank of Canada third quarter 2025 results

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 2025 Report to Shareholders and Supplementary Financial Information are available at http://www.rbc.com/investorrelations and on https://www.sedarplus.com/.

Net income<br><br>$5.4 Billion<br><br>Up 21% YoY	Diluted EPS<br>1<br><br>$3.75<br><br>Up 21% YoY	Total PCL<br>1<br><br>$0.9 Billion<br><br>PCL on loans ratio<br>1<br><br>down 23 bps<br>1<br>QoQ	ROE<br>1, 2<br><br>17.3%<br><br>Up 180 bps YoY	CET1 ratio<br>1<br><br>13.2%<br><br>Above regulatory<br><br>requirements
Adjusted<br><br>net income<br>3<br><br>$5.5 Billion<br><br>Up 17% YoY	Adjusted<br><br>diluted EPS<br>3<br><br>$3.84<br><br>Up 18% YoY	Total ACL<br>1<br><br>$7.7 Billion<br><br>ACL on loans ratio<br>1<br><br>remained flat QoQ	Adjusted ROE<br>3<br><br>17.7%<br><br>Up 130 bps YoY	LCR<br>1<br><br>129%<br><br>Down from 131%<br><br>last quarter

TORONTO, August

27, 2025 — Royal Bank of Canada 4 (RY on TSX and NYSE) today reported record net income of $5.4 billion for the quarter ended July 31, 2025, up $928 million or 21% from the prior year. Diluted EPS was $3.75, up 21% over the same period, reflecting growth across each of our business segments. Adjusted net income 3 and adjusted diluted EPS 3 of $5.5 billion and $3.84 were up 17% and 18%, respectively, from the prior year.

“This quarter’s record results demonstrate RBC’s relentless, long-term focus on our clients and our commitment to delivering on the bold growth ambitions we laid out at our recent Investor Day. We saw strong growth across each of our business segments reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management. Thanks to the incredible efforts of Team RBC, we’re creating value and driving premium performance through the cycle, as we work to stay ahead of our clients’ expectations in a rapidly changing economy and world.” – Dave McKay, President and Chief Executive Officer of Royal Bank of Canada

Record pre-provision,

pre-tax earnings 5 of $7.8 billion were up $1.7 billion or 29% from last year, mainly due to higher revenue in Capital Markets driven by strength across Corporate & Investment Banking and Global Markets and higher net interest income in Personal Banking and Commercial Banking reflecting strong average volume growth and higher spreads in Personal Banking. Higher fee-based revenue in Wealth Management reflecting market appreciation and net sales also contributed to the increase. These factors were partially offset by higher variable compensation commensurate with increased results, and continued investments in talent and technology across our businesses.

Compared to last quarter, net income was up 23% reflecting growth across each of our business segments. Adjusted net income 3 was up 22% over the same period. Pre-provision,

pre-tax earnings 5 were up $0.8 billion or 12% as higher revenues more than offset expense growth. The PCL on loans ratio of 35 bps decreased 23 bps from the prior quarter as last quarter was driven by higher provisions on performing loans reflecting the potential impacts of trade disruptions (including tariffs). The PCL on impaired loans ratio 1 was 36 bps, up 1 bp from the prior quarter, while the PCL on performing loans ratio 1 was (1) bp, down 24 bps from the prior quarter.

Our capital position remains robust, with a CET1 ratio of 13.2%, supporting solid volume growth and $3.1 billion of capital returned to our shareholders through common share dividends and share buybacks.

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2 Royal Bank of Canada Third Quarter 2025

Q3 2025<br><br><br><br>Compared to<br><br><br><br>Q3 2024	Reported:<br><br><br><br>• Net income of $5,414 million<br><br>• Diluted EPS of $3.75<br><br>• ROE of 17.3%<br><br>• CET1 ratio of 13.2%	h<br> 21%<br><br>h<br><br><br> 21%<br><br>h<br> 180 bps<br><br>h<br> 20 bps	Adjusted<br>3<br>:<br><br><br><br>• Net income of $5,534 million<br><br>• Diluted EPS of $3.84<br><br>• ROE of 17.7%	h<br> 17%<br><br>h<br> 18%<br><br>h<br> 130 bps
Q3 2025<br><br><br><br>Compared to<br><br><br><br>Q2 2025	• Net income of $5,414 million<br><br>• Diluted EPS<br><br>of $3.75<br><br>• ROE of 17.3%<br><br>• CET1 ratio of 13.2%	h<br> 23%<br><br>h<br> 24%<br><br>h<br> 310 bps<br><br>g<br> unchanged	• Net income of $5,534 million<br><br>• Diluted EPS<br><br>of $3.84<br><br>• ROE of 17.7%	h<br> 22%<br><br>h<br> 23%<br><br>h<br> 300 bps
YTD 2025<br><br><br><br>Compared to<br><br><br><br>YTD 2024	• Net income of $14,935 million<br><br>• Diluted EPS<br><br>of $10.31<br><br>• ROE of 16.1%	h<br><br><br><br><br>24%<br><br>h<br> 24%<br><br>h<br> 170 bps	• Net income of $15,316 million<br><br>• Diluted EPS<br><br>of $10.58<br><br>• ROE of 16.5%	h<br> 18%<br><br>h<br> 17%<br><br>h<br> 90 bps
(1)	See the Glossary section of this Q3 2025 Report to Shareholders for composition of these measures.
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(2)	Return on equity (ROE). This measure does not have a standardized meaning under generally accepted accounting principles (GAAP). For further information, refer to the Key performance and <br>non-GAAP<br> measures section of this Q3 2025 Report to Shareholders.
---	---
(3)	These are <br>non-GAAP<br> measures or ratios. For further information, including a reconciliation, refer to the Key performance and <br>non-GAAP<br> measures section of this Q3 2025 Report to Shareholders.
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(4)	When we say “we”, “us”, “our”, “the bank” or “RBC”, we mean Royal Bank of Canada and its subsidiaries, as applicable.
---	---
(5)	Pre-provision,<br> <br>pre-tax<br> (PPPT) earnings is calculated as income (July 31, 2025: $5,414 million; April 30, 2025: $4,390 million; July 31, 2024: $4,486 million) before income taxes (July 31, 2025: $1,458 million; April 30, 2025: $1,128 million; July 31, 2024: $887 million) and PCL (July 31, 2025: $881 million; April 30, 2025: $1,424 million; July 31, 2024: $659 million). This is a <br>non-GAAP<br> measure. PPPT earnings do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions. We use PPPT earnings to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of a credit cycle. We believe that certain <br>non-GAAP<br> measures are more reflective of our ongoing operating results and provide readers with a better understanding of management’s perspective on our performance.
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Table of contents

1	Third quarter highlights
3	Management’s Discussion and Analysis
3	Caution regarding forward- looking statements
4	Overview and outlook
	4	About Royal Bank of Canada
	5	Selected financial and other highlights
	6	Economic, market and regulatory review and outlook
8	Financial performance
	8	Overview
	8	Impact of foreign currency translation
	9	Total revenue
	10	Provision for credit losses
	11	Non-interest expense
	12	Income taxes
12	Business segment results
---	---	---
	12	How we measure and report our business segments
	12	Key performance and non-GAAP measures
	15	Personal Banking
	16	Commercial Banking
	17	Wealth Management
	19	Insurance
	20	Capital Markets
	21	Corporate Support
22	Quarterly results and trend analysis
23	Financial condition
	23	Condensed balance sheets
	24	Off-balance sheet arrangements
24	Risk management
	24	Credit risk
	28	Market risk
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	33	Liquidity and funding risk
41	Capital management
46	Accounting and control matters
	46	Summary of accounting policies and estimates
	46	Controls and procedures
46	Related party transactions
47	Glossary
50	Enhanced Disclosure Task Force recommendations index
51	Interim Condensed Consolidated Financial Statements<br>(unaudited)
57	Notes to the Interim Condensed Consolidated Financial Statements<br>(unaudited)
79	Shareholder Information

Table of Contents

Royal Bank of Canada Third Quarter 2025 3

Management’s Discussion and Analysis

Management’s Discussion and Analysis (MD&A) is provided to enable a reader to assess our results of operations and financial condition for the three and nine month periods ended or as at July 31, 2025, compared to the corresponding periods in the prior fiscal year and the three month period ended April 30, 2025. This MD&A should be read in conjunction with our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended July 31, 2025 (Condensed Financial Statements) and related notes and our 2024 Annual Report. This MD&A is dated August 26, 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 Board (IASB), unless otherwise noted.

Additional information about us, including our 2024 Annual Information Form, is available free of charge on our website at rbc.com/investorrelations, on the Canadian Securities Administrators’ website, SEDAR+, at sedarplus.com and on the EDGAR section of the United States (U.S.) Securities and Exchange Commission’s (SEC) website at sec.gov.

Information contained in or otherwise accessible through the websites mentioned herein does not form part of this report. All references in this report to websites are inactive textual references and are for your information only.

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 securities legislation. We may make forward-looking statements in this Q3 2025 Report to Shareholders, in other filings with Canadian regulators or the SEC, in other reports to shareholders, and in other communications. In addition, our representatives may communicate forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, priorities, vision and strategic goals, the economic, market, and regulatory review and outlook for Canadian, U.S., United Kingdom (U.K.), Euro area and global economies, the regulatory environment in which we operate and the risk environment including our credit risk, market risk, liquidity and funding risk, and include statements made by our President and Chief Executive Officer. The forward-looking statements contained in this document represent the views of management and are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision, strategic goals and priorities and anticipated financial performance, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as “believe”, “expect”, “suggest”, “seek”, “foresee”, “forecast”, “schedule”, “anticipate”, “intend”, “estimate”, “goal”, “commit”, “target”, “objective”, “plan”, “outlook”, “timeline” and “project” and similar expressions of future or conditional verbs such as “will”, “may”, “might”, “should”, “could”, “can”, “would” or negative or grammatical variations thereof.

We caution readers not to place undue reliance on our forward-looking 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: credit, market, liquidity and funding, insurance, operational, compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, legal and regulatory environment, competitive and systemic risks, risks associated with escalating trade tensions, including protectionist trade policies such as the imposition of tariffs, and other risks discussed in the risk sections of our 2024 Annual Report and the Risk management section of this Q3 2025 Report to Shareholders, including business and economic conditions in the geographic regions in which we operate, Canadian housing and household indebtedness, information technology, cyber and third-party risks, geopolitical uncertainty, environmental and social risk, digital disruption and innovation, privacy and data related risks, regulatory changes, culture and conduct risks, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and our ability to anticipate and successfully manage risks arising from all of the foregoing factors. Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the risk sections of our 2024 Annual Report and the Risk management section of this Q3 2025 Report to Shareholders, as may be updated by subsequent quarterly reports.

Table of Contents

4 Royal Bank of Canada Third Quarter 2025

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, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2024 Annual Report, as updated by the Economic, market and regulatory review and outlook section of this Q3 2025 Report to Shareholders. Such sections may be updated by subsequent quarterly reports. Any forward-looking statements contained in this document represent the views of management only as of the date hereof, and except as required by law, we do 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.

Additional information about these and other factors can be found in the risk sections of our 2024 Annual Report and the Risk management section of this Q3 2025 Report to Shareholders, as may be updated by subsequent quarterly reports.

Overview and outlook
About Royal Bank of Canada
---

Effective the fourth quarter of 2024, the Personal & Commercial Banking segment became two standalone business segments: Personal Banking and Commercial Banking. With this change, RBC Direct Investing ® moved from the previous Personal & Commercial Banking segment to the Wealth Management segment. Comparative results in this MD&A have been revised to conform to our new basis of segment presentation.

Table of Contents

Royal Bank of Canada Third Quarter 2025 5

Selected financial and other highlights<br><br>(1)
									As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except per share, number of and percentage amounts)			April 30<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Total revenue	16,985		$	15,672		$	14,631		$	49,396		$	42,270
Provision for credit losses (PCL)	881			1,424			659			3,355			2,392
Non-interest expense	9,232			8,730			8,599			27,218			25,231
Income before income taxes	6,872			5,518			5,373			18,823			14,647
Net income	5,414		$	4,390		$	4,486		$	14,935		$	12,018
Net income – adjusted (2), (3)	5,534		$	4,528		$	4,727		$	15,316		$	12,991
Segments – net income
Personal Banking (4)	1,938		$	1,602		$	1,586		$	5,218		$	4,342
Commercial Banking (4)	836			597			817			2,210			2,044
Wealth Management (4)	1,096			929			949			3,005			2,453
Insurance	247			211			170			730			567
Capital Markets	1,328			1,202			1,172			3,962			3,588
Corporate Support	(31	)		(151	)		(208	)		(190	)		(976	)
Net income	5,414		$	4,390		$	4,486		$	14,935		$	12,018
Selected information
Earnings per share (EPS) – basic	3.76		$	3.03		$	3.09		$	10.33		$	8.35
– diluted	3.75			3.02			3.09			10.31			8.34
– basic adjusted (2), (3)	3.84			3.13			3.26			10.60			9.04
– diluted adjusted (2), (3)	3.84			3.12			3.26			10.58			9.03
Return on common equity (ROE) (3)	17.3%			14.2%			15.5%			16.1%			14.4%
ROE – adjusted (2), (3)	17.7%			14.7%			16.4%			16.5%			15.6%
Average common equity (5)	121,450		$	123,300		$	112,100		$	121,100		$	109,300
Net interest margin (NIM) – on average earning assets, net (3)	1.61%			1.64%			1.58%			1.62%			1.50%
PCL on loans as a % of average net loans and acceptances	0.35%			0.58%			0.27%			0.45%			0.35%
PCL on performing loans as a % of average net loans and acceptances	(0.01)%			0.23%			0.01%			0.08%			0.06%
PCL on impaired loans as a % of average net loans and acceptances	0.36%			0.35%			0.26%			0.37%			0.29%
Gross impaired loans (GIL) as a % of loans and acceptances	0.85%			0.88%			0.58%			0.85%			0.58%
Liquidity coverage ratio (LCR) (3), (6)	129%			131%			126%			129%			126%
Net stable funding ratio (NSFR) (3), (6)	114%			116%			114%			114%			114%
Capital, Leverage and Total loss absorbing capacity (TLAC) ratios (3), (7)
Common Equity Tier 1 (CET1) ratio	13.2%			13.2%			13.0%			13.2%			13.0%
Tier 1 capital ratio	14.8%			14.7%			14.5%			14.8%			14.5%
Total capital ratio	16.6%			16.5%			16.3%			16.6%			16.3%
Leverage ratio	4.5%			4.3%			4.2%			4.5%			4.2%
TLAC ratio	30.9%			31.0%			28.4%			30.9%			28.4%
TLAC leverage ratio	9.3%			9.2%			8.3%			9.3%			8.3%
Selected balance sheet and other information (8)
Total assets	2,227,893		$	2,242,133		$	2,076,107		$	2,227,893		$	2,076,107
Securities, net of applicable allowance	538,012			492,497			431,185			538,012			431,185
Loans, net of allowance for loan losses	1,025,460			1,007,306			971,797			1,025,460			971,797
Derivative related assets	155,023			188,211			115,659			155,023			115,659
Deposits	1,481,477			1,446,786			1,361,265			1,481,477			1,361,265
Common equity	124,065			122,084			114,899			124,065			114,899
Total risk-weighted assets (RWA) (3), (7)	723,155			703,920			661,177			723,155			661,177
Assets under management (AUM) (3)	1,469,800			1,363,900			1,300,100			1,469,800			1,300,100
Assets under administration (AUA) (3), (9)	5,213,500			5,019,700			4,716,100			5,213,500			4,716,100
Common share information
Shares outstanding (000s) – average basic	1,407,280			1,411,362			1,414,194			1,410,854			1,411,044
– average diluted	1,409,680			1,413,517			1,416,149			1,413,235			1,412,644
– end of period	1,405,044			1,409,539			1,413,666			1,405,044			1,413,666
Dividends declared per common share	1.54		$	1.48		$	1.42		$	4.50		$	4.18
Dividend yield (3)	3.5%			3.6%			3.9%			3.6%			4.2%
Dividend payout ratio (3)	41%			49%			46%			44%			50%
Common share price (RY on TSX) (10)	177.79		$	165.47		$	154.28		$	177.79		$	154.28
Market capitalization (TSX) (10)	249,803			233,236			218,100			249,803			218,100
Business information (number of)
Employees (full-time equivalent) (FTE)	97,116			94,369			96,165			97,116			96,165
Bank branches	1,271			1,284			1,344			1,271			1,344
Automated teller machines (ATMs)	4,298			4,331			4,426			4,298			4,426
Period average US equivalent of C1.00 (11)	0.728			0.704			0.730			0.710			0.736
Period-end US equivalent of C1.00	0.722			0.725			0.724			0.722			0.724

All values are in US Dollars.

(1)	On March 28, 2024, we completed the acquisition of HSBC Bank Canada (HSBC Canada transaction). HSBC Bank Canada (HSBC Canada) results have been consolidated from the closing date, and are included in our Personal Banking, Commercial Banking, Wealth Management and Capital Markets segments. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	These are <br>non-GAAP<br> measures or ratios. For further details, including a reconciliation, refer to the Key performance and <br>non-GAAP<br> measures section.
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(3)	See Glossary for composition of these measures.
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(4)	Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section.
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(5)	Average amounts are calculated using methods intended to approximate the average of the daily balances for the period.
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(6)	The LCR and NSFR are calculated in accordance with the Office of the Superintendent of Financial Institutions’ (OSFI) Liquidity Adequacy Requirements (LAR) guideline. LCR is the average for the three months ended for each respective period. For further details, refer to the Liquidity and funding risk section.
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(7)	Capital ratios and RWA are calculated using OSFI’s Capital Adequacy Requirements (CAR) guideline, the Leverage ratio is calculated using OSFI’s Leverage Requirements (LR) guideline, and both the TLAC and TLAC leverage ratios are calculated using OSFI’s TLAC guideline. Both the CAR guideline and LR guideline are based on the Basel III framework. For further details, refer to the Capital management section.
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(8)	Represents <br>period-end<br> spot balances.
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(9)	AUA includes $15 billion and $6 billion (April 30, 2025 – $15 billion and $6 billion; July 31, 2024 – $15 billion and $6 billion) of securitized residential mortgages and credit card loans, respectively.
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(10)	Based on TSX closing market price at <br>period-end.
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(11)	Average amounts are calculated using <br>month-end<br> spot rates for the period.
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6 Royal Bank of Canada Third Quarter 2025

Economic, market and regulatory review and outlook – data as at August 26, 2025

The predictions and forecasts in this section are based on information and assumptions from sources we consider reliable. If this information or these assumptions are not accurate, actual economic outcomes may differ materially from the outlook presented in this section.

Economic and market review and outlook

Economic growth is expected to remain positive across most advanced economies, including Canada, the Euro area, the U.K. and the U.S. The outlook remains highly dependent on the evolution of U.S. international trade policy. U.S. tariff rates have increased since April 2025 for most U.S. trade partners and are expected to slow U.S. economic growth. Tariffs imposed on U.S. imports from Canada remain low relative to other U.S. trade partners with most Canadian exports maintaining duty free access to the U.S. market through an exemption from tariffs for products compliant with the Canada-United States-Mexico Agreement (CUSMA). Our forecast assumes that existing tariffs remain in place broadly as-is until the fourth calendar quarter of 2025 before easing lower in 2026. Tariffs are expected to contribute to price increases, particularly in the U.S., while the removal of the consumer carbon tax from energy products is expected to keep headline consumer price growth relatively lower in Canada. We expect the U.S. Federal Reserve (Fed) to resume cutting interest rates in December of this calendar year as anticipated weaker economic growth and a rising unemployment rate offset concerns about the upward impact of tariffs on inflation. The Bank of Canada (BoC) reduced interest rates by more than other global central banks since June 2024 and we expect no further reductions for the remainder of calendar 2025. We expect the Bank of England (BOE) to reduce policy interest rates further by the end of calendar 2025 but do not expect further interest rate reductions from the European Central Bank (ECB).

Canada

Canadian GDP is expected to remain unchanged in the second calendar quarter of 2025 after rising 2.2% 1 in the first calendar quarter of 2025. We expect most Canadian exports to the United States will remain duty free under the exemption from tariffs for products compliant with the CUSMA; however, sector-specific tariffs, including those on steel and aluminum, the non-U.S. share of Canadian auto exports to the U.S. and China’s tariffs on Canadian canola products, will continue to apply. Uncertainty about potential future trade policy changes is expected to slow business investment spending. Growth in the Canadian economy in calendar 2025 is expected to remain close to the slow pace seen in calendar 2024. The unemployment rate fell slightly to 6.9% in June and July 2025 after rising to 7.0% in May 2025 but is still up 0.5% from a year earlier. The unemployment rate is expected to rise slightly to 7.1% in the second half of calendar 2025 as weakening external demand and international trade uncertainty slows hiring demand. The end of the consumer carbon tax on energy products has lowered the headline inflation rate, but excluding those changes, core inflation measures are at the top of the BoC’s 1% to 3% inflation target range. The BoC has held the overnight rate unchanged since a reduction to a 2.75% rate in January 2025. Interest rates are now at levels that the central bank views as neither restricting nor stimulating economic activity, and planned increases in government spending are reducing the need for additional interest rate reductions to counter expected weakening in economic growth due to tariffs. We do not expect the BoC to cut the overnight rate further for the remainder of calendar 2025.

U.S.

U.S. GDP grew by 3.0% 1 in the second calendar quarter of 2025 after contracting 0.5% 1 in the first calendar quarter of 2025. The decline in the first calendar quarter was primarily due to a significant increase in imports ahead of expected tariffs, with lower subsequent imports resulting in stronger GDP growth in the second calendar quarter. We expect slow GDP growth over the remainder of this calendar year as tariffs imposed by the U.S. administration affect costs and domestic production. The unemployment rate rose to 4.2% in July 2025, up slightly from 4.1% in June 2025, but unchanged from a year earlier. Job openings have declined and employment growth has slowed. We continue to expect the unemployment rate to rise modestly into calendar year 2026. Inflation data has shown limited tariff-related increases but we expect increased tariffs to raise prices more significantly over the second half of calendar year 2025. A weaker economic backdrop is expected to prompt a gradual reduction in interest rates by the Fed, with the next decrease in the target range for the federal funds rate expected in December 2025.

Euro area and the U.K.

Euro area GDP grew by 0.1% in the second calendar quarter of 2025 after rising 0.6% in the first calendar quarter of 2025. Unemployment rates remain very low across countries in the Euro area and are expected to be little changed through the rest of calendar 2025. Inflation in the Euro area has continued to ease but core inflation excluding energy components remains elevated. Increased government spending is expected to offset the negative impact of U.S. tariffs on Euro area GDP growth. The ECB is not expected to reduce interest rates further after lowering the deposit rate to 2.0% in June 2025. U.K. GDP increased 0.3% in the second calendar quarter of 2025 after increasing by 0.7% in the first calendar quarter of 2025. GDP growth in the U.K. is expected to be slow but positive for the remainder of calendar 2025. Inflationary trends have continued to remain steady and the unemployment rate has been increasing moderately. We expect those trends will persist in the remainder of calendar year 2025 and the BoE will continue to lower the Bank Rate until it reaches 3.75%, which is expected by the end of calendar 2025.

1	Annualized rate

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Royal Bank of Canada Third Quarter 2025 7

Financial markets

Government bond yields have declined in the U.S. and are little changed in Canada, the Euro area and the U.K. over the last three months. Yield curves remain steeper than at the start of the calendar year for Canada, the U.S., U.K. and Euro area. Credit spreads have narrowed after widening earlier this year and the broad trade-weighted U.S. dollar index has depreciated since January 2025. Equity markets have fully recouped declines earlier in the calendar year. Oil prices rose temporarily in June 2025 but have since reverted lower.

Regulatory environment

We continue to monitor and prepare for regulatory developments and changes in a manner that seeks to ensure compliance with new requirements while mitigating adverse business or financial impacts. Such impacts could result from new or amended laws or regulations and the expectations of those who enforce them. A high-level summary of the key regulatory changes that have the potential to increase or decrease our costs and the complexity of our operations is included in the Legal and regulatory environment risk section of our 2024 Annual Report and updates are listed below.

Global uncertainty

In July 2025, the International Monetary Fund (IMF) projected global growth of 3.0% for 2025, up 0.2% from its April forecast 2 , reflecting pulled-forward demand and excess inventory in anticipation of higher tariffs and a lower average effective U.S. tariff rate than previously expected. Significant uncertainty continues to pose risks to the global economic outlook, driven by:

•	Impacts from implemented and potential additional trade measures, including protectionist trade policies such as the imposition of tariffs, which could soften demand, increase inflationary pressures, lower investment, disrupt supply chains and further reduce near- and long-term growth;
•	Failure to reach trade agreements, which could lead to a shift away from global economic integration and negatively impact productivity, growth and financial stability;
---	---
•	Substantial projected fiscal deficits for countries, which could lead to upward pressure on long-term interest rates, financial market instability or faster- than-anticipated deceleration in growth, along with their associated impact on consumer and business confidence;
---	---
•	Diverging monetary policies in response to inflationary pressures, which may drive asset repricing, impact foreign exchange rates and capital flows and heighten financial market volatility;
---	---
•	Shifting global policy priorities, including prolonged uncertainty surrounding changes to U.S. trade, foreign relations, defense and immigration policies, which could disrupt global alliances and increase economic, market and other risks;
---	---
•	Frontloading of global economic activities in anticipation of tariffs, which could amplify negative shocks if demand for higher inventory levels does not materialize or financial conditions tighten;
---	---
•	Ongoing conflicts such as those between Russia and Ukraine and those in the Middle East and Asia, as well as increasing tensions between China and Taiwan;
---	---
•	An aging demographic in advanced economies and the associated long-term impact on economic productivity and government fiscal capacity;
---	---
•	Increased polarization and social unrest; and
---	---
•	Extreme weather-related events.
---	---

Our diversified business model, as well as our product and geographic diversification, continue to help mitigate the risks posed by global uncertainty.

U.S. legislation

On July 4, 2025, the U.S. President signed the One Big Beautiful Bill Act (the Act) into law. Certain retaliatory tax measures that had been included in earlier versions of the Act were withdrawn before enactment. There has been no material tax impact for us. However, there is still some uncertainty as to whether future events may cause the U.S. to include similar retaliatory tax measures in new legislation or to use existing measures to penalize non-U.S. based companies. We will continue to monitor any updates and future developments.

For a discussion on risk factors resulting from these and other developments which may affect our business and financial results, refer to the risk sections of our 2024 Annual Report. For further details on our framework and activities to manage risks, refer to the Risk management and Capital management sections of this Q3 2025 Report to Shareholders.

2	Given the complexity and fluidity of the economic environment, the IMF used a reference forecast in lieu of the usual baseline to project global growth in April 2025.

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8 Royal Bank of Canada Third Quarter 2025

Financial performance
Overview
---

Q3 2025 vs. Q3 2024

Net income of $5,414 million was up $928 million or 21% from a year ago. Diluted EPS of $3.75 was up $0.66 or 21% and ROE of 17.3% was up from 15.5% a year ago. Our CET1 ratio of 13.2% was up 20 bps from a year ago.

Adjusted net income of $5,534 million was up $807 million or 17% from a year ago. Adjusted diluted EPS of $3.84 was up $0.58 or 18% and adjusted ROE of 17.7% was up from 16.4% a year ago.

Our earnings reflect higher results across all of our business segments. Prior period results included HSBC Canada transaction and integration costs which was treated as a specified item and reported in Corporate Support.

Q3 2025 vs. Q2 2025

Net income of $5,414 million was up $1,024 million or 23% from last quarter. Diluted EPS of $3.75 was up $0.73 or 24% and ROE of 17.3% was up from 14.2% in the prior quarter. Our CET1 ratio of 13.2% was unchanged from last quarter.

Adjusted net income of $5,534 million was up $1,006 million or 22% from last quarter. Adjusted diluted EPS of $3.84 was up $0.72 or 23% and adjusted ROE of 17.7% was up from 14.7% last quarter.

Our earnings reflect higher results across all of our business segments and in Corporate Support. Lower PCL on performing loans contributed to higher results.

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income of $14,935 million was up $2,917 million or 24% from the same period last year. Diluted EPS of $10.31 was up $1.97 or 24% and ROE of 16.1% was up from 14.4% in the prior year.

Adjusted net income of $15,316 million was up $2,325 million or 18% from the same period last year. Adjusted diluted EPS of $10.58 was up $1.55 or 17% and adjusted ROE of 16.5% was up from 15.6% in the prior year.

Our earnings were up from the same period last year, primarily driven by higher results across all of our business segments. Results in the current period also reflect a lower impact from HSBC Canada transaction and integration costs which is treated as a specified item and reported in Corporate Support. Our earnings also reflect an increase due to the impact of foreign exchange translation.

For further details on our business segment results and CET1 ratio, refer to the Business segment results and Capital management sections, respectively.

Adjusted results

Adjusted results exclude specified items and the after-tax impact of amortization of acquisition-related intangibles. Adjusted results are non-GAAP measures. For further details, including a reconciliation, refer to the Key performance and non-GAAP measures section.

Impact of foreign currency translation

The following table reflects the estimated impact of foreign currency translation on key income statement items:

	For the three months ended					For the nine months ended
(Millions of Canadian dollars, except per share amounts)	Q3 2025 vs.<br><br>Q3 2024		Q3 2025 vs.<br><br>Q2 2025			Q3 2025 vs.<br><br>Q3 2024
Increase (decrease):
Total revenue	$	77	$	(217	)	$	860
PCL		6		(2	)		30
Non-interest<br> expense		54		(121	)		491
Income taxes		2		(10	)		37
Net income		15		(84	)		302
Impact on EPS
Basic	$	0.01	$	(0.06	)	$	0.21
Diluted		0.01		(0.06	)		0.21

The relevant average exchange rates that impact our business are shown in the following table:


(Average foreign currency equivalent of C$1.00) (1)	For the three months ended			For the nine months ended
	July 312025	April 302025	July 312024	July 312025	July 312024
U.S. dollar
British pound
Euro

All values are in US Dollars.

(1)	Average amounts are calculated using <br>month-end<br> spot rates for the period.

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Royal Bank of Canada Third Quarter 2025 9

Total revenue
(Millions of Canadian dollars, except percentage amounts)	For the three months ended							For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024			July 31<br><br>2025		July 31<br><br>2024
Interest and dividend income	$	26,110	$	24,970	$	27,090		$	77,535	$	78,453
Interest expense		17,759		16,914		19,763			53,180		58,171
Net interest income	$	8,351	$	8,056	$	7,327		$	24,355	$	20,282
NIM		1.61%		1.64%		1.58%			1.62%		1.50%
Insurance service result	$	279	$	224	$	214		$	789	$	604
Insurance investment result		48		78		28			208		228
Trading revenue		685		641		507			2,521		1,944
Investment management and custodial fees		2,642		2,544		2,382			7,853		6,824
Mutual fund revenue		1,273		1,211		1,151			3,720		3,248
Securities brokerage commissions		444		486		413			1,401		1,232
Service charges		598		607		587			1,817		1,698
Underwriting and other advisory fees		850		615		676			2,139		2,016
Foreign exchange revenue, other than trading		311		338		292			967		841
Card service revenue		339		328		324			984		941
Credit fees		395		370		405			1,200		1,234
Net gains on investment securities		18		45		28			118		157
Income (loss) from joint ventures and associates		25		16		(57	)		60		(27	)
Other		727		113		354			1,264		1,048
Non-interest<br> income		8,634		7,616		7,304			25,041		21,988
Total revenue	$	16,985	$	15,672	$	14,631		$	49,396	$	42,270
Additional trading information
Net interest income <br>(1)	$	659	$	614	$	475		$	1,637	$	1,222
Non-interest<br> income		685		641		507			2,521		1,944
Total trading revenue	$	1,344	$	1,255	$	982		$	4,158	$	3,166
(1)	Reflects net interest income arising from trading-related positions, including assets and liabilities that are classified or designated at fair value through profit or loss (FVTPL).
---	---

Q3 2025 vs. Q3 2024

Total revenue increased $2,354 million or 16% from a year ago, mainly due to higher net interest income and other revenue. Higher investment management and custodial fees, trading revenue, underwriting and other advisory fees and mutual fund revenue also contributed to the increase.

Net interest income increased $1,024 million or 14%, mainly due to average volume growth in Personal Banking and Commercial Banking and higher spreads in Personal Banking. Higher equity trading revenue in North America and higher lending revenue, both in Capital Markets, also contributed to the increase.

NIM was up 3 bps from a year ago, mainly driven by favourable changes in product mix and the sustained impact of a higher interest rate environment in Personal Banking, partially offset by an increase in lower yielding assets in Global Markets.

Trading revenue increased $178 million or 35%, primarily due to higher fixed income trading revenue across most regions.

Investment management and custodial fees increased $260 million or 11%, primarily due to higher fee-based client assets reflecting market appreciation and net sales.

Mutual fund revenue increased $122 million or 11%, primarily due to higher fee-based client assets reflecting market appreciation and net sales in Wealth Management, as well as higher average mutual fund balances driving higher distribution fees in Personal Banking.

Underwriting and other advisory fees increased $174 million or 26%, primarily due to higher debt and equity origination and M&A activity across most regions.

Other revenue increased $373 million, largely attributable to the impact of economic hedges, as well as changes in the fair value of the hedges related to our U.S. share-based compensation plans, which was largely offset in Non-interest expense. The prior year also included unfavourable changes in the fair value of certain instruments in our non-trading portfolios.

Q3 2025 vs. Q2 2025

Total revenue increased $1,313 million or 8% from last quarter, largely due to higher other revenue, net interest income and underwriting and other advisory fees. The impact of foreign exchange translation decreased revenue by $217 million.

Net interest income increased $295 million or 4%, primarily due to three more days in the current quarter, higher spreads in Personal Banking, Commercial Banking and Wealth Management, as well as average volume growth in Personal Banking. These factors were partially offset by the impact of foreign exchange translation.

Underwriting and other advisory fees increased $235 million or 38%, primarily due to higher debt and equity origination across most regions.

Other revenue increased $614 million, largely attributable to changes in the fair value of the hedges related to our U.S. share-based compensation plans, which was largely offset in Non-interest expense.

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10 Royal Bank of Canada Third Quarter 2025

Q3 2025 vs. Q3 2024 (Nine months ended)

Total revenue increased $7,126 million or 17% from the same period last year, largely due to higher net interest income and investment management and custodial fees. Higher trading revenue, mutual fund revenue and other revenue also contributed to the increase. The impact of foreign exchange translation increased revenue by $860 million.

Net interest income increased $4,073 million or 20%, mainly due to an increase in average loans and acceptances and deposits in Commercial Banking and Personal Banking, which includes the impact of five additional months of HSBC Canada results, and higher spreads in Personal Banking. The impact of foreign exchange translation and higher fixed income trading revenue in North America in Capital Markets also contributed to the increase.

Trading revenue increased $577 million or 30%, largely due to higher equity trading revenue in Europe and the U.S. and higher foreign exchange trading revenue across all regions.

Investment management and custodial fees increased $1,029 million or 15%, primarily due to higher fee-based client assets reflecting market appreciation and net sales.

Mutual fund revenue increased $472 million or 15%, primarily due to higher fee-based client assets reflecting market appreciation and net sales in Wealth Management, as well as higher average mutual fund balances driving higher distribution fees in Personal Banking.

Other revenue increased $216 million or 21%, mainly attributable to the impact of management of closing capital volatility related to the HSBC Canada transaction in the same period last year, which is treated as a specified item, and the impact of economic hedges. These factors were partially offset by changes in the fair value of the hedges related to our U.S. share-based compensation plans, which was largely offset in Non-interest expense.

Provision for credit losses<br><br>(1)
	For the three months ended									For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except percentage amounts)	July 31<br><br>2025			April 30<br><br>2025			July 31<br><br>2024 <br>(2)			July 31<br><br>2025			July 31<br><br>2024 <br>(2)
Personal Banking	$	17		$	246		$	32		$	326		$	268
Commercial Banking		4			253			38			287			194
Wealth Management		(40	)		35			(16	)		31			(62	)
Capital Markets		(9	)		35			(11	)		(35	)		18
Corporate Support and other <br>(3)		–			(1	)		(1	)		(1	)		1
PCL on performing loans		(28	)		568			42			608			419
Personal Banking	$	431		$	410		$	363		$	1,268		$	1,057
Commercial Banking		296			286			178			890			481
Wealth Management		(3	)		51			32			93			116
Capital Markets		188			105			50			498			326
Corporate Support and other <br>(3)		1			–			–			1			–
PCL on impaired loans		913			852			623			2,750			1,980
PCL – Loans		885			1,420			665			3,358			2,399
PCL – Other<br><br>(4)		(4	)		4			(6	)		(3	)		(7	)
Total PCL	$	881		$	1,424		$	659		$	3,355		$	2,392
PCL on loans is comprised of:
Retail	$	7		$	300		$	32		$	411		$	276
Wholesale		(35	)		268			10			197			143
PCL on performing loans		(28	)		568			42			608			419
Retail		474			454			407			1,413			1,162
Wholesale		439			398			216			1,337			818
PCL on impaired loans		913			852			623			2,750			1,980
PCL – Loans	$	885		$	1,420		$	665		$	3,358		$	2,399
PCL on loans as a % of average net loans and acceptances		0.35%			0.58%			0.27%			0.45%			0.35%
PCL on impaired loans as a % of average net loans and acceptances		0.36%			0.35%			0.26%			0.37%			0.29%
(1)	Information on loans represents loans, acceptances and commitments.
---	---
(2)	Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section.
---	---
(3)	Includes PCL recorded in Corporate Support and Insurance.
---	---
(4)	PCL – Other includes amounts related to debt securities measured at fair value through other comprehensive income (FVOCI) and amortized cost, accounts receivable, and financial and purchased guarantees.
---	---

Q3 2025 vs. Q3 2024

Total PCL increased $222 million or 34% from a year ago, primarily due to higher provisions in Capital Markets, Commercial Banking and Personal Banking, partially offset by releases in Wealth Management in the current quarter, as compared to provisions taken in the same quarter last year. The PCL on loans ratio increased 8 bps.

PCL on impaired loans increased $290 million or 47%, primarily due to higher provisions in Capital Markets, Commercial Banking and Personal Banking.

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Royal Bank of Canada Third Quarter 2025 11

Q3 2025 vs. Q2 2025

Total PCL decreased $543 million or 38% from last quarter, primarily reflecting lower provisions in Commercial Banking, and Personal Banking, and releases in Wealth Management in the current quarter, as compared to provisions taken last quarter. The PCL on loans ratio decreased 23 bps.

Q3 2025 vs. Q3 2024 (Nine months ended)

Total PCL increased $963 million or 40% from the same period last year, primarily reflecting higher provisions in Commercial Banking, Personal Banking and Capital Markets. The PCL on loans ratio increased 10 bps.

PCL on performing loans increased $189 million or 45%, primarily driven by unfavourable changes to our scenario weights and macroeconomic forecast, reflecting the potential impacts of trade disruptions (including tariffs). This was partially offset by the impact of the initial PCL on performing loans purchased in the HSBC Canada transaction in the prior year and lower unfavourable changes in credit quality as compared to the same period last year.

PCL on impaired loans increased $770 million or 39%, due to higher provisions in Commercial Banking, Personal Banking and Capital Markets.

Non-interest expense
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except percentage amounts)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024		July 31<br><br>2025		July 31<br><br>2024
Salaries	$	2,356	$	2,366	$	2,310	$	7,076	$	6,533
Variable compensation		2,515		2,338		2,246		7,422		6,490
Benefits and retention compensation		669		720		615		2,075		1,826
Share-based compensation		329		54		235		761		811
Human resources		5,869		5,478		5,406		17,334		15,660
Equipment		684		704		629		2,069		1,863
Occupancy		410		428		443		1,267		1,291
Communications		357		378		342		1,062		1,021
Professional fees		528		538		547		1,568		1,868
Amortization of other intangibles		436		457		426		1,328		1,151
Other		948		747		806		2,590		2,377
Non-interest<br> expense	$	9,232	$	8,730	$	8,599	$	27,218	$	25,231
Efficiency ratio<br><br>(1)		54.4%		55.7%		58.8%		55.1%		59.7%
Efficiency ratio – adjusted<br><br>(1), (2)		53.5%		54.5%		56.6%		54.1%		56.9%
(1)	See Glossary for composition of these measures.
---	---
(2)	This is a <br>non-GAAP<br> ratio. For further details, including a reconciliation, refer to the Key performance and <br>non-GAAP<br> measures section.
---	---

Q3 2025 vs. Q3 2024

Non-interest expense increased $633 million or 7% from a year ago, largely due to higher variable compensation commensurate with increased results, higher staff costs and ongoing technology investments. The change in the fair value of our U.S. share-based compensation plans, which was largely offset in Other revenue, also contributed to the increase. These factors were partially offset by HSBC Canada transaction and integration costs in the prior year, which was treated as a specified item, as well as the realization of synergies related to the HSBC Canada transaction.

Our efficiency ratio of 54.4% decreased 440 bps. Our adjusted efficiency ratio of 53.5% decreased 310 bps.

Q3 2025 vs. Q2 2025

Non-interest expense increased $502 million or 6% from last quarter, primarily due to the change in the fair value of our U.S. share-based compensation plans, which was largely offset in Other revenue, and higher variable compensation commensurate with increased results. These factors were partially offset by the impact of foreign exchange translation.

Our efficiency ratio of 54.4% decreased 130 bps. Our adjusted efficiency ratio of 53.5% decreased 100 bps.

Q3 2025 vs. Q3 2024 (Nine months ended)

Non-interest expense increased $1,987 million or 8% from the same period last year, largely due to higher staff costs, including severance, higher variable compensation commensurate with increased results, as well as the impact of foreign exchange translation. The impact of five additional months of HSBC Canada non-interest expenses and ongoing technology investments also contributed to the increase. These factors were partially offset by lower HSBC Canada transaction and integration costs, which is treated as a specified item, the realization of synergies related to the HSBC Canada transaction, the change in the fair value of our U.S. share-based compensation plans, which was largely offset in Other revenue, as well as the cost of the Federal Deposit Insurance Corporation (FDIC) special assessment in the prior year.

Our efficiency ratio of 55.1% decreased 460 bps. Our adjusted efficiency ratio of 54.1% decreased 280 bps.

Adjusted efficiency ratio is a non-GAAP ratio. For further details, including a reconciliation, refer to the Key performance and non-GAAP measures section.

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12 Royal Bank of Canada Third Quarter 2025

Income taxes
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except percentage amounts)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024		July 31<br><br>2025		July 31<br><br>2024
Income taxes	$	1,458	$	1,128	$	887	$	3,888	$	2,629
Income before income taxes		6,872		5,518		5,373		18,823		14,647
Effective income tax rate		21.2%		20.4%		16.5%		20.7%		17.9%
Adjusted results<br><br>(1), (2)
Income taxes – adjusted	$	1,491	$	1,174	$	960	$	4,009	$	2,910
Income before income taxes – adjusted		7,025		5,702		5,687		19,325		15,901
Effective income tax rate – adjusted		21.2%		20.6%		16.9%		20.7%		18.3%
(1)	These are <br>non-GAAP<br> measures or ratios. For further details, including a reconciliation, refer to the Key performance and <br>non-GAAP<br> measures section.
---	---
(2)	See Glossary for composition of these measures.
---	---

Q3 2025 vs. Q3 2024

Income tax expense increased $571 million or 64% from a year ago, primarily due to higher income before income taxes. Adjusted income tax expense increased $531 million or 55%.

The effective income tax rate of 21.2% increased 470 bps, primarily due to the impact of changes in earnings mix and Pillar Two legislation, which became effective for us beginning November 1, 2024. The adjusted effective income tax rate of 21.2% increased 430 bps. For further details on Pillar Two legislation, refer to Note 9 of our Condensed Financial Statements.

Q3 2025 vs. Q2 2025

Income tax expense increased $330 million or 29% from last quarter, primarily due to higher income before income taxes, partially offset by the impact of changes in earnings mix. Adjusted income tax expense increased $317 million or 27%.

The effective income tax rate of 21.2% increased 80 bps, primarily due to the net impact of tax adjustments. The adjusted effective income tax rate of 21.2% increased 60 bps.

Q3 2025 vs. Q3 2024 (Nine months ended)

Income tax expense increased $1,259 million or 48% from the same period last year, primarily due to higher income before income taxes. Adjusted income tax expense increased $1,099 million or 38%.

The effective income tax rate of 20.7% increased 280 bps, primarily due to the impact of changes in earnings mix and the Pillar Two legislation noted above. The adjusted effective income tax rate of 20.7% increased 240 bps.

Adjusted income tax expense and adjusted effective income tax rate are non-GAAP measures or ratios. For further details, including a reconciliation, refer to the Key performance and non-GAAP measures section.

Business segment results
How we measure and report our business segments
---

The key methodologies and assumptions used in our management reporting framework are periodically reviewed by management to ensure they remain valid. Effective the first quarter of 2025, we increased our capital attribution rates to our business segments to better align with our internal targets, which reduced the amount of unattributed capital retained in Corporate Support. For Insurance, the allocation of capital remains unchanged and continues to be based on fully diversified economic capital.

For further details on the key methodologies and assumptions used in our management reporting framework, refer to the How we measure and report our business segments section of our 2024 Annual Report.

Key performance and non-GAAP measures

Performance measures

Return on common equity

We use ROE, at both the consolidated and business segment levels, as a measure of return on total capital invested in our business. Management views the business segment ROE measure as a useful measure for supporting investment and resource allocation decisions because it adjusts for certain items that may affect comparability between business segments and certain competitors.

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Royal Bank of Canada Third Quarter 2025 13

Our consolidated ROE calculation is based on net income available to common shareholders divided by total average common equity for the period. Business segment ROE calculations are based on net income available to common shareholders divided by average attributed capital for the period. For each segment, with the exception of Insurance, average attributed capital includes the capital and leverage required to underpin various risks and amounts invested in goodwill and intangibles and other regulatory deductions. For Insurance, the allocation of capital is based on fully diversified economic capital.

The attribution of capital involves the use of assumptions, judgments and methodologies that are regularly reviewed and revised by management as deemed necessary. Changes to such assumptions, judgments and methodologies can have a material effect on the business segment ROE information that we report. Other companies that disclose information on similar attributions and related return measures may use different assumptions, judgments and methodologies.

The following table provides a summary of our ROE calculations:

	For the three months ended
	July 31<br><br>2025															April 30<br><br>2025		July 31<br><br>2024
(Millions of Canadian dollars,<br><br>except percentage amounts)	Personal<br>Banking<br>(3)		Commercial<br>Banking<br>(3)		Wealth<br>Management<br>(3)		Insurance		Capital<br>Markets<br>(3)		Corporate<br><br>Support			Total		Total (3)		Total
Net income available to common shareholders	$	1,911	$	816	$	1,071	$	245	$	1,289	$	(42	)	$	5,290	$	4,274	$	4,377
Total average common equity <br>(1), (2)		28,050		19,800		25,000		2,000		38,650		7,950			121,450		123,300		112,100
ROE		27.0%		16.3%		17.0%		47.9%		13.2%		n.m.			17.3%		14.2%		15.5%
	For the nine months ended
	July 31<br><br>2025															July 31<br><br>2024
(Millions of Canadian dollars,<br><br>except percentage amounts)	Personal<br>Banking<br>(3)		Commercial<br>Banking<br>(3)		Wealth<br>Management<br>(3)		Insurance		Capital<br>Markets<br>(3)		Corporate<br>Support			Total		Total
Net income available to common shareholders	$	5,132	$	2,152	$	2,932	$	724	$	3,855	$	(220	)	$	14,575	$	11,780
Total average common equity <br>(1), (2)		27,900		19,600		25,150		2,050		38,100		8,300			121,100		109,300
ROE		24.6%		14.7%		15.6%		46.7%		13.5%		n.m.			16.1%		14.4%
(1)	Total average common equity represents rounded figures.
---	---
(2)	The amounts for the segments are referred to as attributed capital.
---	---
(3)	Effective the first quarter of 2025, we increased our capital attribution rates. For further details, refer to the How we measure and report our business segments section.
---	---
n.m.	not meaningful
---	---

Non-GAAP measures

Non-GAAP measures and ratios do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions.

The following discussion describes the non-GAAP measures and ratios we use in evaluating our operating results.

Adjusted results and ratios

Our results for the three months ended April 30, 2025 and July 31, 2024 and nine months ended July 31, 2025 and July 31, 2024 were adjusted for the following specified item:

•	HSBC Canada transaction and integration costs. Effective the third quarter of 2025, we are no longer treating HSBC Canada transaction and integration costs as a specified item as integration activities are largely complete and any remaining costs are expected to be immaterial.

Our results for the nine months ended July 31, 2024 were also adjusted for the following specified item:

•	Management of closing capital volatility related to the HSBC Canada transaction.

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14 Royal Bank of Canada Third Quarter 2025

Consolidated results, reported and adjusted

	As at or for the three months ended						As at or for the nine months ended
(Millions of Canadian dollars,<br>except per share, number of and percentage amounts)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024		July 31<br><br>2025		July 31<br><br>2024
Total revenue	$	16,985	$	15,672	$	14,631	$	49,396	$	42,270
PCL		881		1,424		659		3,355		2,392
Non-interest<br> expense		9,232		8,730		8,599		27,218		25,231
Income before income taxes		6,872		5,518		5,373		18,823		14,647
Income taxes		1,458		1,128		887		3,888		2,629
Net income	$	5,414	$	4,390	$	4,486	$	14,935	$	12,018
Net income available to common shareholders	$	5,290	$	4,274	$	4,377	$	14,575	$	11,780
Average number of common shares (thousands)		1,407,280		1,411,362		1,414,194		1,410,854		1,411,044
Basic earnings per share (in dollars)	$	3.76	$	3.03	$	3.09	$	10.33	$	8.35
Average number of diluted common shares (thousands)		1,409,680		1,413,517		1,416,149		1,413,235		1,412,644
Diluted earnings per share (in dollars)	$	3.75	$	3.02	$	3.09	$	10.31	$	8.34
ROE		17.3%		14.2%		15.5%		16.1%		14.4%
Effective income tax rate		21.2%		20.4%		16.5%		20.7%		17.9%
Total adjusting items impacting net income <br>(before-tax)	$	153	$	184	$	314	$	502	$	1,254
Specified item: HSBC Canada transaction and integration costs <br>(1), (2)		–		31		160		43		783
Specified item: Management of closing capital volatility related to the HSBC Canada transaction <br>(1)		–		–		–		–		131
Amortization of acquisition-related intangibles <br>(3)		153		153		154		459		340
Total income taxes for adjusting items impacting net income	$	33	$	46	$	73	$	121	$	281
Specified item: HSBC Canada transaction and integration costs <br>(1)		–		7		35		13		158
Specified item: Management of closing capital volatility related to the HSBC Canada transaction <br>(1)		–		–		–		–		36
Amortization of acquisition-related intangibles <br>(3)		33		39		38		108		87
Adjusted results
Income before income taxes – adjusted	$	7,025	$	5,702	$	5,687	$	19,325	$	15,901
Income taxes – adjusted		1,491		1,174		960		4,009		2,910
Net income – adjusted		5,534		4,528		4,727		15,316		12,991
Net income available to common shareholders – adjusted <br>(4)		5,410		4,412		4,618		14,956		12,753
Average number of common shares (thousands)		1,407,280		1,411,362		1,414,194		1,410,854		1,411,044
Basic earnings per share (in dollars) – adjusted	$	3.84	$	3.13	$	3.26	$	10.60	$	9.04
Average number of diluted common shares (thousands)		1,409,680		1,413,517		1,416,149		1,413,235		1,412,644
Diluted earnings per share (in dollars) – adjusted	$	3.84	$	3.12	$	3.26	$	10.58	$	9.03
ROE – adjusted		17.7%		14.7%		16.4%		16.5%		15.6%
Effective income tax rate – adjusted		21.2%		20.6%		16.9%		20.7%		18.3%
Adjusted efficiency ratio
Total revenue	$	16,985	$	15,672	$	14,631	$	49,396	$	42,270
Add specified item: Management of closing capital volatility related to the HSBC Canada transaction <br>(before-tax)<br> <br>(1)		–		–		–		–		131
Total revenue – adjusted<br><br>(4)	$	16,985	$	15,672	$	14,631	$	49,396	$	42,401
Non-interest<br> expense	$	9,232	$	8,730	$	8,599	$	27,218	$	25,231
Less specified item: HSBC Canada transaction and integration costs <br>(before-tax)<br> <br>(1)		–		31		160		43		783
Less: Amortization of acquisition-related intangibles <br>(before-tax)<br><br>(3)		153		153		154		459		340
Non-interest<br> expense – adjusted<br><br>(4)	$	9,079	$	8,546	$	8,285	$	26,716	$	24,108
Efficiency ratio		54.4%		55.7%		58.8%		55.1%		59.7%
Efficiency ratio – adjusted		53.5%		54.5%		56.6%		54.1%		56.9%
(1)	These amounts have been recognized in Corporate Support.
---	---
(2)	As at April 30, 2025, the cumulative HSBC Canada transaction and integration costs (before-tax) incurred were $1.4 billion. Effective the third quarter of 2025, we are no longer treating HSBC Canada transaction and integration costs as a specified item as integration activities are largely complete and any remaining costs are expected to be immaterial.
---	---
(3)	Represents the impact of amortization of acquisition-related intangibles (excluding amortization of software), and any goodwill impairment.
---	---
(4)	See Glossary for composition of these measures.
---	---

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Royal Bank of Canada Third Quarter 2025 15

Personal Banking<br><br>(1)
	As at or for the three months ended						As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars,<br>except percentage amounts and as otherwise noted)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024 <br>(2)		July 31<br><br>2025		July 31<br><br>2024 <br>(2)
Net interest income	$	3,698	$	3,519	$	3,253	$	10,722	$	9,092
Non-interest<br> income		1,362		1,286		1,237		3,954		3,592
Total revenue		5,060		4,805		4,490		14,676		12,684
PCL on performing assets		17		246		30		326		268
PCL on impaired assets		427		408		361		1,260		1,051
PCL		444		654		391		1,586		1,319
Non-interest<br> expense		1,958		1,952		1,941		5,925		5,452
Income before income taxes		2,658		2,199		2,158		7,165		5,913
Net income	$	1,938	$	1,602	$	1,586	$	5,218	$	4,342
Revenue by business
Personal Banking – Canada	$	4,751	$	4,483	$	4,210	$	13,733	$	11,840
Caribbean & U.S. Banking		309		322		280		943		844
Selected balance sheet and other information
ROE		27.0%		23.1%		23.7%		24.6%		25.1%
NIM		2.68%		2.66%		2.45%		2.64%		2.41%
Efficiency ratio		38.7%		40.6%		43.2%		40.4%		43.0%
Operating leverage <br>(3)		11.8%		6.2%		2.5%		7.0%		2.4%
Average total earning assets, net	$	547,400	$	541,800	$	528,900	$	543,100	$	504,900
Average loans and acceptances, net		537,100		531,500		519,400		532,900		495,400
Average deposits		437,300		440,400		426,200		438,300		395,600
AUA <br>(4)		272,700		257,500		250,000		272,700		250,000
Average AUA		266,500		260,700		244,900		263,000		229,900
PCL on impaired loans as a % of average net loans and acceptances		0.32%		0.32%		0.28%		0.32%		0.29%
Other selected information – Personal Banking – Canada
Net income	$	1,843	$	1,503	$	1,495	$	4,929	$	4,065
NIM		2.61%		2.59%		2.37%		2.57%		2.32%
Efficiency ratio		37.2%		39.3%		41.8%		39.0%		41.5%
Operating leverage		12.5%		5.6%		2.4%		7.0%		2.2%
(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for all reported periods. For further details, refer to the Key corporate events section of our 2024 Annual Report.
---	---
(2)	Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section.
---	---
(3)	See Glossary for composition of this measure.
---	---
(4)	AUA represents <br>period-end<br> spot balances and includes securitized residential mortgages and credit card loans as at July 31, 2025 of $15 billion and $6 billion, respectively (April 30, 2025 – $15 billion and $6 billion; July 31, 2024 – $15 billion and $6 billion).
---	---

Financial performance

Q3 2025 vs. Q3 2024

Net income increased $352 million or 22% from a year ago, largely driven by higher net interest income reflecting higher spreads and average volume growth of 3% in Personal Banking – Canada. Higher non-interest income also contributed to the increase.

Total revenue increased $570 million or 13%.

Personal Banking – Canada revenue increased $541 million or 13%, primarily due to higher net interest income reflecting higher spreads and average volume growth of 3% in loans and 2% in deposits. Higher average mutual fund balances driving higher distribution fees also contributed to the increase.

Caribbean & U.S. Banking revenue increased $29 million or 10%, mainly due to higher net interest income reflecting average volume growth in loans and deposits. Higher foreign exchange and card service revenue also contributed to the increase.

NIM was up 23 bps, mainly due to favourable changes in product mix and the sustained impact of a higher interest rate environment.

PCL increased $53 million or 14%, primarily reflecting higher provisions on impaired loans in our Canadian credit cards and personal portfolios, resulting in an increase of 4 bps in the PCL on impaired loans ratio.

Non-interest expense remained relatively flat, which included the realization of synergies related to the HSBC Canada transaction.

Q3 2025 vs. Q2 2025

Net income increased $336 million or 21% from last quarter, mainly due to lower PCL as last quarter reflected higher provisions on performing loans due to the potential impacts of trade disruptions (including tariffs). Higher net interest income reflecting the impact of three more days in the current quarter, average volume growth and higher spreads in Personal Banking – Canada also contributed to the increase.

NIM was up 2 bps, mainly due to favourable changes in product mix and the sustained impact of a higher interest rate environment, partially offset by competitive pricing pressures.

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income increased $876 million or 20% from the same period last year, primarily driven by higher net interest income reflecting higher spreads and an increase in average loans and deposits of 9% in Personal Banking – Canada, partially offset by higher non-interest expenses. Net income for the current period includes the impact of five additional months of HSBC Canada results.

Total revenue increased $1,992 million or 16%, primarily due to higher net interest income reflecting higher spreads and an increase of 11% in average deposits and 8% in average loans, which includes the impact of five additional months of HSBC Canada results. Higher average mutual fund balances driving higher distribution fees also contributed to the increase.

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16 Royal Bank of Canada Third Quarter 2025

PCL increased $267 million or 20%, largely due to higher provisions on impaired loans in our Canadian credit cards and personal portfolios, resulting in an increase of 3 bps in the PCL on impaired loans ratio.

Non-interest expense increased $473 million or 9%, primarily due to higher staff-related costs, including severance, and the impact of five additional months of HSBC Canada non-interest expenses, net of realized synergies.

Commercial Banking<br><br>(1)
	As at or for the three months ended						As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars,<br>except percentage amounts and as otherwise noted)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024 <br>(2)		July 31<br><br>2025		July 31<br><br>2024 <br>(2)
Net interest income	$	1,828	$	1,734	$	1,687	$	5,358	$	4,298
Non-interest<br> income		324		328		349		983		1,007
Total revenue		2,152		2,062		2,036		6,341		5,305
PCL on performing assets		3		253		38		287		195
PCL on impaired assets		296		286		178		890		481
PCL		299		539		216		1,177		676
Non-interest<br> expense		697		698		691		2,105		1,799
Income before income taxes		1,156		825		1,129		3,059		2,830
Net income	$	836	$	597	$	817	$	2,210	$	2,044
Selected balance sheet and other information
ROE		16.3%		12.1%		18.2%		14.7%		19.3%
NIM		3.86%		3.82%		4.06%		3.86%		4.13%
Efficiency ratio		32.4%		33.9%		33.9%		33.2%		33.9%
Operating leverage		4.8%		1.2%		5.1%		2.5%		5.0%
Average total earning assets, net	$	187,900	$	186,000	$	165,300	$	185,700	$	139,000
Average loans and acceptances, net		187,800		186,000		177,500		185,700		155,200
Average deposits		308,000		310,700		299,600		307,800		275,100
PCL on impaired loans as a % of average net loans and acceptances		0.62%		0.63%		0.40%		0.64%		0.41%
(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for all reported periods. For further details, refer to the Key corporate events section of our 2024 Annual Report.
---	---
(2)	Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section.
---	---

Financial performance

Q3 2025 vs. Q3 2024

Net income increased $19 million or 2% from a year ago as growth in total revenue was partially offset by higher PCL.

Total revenue increased $116 million or 6%, primarily due to higher net interest income reflecting average volume growth of 6% in loans and acceptances and 3% in deposits. The increase in net interest income also includes the impact of the cessation of Bankers’ Acceptance-based lending, which was largely offset in credit fees within non-interest income.

PCL increased $83 million or 38%, primarily reflecting higher provisions on impaired loans in a few sectors, including the consumer discretionary and transportation sectors, resulting in an increase of 22 bps in the PCL on impaired loans ratio. This was partially offset by lower provisions on performing loans, primarily driven by favourable changes to our macroeconomic forecast.

Non-interest expense remained relatively flat, which included the realization of synergies related to the HSBC Canada transaction.

Q3 2025 vs. Q2 2025

Net income increased $239 million or 40% from last quarter, largely attributable to lower PCL as last quarter reflected higher provisions on performing loans due to the potential impacts of trade disruptions (including tariffs). Higher net interest income, primarily reflecting the impact of three more days in the current quarter, as well as higher spreads also contributed to the increase.

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income increased $166 million or 8% from the same period last year, as growth in total revenue, was partially offset by higher PCL and non-interest expenses. Net income for the current period includes the impact of five additional months of HSBC Canada results.

Total revenue increased $1,036 million or 20%, primarily due to higher net interest income, reflecting an increase of 20% in average loans and acceptances and 12% in average deposits, which includes the impact of five additional months of HSBC Canada results. The increase in net interest income also includes the impact of the cessation of Bankers’ Acceptance-based lending, which was largely offset in credit fees within non-interest income.

PCL increased $501 million or 74%, primarily due to higher provisions on impaired loans across most sectors, including the consumer discretionary and real estate and related sectors, resulting in an increase of 23 bps in the PCL on impaired loans ratio. Higher PCL on performing loans also contributed to the increase, primarily driven by unfavourable changes to our credit quality, scenario weights and macroeconomic forecast, partially offset by the impact of the initial PCL on performing loans purchased in the HSBC Canada transaction in the prior period.

Non-interest expense increased $306 million or 17%, primarily due to higher staff-related costs and the impact of five additional months of HSBC Canada non-interest expenses, net of realized synergies.

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Royal Bank of Canada Third Quarter 2025 17

Wealth Management<br><br>(1)
								As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars,except number of, percentage amounts and as otherwise noted)			April 30<br><br>2025		July 31<br><br>2024 <br>(2)			July 31<br><br>2025		July 31<br><br>2024 <br>(2)
Net interest income	1,321		$	1,301	$	1,245		$	4,016	$	3,697
Non-interest income	4,192			4,096		3,719			12,462		10,743
Total revenue	5,513			5,397		4,964			16,478		14,440
PCL on performing assets	(40	)		35		(16	)		31		(62	)
PCL on impaired assets	(3	)		51		32			93		116
PCL	(43	)		86		16			124		54
Non-interest expense	4,154			4,098		3,762			12,456		11,331
Income before income taxes	1,402			1,213		1,186			3,898		3,055
Net income	1,096		$	929	$	949		$	3,005	$	2,453
Revenue by business
Canadian Wealth Management	1,734		$	1,685	$	1,503		$	5,112	$	4,223
U.S. Wealth Management (including City National Bank (City National))	2,368			2,450		2,206			7,284		6,575
U.S. Wealth Management (including City National) (US millions)	1,724			1,725		1,610			5,171		4,841
Global Asset Management	853			740		750			2,460		2,180
International Wealth Management	356			329		328			1,029		945
Investor Services	202			193		177			593		517
Selected balance sheet and other information
ROE	17.0%			14.6%		15.5%			15.6%		13.9%
NIM	3.27%			3.28%		3.24%			3.30%		3.25%
Pre-tax margin (3)	25.4%			22.5%		23.9%			23.7%		21.2%
Number of advisors (4)	6,218			6,191		6,092			6,218		6,092
Average total earning assets, net	160,400		$	162,800	$	153,100		$	162,900	$	152,100
Average loans and acceptances, net	121,600			123,400		115,900			122,300		114,400
Average deposits	167,000			170,200		164,500			173,700		162,000
AUA (5)	4,916,400			4,737,300		4,442,600			4,916,400		4,442,600
AUM (5)	1,460,500			1,354,800		1,290,600			1,460,500		1,290,600
Average AUA	4,848,100			4,862,100		4,396,700			4,829,000		4,304,300
Average AUM	1,430,300			1,391,700		1,263,500			1,394,600		1,195,200
PCL on impaired loans as a % of average net loans and acceptances	(0.01)%			0.16%		0.11%			0.10%		0.14%

All values are in US Dollars.

Estimated impact of U.S. dollar, British poundand Euro translation on key income statement items(Millions of Canadian dollars, except percentage amounts)					For the nine<br><br>months ended
		Q3 2025 vs.<br>Q2 2025			Q3 2025 vs.<br>Q3 2024
Increase (decrease):
Total revenue	35	$	(88	)	$	375
PCL	–		1			9
Non-interest expense	28		(70	)		300
Net income	6		(15	)		52
Percentage change in average U.S. dollar equivalent of C1.00	–%		3%			(4)%
Percentage change in average British pound equivalent of C1.00	(5)%		(1)%			(6)%
Percentage change in average Euro equivalent of C1.00	(7)%		(3)%			(5)%

All values are in US Dollars.

(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for all reported periods. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section.
---	---
(3)	Pre-tax<br> margin is defined as Income before income taxes divided by Total revenue.
---	---
(4)	Represents client-facing advisors across all of our Wealth Management businesses.
---	---
(5)	Represents <br>period-end<br> spot balances.
---	---

Financial performance

Q3 2025 vs. Q3 2024

Net income increased $147 million or 15% from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation.

Total revenue increased $549 million or 11%.

Canadian Wealth Management revenue increased $231 million or 15%, mainly due to higher fee-based client assets reflecting market appreciation and net sales. Higher net interest income reflecting average volume growth in deposits and higher spreads also contributed to the increase.

U.S. Wealth Management (including City National) revenue increased $162 million or 7%. In U.S. dollars, revenue increased $114 million or 7%, mainly due to higher fee-based client assets reflecting net sales and market appreciation. The prior year also included an impairment loss on our interest in an associated company and a loss on the sale of a non-core investment.

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18 Royal Bank of Canada Third Quarter 2025

Global Asset Management revenue increased $103 million or 14%, largely due to higher fee-based client assets reflecting market appreciation and net sales.

International Wealth Management revenue increased $28 million or 9%, primarily due to the impact of foreign exchange translation.

Investor Services revenue increased $25 million or 14%, largely due to higher transactional revenue driven by client activity and higher net interest income reflecting higher spreads and average volume growth in deposits.

PCL was $(43) million compared to $16 million last year, largely due to releases of provisions in the current quarter on performing loans in U.S. Wealth Management (including City National), driven by favourable changes in credit quality and our macroeconomic forecast.

Non-interest expense increased $392 million or 10%, largely due to higher variable compensation commensurate with increased results, higher staff costs and ongoing technology investments.

Q3 2025 vs. Q2 2025

Net income increased $167 million or 18% from last quarter, mainly due to higher fee-based revenue driven by higher fee-based client assets reflecting market appreciation and net sales, as well as three more days in the quarter. The current quarter also reflected releases of provisions driven by performing loans in U.S. Wealth Management (including City National), as compared to provisions taken last quarter. Higher net interest income reflecting higher spreads and three more days in the quarter also contributed to the increase. These factors were partially offset by higher variable compensation.

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income increased $552 million or 23% from the same period last year, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation.

Total revenue increased $2,038 million or 14%, mainly due to higher fee-based client assets reflecting market appreciation and net sales. The impact of foreign exchange translation and higher transactional revenue driven by client activity also contributed to the increase.

PCL increased $70 million, primarily due to provisions taken on performing loans in the current period in U.S. Wealth Management (including City National), mainly driven by unfavourable changes to our scenario weights, partially offset by favourable changes to our macroeconomic forecast, as compared to releases in the same period last year. This was partially offset by lower provisions on impaired loans.

Non-interest expense increased $1,125 million or 10%, primarily due to higher variable compensation commensurate with increased results, the impact of foreign exchange translation and higher staff costs. These factors were partially offset by the cost of the FDIC special assessment in the same period last year.

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Royal Bank of Canada Third Quarter 2025 19

Insurance
	As at or for the three months ended						As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)	July 31<br><br>2025		April 30<br><br>2025		July 31<br><br>2024		July 31<br><br>2025		July 31<br><br>2024
Non-interest<br> income
Insurance service result	$	279	$	224	$	214	$	789	$	604
Insurance investment result		48		78		28		208		228
Other income		41		36		43		115		114
Total revenue		368		338		285		1,112		946
PCL		–		–		1		–		2
Non-interest<br> expense		74		80		70		241		210
Income before income taxes		294		258		214		871		734
Net income	$	247	$	211	$	170	$	730	$	567
Selected balances and other information
ROE		47.9%		42.0%		33.6%		46.7%		36.5%
Premiums and deposits <br>(1)	$	1,456	$	1,276	$	1,546	$	5,049	$	4,502
Contractual service margin (CSM) <br>(2)		1,928		1,950		2,155		1,928		2,155
(1)	Premiums and deposits include premiums on risk-based individual and group insurance and annuity products as well as segregated fund deposits, consistent with insurance industry practices.
---	---
(2)	Represents the CSM of insurance contract assets and liabilities net of reinsurance contract held assets and liabilities. For insurance contracts, the CSM represents the unearned profit (net inflows) for providing insurance coverage. For reinsurance contracts held, the CSM represents the net cost or net gain of purchasing reinsurance. The CSM is not applicable to contracts measured using the premium allocation approach.
---	---

Financial performance

Q3 2025 vs. Q3 2024

Net income increased $77 million or 45% from a year ago, primarily due to higher insurance service result driven by improved life insurance claims experience. Higher insurance investment result, largely due to lower capital funding costs, also contributed to the increase.

Total revenue increased $83 million or 29%, primarily due to higher insurance service result and higher insurance investment result, as noted above.

Non-interest expense increased $4 million or 6%.

Q3 2025 vs. Q2 2025

Net income increased $36 million or 17% from last quarter, largely due to higher insurance service result driven by improved life insurance claims experience. This was partially offset by less favourable investment-related experience.

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income increased $163 million or 29% from the same period last year, primarily due to higher insurance service result driven by improved claims experience across the majority of our products and the impact of reinsurance contract recaptures.

Total revenue increased $166 million or 18%, primarily due to higher insurance service result, as noted above.

Non-interest expense increased $31 million or 15%, primarily due to higher staff-related costs reflecting the impact of severance.

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20 Royal Bank of Canada Third Quarter 2025

Capital Markets<br><br>(1)
	As at or for the three months ended									As at or for the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars,<br>except percentage amounts and as otherwise noted)	July 31<br><br>2025			April 30<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Net interest income<br><br><br>(2)	$	1,287		$	1,275		$	817		$	3,480		$	2,242
Non-interest<br> income<br><br><br>(2)		2,471			2,026			2,187			7,335			6,867
Total revenue<br><br>(2)		3,758			3,301			3,004			10,815			9,109
PCL on performing assets		(7	)		40			(12	)		(30	)		16
PCL on impaired assets		187			106			50			498			326
PCL		180			146			38			468			342
Non-interest<br> expense		2,059			1,885			1,755			5,985			5,119
Income before income taxes		1,519			1,270			1,211			4,362			3,648
Net income	$	1,328		$	1,202		$	1,172		$	3,962		$	3,588
Revenue by business
Corporate & Investment Banking <br>(3)	$	1,761		$	1,589		$	1,588		$	5,065		$	4,676
Global Markets		1,941			1,769			1,414			5,789			4,530
Other <br>(3)		56			(57	)		2			(39	)		(97	)
Selected balance sheet and other information
ROE		13.2%			12.5%			14.1%			13.5%			15.0%
Average total assets	$	1,328,800		$	1,295,000		$	1,089,600		$	1,317,100		$	1,146,200
Average trading securities		196,100			199,800			176,400			202,500			186,600
Average loans and acceptances, net		163,700			160,900			152,200			161,400			148,000
Average deposits		403,400			374,100			298,000			379,300			294,900
PCL on impaired loans as a % of average net loans and acceptances		0.46%			0.27%			0.13%			0.41%			0.29%
Estimated impact of U.S. dollar, British poundand Euro translation on key income statement items(Millions of Canadian dollars, except percentage amounts)					For the nine<br><br>months ended
---	---	---	---	---	---	---
		Q3 2025 vs.<br>Q2 2025			Q3 2025 vs.<br>Q3 2024
Increase (decrease):
Total revenue	41	$	(96	)	$	414
PCL	6		(2	)		20
Non-interest expense	24		(38	)		176
Net income	10		(47	)		191
Percentage change in average U.S. dollar equivalent of C1.00	–%		3%			(4)%
Percentage change in average British pound equivalent of C1.00	(5)%		(1)%			(6)%
Percentage change in average Euro equivalent of C1.00	(7)%		(3)%			(5)%

All values are in US Dollars.

(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for all reported periods. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	The taxable equivalent basis (teb) adjustment for the three months ended July 31, 2025 was $69 million (April 30, 2025 – $9 million; July 31, 2024 – $231 million) and for the nine months ended July 31, 2025 was $104 million (July 31, 2024 – $281 million). For further discussion, refer to the How we measure and report our business segments section of our 2024 Annual Report.
---	---
(3)	Comparative amounts have been revised from those previously presented.
---	---

Financial performance

Q3 2025 vs. Q3 2024

Net income increased $156 million or 13% from a year ago, primarily due to higher revenue in Global Markets and Corporate & Investment Banking. These factors were partially offset by higher PCL, higher compensation on increased results, as well as a higher effective income tax rate reflecting the impact of Pillar Two legislation and changes in earnings mix.

Total revenue increased $754 million or 25%.

Corporate & Investment Banking revenue increased $173 million or 11%, primarily due to higher debt and equity origination across most regions, higher lending revenue in the U.S. and Europe, as well as higher M&A activity across most regions. These factors were partially offset by lower municipal banking activity compared to a strong prior year.

Global Markets revenue increased $527 million or 37%, largely due to higher fixed income trading revenue primarily in the U.S., higher equity trading revenue across most regions and higher foreign exchange trading revenue across all regions.

Other revenue improved $54 million, largely reflecting lower residual funding and capital costs.

PCL increased $142 million, primarily due to higher provisions on impaired loans on one account in the other services sector and one new impaired account in the financing products sector, resulting in an increase of 33 bps in the PCL on impaired loans ratio.

Non-interest expense increased $304 million or 17%, largely driven by higher compensation on increased results and ongoing technology investments.

Q3 2025 vs. Q2 2025

Net income increased $126 million or 10% from last quarter, mainly due to higher fixed income trading revenue primarily in the U.S. and higher debt and equity origination across most regions. These factors were partially offset by lower equity trading revenue across most regions and higher compensation on increased results.

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Royal Bank of Canada Third Quarter 2025 21

Q3 2025 vs. Q3 2024 (Nine months ended)

Net income increased $374 million or 10% from the same period last year, primarily driven by higher revenue in Global Markets and Corporate & Investment Banking, as well as the impact of foreign exchange translation. These factors were partially offset by higher compensation on increased results, a higher effective income tax rate reflecting the impact of Pillar Two legislation, ongoing technology investments and higher PCL.

Total revenue increased $1,706 million or 19%, largely due to the impact of foreign exchange translation, higher equity trading revenue across most regions, higher foreign exchange and fixed income trading revenue across all regions and higher lending revenue primarily in Europe.

PCL increased $126 million or 37%, primarily due to higher provisions on impaired loans in a few sectors, including the other services and financing products sectors, partially offset by lower provisions in the real estate and related sector, resulting in an increase of 12 bps in the PCL on impaired loans ratio. Releases of provisions on performing loans in the current period, as compared to provisions taken on performing loans in the same period last year, are mainly due to one account in the other services sector that migrated from performing to impaired in the current period, partially offset by unfavourable changes in credit quality.

Non-interest expense increased $866 million or 17%, largely driven by higher compensation on increased results, the impact of foreign exchange translation and ongoing technology investments.

Corporate Support
	For the three months ended									For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars)	July 31<br><br>2025			April 30<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Net interest income (loss)<br><br><br>(1)	$	217		$	227		$	325		$	779		$	953
Non-interest<br> income (loss)<br><br><br>(1), (2)		(83	)		(458	)		(473	)		(805	)		(1,167	)
Total revenue<br><br>(1), (2)		134			(231	)		(148	)		(26	)		(214	)
PCL		1			(1	)		(3	)		–			(1	)
Non-interest<br> expense<br><br>(2)		290			17			380			506			1,320
Income (loss) before income taxes<br><br>(1)		(157	)		(247	)		(525	)		(532	)		(1,533	)
Income taxes (recoveries)<br><br><br>(1)		(126	)		(96	)		(317	)		(342	)		(557	)
Net income (loss)	$	(31	)	$	(151	)	$	(208	)	$	(190	)	$	(976	)
(1)	Teb adjusted.
---	---
(2)	Revenue for the three months ended July 31, 2025 included gains of $260 million (April 30, 2025 and July 31, 2024 – losses of $140 million and gains of $166 million, respectively) on economic hedges of our U.S. Wealth Management (including City National) share-based compensation plans, and <br>non-interest<br> expense included $234 million (April 30, 2025 and July 31, 2024 – $(112) million and $157 million, respectively) of share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. Wealth Management (including City National) share-based compensation plans. Revenue for the nine months ended July 31, 2025 included gains of $232 million (July 31, 2024 – gains of $452 million) on economic hedges of our U.S. Wealth Management (including City National) share-based compensation plans, and <br>non-interest<br> expense included $230 million (July 31, 2024 – $423 million) of share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. Wealth Management (including City National) share-based compensation plans.
---	---

Due to the nature of activities and consolidation adjustments reported in this segment, we believe that a comparative period analysis is not relevant.

Total revenue and Income taxes (recoveries) in Corporate Support include the deduction of the teb adjustment related to gross-up of income from the U.S. tax credit investment business and income from Canadian taxable corporate dividends received on or before December 31, 2023 that are recorded in Capital Markets. For further details on the elimination of the availability of the dividend received deduction for Canadian taxable corporate dividends after December 31, 2023, refer to the Legal and regulatory environment risk section in our 2024 Annual Report.

The teb amount for the three months ended July 31, 2025 was $69 million, compared to $9 million in the prior quarter and $231 million in the same quarter last year.

The following identifies the material items, other than the teb impacts noted previously, affecting the reported results in each period.

Q3 2025

Net loss was $31 million, primarily due to residual unallocated costs, including severance, partially offset by asset/liability management activities.

Q2 2025

Net loss was $151 million, primarily due to residual unallocated items, including severance.

Q3 2024

Net loss was $208 million, primarily due to the after-tax impact of the HSBC Canada transaction and integration costs of $125 million, which is treated as a specified item. Unallocated costs also contributed to the net loss.

Q3 2025 (Nine months ended)

Net loss was $190 million, primarily due to residual unallocated costs, including severance, partially offset by asset/liability management activities.

Q3 2024 (Nine months ended)

Net loss was $976 million, primarily due to the after-tax impact of the HSBC Canada transaction and integration costs of $625 million, which is treated as a specified item. Unallocated costs also contributed to the net loss.

For further details on specified items, refer to the Key performance and non-GAAP measures section.

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22 Royal Bank of Canada Third Quarter 2025

Quarterly results and trend analysis

Our quarterly results are impacted by a number of trends and recurring factors, which include seasonality of certain businesses, general economic and market conditions, and fluctuations in the Canadian dollar relative to other currencies. The following table summarizes our results for the last eight quarters (the period):

Quarterly results

(1)

	2025							2024											2023
(Millions of Canadian dollars,<br>except per share and percentage amounts)	Q3<br><br>(2)		Q2<br><br><br>(2)			Q1<br><br><br>(2)		Q4<br><br><br>(2)			Q3<br><br><br>(2)			Q2 <br>(2)		Q1			Q4
Personal Banking	$	5,060	$	4,805		$	4,811	$	4,658		$	4,490		$	4,163	$	4,031		$	4,009
Commercial Banking		2,152		2,062			2,127		2,077			2,036			1,656		1,613			1,565
Wealth Management		5,513		5,397			5,568		5,186			4,964			4,789		4,687			4,332
Insurance		368		338			406		278			285			298		363			248
Capital Markets <br>(3)		3,758		3,301			3,756		2,903			3,004			3,154		2,951			2,564
Corporate Support <br>(3)		134		(231	)		71		(28	)		(148	)		94		(160	)		(33	)
Total revenue		16,985		15,672			16,739		15,074			14,631			14,154		13,485			12,685
PCL		881		1,424			1,050		840			659			920		813			720
Non-interest<br> expense		9,232		8,730			9,256		9,019			8,599			8,308		8,324			8,059
Income before income taxes		6,872		5,518			6,433		5,215			5,373			4,926		4,348			3,906
Income taxes		1,458		1,128			1,302		993			887			976		766			(33	)
Net income	$	5,414	$	4,390		$	5,131	$	4,222		$	4,486		$	3,950	$	3,582		$	3,939
EPS – basic	$	3.76	$	3.03		$	3.54	$	2.92		$	3.09		$	2.75	$	2.50		$	2.77
– diluted		3.75		3.02			3.54		2.91			3.09			2.74		2.50			2.76
Effective income tax rate		21.2%		20.4%			20.2%		19.0%			16.5%			19.8%		17.6%			(0.8)%
Period average US$ equivalent of C$1.00	$	0.728	$	0.704		$	0.699	$	0.733		$	0.730		$	0.734	$	0.745		$	0.732
(1)	Fluctuations in the Canadian dollar relative to other foreign currencies have affected our consolidated results over the period.
---	---
(2)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, and are included in our Personal Banking, Commercial Banking, Wealth Management and Capital Markets segments. For further details, refer to the Key corporate events section of our 2024 Annual Report.
---	---
(3)	Teb adjusted. For further discussion, refer to the How we measure and report our business segments section of our 2024 Annual Report.
---	---

Seasonality

Seasonal factors may impact our results in certain quarters. The first quarter has historically been stronger for our Capital Markets businesses. The second quarter has fewer days than the other quarters, which generally results in a decrease in net interest income and certain expense items. The third and fourth quarters include the summer months, which generally results in lower client activity and may negatively impact the results of our Capital Markets trading business.

Trend analysis

Earnings over the period have been impacted by the factors noted below.

Personal Banking revenue has benefitted from volume growth in loans and deposits over the period. NIM has been favourably impacted by the higher interest rate environment, and more recently by favourable changes in product mix. HSBC Canada revenue has been included since the transaction closed on March 28, 2024.

Commercial Banking revenue has benefitted from volume growth in loans and deposits over the period. HSBC Canada revenue has been included since the transaction closed on March 28, 2024.

Wealth Management revenue has generally benefitted from growth in fee-based client assets, which is influenced by market conditions. The fourth quarter of 2023 reflected impairment losses on our interest in an associated company.

Insurance revenue reflects fluctuations in market conditions and insurance experience. New business gains are deferred through CSM and new business losses are reflected through insurance service result. In the first quarter of 2025, insurance revenue also reflected the impact of reinsurance contract recaptures.

Capital Markets revenue is influenced, to a large extent, by market conditions that impact client activity. Following muted activity in 2023, investment banking fee pools saw increasing activity through most of 2024. However, fee pool growth started to slow in the first half 2025 amidst macroeconomic uncertainty and market volatility, before showing signs of recovery in the third quarter. Sales & trading activity carried strong momentum in 2024, and macroeconomic uncertainty has continued to keep client volumes robust across the sales & trading business through 2025.

PCL is comprised of provisions taken on performing assets and provisions taken on impaired assets. PCL on performing assets fluctuated over the period as it is impacted by changes in credit quality, macroeconomic conditions, which drive our forecasts and influence our scenario weights, and exposures. Provisions on performing assets over the period have generally been reflective of unfavourable changes in credit quality. Throughout the period, we have generally seen improvements to our macroeconomic forecast, with the exception of the second quarter of 2025, where we saw unfavourable changes, driven by the potential impacts of trade disruptions (including tariffs). The second quarter of 2024 included initial PCL on performing loans purchased in the HSBC Canada transaction. PCL on impaired assets has generally trended upwards over the period.

Non-interest expense has been impacted by fluctuations in variable compensation over the period, commensurate with fluctuations in revenue and earnings. Changes in the fair value of our U.S. share-based compensation plans, which are largely offset in revenue, have also contributed to fluctuations over the period and are impacted by market conditions. While we continue to focus on efficiency management activities, expenses over the period also reflect investments in staff and

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Royal Bank of Canada Third Quarter 2025 23

technology. Beginning in fiscal 2023, expenses have also included HSBC Canada transaction and integration costs. HSBC Canada non-interest expenses have been included since the transaction closed on March 28, 2024.

Our effective income tax rate has been impacted by varying levels of tax adjustments and changes in earnings mix. The fourth quarter of 2023 reflects the recognition of deferred tax assets relating to realized losses in City National associated with the intercompany sale of certain debt securities. Beginning in the first quarter of 2025, our effective income tax rate reflects the impact of Pillar Two legislation, which became effective for us beginning November 1, 2024.

Financial condition
Condensed balance sheets
---
	As at
---	---	---	---	---	---	---
(Millions of Canadian dollars)	July 31<br><br>2025			October 31<br><br>2024
Assets
Cash and due from banks	$	34,927		$	56,723
Interest-bearing deposits with banks		72,824			66,020
Securities, net of applicable allowance <br>(1)		538,012			439,918
Assets purchased under reverse repurchase agreements and securities borrowed		265,832			350,803
Loans
Retail		644,791			626,978
Wholesale		387,941			360,439
Allowance for loan losses		(7,272	)		(6,037	)
Other – Derivatives		155,023			150,612
– Other		135,815			126,126
Total assets	$	2,227,893		$	2,171,582
Liabilities
Deposits	$	1,481,477		$	1,409,531
Other – Derivatives		158,862			163,763
– Other		438,090			457,550
Subordinated debentures		13,832			13,546
Total liabilities		2,092,261			2,044,390
Equity attributable to shareholders		135,563			127,089
Non-controlling<br> interests		69			103
Total equity		135,632			127,192
Total liabilities and equity	$	2,227,893		$	2,171,582
(1)	Securities are comprised of trading and investment securities.
---	---

Q3 2025 vs. Q4 2024

Total assets increased $56 billion or 3% from October 31, 2024, net of foreign exchange translation of $59 billion.

Cash and due from banks decreased $22 billion or 38%, primarily due to lower deposits with central banks reflecting short-term cash management activities.

Interest-bearing deposits with banks increased $7 billion or 10%, primarily due to higher deposits with central banks reflecting short-term cash management activities.

Securities, net of applicable allowance, increased $98 billion or 22%, primarily due to higher government debt securities reflecting liquidity management activities and favourable market opportunities.

Assets purchased under reverse repurchase agreements (reverse repos) and securities borrowed decreased $85 billion or 24%, primarily due to decreased client financing activity.

Loans (net of Allowance for loan losses) increased $44 billion or 4%, primarily due to volume growth in wholesale loans and residential mortgages.

Derivative assets increased $4 billion or 3% net of foreign exchange translation, primarily attributable to higher fair values on equity contracts, partially offset by lower fair values on foreign exchange and interest rate contracts.

Other assets increased $10 billion or 8%, largely due to higher commodity trading receivables, cash collateral and margin deposits reflecting market conditions and client activity.

Total liabilities increased $48 billion or 2%, net of foreign exchange translation of $59 billion.

Deposits increased $72 billion or 5%, mainly due to higher demand deposits driven by client activity and higher business and government term deposits driven by liquidity management activities.

Derivative liabilities decreased $5 billion or 3% net of foreign exchange translation, primarily attributable to lower fair values on foreign exchange and interest rate contracts, partially offset by higher fair values on equity contracts.

Other liabilities decreased $19 billion or 4%, mainly due to lower obligations related to repurchase agreements (repos) reflecting decreased client financing activity, partially offset by higher securities sold short and commodity liabilities.

Total equity increased $8 billion or 7%, mainly reflecting earnings, net of dividends.

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24 Royal Bank of Canada Third Quarter 2025

Off-balance<br> sheet arrangements

In the normal course of business, we engage in a variety of financial transactions that, for accounting purposes, are not recorded on our Consolidated Balance Sheets. Off-balance sheet transactions are generally undertaken for risk, capital and funding management purposes which benefit us and our clients. These include transactions with structured entities and may also include the purchase or issuance of guarantees. These transactions give rise to, among other risks, varying degrees of market, credit, liquidity and funding risks, which are discussed in the Risk management section of this Q3 2025 Report to Shareholders.

The following provides an update to our significant off-balance sheet transactions, which are described on pages 64 to 66 of our 2024 Annual Report.

Involvement with unconsolidated structured entities

Structured finance

We provide senior financing to unaffiliated structured entities that are established by third parties to acquire loans. Subordinated financing is provided by either the collateral manager or third-party investors. Subordinated financing serves as the first loss tranche which absorbs losses prior to ourselves as the senior lender. These facilities tend to be longer in term than the collateralized loan obligation warehouse facilities and benefit from credit enhancement designed to cover a multiple of historical losses. As at July 31, 2025, our maximum exposure to loss associated with the outstanding senior financing facilities was $12 billion (October 31, 2024 – $8 billion). The increase in our maximum exposure to loss from last year was driven by an increase in client financing activities.

Third-party securitization vehicles

We hold interests in certain unconsolidated third-party securitization vehicles, which are structured entities. We, as well as other financial institutions, are obligated to provide funding to these entities up to our maximum commitment level and are exposed to credit losses on the underlying assets after various credit enhancements. As at July 31, 2025, our maximum exposure to loss in these entities was $25 billion (October 31, 2024 – $21 billion). The increase in our maximum exposure to loss compared to last year reflects an increase in client activity with third-party securitization vehicles.

Risk management
Credit risk
---

Credit risk is the risk of loss associated with an obligor’s potential inability or unwillingness to fulfill its contractual obligations on a timely basis and may arise directly from the risk of default of a primary obligor (e.g., issuer, debtor, counterparty, borrower or policyholder), indirectly from a secondary obligor (e.g., guarantor or reinsurer), through off-balance sheet exposures, contingent credit risk, associated credit risk and/or transactional risk. Credit risk includes counterparty credit risk arising from both trading and non-trading activities.

Our Enterprise Credit Risk Management Framework (ECRMF) and supporting credit policies are designed to clearly define roles and responsibilities, acceptable practices, limits and key controls. There have been no material changes to our ECRMF as described in our 2024 Annual Report.

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Royal Bank of Canada Third Quarter 2025 25

Residential mortgages and home equity lines of credit (insured vs. uninsured)

(1)

Residential mortgages and home equity lines of credit are secured by residential properties. The following table presents a breakdown by geographic region.

	As at July 31, 2025
(Millions of Canadian dollars,<br><br>except percentage amounts)	Residential mortgages										Home equity<br>lines of credit<br>(2)
	Insured<br>(3)				Uninsured				Total		Total
Region<br><br>(4)
Canada
Atlantic provinces	$	8,981	42	%	$	12,546	58	%	$	21,527	$	1,723
Quebec		11,516	25			35,338	75			46,854		3,439
Ontario		31,162	14			196,503	86			227,665		18,438
Alberta		18,103	41			26,036	59			44,139		4,562
Saskatchewan and Manitoba		8,314	40			12,702	60			21,016		1,712
B.C. and territories		12,125	14			77,501	86			89,626		8,402
Total Canada <br>(5)		90,201	20			360,626	80			450,827		38,276
U.S.		–	–			34,533	100			34,533		2,170
Other International		–	–			3,338	100			3,338		1,394
Total International		–	–			37,871	100			37,871		3,564
Total	$	90,201	18	%	$	398,497	82	%	$	488,698	$	41,840
	As at April 30, 2025
(Millions of Canadian dollars,<br><br>except percentage amounts)	Residential mortgages										Home equity<br>lines of credit (2)
	Insured (3)				Uninsured				Total		Total
Region<br><br>(4)
Canada
Atlantic provinces	$	8,741	42	%	$	12,150	58	%	$	20,891	$	1,692
Quebec		11,416	25			34,419	75			45,835		3,398
Ontario		31,169	14			193,584	86			224,753		18,292
Alberta		18,302	42			25,312	58			43,614		4,473
Saskatchewan and Manitoba		8,302	40			12,423	60			20,725		1,707
B.C. and territories		12,190	14			76,890	86			89,080		8,271
Total Canada <br>(5)		90,120	20			354,778	80			444,898		37,833
U.S.		–	–			33,658	100			33,658		2,203
Other International		–	–			3,278	100			3,278		1,451
Total International		–	–			36,936	100			36,936		3,654
Total	$	90,120	19	%	$	391,714	81	%	$	481,834	$	41,487
(1)	Disclosure is provided in accordance with the requirements of OSFI’s Guideline <br>B-20<br> (Residential Mortgage Underwriting Practices and Procedures).
---	---
(2)	Includes $41,823 million and $17 million of uninsured and insured home equity lines of credit, respectively (April 30, 2025 – $41,470 million and $17 million, respectively), reported within the personal loan category. The amounts in U.S. and Other International include term loans collateralized by residential properties.
---	---
(3)	Insured residential mortgages are mortgages whereby our exposure to default is mitigated by insurance through the Canadian Mortgage and Housing Corporation or other private mortgage default insurers.
---	---
(4)	Region is based upon the address of the property mortgaged. The Atlantic provinces are comprised of Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick; B.C. and territories are comprised of British Columbia, Nunavut, Northwest Territories and Yukon.
---	---
(5)	Total consolidated residential mortgages in Canada of $451 billion (April 30, 2025 – $445 billion) includes $12 billion (April 30, 2025 – $12 billion) of mortgages with commercial clients in Commercial Banking, of which $9 billion (April 30, 2025 – $9 billion) are insured, and $18 billion (April 30, 2025 – $17 billion) of residential mortgages in Capital Markets, of which $18 billion (April 30, 2025 – $17 billion) are held for securitization purposes. All of the residential mortgages held for securitization purposes are insured (April 30, 2025 – all insured).
---	---

Residential mortgages portfolio by amortization period

(1)

The following table provides a summary of the percentage of residential mortgages that fall within the remaining amortization periods based upon current customer payment amounts, which incorporate payments larger than the minimum contractual amount and/or higher frequency of payments.

	As at
	July 31<br><br>2025									April 30<br><br>2025
	Canada<br>(2)			U.S. and other<br>International			Total			Canada (2)			U.S. and other<br>International			Total
Amortization period
≤<br> 25 years		75	%		36	%		72	%		76	%		34	%		73	%
> 25 years <br>≤<br> 30 years		25			64			28			24			66			27
Total		100	%		100	%		100	%		100	%		100	%		100	%
(1)	Disclosure is provided in accordance with the requirements of OSFI’s Guideline <br>B-20<br> (Residential Mortgage Underwriting Practices and Procedures).
---	---
(2)	Our policy is to originate mortgages with amortization periods of 30 years or less. We do not originate mortgage products with a structure that would result in negative amortization, as payments on variable rate mortgages automatically increase to ensure accrued interest is covered.
---	---

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26 Royal Bank of Canada Third Quarter 2025

Average loan-to-value (LTV) ratios

(1)

The following table provides a summary of our average LTV ratios for newly originated and acquired uninsured residential mortgages and RBC Homeline Plan ® products by geographic region, as well as the respective LTV ratios for our total Canadian Banking residential mortgage portfolio outstanding.

	For the three months ended												For the nine months ended
	July 31<br><br>2025						April 30<br><br>2025						July 31<br><br>2025
	Uninsured						Uninsured						Uninsured
	Residential<br>mortgages<br>(2)			RBC Homeline<br>Plan products<br>(3)			Residential<br>mortgages (2)			RBC Homeline<br>Plan products (3)			Residential<br>mortgages<br>(2)			RBC Homeline<br>Plan products<br>(3)
Average of newly originated and acquired for the period, by region<br><br>(4)
Atlantic provinces		71	%		70	%		70	%		70	%		70	%		70	%
Quebec		71			71			70			70			70			70
Ontario		71			66			70			65			70			65
Alberta		72			70			72			71			72			70
Saskatchewan and Manitoba		73			73			72			73			72			73
B.C. and territories		67			64			67			62			67			63
U.S.		73			n.m.			71			n.m.			72			n.m.
Other International		72			n.m.			69			n.m.			71			n.m.
Average of newly originated and acquired for the period<br><br>(5), (6)		70	%		67	%		70	%		66	%		70	%		67	%
Total Canadian Banking residential mortgages portfolio<br><br>(7)		58	%		49	%		58	%		48	%		58	%		49	%
(1)	Disclosure is provided in accordance with the requirements of OSFI’s Guideline <br>B-20<br> (Residential Mortgage Underwriting Practices and Procedures).
---	---
(2)	Residential mortgages exclude residential mortgages within the RBC Homeline Plan products.
---	---
(3)	RBC Homeline Plan products are comprised of both residential mortgages and home equity lines of credit.
---	---
(4)	Region is based upon the address of the property mortgaged. The Atlantic provinces are comprised of Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick; B.C. and territories are comprised of British Columbia, Nunavut, Northwest Territories and Yukon.
---	---
(5)	The average LTV ratios for newly originated and acquired uninsured residential mortgages and RBC Homeline Plan products are calculated on a weighted basis by mortgage amounts at origination.
---	---
(6)	For newly originated mortgages and RBC Homeline Plan products, LTV is calculated based on the total facility amount for the residential mortgage and RBC Homeline Plan product divided by the value of the related residential property.
---	---
(7)	Weighted by mortgage balances and adjusted for property values based on the Teranet-National Bank <br>House Price Index<br><br>‡<br>.
---	---
n.m.	not meaningful
---	---

Net International wholesale exposure by region, asset type and client type

(1), (2)

The following table provides a breakdown of our credit risk exposure by region, asset type and client type.

	As at
	July 31<br><br>2025																April 30<br><br>2025
	Asset type								Client type
(Millions of Canadian dollars)	Loans<br><br>Outstanding		Securities<br>(3)		Repo-style<br>transactions		Derivatives		Financials		Sovereign		Corporate		Total		Total
Europe (excluding U.K.)	$	18,722	$	25,356	$	7,453	$	3,358	$	29,893	$	8,164	$	16,832	$	54,889	$	56,727
U.K.		14,339		33,966		4,802		2,137		18,722		24,822		11,700		55,244		50,959
Caribbean		6,435		10,912		3,099		2,353		9,861		4,936		8,002		22,799		21,131
Asia-Pacific		6,767		27,904		5,334		1,943		20,196		16,775		4,977		41,948		50,184
Other <br>(4)		2,643		1,554		2,767		190		2,407		2,062		2,685		7,154		6,296
Net International exposure<br><br>(5)	$	48,906	$	99,692	$	23,455	$	9,981	$	81,079	$	56,759	$	44,196	$	182,034	$	185,297
(1)	Geographic profile is based on country of risk, which reflects our assessment of the geographic risk associated with a given exposure. Typically, this is the residence of the borrower.
---	---
(2)	Exposures are calculated on a fair value basis and net of collateral, which includes $437 billion against repo-style transactions (April 30, 2025 – $439 billion) and $18 billion against derivatives (April 30, 2025 – $21 billion).
---	---
(3)	Securities include $25 billion of trading securities (April 30, 2025 – $23 billion), $26 billion of deposits (April 30, 2025 – $35 billion), and $49 billion of investment securities (April 30, 2025 – $48 billion).
---	---
(4)	Includes exposures in the Middle East, Africa and Latin America.
---	---
(5)	Excludes $7,992 million (April 30, 2025 – $6,566 million) of exposures to supranational agencies.
---	---

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Royal Bank of Canada Third Quarter 2025 27

Credit quality performance

The following credit quality performance tables and analysis provide information on loans, which represents loans, acceptances and commitments, and other financial assets:

Gross impaired loans

	As at and for the three months ended
(Millions of Canadian dollars, except percentage amounts)	July 31<br><br>2025			April 30<br><br>2025			October 31<br><br>2024
Personal Banking	$	1,966		$	1,848		$	1,652
Commercial Banking		3,228			3,414			2,372
Wealth Management		543			552			508
Capital Markets		3,014			3,125			1,335
Total GIL	$	8,751		$	8,939		$	5,867
Impaired loans, beginning balance	$	8,939		$	7,876		$	5,685
Classified as impaired during the period (new impaired) <br>(1)		1,936			2,745			1,343
Net repayments <br>(1)		(500	)		(339	)		(354	)
Amounts written off		(743	)		(786	)		(721	)
Other<br><br><br>(2)		(881	)		(557	)		(86	)
Impaired loans, balance at end of period	$	8,751		$	8,939		$	5,867
GIL as a % of related loans and acceptances
Total GIL as a % of related loans and acceptances		0.85%			0.88%			0.59%
Personal Banking		0.36%			0.34%			0.31%
Personal Banking – Canada		0.32%			0.30%			0.26%
Commercial Banking		1.68%			1.80%			1.29%
Wealth Management		0.44%			0.45%			0.42%
Capital Markets		1.79%			1.93%			0.88%
(1)	Certain GIL movements for Personal Banking – Canada and Commercial Banking are generally allocated to new impaired, as Net repayments and certain Other movements are not reasonably determinable.
---	---
(2)	Includes return to performing status during the period, recoveries of loans and advances previously written off, sold, amounts related to foreclosed properties held as investment properties and interests in joint ventures for certain <br>co-lending<br> arrangements, foreign exchange translation and other movements.
---	---

Q3 2025 vs. Q2 2025

Total GIL decreased $188 million or 2% from last quarter and the total GIL ratio of 85 bps decreased 3 bps, primarily due to lower impaired loans in Commercial Banking and Capital Markets, partially offset by higher impaired loans in Personal Banking.

GIL in Personal Banking increased $118 million or 6%, primarily due to higher impaired loans in our Canadian residential mortgages portfolio.

GIL in Commercial Banking decreased $186 million or 5%, primarily due to lower impaired loans in a few sectors, including the consumer discretionary, real estate and related and forest products sectors, partially offset by higher impaired loans in the agriculture sector.

GIL in Wealth Management decreased $9 million or 2%, primarily due to lower impaired loans in U.S. Wealth Management (including City National) in a few sectors, including the automotive and other services sectors, partially offset by higher impaired loans in the real estate and related sector and in our retail portfolios.

GIL in Capital Markets decreased $111 million or 4%, primarily due to lower impaired loans in a few sectors, including the real estate and related sector, partially offset by higher impaired loans in the financing products sector.

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28 Royal Bank of Canada Third Quarter 2025

Allowance for credit losses (ACL)

	As at
(Millions of Canadian dollars)	July 31<br><br>2025		April 30<br><br>2025		October 31<br><br>2024
Personal Banking	$	3,666	$	3,628	$	3,273
Commercial Banking		2,276		2,228		1,626
Wealth Management		513		577		466
Capital Markets		1,186		1,047		986
Corporate Support and other		1		1		1
ACL on loans		7,642		7,481		6,352
ACL on other financial assets<br><br>(1)		15		19		12
Total ACL	$	7,657	$	7,500	$	6,364
ACL on loans is comprised of:
Retail	$	3,424	$	3,414	$	3,011
Wholesale		2,020		2,050		1,825
ACL on performing loans	$	5,444	$	5,464	$	4,836
ACL on impaired loans		2,198		2,017		1,516
(1)	ACL on other financial assets mainly represents allowances on debt securities measured at FVOCI and amortized cost, accounts receivable and financial guarantees.
---	---

Q3 2025 vs. Q2 2025

Total ACL increased $157 million or 2% from last quarter, reflecting an increase in ACL on loans.

ACL on performing loans decreased $20 million, primarily due to favourable changes to our macroeconomic forecast, partially offset by unfavourable changes in credit quality and portfolio growth.

ACL on impaired loans increased $181 million or 9%, primarily due to higher ACL in Capital Markets and Commercial Banking.

For further details, refer to Note 5 of our Condensed Financial Statements.

Market risk

Market risk is defined to be the impact of market factors and prices upon our financial condition. This includes potential financial gains or losses due to changes in market-determined variables such as interest rates, credit spreads, equity prices, commodity prices, foreign exchange rates and implied volatilities. There have been no material changes to our Market Risk Management Framework from the framework described in our 2024 Annual Report. Using that framework, we continuously seek to ensure that our market risk exposure is consistent with risk appetite constraints set by the Board of Directors.

Market risk controls include limits on probabilistic measures of potential loss in trading positions, such as Value-at-Risk (VaR) and stress testing. Market risk controls are also in place to manage Interest Rate Risk in the Banking Book (IRRBB). To monitor and control IRRBB, we assess two primary metrics, Net Interest Income (NII) risk and Economic Value of Equity (EVE) risk, under a range of market shocks, scenarios, and time horizons. There has been no material change to the VaR or IRRBB measurement methodology, controls, or limits from those described in our 2024 Annual Report. For further details on our approach to the management of market risk, refer to the Market risk section of our 2024 Annual Report.

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Royal Bank of Canada Third Quarter 2025 29

Market risk measures – FVTPL positions

VaR and Trading VaR

The following table presents our Market risk VaR and Trading VaR figures:

	July 31, 2025										April 30, 2025						July 31, 2024
				For the three<br><br>months ended										For the three<br>months ended						For the three<br>months ended
(Millions of Canadian dollars)	As at			Average			High		Low		As at			Average			As at			Average
Equity	$	17		$	17		$	30	$	12	$	25		$	15		$	17		$	15
Foreign exchange		7			4			13		2		3			3			8			6
Commodities		7			6			10		3		5			7			6			7
Interest rate <br>(1)		20			24			27		20		22			19			35			29
Credit specific <br>(2)		7			8			10		6		8			7			8			8
Diversification <br>(3)		(31	)		(31	)		n.m.		n.m.		(29	)		(27	)		(45	)		(35	)
Trading VaR	$	27		$	28		$	34	$	21	$	34		$	24		$	29		$	30
Total VaR	$	43		$	43		$	56	$	34	$	51		$	33		$	33		$	38
	July 31, 2025										July 31, 2024
				For the nine<br><br>months ended										For the nine<br>months ended
(Millions of Canadian dollars)	As at			Average			High		Low		As at			Average
Equity	$	17		$	16		$	30	$	11	$	17		$	11
Foreign exchange		7			4			13		2		8			5
Commodities		7			7			11		3		6			6
Interest rate <br>(1)		20			22			28		17		35			30
Credit specific <br>(2)		7			8			10		6		8			7
Diversification <br>(3)		(31	)		(32	)		n.m.		n.m.		(45	)		(30	)
Trading VaR	$	27		$	25		$	35	$	19	$	29		$	29
Total VaR	$	43		$	36		$	56	$	22	$	33		$	82
(1)	General credit spread risk and funding spread risk associated with uncollateralized derivatives are included under interest rate VaR.
---	---
(2)	Credit specific risk captures issuer-specific credit spread volatility.
---	---
(3)	Trading VaR is less than the sum of the individual risk factor VaR results due to risk factor diversification.
---	---
n.m.	not meaningful
---	---

Q3 2025 vs. Q3 2024

Average Trading VaR of $28 million remained relatively stable from a year ago.

Average total VaR of $43 million increased $5 million, primarily driven by exposure changes in our equity portfolio due to the impact of heightened market volatility.

Q3 2025 vs. Q2 2025

Average Trading VaR of $28 million increased $4 million from last quarter, primarily driven by exposure changes in our fixed income portfolio.

Average total VaR of $43 million increased $10 million, primarily driven by exposure changes in our equity portfolio due to the impact of heightened market volatility and exposure changes in our fixed income portfolio.

Q3 2025 vs. Q3 2024 (Nine months ended)

Average Trading VaR of $25 million decreased $4 million from the same period last year, primarily driven by exposure changes in our fixed income portfolio, partially offset by exposure changes in our equity portfolio.

Average total VaR of $36 million decreased $46 million, primarily driven by the impact of management of closing capital volatility related to the HSBC Canada transaction in the same period last year.

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30 Royal Bank of Canada Third Quarter 2025

The following chart displays a bar graph of our daily trading profit and loss and a line graph of our daily market risk VaR. We incurred no net trading losses in the three months ended July 31, 2025 and April 30, 2025.

(1)	Trading revenue (teb) in the chart above excludes the impact of loan underwriting commitments.

Market risk measures for assets and liabilities of RBC Insurance ®

We offer a range of insurance products to clients and hold investments to meet future obligations to policyholders. The investments which support actuarial liabilities are predominantly fixed income assets measured at FVTPL. Consequently, changes in the fair values of these assets are largely offset by changes in the discount rates used in the measurement of insurance and reinsurance contract assets and liabilities, and the impacts of both are reflected in Insurance investment result in the Consolidated Statements of Income. As at July 31, 2025, we held assets in support of $21 billion of insurance contract liabilities net of insurance contract assets and reinsurance contracts held balances (April 30, 2025 – $21 billion).

Market risk measures – IRRBB sensitivities

The following table shows the potential before-tax impact of an immediate and sustained 100 bps increase or decrease in interest rates on projected EVE and 12-month NII, assuming no subsequent hedging. Interest rate risk measures are based on current on- and off-balance sheet positions which can change over time in response to business activity and management actions.

	July 31<br> <br>2025																		April 30<br> <br>2025						July 31<br> <br>2024
	EVE risk									NII risk<br>(1)
(Millions of Canadian dollars)	Canadian<br>dollar<br> <br>impact (2)			U.S. dollar<br>and other<br>impact (2)			Total			Canadian<br>dollar<br>impact (2)			U.S. dollar<br>and other<br>impact (2)			Total			EVE risk			NII risk (1)			EVE risk			NII risk (1)
Before-tax<br> impact of:
100 bps increase in rates	$	(2,201	)	$	(305	)	$	(2,506	)	$	156		$	118		$	274		$	(2,436	)	$	387		$	(1,822	)	$	325
100 bps decrease in rates		1,895			(95	)		1,800			(283	)		(106	)		(389	)		1,891			(521	)		1,399			(425	)
(1)	Represents the <br>12-month<br> NII exposure to an instantaneous and sustained shift in interest rates.
---	---
(2)	Effective the third quarter of 2025, EVE and NII risk for currencies other than the Canadian and U.S. dollar are presented within the U.S. dollar and other impact category. Previously, the impact of other currencies was presented in the Canadian dollar impact category.
---	---

As at July 31, 2025, an immediate and sustained -100 bps shock would have had a negative impact to our NII of $389 million, down from $521 million last quarter. An immediate and sustained +100 bps shock as at July 31, 2025 would have had a negative impact to the bank’s EVE of $2,506 million, up from $2,436 million last quarter. Quarter-over-quarter EVE sensitivity remained relatively stable, while the quarter-over-quarter change in NII sensitivity reflects an increase in fixed rate asset positions. During the third quarter of 2025, NII and EVE risks remained within approved limits.

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Royal Bank of Canada Third Quarter 2025 31

Linkage of market risk to selected balance sheet items

The following tables provide the linkages between selected balance sheet items with positions included in our trading market risk and non-trading market risk disclosures, which illustrates how we manage market risk for our assets and liabilities through different risk measures:

	As at July 31, 2025
				Market risk measure
(Millions of Canadian dollars)	Balance<br>sheet amount			Traded risk<br>(1)		Non-traded<br><br>risk<br>(2)			Non-traded<br> risk<br>primary risk sensitivity
Assets subject to market risk
Cash and due from banks	$	34,927		$	–	$	34,927		Interest rate
Interest-bearing deposits with banks		72,824			4		72,820		Interest rate
Securities
Trading		204,154			175,282		28,872		Interest rate, credit spread
Investment, net of applicable allowance		333,858			–		333,858		Interest rate, credit spread, equity
Assets purchased under reverse repurchase agreements and securities borrowed		265,832			230,313		35,519		Interest rate
Loans
Retail		644,791			–		644,791		Interest rate
Wholesale		387,941			3,089		384,852		Interest rate
Allowance for loan losses		(7,272	)		–		(7,272	)	Interest rate
Other
Derivatives		155,023			150,750		4,273		Interest rate, foreign exchange
Other assets		128,101			55,078		73,023		Interest rate
Assets not subject to market risk<br><br>(3)		7,714
Total assets	$	2,227,893		$	614,516	$	1,605,663
Liabilities subject to market risk
Deposits	$	1,481,477		$	71,477	$	1,410,000		Interest rate
Other
Obligations related to securities sold short		47,072			46,783		289		Interest rate, equity
Obligations related to assets sold under repurchase agreements and securities loaned		266,287			243,914		22,373		Interest rate
Derivatives		158,862			155,498		3,364		Interest rate, foreign exchange
Other liabilities		101,347			48,017		53,330		Interest rate
Subordinated debentures		13,832			–		13,832		Interest rate
Liabilities not subject to market risk<br><br>(4)		23,384
Total liabilities	$	2,092,261		$	565,689	$	1,503,188
Total equity		135,632
Total liabilities and equity	$	2,227,893
(1)	Traded risk includes positions that are classified or designated as FVTPL and positions whose revaluation gains and losses are reported in revenue within our trading portfolios. Market risk measures of VaR and stress tests are used as risk controls for traded risk.
---	---
(2)	Non-traded<br> risk includes positions used in the management of IRRBB and other <br>non-trading<br> portfolios. Other material <br>non-trading<br> portfolios include positions from RBC Insurance and investment securities, net of applicable allowance, not included in IRRBB.
---	---
(3)	Assets not subject to market risk include physical and other assets.
---	---
(4)	Liabilities not subject to market risk include payroll related and other liabilities.
---	---

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32 Royal Bank of Canada Third Quarter 2025

	As at April 30, 2025
				Market risk measure
(Millions of Canadian dollars)	Balance<br>sheet amount			Traded risk (1)		Non-traded<br><br>risk (2)			Non-traded<br> risk<br>primary risk sensitivity
Assets subject to market risk
Cash and due from banks	$	48,621		$	–	$	48,621		Interest rate
Interest-bearing deposits with banks		65,970			3		65,967		Interest rate
Securities
Trading		189,137			161,056		28,081		Interest rate, credit spread
Investment, net of applicable allowance		303,360			–		303,360		Interest rate, credit spread, equity
Assets purchased under reverse repurchase agreements and securities borrowed		301,927			245,257		56,670		Interest rate
Loans
Retail		635,280			–		635,280		Interest rate
Wholesale		379,151			4,986		374,165		Interest rate
Allowance for loan losses		(7,125	)		–		(7,125	)	Interest rate
Other
Derivatives		188,211			184,763		3,448		Interest rate, foreign exchange
Other assets		130,074			57,406		72,668		Interest rate
Assets not subject to market risk<br><br>(3)		7,527
Total assets	$	2,242,133		$	653,471	$	1,581,135
Liabilities subject to market risk
Deposits	$	1,446,786		$	64,294	$	1,382,492		Interest rate
Other
Obligations related to securities sold short		46,823			46,569		254		Interest rate, equity
Obligations related to assets sold under repurchase agreements and securities loaned		281,326			250,836		30,490		Interest rate
Derivatives		194,344			191,041		3,303		Interest rate, foreign exchange
Other liabilities		103,030			48,746		54,284		Interest rate
Subordinated debentures		13,745			–		13,745		Interest rate
Liabilities not subject to market risk<br><br>(4)		23,549
Total liabilities	$	2,109,603		$	601,486	$	1,484,568
Total equity		132,530
Total liabilities and equity	$	2,242,133
(1)	Traded risk includes positions that are classified or designated as FVTPL and positions whose revaluation gains and losses are reported in revenue within our trading portfolios. Market risk measures of VaR and stress tests are used as risk controls for traded risk.
---	---
(2)	Non-traded<br> risk includes positions used in the management of IRRBB and other <br>non-trading<br> portfolios. Other material <br>non-trading<br> portfolios include positions from RBC Insurance and investment securities, net of applicable allowance, not included in IRRBB.
---	---
(3)	Assets not subject to market risk include physical and other assets.
---	---
(4)	Liabilities not subject to market risk include payroll related and other liabilities.
---	---

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Royal Bank of Canada Third Quarter 2025 33

Liquidity and funding risk

Liquidity and funding risk (liquidity risk) is the risk that we may be unable to generate sufficient cash or its equivalents in a timely and cost-effective manner to meet our commitments. Liquidity risk arises from mismatches in the timing and value of on-balance sheet and off-balance sheet cash flows.

Our liquidity risk management activities are conducted in accordance with internal frameworks and policies, including the Enterprise Risk Management Framework (ERMF), the Enterprise Risk Appetite Framework (ERAF), the Enterprise Liquidity Risk Management Framework (LRMF), the Enterprise Liquidity Risk Policy and the Enterprise Pledging Policy. Collectively, our frameworks and policies establish liquidity and funding management requirements that are appropriate for the execution of our strategy and ensuring liquidity risk remains within our risk appetite. There have been no material changes to our internal frameworks and policies from those described in our 2024 Annual Report.

Liquidity reserve

Our liquidity reserve consists only of available unencumbered liquid assets. Although unused wholesale funding capacity could be another potential source of liquidity, it is excluded in the determination of the liquidity reserve.

	As at July 31, 2025
(Millions of Canadian dollars)	Bank-owned<br><br>liquid assets		Securities<br>received<br>as collateral<br>from securities<br>financing<br>and derivative<br>transactions		Total liquid<br>assets		Encumbered<br>liquid assets		Unencumbered<br>liquid assets
Cash and deposits with banks	$	107,751	$	–	$	107,751	$	3,105	$	104,646
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks <br>(1)		424,857		306,283		731,140		396,906		334,234
Other securities		165,105		141,220		306,325		189,563		116,762
Other liquid assets <br>(2)		43,193		–		43,193		36,673		6,520
Total liquid assets	$	740,906	$	447,503	$	1,188,409	$	626,247	$	562,162
	As at April 30, 2025
(Millions of Canadian dollars)	Bank-owned<br><br>liquid assets		Securities<br>received<br>as collateral<br>from securities<br>financing<br>and derivative<br>transactions		Total liquid<br>assets		Encumbered<br>liquid assets		Unencumbered<br>liquid assets
Cash and deposits with banks	$	114,591	$	–	$	114,591	$	3,201	$	111,390
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks <br>(1)		388,341		347,516		735,857		415,596		320,261
Other securities		155,750		131,500		287,250		176,402		110,848
Other liquid assets <br>(2)		46,605		–		46,605		39,201		7,404
Total liquid assets	$	705,287	$	479,016	$	1,184,303	$	634,400	$	549,903
	As at
(Millions of Canadian dollars)	July 31<br><br>2025		April 30<br><br>2025
Royal Bank of Canada	$	257,850	$	251,435
Foreign branches		87,553		91,270
Subsidiaries		216,759		207,198
Total unencumbered liquid assets	$	562,162	$	549,903
(1)	Includes liquid securities issued by provincial governments and U.S. government-sponsored entities working under U.S. Federal government’s conservatorship (e.g., Federal National Mortgage Association and Federal Home Loan Mortgage Corporation).
---	---
(2)	Encumbered liquid assets amount represents cash collateral and margin deposit amounts pledged related to <br>over-the-counter<br> and exchange-traded derivative transactions.
---	---

The liquidity reserve is typically most affected by routine flows of retail and commercial client banking activities, where liquid asset portfolios reflect changes in deposit and loan balances, as well as business strategies and client flows related to the activities in Capital Markets. Corporate Treasury also affects liquidity reserves through the management of funding issuances, which could result in timing differences between when debt is issued and funds are deployed into business activities.

Q3 2025 vs. Q2 2025

Total unencumbered liquid assets increased $12 billion or 2% from last quarter, primarily due to an increase in on-balance sheet securities reflecting growth in deposits and funding, partially offset by a decrease in cash and deposits with banks.

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34 Royal Bank of Canada Third Quarter 2025

Asset encumbrance

The table below provides a summary of our on- and off-balance sheet amounts for cash, securities and other assets, distinguishing between those that are encumbered, and those available for sale or use as collateral in secured funding transactions. Other assets, such as mortgages and credit card receivables, can also be monetized, albeit over longer timeframes than those required for marketable securities. As at July 31, 2025, our unencumbered assets available as collateral comprised 25% of total assets (April 30, 2025 – 24%).

	As at July 31, 2025
	Total Assets						Encumbered				Unencumbered
(Millions of Canadian dollars)	Bank-owned<br>assets		Securities<br>received<br>as collateral<br>from securities<br>financing<br>and derivative<br>transactions		Total		Pledged<br>as collateral		Other<br>(1)		Available<br>as collateral<br>(2)		Other<br>(3)
Cash and deposits with banks	$	107,751	$	–	$	107,751	$	–	$	3,105	$	104,646	$	–
Securities <br>(4)		548,454		504,926		1,053,380		612,660		29,766		407,724		3,230
Loans, net of allowance for loan losses
Mortgage securities		57,498		–		57,498		27,391		–		30,107		–
Mortgage loans		430,434		–		430,434		62,285		–		42,583		325,566
Other loans		537,528		–		537,528		6,313		–		27,738		503,477
Derivatives		155,023		–		155,023		–		–		–		155,023
Others <br>(5)		135,815		–		135,815		36,673		–		6,520		92,622
Total	$	1,972,503	$	504,926	$	2,477,429	$	745,322	$	32,871	$	619,318	$	1,079,918
	As at April 30,2025
	Total Assets						Encumbered				Unencumbered
(Millions of Canadian dollars)	Bank-owned<br>assets		Securities<br>received<br>as collateral<br>from securities<br>financing<br>and derivative<br>transactions		Total		Pledged<br>as collateral		Other (1)		Available<br>as collateral (2)		Other (3)
Cash and deposits with banks	$	114,591	$	–	$	114,591	$	–	$	3,201	$	111,390	$	–
Securities <br>(4)		502,202		537,701		1,039,903		619,082		31,324		385,806		3,691
Loans, net of allowance for loan losses
Mortgage securities		55,735		–		55,735		26,769		–		28,966		–
Mortgage loans		425,368		–		425,368		68,993		–		38,928		317,447
Other loans		526,203		–		526,203		6,282		–		25,885		494,036
Derivatives		188,211		–		188,211		–		–		–		188,211
Others <br>(5)		137,601		–		137,601		39,201		–		7,404		90,996
Total	$	1,949,911	$	537,701	$	2,487,612	$	760,327	$	34,525	$	598,379	$	1,094,381
(1)	Includes assets restricted from use to generate secured funding due to legal or other constraints.
---	---
(2)	Represents assets that are immediately available for use as collateral, including National Housing Act Mortgage-Backed Securities (NHA MBS), our unencumbered mortgage loans that qualify as eligible collateral at Federal Home Loan Banks (FHLB), as well as loans that qualify as eligible collateral for discount window facility available to us and lodged at the Federal Reserve Bank of New York (FRBNY).
---	---
(3)	Other unencumbered assets are not subject to any restrictions on their use to secure funding or as collateral but would not be considered immediately available.
---	---
(4)	Includes bank-owned liquid assets and securities received as collateral from <br>off-balance<br> sheet securities financing, derivative transactions, and margin lending. Includes $30 billion (April 30, 2025 – $31 billion) of collateral received through reverse repurchase transactions that cannot be rehypothecated in its current legal form.
---	---
(5)	The Pledged as collateral amount represents cash collateral and margin deposit amounts pledged related to OTC and exchange-traded derivative transactions.
---	---

Q3 2025 vs. Q2 2025

Total unencumbered assets available as collateral increased $21 billion or 3% from last quarter, primarily due to an increase in on-balance sheet securities.

Funding

Funding strategy

Maintaining a diversified funding base is a key strategy for managing our liquidity risk profile.

Core funding, comprising capital, longer-term wholesale liabilities and a diversified pool of personal as well as the stable portion of our commercial and institutional deposits, is the foundation of our structural liquidity position.

Wholesale funding activities are well-diversified by geography, investor segment, instrument, currency, structure and maturity. We maintain an ongoing presence in different funding markets, which allows us to continuously monitor market developments and trends, identify opportunities and risks and take appropriate and timely actions.

We continuously evaluate opportunities to expand into new markets and untapped investor segments since diversification expands our wholesale funding flexibility, minimizes funding concentration and dependency and generally reduces financing costs.

We regularly assess our funding concentration and have implemented limits on certain funding sources to support diversification of our funding base.

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Royal Bank of Canada Third Quarter 2025 35

Deposit and funding profile

As at July 31, 2025, relationship-based deposits, which are the primary source of funding for retail and commercial lending, were $987 billion or 54% of our total funding (April 30, 2025 – $982 billion or 55%). The remaining portion is comprised of short- and long-term wholesale funding.

Funding for highly liquid assets consists primarily of short-term wholesale funding that reflects the monetization period of those assets. Long-term wholesale funding is used mostly to fund less liquid wholesale assets and to support liquid asset buffers.

Senior long-term debt issued by the bank on or after September 23, 2018, that has an original term greater than 400 days and is marketable, subject to certain exceptions, is subject to the Canadian Bank Recapitalization (Bail-in) regime. Under the Bail-in regime, in circumstances when the Superintendent of Financial Institutions has determined that a bank may no longer be viable, the Governor in Council may, upon a recommendation of the Minister of Finance that he or she is of the opinion that it is in the public interest to do so, grant an order directing the Canada Deposit Insurance Corporation (CDIC) to convert all or a portion of certain shares and liabilities of that bank into common shares. As at July 31, 2025, the notional value of issued and outstanding long-term debt subject to conversion under the Bail-in regime was $123 billion (April 30, 2025 – $119 billion).

For further details on our wholesale funding, refer to the Composition of wholesale funding tables below.

Long-term debt issuance

We operate long-term debt issuance registered programs. Each long-term debt program allows issuances in multiple currencies. The following table summarizes our registered programs and their authorized limits by geography:

Programs by geography
Canada	U.S.	Europe
---	---	---
• Canadian Shelf Program – $25 billion	• U.S. Shelf Program – US$75 billion	• European Debt Issuance Program – US$75 billion
		• Global Covered Bond Program – <br>€<br>75 billion

We also raise long-term funding using Canadian Senior Notes, Kangaroo Bonds (issued in the Australian domestic market by foreign firms) and Yankee Certificates of Deposit (issued in the U.S. domestic market by foreign firms).

As presented in the following charts, our current long-term debt profile is well-diversified by both currency and product.

(1) Includes unsecured and secured long-term funding and subordinated debentures with an original term to maturity greater than 1 year	(1) Includes unsecured and secured long-term funding and subordinated debentures with an original term to maturity greater than 1 year
	(2) Mortgage-backed securities and Canada Mortgage Bonds

The following table shows the composition of wholesale funding based on remaining term to maturity:

Composition of wholesale funding

(1)

	As at July 31, 2025
(Millions of Canadian dollars)	Less than<br>1 month		1 to 3<br>months		3 to 6<br>months		6 to 12<br>months		Less than 1<br><br>year sub-total		1 year to<br>2 years		2 years and<br>greater		Total
Deposits from banks <br>(2)	$	4,171	$	1,184	$	496	$	299	$	6,150	$	–	$	–	$	6,150
Certificates of deposit and commercial paper <br>(3)		5,265		30,802		34,811		36,077		106,955		–		–		106,955
Asset-backed commercial paper <br>(4)		4,780		7,013		6,590		1,330		19,713		–		–		19,713
Senior unsecured medium-term notes <br>(5)		122		4,366		7,197		25,490		37,175		25,901		62,694		125,770
Senior unsecured structured notes <br>(6)		3,917		1,563		1,525		3,643		10,648		2,617		14,398		27,663
Mortgage securitization		–		154		509		742		1,405		2,835		11,974		16,214
Covered bonds/asset-backed securities <br>(7)		–		3,503		3,230		8,184		14,917		23,925		23,583		62,425
Subordinated liabilities		–		–		2,078		–		2,078		–		11,825		13,903
Other <br>(8)		4,475		218		238		655		5,586		22,024		197		27,807
Total	$	22,730	$	48,803	$	56,674	$	76,420	$	204,627	$	77,302	$	124,671	$	406,600
Of which:
– Secured	$	9,153	$	10,686	$	10,329	$	10,256	$	40,424	$	26,760	$	35,557	$	102,741
– Unsecured		13,577		38,117		46,345		66,164		164,203		50,542		89,114		303,859

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36 Royal Bank of Canada Third Quarter 2025

	As at April 30, 2025
(Millions of Canadian dollars)	Less than<br>1 month		1 to 3<br>months		3 to 6<br>months		6 to 12<br>months		Less than 1<br><br>year sub-total		1 year to<br>2 years		2 years and<br>greater		Total
Deposits from banks <br>(2)	$	2,932	$	15	$	883	$	487	$	4,317	$	–	$	–	$	4,317
Certificates of deposit and commercial paper <br>(3)		11,187		17,706		29,680		34,647		93,220		–		–		93,220
Asset-backed commercial paper <br>(4)		5,199		6,119		6,029		893		18,240		–		–		18,240
Senior unsecured medium-term notes <br>(5)		3,442		5,108		4,489		15,189		28,228		31,538		61,012		120,778
Senior unsecured structured notes <br>(6)		1,057		1,497		1,721		4,097		8,372		5,631		11,135		25,138
Mortgage securitization		–		442		154		709		1,305		2,046		12,937		16,288
Covered bonds/asset-backed securities <br>(7)		1,326		2,665		3,467		6,339		13,797		27,626		24,475		65,898
Subordinated liabilities		–		1,249		–		2,068		3,317		–		10,437		13,754
Other <br>(8)		4,799		2,583		895		578		8,855		20,646		202		29,703
Total	$	29,942	$	37,384	$	47,318	$	65,007	$	179,651	$	87,487	$	120,198	$	387,336
Of which:
– Secured	$	11,224	$	10,621	$	10,339	$	7,941	$	40,125	$	29,672	$	37,412	$	107,209
– Unsecured		18,718		26,763		36,979		57,066		139,526		57,815		82,786		280,127
(1)	Excludes bankers’ acceptances and repos.
---	---
(2)	Excludes deposits associated with services we provide to banks (e.g., custody, cash management).
---	---
(3)	Includes bearer deposit notes (unsecured).
---	---
(4)	Only includes consolidated liabilities, including our collateralized commercial paper program.
---	---
(5)	Includes deposit notes and floating rate notes (unsecured).
---	---
(6)	Includes notes where the payout is tied to movements in foreign exchange, commodities and equities.
---	---
(7)	Includes covered bonds collateralized with residential mortgages and securities backed by credit card receivables.
---	---
(8)	Includes tender option bonds (secured) of $4,389 million (April 30, 2025 – $4,715 million), other long-term structured deposits (unsecured) of $23,221 million (April 30, 2025 – $22,718 million), FHLB advances (secured) of $nil (April 30, 2025 – $2,068 million) and wholesale guaranteed interest certificates of $197 million (April 30, 2025 – $202 million).
---	---

Credit ratings

Our ability to access unsecured funding markets and to engage in certain collateralized business activities on a cost-effective basis are largely dependent on maintaining competitive credit ratings. Credit ratings and outlooks provided by rating agencies reflect their views and methodologies. Ratings are subject to change, based on a number of factors including, but not limited to, our financial strength, competitive position, liquidity and other factors not completely within our control.

The following table presents our major credit ratings:

Credit ratings

(1)

	As at August 26, 2025
	Short-term<br><br>debt		Legacy senior<br><br>long-term debt<br>(2)		Senior<br><br>long-term debt<br>(3)		Outlook
Moody’s<br>‡<br> <br>(4)		P-1		Aa1		A1		stable
Standard & Poor’s<br>‡<br> <br>(5)		A-1+		AA-		A		stable
Fitch Ratings<br>‡<br> <br>(6)		F1+		AA		AA-		stable
DBRS<br>‡<br> <br>(7)		R-1 (high)		AA (high)		AA		stable
(1)	Credit ratings are not recommendations to purchase, sell or hold a financial obligation in as much as they do not comment on market price or suitability for a particular investor. Ratings are determined by the rating agencies based on criteria established from time to time by them and are subject to revision or withdrawal at any time by the rating organization.
---	---
(2)	Includes senior long-term debt issued prior to September 23, 2018 and senior long-term debt issued on or after September 23, 2018 which is excluded from the <br>Bail-in<br> regime.
---	---
(3)	Includes senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the <br>Bail-in<br> regime.
---	---
(4)	On October 8, 2024, Moody’s affirmed our ratings with stable outlook.
---	---
(5)	On June 25, 2024, Standard & Poor’s affirmed our ratings with a stable outlook.
---	---
(6)	On June 3, 2025, Fitch Ratings affirmed our ratings with a stable outlook.
---	---
(7)	On May 9, 2025, DBRS affirmed our ratings with a stable outlook.
---	---

Additional contractual obligations for rating downgrades

We are required to deliver collateral to certain counterparties in the event of a downgrade from our current credit rating. The following table shows the additional collateral obligations required at the reporting date in the event of a one-,

two- or three-notch downgrade. These additional collateral obligations are incremental requirements for each successive downgrade and do not represent the cumulative impact of multiple downgrades. The amounts reported change periodically due to several factors, including the transfer of trading activity to centrally cleared financial market infrastructures and exchanges, the expiration of transactions with downgrade triggers, the imposition of internal limitations on new agreements to exclude downgrade triggers, as well as normal course mark-to-market. There is no outstanding senior debt issued in the market that contains rating triggers that would lead to early prepayment of principal.

	As at
	July 31<br><br>2025						April 30<br><br>2025
(Millions of Canadian dollars)	One-notch<br><br>downgrade		Two-notch<br><br>downgrade		Three-notch<br><br>downgrade		One-notch<br><br>downgrade		Two-notch<br><br>downgrade		Three-notch<br><br>downgrade
Contractual derivatives funding or margin requirements	$	295	$	110	$	209	$	264	$	98	$	195
Other contractual funding or margin requirements <br>(1)		36		43		19		43		23		36
(1)	Includes Guaranteed Investment Certificates (GICs) issued by our municipal markets business out of New York.
---	---

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Royal Bank of Canada

Third Quarter 2025 37

Liquidity Coverage Ratio (LCR)

The LCR is a Basel III metric that measures the sufficiency of high-quality liquid assets (HQLA) available to meet liquidity needs over a

30-day

period in an acute stress scenario. The Basel Committee on Banking Supervision (BCBS) and OSFI regulatory minimum coverage level for LCR is 100%.

OSFI requires Canadian banks to disclose the LCR using the standard Basel disclosure template and calculated using the average of daily LCR positions during the quarter.

Liquidity coverage ratio common disclosure template

(1)

	For the three months ended
	July 31<br><br>2025
(Millions of Canadian dollars, except percentage amounts)	Total unweighted<br>value (average)<br>(2)		Total weighted<br><br>value (average)
High-quality liquid assets
Total high-quality liquid assets (HQLA)			$	462,083
Cash outflows
Retail deposits and deposits from small business customers, of which:	$	407,402	$	37,659
Stable deposits<br><br>(3)		133,815		4,014
Less stable deposits		273,587		33,645
Unsecured wholesale funding, of which:		515,849		239,313
Operational deposits (all counterparties) and deposits in networks of cooperative banks<br><br>(4)		184,293		43,194
Non-operational<br><br><br>deposits		313,956		178,519
Unsecured debt		17,600		17,600
Secured wholesale funding				46,345
Additional requirements, of which:		435,480		93,303
Outflows related to derivative exposures and other collateral requirements		92,708		27,209
Outflows related to loss of funding on debt products		11,431		11,431
Credit and liquidity facilities		331,341		54,663
Other contractual funding obligations<br><br>(5)		25,790		25,790
Other contingent funding obligations<br><br>(6)		891,378		14,981
Total cash outflows			$	457,391
Cash inflows
Secured lending (e.g., reverse repos)	$	366,002	$	61,678
Inflows from fully performing exposures		18,994		9,896
Other cash inflows		27,101		27,101
Total cash inflows			$	98,675
			Total<br>adjusted value
Total HQLA			$	462,083
Total net cash outflows				358,716
Liquidity coverage ratio				129%
	April 30<br><br>2025
(Millions of Canadian dollars, except percentage amounts)			Total<br>adjusted value
Total HQLA			$	446,512
Total net cash outflows				340,008
Liquidity coverage ratio				131%
(1)	The LCR is calculated in accordance with OSFI’s LAR guideline, which, in turn, reflects liquidity-related requirements issued by the BCBS. The LCR for the quarter ended July 31, 2025 is calculated as an average of 64 daily positions.
---	---
(2)	With the exception of other contingent funding obligations, unweighted inflow and outflow amounts are items maturing or callable in 30 days or less. Other contingent funding obligations also include debt securities with remaining maturity greater than 30 days.
---	---
(3)	As defined by the BCBS, stable deposits from retail and small business customers are deposits that are insured and are either held in transactional accounts or the bank has an established relationship with the client making the withdrawal unlikely.
---	---
(4)	Operational deposits from customers other than retail and small and<br><br><br>medium-sized<br><br><br>enterprises, are deposits which clients need to keep with the bank in order to facilitate their access and ability to use payment and settlement systems primarily for clearing, custody and cash management activities.
---	---
(5)	Other contractual funding obligations primarily include outflows from unsettled securities trades and outflows from obligations related to securities sold short.
---	---
(6)	Other contingent funding obligations include outflows related to other<br><br><br>off-balance<br><br><br>sheet facilities that carry low LCR runoff factors (0% – 5%).
---	---

We manage our LCR position within a target range that reflects our liquidity risk tolerance, business mix, asset composition and funding capabilities. The range is subject to periodic review, considering changes to internal requirements and external developments.

We maintain HQLA in major currencies with dependable market depth and breadth. Our treasury management practices are designed to ensure that the levels of HQLA are actively managed to meet target LCR objectives. Our Level 1 assets, as calculated according to OSFI LAR and the BCBS LCR requirements, represent 87% of total HQLA. These assets consist of cash, placements with central banks and highly rated securities issued or guaranteed by governments, central banks and supranational entities.

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38 Royal Bank of Canada Third Quarter 2025

LCR captures cash flows from

on-

and

off-balance

sheet activities that are either expected or could potentially occur within 30 days in an acute stress scenario. Cash outflows result from the application of withdrawal and

non-renewal

factors to demand and term deposits, differentiated by client type (wholesale, retail and small- and

medium-sized

enterprises). Cash outflows also arise from business activities that create contingent funding and collateral requirements, such as repo funding, derivatives, short sales of securities and the extension of credit and liquidity commitments to clients. Cash inflows arise primarily from maturing secured loans, interbank loans and

non-HQLA

securities.

LCR does not reflect any market funding capacity that we believe would be available in a stress situation. All maturing wholesale debt is assigned 100% outflow in the LCR calculation.

Q3 2025 vs. Q2 2025

The average LCR for the quarter ended July 31, 2025 was 129%, which translates into a surplus of approximately $103 billion, compared to 131% and a surplus of approximately $107 billion in the prior quarter. Average LCR decreased from the prior quarter, primarily due to loan growth, partially offset by lower funding requirements on securities and securities financing transactions and growth in deposits and funding.

Net Stable Funding Ratio (NSFR)

NSFR is a Basel III metric that measures the sufficiency of available stable funding relative to the amount of required stable funding. The BCBS and OSFI regulatory minimum coverage level for NSFR is 100%.

Available stable funding is defined as the portion of capital and liabilities expected to be reliable over the

one-year

time horizon considered by the NSFR. Required stable funding is a function of the liquidity characteristics and residual maturities of various bank assets and

off-balance

sheet exposures.

OSFI requires Canadian Domestic Systemically Important Banks

(D-SIBs)

to disclose the NSFR using the standard Basel disclosure template. Amounts presented in this disclosure template are determined in accordance with the requirements of OSFI’s LAR guideline and are not necessarily aligned with the classification requirements prescribed under IFRS.

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Royal Bank of Canada

Third Quarter 2025 39

Net Stable Funding Ratio common disclosure template

(1)

	As at July 31, 2025
	Unweighted value by residual maturity<br><br>(2)								Weighted<br><br>value
(Millions of Canadian dollars, except percentage amounts)	No maturity		< 6 months		6 months to<br>< 1 year		≥<br><br><br><br>1 year
Available Stable Funding (ASF) Item
Capital:	$	136,935	$	–	$	–	$	12,693	$	149,628
Regulatory Capital		136,935		–		–		12,693		149,628
Other Capital Instruments		–		–		–		–		–
Retail deposits and deposits from small business customers:		338,392		134,181		56,379		65,179		544,310
Stable deposits<br><br>(3)		104,512		56,689		29,076		27,743		208,505
Less stable deposits		233,880		77,492		27,303		37,436		335,805
Wholesale funding:		380,471		460,778		84,751		165,650		418,392
Operational deposits<br><br>(4)		191,571		–		–		–		95,785
Other wholesale funding		188,900		460,778		84,751		165,650		322,607
Liabilities with matching interdependent assets<br><br>(5)		–		1,556		1,319		22,541		–
Other liabilities:		54,106		252,624						22,677
NSFR derivative liabilities				44,273
All other liabilities and equity not included in the above categories		54,106		185,382		585		22,384		22,677
Total ASF									$	1,135,007
Required Stable Funding (RSF) Item
Total NSFR high-quality liquid assets (HQLA)									$	39,598
Deposits held at other financial institutions for operational purposes		–		2,241		–		–		1,120
Performing loans and securities:		299,858		283,256		144,636		547,068		809,212
Performing loans to financial institutions secured by Level 1 HQLA		–		74,564		14,975		76		11,418
Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions		7,202		103,165		25,562		24,813		56,262
Performing loans to<br><br><br>non-financial<br><br><br>corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which:		200,661		56,178		38,505		187,284		376,728
With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk		–		789		563		5,721		4,394
Performing residential mortgages, of which:		40,850		45,288		64,431		311,125		298,833
With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk		40,850		45,252		64,385		310,052		297,880
Securities that are not in default and do not qualify as HQLA, including exchange-traded equities		51,145		4,061		1,163		23,770		65,971
Assets with matching interdependent liabilities<br><br>(5)		–		1,556		1,319		22,541		–
Other assets:		6,520		374,610						111,691
Physical traded commodities, including gold		6,520								5,542
Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs				29,509						25,083
NSFR derivative assets				41,461						–
NSFR derivative liabilities before deduction of variation margin posted				90,083						4,504
All other assets not included in the above categories		–		144,847		95		68,615		76,562
Off-balance<br><br><br>sheet items		–		935,968						36,089
Total RSF									$	997,710
Net Stable Funding Ratio (%)										114%
	As at April 30, 2025
(Millions of Canadian dollars, except percentage amounts)									Weighted<br><br>value
Total ASF									$	1,131,910
Total RSF										977,531
Net Stable Funding Ratio (%)										116%
(1)	The NSFR is calculated in accordance with OSFI’s LAR guideline, which, in turn, reflects liquidity-related requirements issued by the BCBS.
---	---
(2)	Totals for the following rows encompass the residual maturity categories of less than 6 months, 6 months to less than 1 year, and greater than or equal to 1 year in accordance with the requirements of the common disclosure template prescribed by OSFI: Other liabilities, NSFR derivative liabilities, Other assets, Assets posted as initial margin for derivative contracts and contributions to default funds of central counterparties (CCPs), NSFR derivative assets, NSFR derivative liabilities before deduction of variation margin posted and<br><br><br>Off-balance<br><br><br>sheet items.
---	---
(3)	As defined by the BCBS, stable deposits from retail and small business customers are deposits that are insured and are either held in transactional accounts or the bank has an established relationship with the client making the withdrawal unlikely.
---	---
(4)	Operational deposits from customers other than retail and small- and<br><br><br>medium-sized<br><br><br>enterprises, are deposits which clients need to keep with the bank in order to facilitate their access and ability to use payment and settlement systems primarily for clearing, custody and cash management activities.
---	---
(5)	Interdependent assets and liabilities represent NHA MBS liabilities, including liabilities arising from transactions involving the Canada Mortgage Bond program and their corresponding encumbered mortgages.
---	---

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40 Royal Bank of Canada Third Quarter 2025

Available stable funding is comprised primarily of a diversified pool of personal and commercial deposits, capital and long-term wholesale liabilities. Required stable funding is driven mainly by the bank’s mortgage and loan portfolio, secured loans to financial institutions and to a lesser extent by other less liquid assets. NSFR does not reflect any unused market funding capacity that we believe would be available.

Volume and composition of available stable funding is actively managed to optimize our structural funding position and meet NSFR objectives. Our NSFR is managed in accordance with our comprehensive LRMF.

Q3 2025 vs. Q2 2025

The NSFR as at July 31, 2025 was 114%, which translates into a surplus of approximately $137 billion, compared to 116% and a surplus of approximately $154 billion in the prior quarter. NSFR decreased compared to the previous quarter, primarily due to loan growth and higher funding requirements on securities and securities financing transactions.

Contractual maturities of financial assets, financial liabilities and

off-balance

sheet items

The following tables provide remaining contractual maturity profiles of all our assets, liabilities, and

off-balance

sheet items at their carrying value (e.g., amortized cost or fair value) and maturity profiles of assets and liabilities of insurance contracts and reinsurance contracts held at their carrying value based on the estimated timing of when the settlement of the amounts are expected to occur at the balance sheet date.

Off-balance

sheet items are allocated based on the expiry date of the contract.

Details of contractual maturities and commitments to extend funds are a source of information for the management of liquidity risk. Among other purposes, these details form a basis for modelling a behavioural balance sheet with effective maturities to calculate liquidity risk measures. For further details, refer to the Risk measurement and internal liquidity section within the Liquidity and funding risk section of our 2024 Annual Report.

	As at July 31, 2025
(Millions of Canadian dollars)	Less than<br>1 month		1 to 3<br><br>months		3 to 6<br><br>months		6 to 9<br><br>months		9 to 12<br><br>months		1 year<br>to 2 years		2 years<br>to 5 years		5 years<br>and greater		With no<br>specific<br>maturity		Total
Assets
Cash and deposits with banks	$	105,327	$	10	$	–	$	–	$	5	$	–	$	–	$	–	$	2,409	$	107,751
Securities
Trading<br><br><br>(1)		94,918		2,494		587		953		430		309		380		13,324		90,759		204,154
Investment, net of applicable allowance		4,315		13,717		17,671		18,424		16,386		74,863		79,602		107,525		1,355		333,858
Assets purchased under reverse repurchase agreements and securities borrowed<br><br><br>(2)		112,515		65,156		27,439		14,789		22,480		206		–		–		23,247		265,832
Loans, net of applicable<br>allowance		20,554		38,752		45,398		50,323		68,822		297,697		298,236		82,572		123,106		1,025,460
Other
Customers’ liability under acceptances		13		–		–		–		–		–		5		–		–		18
Derivatives		13,668		17,076		15,375		9,212		7,257		17,584		31,641		43,210		–		155,023
Other financial assets		48,030		4,622		2,513		495		583		381		746		1,582		4,086		63,038
Total financial assets		399,340		141,827		108,983		94,196		115,963		391,040		410,610		248,213		244,962		2,155,134
Other<br><br><br>non-financial<br><br><br>assets		14,483		2,150		2,659		396		318		2,823		3,553		9,424		36,953		72,759
Total assets	$	413,823	$	143,977	$	111,642	$	94,592	$	116,281	$	393,863	$	414,163	$	257,637	$	281,915	$	2,227,893
Liabilities and equity
Deposits<br><br><br>(3)
Unsecured borrowing	$	105,718	$	94,516	$	100,688	$	74,142	$	80,032	$	55,295	$	85,399	$	57,716	$	716,358	$	1,369,864
Secured borrowing		5,111		9,563		8,930		1,977		1,322		9,043		12,498		8,450		–		56,894
Covered bonds		–		2,368		3,231		3,134		5,001		21,322		15,576		4,087		–		54,719
Other
Acceptances		13		–		–		–		–		–		5		–		–		18
Obligations related to securities sold short		39,695		1,848		1,456		757		2,336		980		–		–		–		47,072
Obligations related to assets sold under repurchase agreements and securities loaned<br><br><br>(2)		132,293		92,575		14,419		3,154		–		1,641		–		–		22,205		266,287
Derivatives		13,261		18,489		16,920		9,858		7,905		18,728		31,655		42,046		–		158,862
Other financial liabilities		44,381		3,371		2,930		1,913		1,534		1,198		2,577		19,566		2,068		79,538
Subordinated debentures		–		–		2,050		–		–		–		–		11,782		–		13,832
Total financial liabilities		340,472		222,730		150,624		94,935		98,130		108,207		147,710		143,647		740,631		2,047,086
Other<br><br><br>non-financial<br><br><br>liabilities		1,190		1,088		4,624		252		397		1,803		1,821		22,549		11,451		45,175
Equity		–		–		–		–		–		–		–		–		135,632		135,632
Total liabilities and equity	$	341,662	$	223,818	$	155,248	$	95,187	$	98,527	$	110,010	$	149,531	$	166,196	$	887,714	$	2,227,893
Off-balance<br><br><br>sheet items
Financial guarantees	$	726	$	2,781	$	4,643	$	4,547	$	4,433	$	2,273	$	6,453	$	1,864	$	24	$	27,744
Commitments to extend credit		3,738		10,773		13,820		18,795		23,273		70,948		228,039		28,747		3,745		401,878
Other credit-related commitments		66,666		1,685		2,700		2,309		3,374		774		727		123		74,648		153,006
Other commitments		6		336		18		16		17		64		162		225		967		1,811
Total<br><br><br>off-balance<br><br><br>sheet items	$	71,136	$	15,575	$	21,181	$	25,667	$	31,097	$	74,059	$	235,381	$	30,959	$	79,384	$	584,439
(1)	With the exception of debt securities within the Insurance segment, trading debt securities classified as FVTPL have been included in the less than 1 month category as there is no expectation to hold these assets to their contractual maturity.
---	---
(2)	Open reverse repo and repo contracts, which have no set maturity date and are typically short-term, have been included in the with no specific maturity category.
---	---
(3)	A major portion of relationship-based deposits are repayable on demand or at short notice on a contractual basis while, in practice, these customer balances form a core base for our operations and liquidity needs, as explained in the preceding Deposit and funding profile section.
---	---

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Royal Bank of Canada

Third Quarter 2025 41

	As at April 30, 2025
(Millions of Canadian dollars)	Less than<br><br>1 month		1 to 3<br><br>months		3 to 6<br><br>months		6 to 9<br><br>months		9 to 12<br><br>months		1 year<br>to 2 years		2 years<br>to 5 years		5 years<br>and greater		With no<br>specific<br>maturity		Total
Assets
Cash and deposits with banks	$	112,201	$	12	$	–	$	–	$	5	$	–	$	–	$	–	$	2,373	$	114,591
Securities
Trading<br><br><br>(1)		88,695		2,454		1,371		104		496		239		547		13,533		81,698		189,137
Investment, net of applicable allowance		7,828		7,930		15,708		17,701		14,894		58,797		70,507		108,649		1,346		303,360
Assets purchased under reverse repurchase agreements and securities borrowed<br><br><br>(2)		133,553		52,321		59,562		14,113		21,286		179		–		–		20,913		301,927
Loans, net of applicable allowance <br>(3)		28,716		31,650		47,567		49,167		52,370		291,986		301,643		82,969		121,238		1,007,306
Other
Customers’ liability under acceptances		20		2		–		–		–		–		6		–		–		28
Derivatives		18,188		19,391		12,977		14,693		9,326		24,134		40,824		48,678		–		188,211
Other financial assets		51,448		3,918		2,432		605		828		163		704		1,726		3,585		65,409
Total financial assets		440,649		117,678		139,617		96,383		99,205		375,498		414,231		255,555		231,153		2,169,969
Other<br><br><br>non-financial<br><br><br>assets		14,192		2,228		1,530		328		258		2,640		3,336		9,486		38,166		72,164
Total assets	$	454,841	$	119,906	$	141,147	$	96,711	$	99,463	$	378,138	$	417,567	$	265,041	$	269,319	$	2,242,133
Liabilities and equity
Deposits<br><br><br>(4)
Unsecured borrowing	$	101,249	$	76,791	$	95,030	$	87,050	$	66,447	$	54,824	$	86,394	$	54,846	$	710,263	$	1,332,894
Secured borrowing		5,461		8,084		8,606		2,505		843		7,326		13,002		9,727		–		55,554
Covered bonds		1,326		2,662		2,328		3,223		3,084		25,022		16,603		4,090		–		58,338
Other
Acceptances		20		2		–		–		–		–		6		–		–		28
Obligations related to securities sold short		38,529		3,317		2,404		1,209		712		652		–		–		–		46,823
Obligations related to assets sold under repurchase agreements and securities loaned<br><br><br>(2)		189,556		49,147		19,483		1,497		–		938		–		–		20,705		281,326
Derivatives		20,333		24,626		14,766		14,073		9,946		24,856		40,030		45,714		–		194,344
Other financial liabilities		46,110		5,010		3,295		1,780		1,666		1,457		2,560		19,640		1,041		82,559
Subordinated debentures		–		–		–		2,032		–		–		–		11,713		–		13,745
Total financial liabilities		402,584		169,639		145,912		113,369		82,698		115,075		158,595		145,730		732,009		2,065,611
Other<br><br><br>non-financial<br><br><br>liabilities		1,359		1,125		229		3,833		405		1,604		1,703		22,565		11,169		43,992
Equity		–		–		–		–		–		–		–		–		132,530		132,530
Total liabilities and equity	$	403,943	$	170,764	$	146,141	$	117,202	$	83,103	$	116,679	$	160,298	$	168,295	$	875,708	$	2,242,133
Off-balance<br><br><br>sheet items
Financial guarantees	$	981	$	3,006	$	3,956	$	4,608	$	4,778	$	2,368	$	5,738	$	2,097	$	24	$	27,556
Commitments to extend credit		6,015		10,823		13,744		14,860		22,156		63,567		221,716		24,777		4,240		381,898
Other credit-related commitments		69,646		2,055		2,620		2,759		2,186		417		1,205		122		74,438		155,448
Other commitments		6		11		17		18		17		64		163		231		948		1,475
Total<br><br><br>off-balance<br><br><br>sheet items	$	76,648	$	15,895	$	20,337	$	22,245	$	29,137	$	66,416	$	228,822	$	27,227	$	79,650	$	566,377
(1)	With the exception of debt securities within the Insurance segment, trading debt securities classified as FVTPL have been included in the less than 1 month category as there is no expectation to hold these assets to their contractual maturity.
---	---
(2)	Open reverse repo and repo contracts, which have no set maturity date and are typically short-term, have been included in the with no specific maturity category.
---	---
(3)	Comparative amounts have been revised from those previously presented.
---	---
(4)	A major portion of relationship-based deposits are repayable on demand or at short notice on a contractual basis while, in practice, these customer balances form a core base for our operations and liquidity needs, as explained in the preceding Deposit and funding profile section.
---	---
Capital management
---

We continue to manage our capital in accordance with our Capital Management Framework as described in our 2024 Annual Report. In addition, we continue to monitor for new regulatory capital developments, including OSFI guidance, in order to comply with these requirements as disclosed in the Capital management section in our 2024 Annual Report, and as updated below.

OSFI expects Canadian banks to meet the Basel III targets for CET1, Tier 1 and Total capital ratios as per CAR guidelines. Under Basel III, banks select from two main approaches, the Standardized Approach (SA) or the Internal Ratings Based (IRB) Approach, to calculate their minimum regulatory capital required to support credit, market and operational risks. We apply the IRB approach to credit risk to determine minimum regulatory capital requirements for the majority of our portfolios. Certain credit risk portfolios are subject to the SA, primarily in Wealth Management including our City National wholesale portfolio, our Caribbean Banking operations and certain

non-mortgage

retail portfolios acquired through the HSBC Canada transaction. For consolidated regulatory reporting of market risk capital and operational risk capital, we use the revised SA as noted in our 2024 Annual Report.

The Financial Stability Board (FSB) has

re-designated

us as a Global Systemically Important Bank

(G-SIB).

This designation requires us to maintain a higher loss absorbency requirement (common equity as a percentage of RWA) of 1% consistent with the

D-SIB

requirement. In addition to the Basel III targets, OSFI established a Domestic Stability Buffer (DSB) applicable to all Canadian

D-SIBs

to further ensure the financial stability of the Canadian financial system. The current OSFI requirement for the DSB is set at 3.5% of total RWA as reaffirmed by OSFI on June 26, 2025.

Under OSFI’s Total Loss Absorbing Capacity (TLAC) guideline,

D-SIBs

are required to maintain a risk-based TLAC ratio which builds on the risk-based capital ratios described in the CAR guideline, and a TLAC leverage ratio which builds on the leverage ratio described in OSFI’s LR guideline. The TLAC requirement is intended to address the sufficiency of a

D-SIB’s

loss

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42 Royal Bank of Canada Third Quarter 2025

absorbing capacity in supporting its recapitalization in the event of its failure. TLAC is defined as the aggregate of Tier 1 capital, Tier 2 capital and external TLAC instruments, which allow conversion in whole or in part into common shares under the CDIC Act and meet all of the eligibility criteria under the TLAC guideline.

On February 12, 2025, OSFI announced an indefinite delay to increases in the capital floor factor prescribed in its CAR guideline and maintained the current 67.5% of RWA (as calculated using only the SA for credit, market and operational risk). OSFI committed to providing at least two years notice to affected banks prior to resuming increases in the capital floor.

Our methodology for allocating capital to our business segments is based on the Basel III regulatory capital requirements, with the exception of Insurance. Effective the first quarter of 2025, we increased our capital attribution rates to our business segments. For further details, refer to the How we measure and report our business segments section.

For further details, refer to the Capital management section of our 2024 Annual Report.

The following table provides a summary of OSFI’s current regulatory target ratios under Basel III and Pillar 2 requirements. We are in compliance with all current capital, leverage and TLAC requirements imposed by OSFI:

Basel III<br><br>capital,<br><br>leverage and TLAC<br>ratios	OSFI regulatory target requirements for large banks under Basel III
	Minimum		Capital<br>Buffers		Minimum<br>including<br>Capital<br>Buffers		D-SIB/G-SIB<br><br>surcharge<br><br>(1)		Minimum including<br>Capital Buffers<br><br>and<br><br><br>D-SIB/G-SIB<br><br>surcharge<br><br>(1), (2)
Common Equity Tier 1		4.5%		2.6%		7.1%		1.0%		8.1%	3.5%	11.6%	13.2%
Tier 1 capital		6.0%		2.6%		8.6%		1.0%		9.6%	3.5%	13.1%	14.8%
Total capital		8.0%		2.6%		10.6%		1.0%		11.6%	3.5%	15.1%	16.6%
Leverage ratio		3.0%		n.a.		3.0%		0.5%		3.5%	n.a.	3.5%	4.5%
TLAC ratio		21.6%		n.a.		21.6%		n.a.		21.6%	3.5%	25.1%	30.9%
TLAC leverage ratio		7.25%		n.a.		7.25%		n.a.		7.25%	n.a.	7.25%	9.3%
(1)	A capital surcharge, equal to the higher of our<br><br><br>D-SIB<br><br><br>surcharge and the BCBS’s<br><br><br>G-SIB<br><br><br>surcharge, is applicable to risk-weighted capital. For leverage ratio, only 50% of our<br><br><br>D-SIB<br><br><br>surcharge for capital is the required surcharge.
---	---
(2)	The capital buffers include the capital conservation buffer of 2.5% and the countercyclical capital buffer (CCyB) as prescribed by OSFI. The CCyB, calculated in accordance with OSFI’s CAR guidelines, was 0.08% as at July 31, 2025 (April 30, 2025 – 0.09%; October 31, 2024 – 0.08%).
---	---
(3)	The DSB can range from 0% to 4% of total RWA and is currently set at 3.5%.
---	---
(4)	Minimum target requirements reflect CCyB requirements as at July 31, 2025 which are subject to change based on exposures held at the reporting date.
---	---
n.a.	not applicable
---	---

The following table provides details on our regulatory capital, TLAC available, RWA, and on ratios for capital, leverage and TLAC. Our capital position remains strong and our capital, leverage and TLAC ratios remain well above OSFI regulatory targets.

	As at
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)	July 31<br><br>2025		April 30<br><br>2025		October 31<br><br>2024
Capital<br><br>(1)
CET1 capital	$	95,654	$	92,829	$	88,936
Tier 1 capital		107,155		103,194		97,952
Total capital		119,848		116,237		110,487
RWA used in calculation of capital ratios<br><br>(1)
Credit risk	$	589,582	$	570,953	$	548,809
Market risk		37,936		39,287		33,930
Operational risk		95,637		93,680		89,543
Total RWA	$	723,155	$	703,920	$	672,282
Capital ratios and Leverage ratio<br><br>(1)
CET1 ratio		13.2%		13.2%		13.2%
Tier 1 capital ratio		14.8%		14.7%		14.6%
Total capital ratio		16.6%		16.5%		16.4%
Leverage ratio		4.5%		4.3%		4.2%
Leverage ratio exposure	$	2,404,301	$	2,379,092	$	2,344,228
TLAC available and ratios<br><br>(2)
TLAC available	$	223,343	$	217,931	$	196,659
TLAC ratio		30.9%		31.0%		29.3%
TLAC leverage ratio		9.3%		9.2%		8.4%
(1)	Capital, RWA and capital ratios are calculated using OSFI’s CAR guideline and the Leverage ratio is calculated using OSFI’s LR guideline. Both the CAR guideline and LR guideline are based on the Basel III framework.
---	---
(2)	TLAC available and TLAC ratios are calculated using OSFI’s TLAC guideline. The TLAC standard is applied at the resolution entity level which for us is deemed to be Royal Bank of Canada and its subsidiaries. A resolution entity and its subsidiaries are collectively called a resolution group. The TLAC ratio and TLAC leverage ratio are calculated using the TLAC available as a percentage of total RWA and leverage exposure, respectively.
---	---

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Royal Bank of Canada

Third Quarter 2025 43

Q3 2025 vs. Q2 2025

(1)	Represents rounded figures.
(2)	Represents net internal capital generation of $3.1 billion or 44 bps consisting of Net income available to shareholders less common and preferred share dividends and distributions on other equity instruments.
---	---
(3)	Excludes the impact of foreign exchange translation (included in Other), U.S. rating downgrade and risk parameter changes.
---	---

Our CET1 ratio of 13.2% was unchanged from last quarter, reflecting net internal capital generation that was offset by RWA growth, share repurchases, the impact of a U.S. rating downgrade and risk parameter changes.

Total RWA increased by $19 billion, mainly due to business growth, the impact of a U.S. rating downgrade, risk parameter changes and foreign exchange translation. Business growth primarily reflects higher corporate lending, loan underwriting commitments and residential mortgages, partially offset by a reduction in market risk. In our CET1 ratio, the impact of foreign exchange translation on RWA is largely mitigated with economic hedges.

Our Tier 1 capital ratio of 14.8% was up 10 bps and our Total capital ratio of 16.6% was up 10 bps, mainly reflecting net issuance of Additional Tier 1 instruments.

Our Leverage ratio of 4.5% was up 20 bps from last quarter, primarily due to net internal capital generation and net issuance of Additional Tier 1 instruments, partially offset by share repurchases and growth in leverage exposures.

Total leverage exposures increased by $25 billion, primarily due to growth in securities and retail and wholesale loans, partially offset by lower repo-style transactions.

Our TLAC ratio of 30.9% was down 10 bps, mainly reflecting higher RWA, partially offset by net internal capital generation and a favourable impact from a net increase in eligible external TLAC instruments.

Our TLAC leverage ratio of 9.3% was up 10 bps, reflecting the factors noted above under the Leverage ratio, as well as a favourable impact from a net increase in eligible external TLAC instruments.

External TLAC instruments include long-term debt subject to conversion under the

Bail-in

regime. For further details, refer to Deposit and funding profile in the Liquidity and funding risk section.

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44 Royal Bank of Canada Third Quarter 2025

Selected capital management activity

The following table provides our selected capital management activity:

	For the three months ended<br><br>July 31, 2025								For the nine months ended<br><br>July 31, 2025
(Millions of Canadian dollars, except number of shares)	Issuance or<br><br>redemption date		Number of<br>shares<br>(000s)			Amount			Number of<br>shares<br>(000s)			Amount
Tier 1 capital
Common shares activity
Issued in connection with share-based compensation plans<br><br><br>(1)				227		$	22			601		$	58
Purchased for cancellation<br><br><br>(2)				(5,445	)		(81	)		(10,400	)		(155	)
Issuance of limited recourse capital notes (LRCNs) Series 5 <br>(2), (3), (4)		November 1, 2024		–			–			1,000			1,396
Redemption of preferred shares, Series BD <br>(2), (3)		May 24, 2025		(24,000	)		(600	)		(24,000	)		(600	)
Issuance of limited recourse capital notes (LRCNs) Series 6 <br>(2), (3), (4)		June 11, 2025		1,250			1,708			1,250			1,708
Tier 2 capital
Redemption of December 23, 2029 subordinated debentures <br>(2), (3)		December 23, 2024					–						(1,500	)
Issuance of February 4, 2035 subordinated debentures <br>(2), (3)		January 29, 2025					–						1,500
Redemption of June 30, 2030 subordinated debentures <br>(2), (3)		June 30, 2025					(1,250	)					(1,250	)
Issuance of July 3, 2035 subordinated debentures <br>(2), (3)		July 3, 2025					1,250						1,250
Issuance of July 17, 2035 subordinated debentures <br>(2), (3)		July 17, 2025					241						241
(1)	Amounts include cash received for stock options exercised during the period and fair value adjustments to stock options.
---	---
(2)	For further details, refer to Note 10 of our Condensed Financial Statements.
---	---
(3)	Non-Viability<br><br><br>Contingent Capital (NVCC) instruments.
---	---
(4)	For the LRCNs, the number of shares represents the number of notes issued.
---	---

On June 10, 2024, we announced a normal course issuer bid (NCIB) to purchase up to 30 million of our common shares. This NCIB was completed on June 11, 2025, with 8,957 thousand common shares repurchased and cancelled at a total cost of approximately $1,510 million.

On June 10, 2025, we announced an NCIB to purchase up to 35 million of our common shares, commencing on June 12, 2025 and continuing until June 11, 2026, or such earlier date as we complete the repurchase of all shares permitted under the bid. Since the inception of this NCIB, the total number of common shares repurchased and cancelled is approximately 2,331 thousand, at a cost of approximately $411 million.

For the three months ended July 31, 2025, the total number of common shares repurchased and cancelled under our NCIB programs was approximately 5,445 thousand. The total cost of the shares repurchased was $955 million.

We determine the amount and timing of purchases under the NCIB, subject to prior consultation with OSFI. Purchases may be made through the TSX, the NYSE and other designated exchanges and alternative Canadian trading systems. The price paid for repurchased shares is the prevailing market price at the time of acquisition.

On November 1, 2024, we issued US$1,000 million of LRCN Series 5 at a price of US$1,000 per note. The LRCN Series 5 bear interest at a fixed rate of 6.350% per annum until November 24, 2034. Thereafter, the interest rate on the LRCN Series 5 will reset every five years at a rate per annum equal to the prevailing

5-Year

U.S. Treasury Rate plus 2.257% until their maturity on November 24, 2084.

On December 23, 2024, we redeemed all $1,500 million of our outstanding NVCC 2.88% subordinated debentures due December 23, 2029 for 100% of their principal amount plus accrued interest to, but excluding, the redemption date.

On January 29, 2025, we issued $1,500 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of 4.279% per annum until February 4, 2030, and at the Daily Compounded Canadian Overnight Repo Rate Average (CORRA) plus 1.45% thereafter until their maturity on February 4, 2035.

On May 24, 2025, we redeemed all 24 million of our issued and outstanding

Non-Cumulative

5-Year

Rate Reset First Preferred Shares Series BD at a price of $25 per share.

On June 11, 2025, we issued US$1,250 million of LRCN Series 6 at a price of US$1,000 per note. The LRCN Series 6 bear interest at a fixed rate of 6.750% per annum until August 24, 2030. Thereafter, the interest rate on the LRCN Series 6 will reset every five years at a rate per annum equal to the prevailing

5-Year

U.S. Treasury Rate plus 2.815% until their maturity on August 24, 2085.

On June 30, 2025, we redeemed all $1,250 million of our outstanding NVCC 2.088% subordinated debentures due June 30, 2030 for 100% of their principal amount plus accrued interest to, but excluding, the redemption date.

On July 3, 2025, we issued $1,250 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of 4.214% per annum until July 3, 2030, and at the Daily Compounded CORRA plus 1.51% thereafter until their maturity on July 3, 2035.

On July 17, 2025, we issued ¥26,000 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of 1.963% per annum until July 17, 2030, and at the

5-year

Tokyo Overnight Average Rate

mid-swap

rate plus 1.02% thereafter until their maturity on July 17, 2035.

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Royal Bank of Canada

Third Quarter 2025 45

Selected share data

(1)

	As at July 31, 2025
(Millions of Canadian dollars, except number of shares and as otherwise noted)	Number of<br>shares<br>(000s)			Amount			Dividends<br>declared per<br>share
Common shares issued		1,405,281		$	20,916		$	1.54
Treasury shares – common shares<br><br><br>(2)		(237	)		(43	)
Common shares outstanding		1,405,044		$	20,873
Stock options and awards
Outstanding		7,685
Exercisable		3,717
First preferred shares issued
Non-cumulative<br><br><br>Series BF<br><br><br>(3), (4)		12,000		$	300		$	0.19
Non-cumulative<br><br><br>Series BH<br><br><br>(4)		6,000			150			0.31
Non-cumulative<br><br><br>Series BI<br><br><br>(4)		6,000			150			0.31
Non-cumulative<br><br><br>Series BO<br><br><br>(3), (4)		14,000			350			0.37
Non-cumulative<br><br><br>Series BT<br><br><br>(3), (4), (5)		750			750			4.20%
Non-cumulative<br><br><br>Series BU<br><br><br>(3), (4), (5)		750			750			7.41%
Non-cumulative<br><br><br>Series BW<br><br><br>(3), (4), (5)		600			600			6.70%
Other equity instruments issued
Limited recourse capital notes Series 1<br><br><br>(3), (4), (6), (7)		1,750			1,750			4.50%
Limited recourse capital notes Series 2<br><br><br>(3), (4), (6), (7)		1,250			1,250			4.00%
Limited recourse capital notes Series 3<br><br><br>(3), (4), (6), (7)		1,000			1,000			3.65%
Limited recourse capital notes Series 4<br><br><br>(3), (4), (6), (7)		1,000			1,370			7.50%
Limited recourse capital notes Series 5<br><br><br>(3), (4), (6), (7)		1,000			1,396			6.35%
Limited recourse capital notes Series 6<br><br><br>(3), (4), (6), (7)		1,250			1,708			6.75%
Preferred shares and other equity instruments issued		47,350			11,524
Treasury instruments – preferred shares and other equity instruments<br><br><br>(2)		(20	)		(26	)
Preferred shares and other equity instruments outstanding		47,330		$	11,498
Dividends on common shares				$	2,165
Dividends on preferred shares and distributions on other equity instruments<br><br><br>(8)					125
(1)	For further details about our capital management activity, refer to Note 10 of our Condensed Financial Statements.
---	---
(2)	Positive amounts represent a short position and negative amounts represent a long position.
---	---
(3)	Dividend rate will reset every five years.
---	---
(4)	NVCC instruments.
---	---
(5)	The dividends declared per share represent the per annum dividend rate applicable to the shares issued as at the reporting date.
---	---
(6)	For LRCN Series, the number of shares represent the number of notes issued and the dividends declared per share represent the annual interest rate percentage applicable to the notes issued as at the reporting date.
---	---
(7)	In connection with the issuance of LRCN Series 1, on July 28, 2020, we issued $1,750 million of First Preferred Shares Series BQ (Series BQ); in connection with the issuance of LRCN Series 2, on November 2, 2020, we issued $1,250 million of First Preferred Shares Series BR (Series BR); in connection with the issuance of LRCN Series 3, on June 8, 2021, we issued $1,000 million of First Preferred Shares Series BS (Series BS); in connection with the issuance of LRCN Series 4 on April 24, 2024, we issued US$1,000 million of First Preferred Shares Series BV (Series BV); in connection with the issuance of LRCN Series 5 on November 1, 2024, we issued US$1,000 million of First Preferred Shares Series BX (Series BX); and in connection with the issuance of LRCN Series 6 on June 11, 2025, we issued US$1,250 million of First Preferred Shares Series BY (Series BY). The Series BQ, BR and BS preferred shares were issued at a price of $1,000 per share and the Series BV, BX and BY preferred shares were issued at a price of US$1,000 per share. The Series BQ, BR, BS, BV, BX and BY preferred shares were issued to a consolidated trust to be held as trust assets in connection with the LRCN series. For further details, refer to Note 19 of our audited 2024 Annual Consolidated Financial Statements.
---	---
(8)	Excludes distributions to<br><br><br>non-controlling<br><br><br>interests.
---	---

As at August 22, 2025, the number of outstanding common shares was 1,404,990,158, net of treasury shares held of 307,575, and the number of stock options and awards was 7,667,677.

NVCC provisions require the conversion of the capital instrument into a variable number of common shares in the event that OSFI deems a bank to be non-viable or a federal or provincial government in Canada publicly announces that a bank has accepted or agreed to accept a capital injection. If a NVCC trigger event were to occur, our NVCC capital instruments as at July 31, 2025, which were the preferred shares Series BF, BH, BI, BO, BT, BU, BW, LRCN Series 1, LRCN Series 2, LRCN Series 3, LRCN Series 4, LRCN Series 5, LRCN Series 6 and subordinated debentures due on January 27, 2026, January 28, 2033, November 3, 2031, May 3, 2032, February 1, 2033, April 3, 2034, August 8, 2034, February 4, 2035, July 3, 2035 and July 17, 2035 would be converted into common shares pursuant to an automatic conversion formula with a conversion price based on the greater of: (i) a contractual floor price of $5.00 (subject to adjustment in certain circumstances), and (ii) the current market price of our common shares at the time of the trigger event (10-day weighted average). Based on a floor price of $5.00 and including an estimate for accrued dividends and interest, these NVCC capital instruments would convert into a maximum of approximately 6.5 billion common shares, in aggregate, which would represent a dilution impact of 82.2% based on the number of common shares outstanding as at July 31, 2025.

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46 Royal Bank of Canada Third Quarter 2025

Accounting and control matters
Summary of accounting policies and estimates
---

Our Condensed Financial Statements are presented in compliance with International Accounting Standard 34

Interim Financial Reporting . Our material accounting policies are described in Note 2 of our audited 2024 Annual Consolidated Financial Statements.

Future changes in accounting policies and disclosures

Future changes in accounting policies and disclosures that are not yet effective for us are described in Note 2 of our audited 2024 Annual Consolidated Financial Statements.

Controls and procedures

Disclosure controls and procedures

As of July 31, 2025, management evaluated, under the supervision of and with the participation of the President and Chief Executive Officer and the Chief Financial Officer, the effectiveness of our disclosure controls and procedures as defined under rules adopted by the Canadian securities regulatory authorities and the U.S. SEC. Based on that evaluation, the President and Chief Executive Officer and the Chief Financial Officer concluded that our disclosure controls and procedures were effective as of July 31, 2025.

Internal control over financial reporting

No changes were made in our internal control over financial reporting during the quarter ended July 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Related party transactions

In the ordinary course of business, we provide normal banking services and operational services, and enter into other transactions with associated and other related corporations, including our joint venture entities, on terms similar to those offered to

non-related

parties. We grant loans to directors, officers and other employees at rates normally accorded to preferred clients. In addition, we offer deferred share and other plans to

non-employee

directors, executives and certain other key employees. For further information, refer to Notes 12 and 25 of our audited 2024 Annual Consolidated Financial Statements.

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Royal Bank of Canada Third Quarter 2025 47

Glossary

Adjusted results

For further details, including a reconciliation, refer to the Key performance and non-GAAP measures section.

•	Adjusted effective income tax rate<br> – calculated as effective income tax rate excluding the impact of specified items and amortization of acquisition-related intangibles.
•	Adjusted income before income taxes<br> – calculated as income before income taxes excluding the impact of specified items and amortization of acquisition-related intangibles.
---	---
•	Adjusted income taxes<br> – calculated as income taxes excluding the impact of specified items and amortization of acquisition-related intangibles.
---	---
•	Adjusted net income<br> – calculated as net income excluding the impact of specified items and amortization of acquisition-related intangibles.
---	---
•	Adjusted net income available to common shareholders<br> – calculated as net income available to common shareholders excluding the impact of specified items and amortization of acquisition-related intangibles.
---	---
•	Adjusted <br>non-interest<br> expense<br> – calculated as <br>non-interest<br> expense excluding the impact of specified items and amortization of acquisition-related intangibles.
---	---
•	Adjusted total revenue<br> – calculated as total revenue excluding the impact of specified items.
---	---

Acceptances

A bill of exchange or negotiable instrument drawn by the borrower for payment at maturity and accepted by a bank. The acceptance constitutes a guarantee of payment by the bank and can be traded in the money market. The bank earns a “stamping fee” for providing this guarantee.

Allowance for credit losses (ACL)

The amount deemed adequate by management to absorb expected credit losses as at the balance sheet date. The allowance is established for all financial assets subject to impairment assessment, including certain loans, debt securities, customers’ liability under acceptances, financial guarantees, and undrawn loan commitments. The allowance is changed by the amount of provision for credit losses recorded, which is charged to income, and decreased by the amount of write-offs net of recoveries in the period.

ACL on loans ratio

ACL on loans ratio is calculated as ACL on loans as a percentage of total loans and acceptances.

Asset-backed securities (ABS)

Securities created through the securitization of a pool of assets, for example auto loans or credit card loans.

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 purchase and sale transactions, and record keeping.

Assets under management (AUM)

Assets managed by us, which are beneficially owned by clients, unless otherwise noted. Services provided in respect of assets under management include the selection of investments and the provision of investment advice. We have assets under management that are also administered by us and included in assets under administration.

Attributed capital

Attributed capital to our business segments is based on the Basel III regulatory capital and leverage requirements other than for our insurance segment for which we attribute capital based only on economic capital.

Auction rate securities (ARS)

Debt securities whose interest rates are regularly reset through an auction process.

Average earning assets, net

Average earning assets include interest-bearing deposits with other banks, securities, net of applicable allowance, assets purchased under reverse repurchase agreements and securities borrowed, loans, net of allowance, cash collateral and margin deposits. Insurance assets, and all other assets not specified are excluded. The averages are based on the daily balances for the period.

Basis point (bp)

One one-hundredth of a percentage point (.01%).

Collateral

Assets pledged as security for a loan or other obligation. Collateral can take many forms, such as cash, highly rated securities, property, inventory, equipment and receivables.

Collateralized debt obligation (CDO)

Securities with multiple tranches that are issued by structured entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand.

Commercial mortgage-backed securities (CMBS)

Securities created through the securitization of commercial mortgages.

Commitments to extend credit

Unutilized amount of credit facilities available to clients either in the form of loans, bankers’ acceptances and other on-balance sheet financing, or through off-balance sheet products such as guarantees and letters of credit.

Common Equity Tier 1 (CET1) capital

A regulatory Basel III capital measure comprised mainly of common shareholders’ equity less regulatory deductions and adjustments for goodwill and intangibles, defined benefit pension fund assets, shortfall in allowances and other specified items. The CET1 capital is calculated in accordance with OSFI’s CAR guideline. For more details, refer to the Capital management section.

Common Equity Tier 1 capital ratio

A risk-based capital measure calculated as CET1 capital divided by risk-weighted assets. The CET1 ratio is calculated in accordance with OSFI’s CAR guideline.

Contractual service margin (CSM)

For insurance contracts, the CSM represents the unearned profit (net inflows) for providing insurance coverage. For reinsurance contracts held, the CSM represents the net cost or net gain of purchasing reinsurance.

Covered bonds

Full recourse on-balance sheet obligations issued by banks and credit institutions that are fully collateralized by assets over which investors enjoy a priority claim in the event of an issuer’s insolvency.

Credit default swaps (CDS)

A derivative contract that provides the purchaser with a one-time payment should the referenced entity/entities default (or a similar triggering event occur).

Derivative

A contract between two parties, which requires little or no initial investment and where payments between the parties are dependent upon the movements in price of an underlying instrument, index or financial rate. Examples of derivatives include swaps, options, forward rate agreements and futures. The notional amount of the derivative is the contract amount used as a reference point to calculate the payments to be exchanged between the two parties, and the notional amount itself is generally not exchanged by the parties.

Dividend payout ratio

Common dividends as a percentage of net income available to common shareholders.

Dividend yield

Dividends per common share divided by the average of the high and low share price in the relevant period.

Earnings per share (EPS), basic

Calculated as net income available to common shareholders divided by the average number of shares outstanding. Adjusted EPS, basic is calculated in the same manner, using adjusted net income available to common shareholders.

Earnings per share (EPS), diluted

Calculated as net income available to common shareholders divided by the average number of shares outstanding adjusted for the dilutive effects of stock options and other convertible securities. Adjusted EPS, diluted is calculated in the same manner, using adjusted net income available to common shareholders.

Efficiency ratio

Non-interest expense as a percentage of total revenue. Adjusted efficiency ratio is calculated in the same manner, using adjusted non-interest expense and adjusted total revenue.

Expected credit losses

The difference between the contractual cash flows due to us in accordance with the relevant contractual terms and the cash flows that we expect to receive, discounted to the balance sheet date.

Fair value

Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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48 Royal Bank of Canada Third Quarter 2025

Funding valuation adjustment

Funding valuation adjustments are calculated to incorporate cost and benefit of funding in the valuation of uncollateralized and under-collateralized OTC derivatives. Future expected cash flows of these derivatives are discounted to reflect the cost and benefit of funding the derivatives by using a funding curve, implied volatilities and correlations as inputs.

Guarantees and standby letters of credit

These primarily represent irrevocable assurances that a bank will make payments in the event that its client cannot meet its financial obligations to third parties. Certain other guarantees, such as bid and performance bonds, represent non-financial undertakings.

Hedge

A risk management technique used to mitigate exposure from market, interest rate or foreign currency exchange risk arising from normal banking operations. The elimination or reduction of such exposure is accomplished by establishing offsetting positions. For example, assets denominated in foreign currencies can be offset with liabilities in the same currencies or through the use of foreign exchange hedging instruments such as futures, options or foreign exchange contracts.

Hedge funds

A type of investment fund, marketed to accredited high net worth investors, that is subject to limited regulation and restrictions on its investments compared to retail mutual funds, and that often utilize aggressive strategies such as selling short, leverage, program trading, swaps, arbitrage and derivatives.

High-quality liquid assets (HQLA)

HQLA are cash or assets that can be converted into cash quickly through sales (or by being pledged as collateral) with no significant loss of value.

Impaired loans

Loans are classified as impaired when there has been a deterioration of credit quality to the extent that management no longer has reasonable assurance of timely collection of the full amount of principal and interest in accordance with the contractual terms of the loan agreement. Credit card balances are not classified as impaired as they are directly written off after payments are 180 days past due.

Insurance contracts

Contracts under which we accept significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. Insurance contracts also include reinsurance contracts issued by us to compensate another company for claims arising from underlying insurance contracts issued by that other company.

Insurance investment result

Calculated as Net investment income from the Insurance segment, Insurance finance income (expense) from insurance contracts and Reinsurance finance income (expense) from reinsurance contracts held. Net investment income primarily comprises interest and dividend income and net gains (losses) on financial instruments and derivatives relating to the Insurance segment. Insurance and reinsurance finance income (expense) represents the net effect of and changes in the time value of money and financial risks on insurance contracts and reinsurance contracts held, respectively.

Insurance service result

Calculated as Insurance revenue less Insurance service expense from insurance contracts and Net income (expense) from reinsurance contracts held. Insurance revenue represents the revenue recognized in the period as we provide insurance services for the groups of insurance contracts. Insurance service expense represents the costs incurred in providing insurance services in the period, which includes incurred claims and other directly attributable expenses, allocation of acquisition costs, changes relating to past or current services and changes in loss components of onerous groups of contracts. Net income (expense) from reinsurance contracts held represents the amounts recovered from the reinsurers less the allocation of premiums paid on reinsurance contracts held.

International Financial Reporting Standards (IFRS)

IFRS are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board.

Leverage ratio

A Basel III regulatory measure, the ratio divides Tier 1 capital by the leverage exposure measure. The leverage ratio is a non-risk based measure and is calculated in accordance with OSFI’s LR guideline.

Leverage ratio exposure

The leverage ratio exposure is calculated in accordance with OSFI’s LR guideline and is defined as the sum of total assets plus off-balance sheet items after certain adjustments.

Liquidity Coverage Ratio (LCR)

The LCR is a Basel III standard that aims to ensure that an institution has an adequate stock of unencumbered HQLA that consists of cash or assets that can be converted into cash at little or no loss of value in private markets, to meet its liquidity needs for a 30 calendar day liquidity stress scenario. The LCR is calculated in accordance with OSFI’s LAR guideline.

Loan-to-value (LTV) ratio

Calculated based on the total facility amount for the residential mortgage and RBC Homeline Plan product divided by the value of the related residential property.

Master netting agreement

An agreement between us and a counterparty designed to reduce the credit risk of multiple derivative transactions through the creation of a legal right of offset of exposure in the event of a default.

Net interest income

The difference between what is earned on assets such as loans and securities and what is paid on liabilities such as deposits and subordinated debentures.

Net interest margin (NIM) on average earning assets, net

Calculated as net interest income divided by average earning assets, net.

Net Stable Funding Ratio (NSFR)

The NSFR is a Basel III standard that requires institutions to maintain a stable funding profile defined as available amount of stable funding (ASF) in relation to the composition of their assets and off-balance sheet activities defined as required amount of stable funding (RSF). The ratio should be at least equal to 100% on an ongoing basis. The NSFR is calculated in accordance with OSFI’s LAR guideline.

Normal course issuer bid (NCIB)

A program for the repurchase of our own shares for cancellation through a stock exchange that is subject to the various rules of the relevant stock exchange and securities commission.

Notional amount

The contract amount used as a reference point to calculate payments for derivatives.

Off-balance sheet financial instruments

A variety of arrangements offered to clients, which include credit derivatives, written put options, backstop liquidity facilities, stable value products, financial standby letters of credit, performance guarantees, credit enhancements, mortgage loans sold with recourse, commitments to extend credit, securities lending, documentary and commercial letters of credit, sponsor member guarantees, securities lending indemnifications and indemnifications.

Office of the Superintendent of Financial Institutions Canada (OSFI)

The primary regulator of federally chartered financial institutions and federally administered pension plans in Canada. OSFI’s mission is to safeguard policyholders, depositors and pension plan members from undue loss.

Operating leverage

The difference between our revenue growth rate and non-interest expense growth rate.

Options

A contract or a provision of a contract that gives one party (the option holder) the right, but not the obligation, to perform a specified transaction with another party (the option issuer or option writer) according to specified terms.

Provision for credit losses (PCL)

The amount charged to income necessary to bring the allowance for credit losses to a level determined appropriate by management. This includes provisions on performing and impaired financial assets.

PCL on loans ratio

PCL on loans ratio is calculated using PCL on loans as a percentage of average net loans and acceptances.

PCL on impaired loans ratio

PCL on impaired loans ratio is calculated as PCL on impaired loans as a percentage of average net loans and acceptances.

PCL on performing loans ratio

PCL on performing loans ratio is calculated as PCL on performing loans as a percentage of average net loans and acceptances.

RBC Homeline Plan products

This is comprised of residential mortgages and secured personal loans whereby the borrower pledges real estate as collateral.

Reinsurance contracts held

Contracts under which we transfer significant insurance risk to a reinsurer that compensates us for claims relating to underlying insurance contracts issued by us and are accounted for separately from the underlying insurance contracts to which they relate.

Repurchase agreements

These involve the sale of securities for cash and the simultaneous repurchase of the securities for value at a later date. These transactions normally do not constitute economic sales and therefore are treated as collateralized financing transactions.

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Royal Bank of Canada Third Quarter 2025 49

Return on common equity (ROE)

Net income available to common shareholders, expressed as a percentage of average common equity. ROE is based on actual balances of average common equity before rounding. Adjusted ROE is calculated in the same manner, using adjusted net income available to common shareholders.

Reverse repurchase agreements

These involve the purchase of securities for cash and the simultaneous sale of the securities for value at a later date. These transactions normally do not constitute economic sales and therefore are treated as collateralized financing transactions.

Risk-weighted assets (RWA)

Assets adjusted by a regulatory risk-weight factor to reflect the riskiness of on- and off-balance sheet exposures. Certain assets are not risk-weighted, but deducted from capital. The calculation is defined by OSFI’s CAR guideline. For more details, refer to the Capital management section.

Securities lending

Transactions in which the owner of securities agrees to lend it under the terms of a prearranged contract to a borrower for a fee. Collateral for the loan consists of either high quality securities or cash and collateral value must be at least equal to the market value of the loaned securities. Borrowers pay a negotiated fee for loans collateralized by securities, whereas for cash collateral lenders pay borrowers interest at a negotiated rate and reinvest the cash collateral to earn a return. An intermediary such as a bank often acts as agent lender for the owner of the security in return for a share of the revenue earned by the owner from lending securities. Most often, agent lenders indemnify the owner against the risk of the borrower’s failure to redeliver the loaned securities – counterparty credit risk if a borrower defaults and market risk if the value of the non-cash collateral declines. The agent lender does not indemnify against the investment risk of re-investing cash collateral which is borne by the owner.

Securities sold short

A transaction in which the seller sells securities and then borrows the securities in order to deliver them to the purchaser upon settlement. At a later date, the seller buys identical securities in the market to replace the borrowed securities.

Securitization

The process by which various financial assets are packaged into newly issued securities backed by these assets.

Standardized Approach (SA) for credit risk

Risk weights prescribed by OSFI are used to calculate RWA for the credit risk exposures. Credit assessments by OSFI-recognized external credit rating agencies of Standard & Poor’s Financial Services LLP; Moody’s Investor Service, Inc.; Fitch Ratings, Inc.; and DBRS Limited are used to risk-weight our Sovereign and Bank exposures based on the standards and guidelines issued by OSFI.

Structured entities

A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding who controls the entity, such as when the activities that significantly affect the entity’s returns are directed by means of contractual arrangements. Structured entities often have restricted activities, narrow and well defined objectives, insufficient equity to finance their activities, and financing in the form of multiple contractually-linked instruments.

Taxable equivalent basis (teb)

Income from certain specified tax advantaged sources (U.S. tax credit investment business as well as eligible Canadian taxable corporate dividends received on or before December 31, 2023) is increased to a level that would make it comparable to income from taxable sources. There is an offsetting adjustment in the tax provision, thereby generating the same after-tax net income.

Tier 1 capital and Tier 1 capital ratio

Tier 1 capital comprises predominantly of CET1 capital, with additional Tier 1 items such as preferred shares, limited recourse capital notes and non-controlling interests in subsidiaries Tier 1 instruments. The Tier 1 capital ratio is calculated in accordance with OSFI’s CAR guideline by dividing Tier 1 capital by risk-weighted assets.

Tier 2 capital

Tier 2 capital consists mainly of subordinated debentures that meet certain criteria, certain loan loss allowances and non-controlling interests in subsidiaries’ Tier 2 instruments.

Total loss absorbing capacity (TLAC)

The aggregate of Tier 1 capital, Tier 2 capital, and external TLAC instruments which allow conversion in whole or in part into common shares under the Canada Deposit Insurance Corporation Act and meet all of the eligibility criteria under the guideline.

TLAC ratio

The risk-based TLAC ratio is defined as TLAC divided by total risk-weighted assets. The TLAC ratio is calculated in accordance with OSFI’s TLAC guideline.

TLAC leverage ratio

The TLAC leverage ratio is defined as TLAC divided by the leverage ratio exposure. The TLAC leverage ratio is calculated in accordance with OSFI’s TLAC guideline.

Total capital and total capital ratio

Total capital is defined as the total of Tier 1 and Tier 2 capital. The total capital ratio is calculated in accordance with OSFI’s CAR guideline by dividing total capital by risk-weighted assets.

Tranche

A security class created whereby the risks and returns associated with a pool of assets are packaged into several classes of securities offering different risk and return profiles from those of the underlying asset pool. Tranches are typically rated by ratings agencies, and reflect both the credit quality of underlying collateral as well as the level of protection based on the tranches’ relative subordination.

Unattributed capital

Unattributed capital represents common equity in excess of common equity attributed to our business segments and is reported in the Corporate Support segment.

Value-at-Risk (VaR)

A generally accepted risk-measurement concept that uses statistical models based on historical information to estimate within a given level of confidence the maximum loss in market value we would experience in our financial portfolio from an adverse one-day movement in market rates and prices.

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50 Royal Bank of Canada Third Quarter 2025

Enhanced Disclosure Task Force recommendations index

We aim to present transparent, high-quality risk disclosures by providing disclosures in our 2024 Annual Report, Q3 2025 Report to Shareholders (RTS), Supplementary Financial Information package (SFI), and Pillar 3 Report, in accordance with recommendations from the FSB’s Enhanced Disclosure Task Force (EDTF). Information within the SFI and Pillar 3 Report is not and should not be considered incorporated by reference into our Q3 2025 Report to Shareholders.

The following index summarizes our disclosure by EDTF recommendation:

			Location of disclosure
Type of Risk	Recommendation	Disclosure	RTS<br><br>page	Annual<br>Report page	SFI<br><br>page
General	1	Table of contents for EDTF risk disclosure	50	140	1
	2	Define risk terminology and measures		69-75, 137-139	–
	3	Top and emerging risks		66-69	–
	4	New regulatory ratios	41-43	114-120	–
Risk governance, risk management and business model	5	Risk management organization		69-75	–
	6	Risk culture		69-75	–
	7	Risk in the context of our business activities		124	–
	8	Stress testing		73, 85	–
Capital adequacy and risk-weighted assets (RWA)	9	Minimum Basel III capital ratios and Domestic systemically important bank surcharge	42	114-120	–
	10	Composition of capital and reconciliation of the accounting balance sheet to the regulatory balance sheet		–	*
	11	Flow statement of the movements in regulatory capital		–	19
	12	Capital strategic planning		114-120	–
	13	RWA by business segments		–	20
	14	Analysis of capital requirement, and related measurement model information		75-79	*
	15	RWA credit risk and related risk measurements		–	*
	16	Movement of RWA by risk type		–	20
	17	Basel back-testing		72, <br>75-77	31
Liquidity	18	Quantitative and qualitative analysis of our liquidity reserve	33	92-93, 98-99	–
Funding	19	Encumbered and unencumbered assets by balance sheet category, and contractual obligations for rating downgrades	34, 36	94, 97	–
	20	Maturity analysis of consolidated total assets, liabilities and <br>off-balance<br> sheet commitments analyzed by remaining contractual maturity at the balance sheet date	40-41	101-102	–
	21	Sources of funding and funding strategy	34-36	94-96	–
Market risk	22	Relationship between the market risk measures for trading and <br>non-trading<br> portfolios and the balance sheet	31-32	89-90	–
	23	Decomposition of market risk factors	28-30	85-90	–
	24	Market risk validation and back-testing		85	–
	25	Primary risk management techniques beyond reported risk measures and parameters		85-88	–
Credit risk	26	Bank’s credit risk profile	24-28	75-85, 187-194	21-31,*
		Quantitative summary of aggregate credit risk exposures that reconciles to the balance sheet	65-71	131-136	*
	27	Policies for identifying impaired loans		77-79, 126, 157-160	–
	28	Reconciliation of the opening and closing balances of impaired loans and impairment allowances during the year		–	23, 28
	29	Quantification of gross notional exposure for <br>over-the-counter<br> derivatives or exchange-traded derivatives		80	32
	30	Credit risk mitigation, including collateral held for all sources of credit risk		78-79	*
Other	31	Other risk types		104-113	–
	32	Publicly known risk events		108-109, 236-237	–
*	These disclosure requirements are satisfied or partially satisfied by disclosures provided in our Pillar 3 Report for the quarter ended July 31, 2025 and for the year ended October 31, 2024.
---	---

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Royal Bank of Canada Third Quarter 2025 51

Interim Condensed Consolidated Financial Statements<br>(unaudited)
Interim Condensed Consolidated Balance Sheets<br>(unaudited)
---
	As at
---	---	---	---	---	---	---
(Millions of Canadian dollars)	July 31<br><br>2025			October 31<br><br>2024
Assets
Cash and due from bank<br>s	$	34,927		$	56,723
Interest-bearing deposits with banks		72,824			66,020
Securities
Trading		204,154			183,300
Investment, net of applicable allowance <br>(Note 4)		333,858			256,618
		538,012			439,918
Assets purchased under reverse repurchase agreements and securities borrowed		265,832			350,803
Loans<br> <br>(Note 5)
Retail		644,791			626,978
Wholesale		387,941			360,439
		1,032,732			987,417
Allowance for loan losses <br>(Note 5)		(7,272	)		(6,037	)
		1,025,460			981,380
Other
Customers’ liability under acceptances		18			35
Derivatives		155,023			150,612
Premises and equipment		6,742			6,852
Goodwill		19,316			19,286
Other intangibles		7,426			7,798
Other assets		102,313			92,155
		290,838			276,738
Total assets	$	2,227,893		$	2,171,582
Liabilities and equity
Deposits<br> <br>(Note 6)
Personal	$	523,327		$	522,139
Business and government		918,163			839,670
Bank		39,987			47,722
		1,481,477			1,409,531
Other
Acceptances		18			35
Obligations related to securities sold short		47,072			35,286
Obligations related to assets sold under repurchase agreements and securities loaned		266,287			305,321
Derivatives		158,862			163,763
Insurance contract liabilities		23,390			22,231
Other liabilities		101,323			94,677
		596,952			621,313
Subordinated debentures<br><br>(Note 10)		13,832			13,546
Total liabilities		2,092,261			2,044,390
Equity attributable to shareholders
Preferred shares and other equity instruments <br>(Note 10)		11,498			9,031
Common shares <br>(Note 10)		20,873			20,952
Retained earnings		94,971			88,608
Other components of equity		8,221			8,498
		135,563			127,089
Non-controlling interests		69			103
Total equity		135,632			127,192
Total liabilities and equity	$	2,227,893		$	2,171,582

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

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52 Royal Bank of Canada Third Quarter 2025

Interim Condensed Consolidated Statements of Income<br>(unaudited)
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except per share amounts)	July 31<br> <br>2025			July 31<br> <br>2024			July 31<br> <br>2025		July 31<br> <br>2024
Interest and dividend income<br> <br>(Note 3)
Loans	$	14,033		$	14,433		$	41,847	$	39,635
Securities		5,057			4,482			14,734		13,230
Assets purchased under reverse repurchase agreements and securities borrowed		5,524			6,632			16,760		20,864
Deposits and other		1,496			1,543			4,194		4,724
		26,110			27,090			77,535		78,453
Interest expense<br> <br>(Note 3)
Deposits and other		11,227			12,432			33,759		35,225
Other liabilities		6,377			7,124			18,945		22,364
Subordinated debentures		155			207			476		582
		17,759			19,763			53,180		58,171
Net interest income		8,351			7,327			24,355		20,282
Non-interest income
Insurance service result <br>(Note 7)		279			214			789		604
Insurance investment result <br>(Note 7)		48			28			208		228
Trading revenue		685			507			2,521		1,944
Investment management and custodial fees		2,642			2,382			7,853		6,824
Mutual fund revenue		1,273			1,151			3,720		3,248
Securities brokerage commissions		444			413			1,401		1,232
Service charges		598			587			1,817		1,698
Underwriting and other advisory fees		850			676			2,139		2,016
Foreign exchange revenue, other than trading		311			292			967		841
Card service revenue		339			324			984		941
Credit fees		395			405			1,200		1,234
Net gains on investment securities		18			28			118		157
Income (loss) from joint ventures and associates		25			(57	)		60		(27	)
Other		727			354			1,264		1,048
		8,634			7,304			25,041		21,988
Total revenue		16,985			14,631			49,396		42,270
Provision for credit losses<br> <br>(Notes 4 and 5)		881			659			3,355		2,392
Non-interest expense
Human resources <br>(Note 8)		5,869			5,406			17,334		15,660
Equipment		684			629			2,069		1,863
Occupancy		410			443			1,267		1,291
Communications		357			342			1,062		1,021
Professional fees		528			547			1,568		1,868
Amortization of other intangibles		436			426			1,328		1,151
Other		948			806			2,590		2,377
		9,232			8,599			27,218		25,231
Income before income taxes		6,872			5,373			18,823		14,647
Income taxes <br>(Note 9)		1,458			887			3,888		2,629
Net income	$	5,414		$	4,486		$	14,935	$	12,018
Net income attributable to:
Shareholders	$	5,415		$	4,483		$	14,930	$	12,011
Non-controlling interests		(1	)		3			5		7
	$	5,414		$	4,486		$	14,935	$	12,018
Basic earnings per share<br><br>(in dollars) (Note 11)	$	3.76		$	3.09		$	10.33	$	8.35
Diluted earnings per share<br><br>(in dollars) (Note 11)		3.75			3.09			10.31		8.34
Dividends per common share<br><br>(in dollars)		1.54			1.42			4.50		4.18

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

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Royal Bank of Canada Third Quarter 2025 53

Interim Condensed Consolidated Statements of Comprehensive Income<br>(unaudited)
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars)	July 31<br> <br>2025			July 31<br> <br>2024			July 31<br> <br>2025			July 31<br> <br>2024
Net income	$	5,414		$	4,486		$	14,935		$	12,018
Other comprehensive income (loss), net of taxes
Items that will be reclassified subsequently to income:
Net change in unrealized gains (losses) on debt securities and loans at fair value through other comprehensive income
Net unrealized gains (losses) on debt securities and loans at fair value through other comprehensive income		220			243			190			1,113
Provision for credit losses recognized in income		(2	)		–			(4	)		–
Reclassification of net losses (gains) on debt securities and loans at fair value through other comprehensive income to income		(22	)		(22	)		(113	)		(114	)
		196			221			73			999
Foreign currency translation adjustments
Unrealized foreign currency translation gains (losses)		369			548			(258	)		228
Net foreign currency translation gains (losses) from hedging activities		(152	)		(253	)		155			(158	)
Reclassification of losses (gains) on foreign currency translation to income		–			–			(13	)		–
Reclassification of losses (gains) on net investment hedging activities to income		–			–			–			1
		217			295			(116	)		71
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges		(322	)		359			248			50
Reclassification of losses (gains) on derivatives designated as cash flow hedges to income		(146	)		(271	)		(482	)		(580	)
		(468	)		88			(234	)		(530	)
Items that will not be reclassified subsequently to income:
Remeasurement gains (losses) on employee benefit plans <br>(Note 8)		278			37			327			183
Net gains (losses) from fair value changes due to credit risk on financial liabilities designated at fair value through profit or loss		(576	)		(47	)		(613	)		(1,061	)
Net gains (losses) on equity securities designated at fair value through other comprehensive income		30			2			68			76
		(268	)		(8	)		(218	)		(802	)
Total other comprehensive income (loss), net of taxes		(323	)		596			(495	)		(262	)
Total comprehensive income (loss)	$	5,091		$	5,082		$	14,440		$	11,756
Total comprehensive income attributable to:
Shareholders	$	5,092		$	5,079		$	14,435		$	11,749
Non-controlling interests		(1	)		3			5			7
	$	5,091		$	5,082		$	14,440		$	11,756

The income tax effect on the Interim Condensed Consolidated Statements of Comprehensive Income is shown in the table below.

	For the three months ended						For the nine months ended
(Millions of Canadian dollars)	July 31<br> <br>2025			July 31<br> <br>2024			July 31<br> <br>2025			July 31<br> <br>2024
Income taxes on other comprehensive income
Net unrealized gains (losses) on debt securities and loans at fair value through other comprehensive income	$	56		$	6		$	149		$	302
Provision for credit losses recognized in income		(1	)		(3	)		(1	)		(3	)
Reclassification of net losses (gains) on debt securities and loans at fair value through other comprehensive income to income		(2	)		(3	)		(30	)		(31	)
Unrealized foreign currency translation gains (losses)		1			(1	)		(6	)		(11	)
Net foreign currency translation gains (losses) from hedging activities		(56	)		(96	)		57			(63	)
Reclassification of losses (gains) on foreign currency translation to income		–			–			–			–
Reclassification of losses (gains) on net investment hedging activities to income		–			–			–			–
Net gains (losses) on derivatives designated as cash flow hedges		(118	)		117			98			(8	)
Reclassification of losses (gains) on derivatives designated as cash flow hedges to income		(56	)		(102	)		(184	)		(217	)
Remeasurement gains (losses) on employee benefit plans		105			19			124			71
Net gains (losses) from fair value changes due to credit risk on financial liabilities designated at fair value through profit or loss		(220	)		(18	)		(234	)		(408	)
Net gains (losses) on equity securities designated at fair value through other comprehensive income		11			1			25			28
Total income tax expenses (recoveries)	$	(280	)	$	(80	)	$	(2	)	$	(340	)

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

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54 Royal Bank of Canada Third Quarter 2025

Interim Condensed Consolidated Statements of Changes in Equity<br>(unaudited)
	For the three months ended July 31, 2025
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
																Other components of equity
(Millions of Canadian dollars)	Preferred<br> shares and<br> other equity<br> instruments			Common<br> shares			Treasury –<br> preferred<br> shares and<br> other equity<br> instruments			Treasury –<br><br>common<br><br>shares			Retained<br> earnings			FVOCI<br> securities<br> and loans			Foreign<br> currency<br> translation		Cash<br> flow<br> hedges			Total other<br> components<br> of equity			Equity<br> attributable to<br> shareholders			Non-controlling<br><br>interests			Total<br> equity
Balance at beginning of <br>period	$	10,416		$	20,975		$	(53	)	$	(155	)	$	92,988		$	(1,020)		$	6,795	$	2,501		$	8,276		$	132,447		$	83		$	132,530
Changes in equity
Issues of share capital and other equity instruments		1,708			22			–			–			(10	)		–			–		–			–			1,720			–			1,720
Common shares purchased for cancellation		–			(81	)		–			–			(874	)		–			–		–			–			(955	)		–			(955	)
Redemption of preferred shares and other equity instruments		(600	)		–			–			–			–			–			–		–			–			(600	)		–			(600	)
Sales of treasury shares and other equity instruments		–			–			1,910			1,311			–			–			–		–			–			3,221			–			3,221
Purchases of treasury shares and other equity instruments		–			–			(1,883	)		(1,199	)		–			–			–		–			–			(3,082	)		–			(3,082	)
Share-based compensation awards		–			–			–			–			4			–			–		–			–			4			–			4
Dividends on common shares		–			–			–			–			(2,165	)		–			–		–			–			(2,165	)		–			(2,165	)
Dividends on preferred shares and distributions on other equity instruments		–			–			–			–			(125	)		–			–		–			–			(125	)		(13	)		(138	)
Other		–			–			–			–			6			–			–		–			–			6			–			6
Net income		–			–			–			–			5,415			–			–		–			–			5,415			(1	)		5,414
Total other comprehensive income (loss), net of taxes		–			–			–			–			(268	)		196			217		(468	)		(55	)		(323	)		–			(323	)
Balance at end of period	$	11,524		$	20,916		$	(26	)	$	(43	)	$	94,971		$	(824	)	$	7,012	$	2,033		$	8,221		$	135,563		$	69		$	135,632
	For the three months ended July 31, 2024
																Other components of equity
(Millions of Canadian dollars)	Preferred<br> shares and<br> other equity<br> instruments			Common<br> shares			Treasury –<br> preferred<br> shares and<br> other equity<br> instruments			Treasury –<br><br>common<br><br>shares			Retained<br> earnings			FVOCI<br> securities<br> and loans			Foreign<br> currency<br> translation		Cash<br> flow<br> hedges			Total other<br> components<br> of equity			Equity<br> attributable to<br> shareholders			Non-controlling<br> interests			Total<br> equity
Balance at beginning of <br>period	$	9,420		$	20,918		$	19		$	(71	)	$	83,774		$	(1,082	)	$	6,388	$	2,138		$	7,444		$	121,504		$	100		$	121,604
Changes in equity
Issues of share capital and other equity instruments		600			66			–			–			(4	)		–			–		–			–			662			–			662
Common shares purchased for cancellation		–			(7	)		–			–			(66	)		–			–		–			–			(73	)		–			(73	)
Redemption of preferred shares and other equity instruments		(500	)		–			–			–			–			–			–		–			–			(500	)		–			(500	)
Sales of treasury shares and other equity instruments		–			–			550			1,609			–			–			–		–			–			2,159			–			2,159
Purchases of treasury shares and other equity instruments		–			–			(597	)		(1,729	)		–			–			–		–			–			(2,326	)		–			(2,326	)
Share-based compensation awards		–			–			–			–			(2	)		–			–		–			–			(2	)		–			(2	)
Dividends on common shares		–			–			–			–			(2,009	)		–			–		–			–			(2,009	)		–			(2,009	)
Dividends on preferred shares and distributions on other equity instruments		–			–			–			–			(106	)		–			–		–			–			(106	)		(2	)		(108	)
Other		–			–			–			–			3			–			–		–			–			3			–			3
Net income		–			–			–			–			4,483			–			–		–			–			4,483			3			4,486
Total other comprehensive income (loss), net of taxes		–			–			–			–			(8	)		221			295		88			604			596			–			596
Balance at end of period	$	9,520		$	20,977		$	(28	)	$	(191	)	$	86,065		$	(861	)	$	6,683	$	2,226		$	8,048		$	124,391		$	101		$	124,492

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Royal Bank of Canada Third Quarter 2025 55

	For the nine months ended July 31, 2025
																Other components of equity
(Millions of Canadian dollars)	Preferred<br> shares and<br> other equity<br> instruments			Common<br> shares			Treasury –<br> preferred<br> shares and<br> other equity<br> instruments			Treasury –<br><br>common<br><br>shares			Retained<br> earnings			FVOCI<br> securities<br> and loans			Foreign<br> currency<br> translation			Cash<br> flow<br> hedges			Total other<br> components<br> of equity			Equity<br> attributable to<br> shareholders			Non-controlling<br><br>interests			Total<br> equity
Balance at beginning of period	$	9,020		$	21,013		$	11		$	(61	)	$	88,608		$	(897)		$	7,128		$	2,267		$	8,498		$	127,089		$	103		$	127,192
Changes in equity
Issues of share capital and other equity instruments		3,104			58			–			–			(20	)		–			–			–			–			3,142			–			3,142
Common shares purchased for cancellation		–			(155	)		–			–			(1,626	)		–			–			–			–			(1,781	)		–			(1,781	)
Redemption of preferred shares and other equity instruments		(600	)		–			–			–			–			–			–			–			–			(600	)		–			(600	)
Sales of treasury shares and other equity instruments		–			–			3,141			4,218			–			–			–			–			–			7,359			–			7,359
Purchases of treasury shares and other equity instruments		–			–			(3,178	)		(4,200	)		–			–			–			–			–			(7,378	)		–			(7,378	)
Share-based compensation awards		–			–			–			–			23			–			–			–			–			23			–			23
Dividends on common shares		–			–			–			–			(6,344	)		–			–			–			–			(6,344	)		–			(6,344	)
Dividends on preferred shares and distributions on other equity instruments		–			–			–			–			(355	)		–			–			–			–			(355	)		(39	)		(394	)
Other		–			–			–			–			(27	)		–			–			–			–			(27	)		–			(27	)
Net income		–			–			–			–			14,930			–			–			–			–			14,930			5			14,935
Total other comprehensive income (loss), net of taxes		–			–			–			–			(218	)		73			(116	)		(234	)		(277	)		(495	)		–			(495	)
Balance at end of period	$	11,524		$	20,916		$	(26	)	$	(43	)	$	94,971		$	(824	)	$	7,012		$	2,033		$	8,221		$	135,563		$	69		$	135,632
	For the nine months ended July 31, 2024
																Other components of equity
(Millions of Canadian dollars)	Preferred<br> shares and<br> other equity<br> instruments			Common<br> shares			Treasury –<br> preferred<br> shares and<br> other equity<br> instruments			Treasury –<br><br>common<br><br>shares			Retained<br> earnings			FVOCI<br> securities<br> and loans			Foreign<br> currency<br> translation			Cash<br> flow<br> hedges			Total other<br> components<br> of equity			Equity<br> attributable to<br> shareholders			Non-controlling<br> interests			Total<br> equity
Balance at beginning of period	$	7,323		$	19,398		$	(9	)	$	(231	)	$	81,059		$	(1,860	)	$	6,612		$	2,756		$	7,508		$	115,048		$	99		$	115,147
Changes in equity
Issues of share capital and other equity instruments		2,720			1,586			–			–			(18	)		–			–			–			–			4,288			–			4,288
Common shares purchased for cancellation		–			(7	)		–			–			(66	)		–			–			–			–			(73	)		–			(73	)
Redemption of preferred shares and other equity instruments		(523	)		–			–			–			2			–			–			–			–			(521	)		–			(521	)
Sales of treasury shares and other equity instruments		–			–			1,067			3,948			–			–			–			–			–			5,015			–			5,015
Purchases of treasury shares and other equity instruments		–			–			(1,086	)		(3,908	)		–			–			–			–			–			(4,994	)		–			(4,994	)
Share-based compensation awards		–			–			–			–			6			–			–			–			–			6			–			6
Dividends on common shares		–			–			–			–			(5,906	)		–			–			–			–			(5,906	)		–			(5,906	)
Dividends on preferred shares and distributions on other equity instruments		–			–			–			–			(231	)		–			–			–			–			(231	)		(5	)		(236	)
Other		–			–			–			–			10			–			–			–			–			10			–			10
Net income		–			–			–			–			12,011			–			–			–			–			12,011			7			12,018
Total other comprehensive income (loss), net of taxes		–			–			–			–			(802	)		999			71			(530	)		540			(262	)		–			(262	)
Balance at end of period	$	9,520		$	20,977		$	(28	)	$	(191	)	$	86,065		$	(861	)	$	6,683		$	2,226		$	8,048		$	124,391		$	101		$	124,492

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

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56 Royal Bank of Canada Third Quarter 2025

Interim Condensed Consolidated Statements of Cash Flows<br>(unaudited)
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Cash flows from operating activities
Net income	$	5,414		$	4,486		$	14,935		$	12,018
Adjustments for non-cash items and others
Provision for credit losses		881			659			3,355			2,392
Depreciation		318			333			962			991
Deferred income taxes		127			(776	)		(105	)		(1,628	)
Amortization and impairment of other intangibles		450			430			1,360			1,169
Net changes in investments in joint ventures and associates		(25	)		57			(60	)		27
Losses (Gains) on investment securities		(18	)		(28	)		(118	)		(157	)
Losses (Gains) on disposition of businesses		–			34			–			29
Adjustments for net changes in operating assets and liabilities
Insurance contract liabilities		(17	)		(46	)		1,159			2,127
Net change in accrued interest receivable and payable		(1,271	)		(832	)		(1,927	)		757
Current income taxes		(206	)		780			(60	)		665
Derivative assets		33,188			14,540			(4,411	)		30,156
Derivative liabilities		(35,482	)		(9,684	)		(4,901	)		(19,286	)
Trading securities		(15,017	)		(6,875	)		(20,854	)		11,745
Loans, net of securitizations		(18,835	)		(11,341	)		(47,070	)		(45,057	)
Assets purchased under reverse repurchase agreements and securities borrowed		36,095			(23,604	)		84,971			15,234
Obligations related to assets sold under repurchase agreements and securities loaned		(15,039	)		24,652			(39,034	)		(36,529	)
Obligations related to securities sold short		249			2,485			11,786			(587	)
Deposits		34,691			33,662			71,946			43,352
Brokers and dealers receivable and payable		2,965			(865	)		2,876			(857	)
Other		532			(4,848	)		(4,805	)		(10,588	)
Net cash from (used in) operating activities		29,000			23,219			70,005			5,973
Cash flows from investing activities
Change in interest-bearing deposits with banks		(6,854	)		(18,950	)		(6,804	)		13,677
Proceeds from sales and maturities of investment securities		49,363			38,794			159,481			147,325
Purchases of investment securities		(79,950	)		(46,838	)		(236,975	)		(154,558	)
Net acquisitions of premises and equipment and other intangibles		(530	)		(717	)		(1,694	)		(1,609	)
Net proceeds from (cash transferred for) dispositions		–			5			–			15
Cash used in acquisitions, net of cash acquired		–			–			–			(12,716	)
Net cash from (used in) investing activities		(37,971	)		(27,706	)		(85,992	)		(7,866	)
Cash flows from financing activities
Issuance of subordinated debentures		1,491			1,250			2,991			3,250
Repayment of subordinated debentures		(1,250	)		(1,500	)		(2,750	)		(1,500	)
Issue of common shares, net of issuance costs		20			63			54			119
Common shares purchased for cancellation		(955	)		(73	)		(1,781	)		(73	)
Issue of preferred shares and other equity instruments, net of issuance costs		1,698			596			3,084			2,702
Redemption of preferred shares and other equity instruments		(600	)		(500	)		(600	)		(521	)
Sales of treasury shares and other equity instruments		3,221			2,159			7,359			5,015
Purchases of treasury shares and other equity instruments		(3,082	)		(2,326	)		(7,378	)		(4,994	)
Dividends paid on shares and distributions paid on other equity instruments		(2,199	)		(2,020	)		(6,510	)		(4,522	)
Dividends/distributions paid to non-controlling interests		(12	)		(2	)		(26	)		(5	)
Change in short-term borrowings of subsidiaries		(2,068	)		(688	)		–			(4,507	)
Repayment of lease liabilities		(168	)		135			(493	)		(175	)
Net cash from (used in) financing activities		(3,904	)		(2,906	)		(6,050	)		(5,211	)
Effect of exchange rate changes on cash and due from banks		(819	)		1,250			241			345
Net change in cash and due from banks		(13,694	)		(6,143	)		(21,796	)		(6,759	)
Cash and due from banks at beginning of period <br>(1)		48,621			61,373			56,723			61,989
Cash and due from banks at end of period<br> <br>(1)	$	34,927		$	55,230		$	34,927		$	55,230
Cash flows from operating activities include:
Amount of interest paid	$	17,891		$	20,372		$	53,735		$	56,080
Amount of interest received		24,585			26,499			74,901			76,379
Amount of dividends received		988			815			3,038			2,671
Amount of income taxes paid		1,203			767			3,913			2,843
(1)	We are required to maintain balances due to regulatory requirements or contractual restrictions from central banks, other regulatory authorities, and other counterparties. The total balances were $2 billion as at July 31, 2025 (April 30, 2025 – $2 billion; October 31, 2024 – $2 billion; July 31, 2024 – $2 billion; April 30, 2024 – $2 billion; October 31, 2023 – $3 billion).
---	---

The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.

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Royal Bank of Canada Third Quarter 2025 57

Note 1 General information

Our unaudited Interim Condensed Consolidated Financial Statements (Condensed Financial Statements) are presented in compliance with International Accounting Standard 34 Interim Financial Reporting . The Condensed Financial Statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with our audited 2024 Annual Consolidated Financial Statements and the accompanying notes included on pages 148 to 247 in our 2024 Annual Report. Unless otherwise stated, monetary amounts are stated in Canadian dollars. Tabular information is stated in millions of dollars, except as noted. On August 26, 2025, the Board of Directors authorized the Condensed Financial Statements for issue.

Note 2 Summary of material accounting policies, estimates and judgments

The Condensed Financial Statements have been prepared using the same accounting policies and methods used in the preparation of our audited 2024 Annual Consolidated Financial Statements. Our material accounting policies and future changes in accounting policies and disclosures that are not yet effective for us are described in Note 2 of our audited 2024 Annual Consolidated Financial Statements.

Note 3 Fair value of financial instruments

Carrying value and fair value of financial instruments

The following tables provide a comparison of the carrying values and fair values for financial instruments classified or designated as fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVOCI), and financial instruments measured at amortized cost. Embedded derivatives are presented on a combined basis with the host contracts in the Interim Condensed Consolidated Balance Sheets. Refer to Note 2 and Note 3 of our audited 2024 Annual Consolidated Financial Statements for a description of the valuation techniques and inputs used in the fair value measurement of our financial instruments. There have been no significant changes to our determination of fair value during the quarter.

	As at July 31, 2025
	Carrying value and fair value								Carrying value		Fair value
(Millions of Canadian dollars)	Financial<br> instruments<br> classified as<br> FVTPL		Financial<br> instruments<br> designated as<br> FVTPL		Financial<br> instruments<br> classified as<br> FVOCI		Financial<br> instruments<br> designated as<br> FVOCI		Financial<br> instruments<br> measured at<br> amortized cost		Financial<br> instruments<br> measured at<br> amortized cost		Total carrying<br> amount		Total fair value
Financial assets
Interest-bearing deposits with banks	$	–	$	66,261	$	–	$	–	$	6,563	$	6,563	$	72,824	$	72,824
Securities
Trading		198,389		5,765		–		–		–		–		204,154		204,154
Investment, net of applicable allowance		–		–		231,823		1,370		100,665		97,508		333,858		330,701
		198,389		5,765		231,823		1,370		100,665		97,508		538,012		534,855
Assets purchased under reverse repurchase agreements and securities borrowed		200,628		–		–		–		65,204		65,204		265,832		265,832
Loans, net of applicable allowance
Retail		982		–		440		–		639,508		638,361		640,930		639,783
Wholesale		10,608		–		693		–		373,229		371,029		384,530		382,330
		11,590		–		1,133		–		1,012,737		1,009,390		1,025,460		1,022,113
Other
Derivatives		155,023		–		–		–		–		–		155,023		155,023
Other assets <br>(1)		12,592		–		–		–		54,821		54,821		67,413		67,413
Financial liabilities
Deposits
Personal	$	782	$	39,347					$	483,198	$	484,867	$	523,327	$	524,996
Business and government <br>(2)		246		161,091						756,826		758,367		918,163		919,704
Bank <br>(3)		–		2,612						37,375		37,383		39,987		39,995
		1,028		203,050						1,277,399		1,280,617		1,481,477		1,484,695
Other
Obligations related to securities sold short		47,072		–						–		–		47,072		47,072
Obligations related to assets sold under repurchase agreements and securities loaned		–		233,863						32,424		32,424		266,287		266,287
Derivatives		158,862		–						–		–		158,862		158,862
Other liabilities <br>(4)		323		18,359						56,307		56,313		74,989		74,995
Subordinated debentures		–		239						13,593		13,728		13,832		13,967

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58 Royal Bank of Canada Third Quarter 2025

Note 3 Fair value of financial instruments<br><br>(continued)
	As at October 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Carrying value and fair value									Carrying value		Fair value
(Millions of Canadian dollars)	Financial<br> instruments<br> classified as<br> FVTPL			Financial<br> instruments<br> designated as<br> FVTPL		Financial<br> instruments<br> classified as<br> FVOCI		Financial<br> instruments<br> designated as<br> FVOCI		Financial<br> instruments<br> measured at<br> amortized cost		Financial<br> instruments<br> measured at<br> amortized cost		Total carrying<br> amount		Total fair value
Financial assets
Interest-bearing deposits with banks	$	–		$	53,996	$	–	$	–	$	12,024	$	12,024	$	66,020	$	66,020
Securities
Trading		182,346			954		–		–		–		–		183,300		183,300
Investment, net of applicable allowance		–			–		155,118		1,242		100,258		96,336		256,618		252,696
		182,346			954		155,118		1,242		100,258		96,336		439,918		435,996
Assets purchased under reverse repurchase agreements and securities borrowed		284,311			–		–		–		66,492		66,492		350,803		350,803
Loans, net of applicable allowance
Retail		915			–		580		–		622,098		619,320		623,593		620,815
Wholesale		6,177			2,030		1,003		–		348,577		345,561		357,787		354,771
		7,092			2,030		1,583		–		970,675		964,881		981,380		975,586
Other
Derivatives		150,612			–		–		–		–		–		150,612		150,612
Other assets <br>(1)		11,770			–		–		–		50,093		50,093		61,863		61,863
Financial liabilities
Deposits
Personal	$	508		$	33,799					$	487,832	$	490,170	$	522,139	$	524,477
Business and government <br>(2)		191			156,238						683,241		684,748		839,670		841,177
Bank <br>(3)		–			10,530						37,192		37,183		47,722		47,713
		699			200,567						1,208,265		1,212,101		1,409,531		1,413,367
Other
Obligations related to securities sold short		35,286			–						–		–		35,286		35,286
Obligations related to assets sold under repurchase agreements and securities loaned		–			270,663						34,658		34,658		305,321		305,321
Derivatives		163,763			–						–		–		163,763		163,763
Other liabilities <br>(4)		(1,407	)		–						69,597		69,850		68,190		68,443
Subordinated debentures		–			–						13,546		13,602		13,546		13,602
(1)	Includes Customers’ liability under acceptances and financial instruments recognized in Other assets.
---	---
(2)	Business and government deposits include deposits from regulated deposit-taking institutions other than banks.
---	---
(3)	Bank deposits refer to deposits from regulated banks and central banks.
---	---
(4)	Includes Acceptances and financial instruments recognized in Other liabilities.
---	---

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Royal Bank of Canada Third Quarter 2025 59

Fair value of assets and liabilities measured at fair value on a recurring basis and classified using the fair value hierarchy

	As at
	July 31, 2025														October 31, 2024
	Fair value measurements using								Netting adjustments						Fair value measurements using										Netting adjustments
(Millions of Canadian dollars)	Level 1		Level 2			Level 3				Fair value				Level 1			Level 2				Level 3
Financial assets
Interest-bearing deposits with banks	$	–	$	66,261		$	–				$	66,261			$	–		$	53,996			$	–			$	53,996
Securities
Trading
Debt issued or guaranteed by:
Canadian government <br>(1)
Federal		14,332		2,991			–					17,323				11,611			2,173				–				13,784
Provincial and municipal		–		15,577			–					15,577				–			16,588				–				16,588
U.S. federal, state, municipal and agencies <br>(1), (2)		1,881		38,287			–					40,168				1,852			29,136				–				30,988
Other OECD government <br>(3)		9,033		6,304			–					15,337				2,481			2,153				–				4,634
Mortgage-backed securities <br>(1)		–		73			–					73				–			3				–				3
Asset-backed securities		–		1,210			–					1,210				–			1,434				–				1,434
Corporate debt and other debt		–		23,550			83					23,633				–			26,195				–				26,195
Equities		85,726		2,429			2,678					90,833				84,814			2,316				2,544				89,674
		110,972		90,421			2,761					204,154				100,758			79,998				2,544				183,300
Investment
Debt issued or guaranteed by:
Canadian government <br>(1)
Federal		33,838		12,237			–					46,075				4,623			8,546				–				13,169
Provincial and municipal		–		9,402			–					9,402				–			7,554				–				7,554
U.S. federal, state, municipal and agencies <br>(1), (2)		142		111,773			–					111,915				42			80,224				–				80,266
Other OECD government		6,558		11,543			–					18,101				2,370			7,786				–				10,156
Mortgage-backed securities <br>(1)		–		2,654			29					2,683				–			2,603				31				2,634
Asset-backed securities		–		9,922			–					9,922				–			9,357				–				9,357
Corporate debt and other debt		–		33,591			134					33,725				–			31,839				143				31,982
Equities		492		304			574					1,370				432			304				506				1,242
		41,030		191,426			737					233,193				7,467			148,213				680				156,360
Assets purchased under reverse repurchase agreements and securities borrowed		–		200,628			–					200,628				–			284,311				–				284,311
Loans		–		11,574			1,149					12,723				–			8,924				1,781				10,705
Other
Derivatives
Interest rate contracts		–		26,327			261					26,588				–			27,719				354				28,073
Foreign exchange contracts		–		94,322			–					94,322				–			98,480				3				98,483
Credit derivatives		–		400			–					400				–			273				–				273
Other contracts		1,599		34,830			79					36,508				2,553			23,830				21				26,404
Valuation adjustments		–		(1,032	)		13					(1,019	)			–			(1,067	)			14				(1,053	)
Total gross derivatives		1,599		154,847			353					156,799				2,553			149,235				392				152,180
Netting adjustments												(1,776	)														(1,568	)
Total derivatives												155,023															150,612
Other assets		5,749		6,839			4					12,592				5,291			6,472				7				11,770
	$	159,350	$	721,996		$	5,004				$	884,574			$	116,069		$	731,149			$	5,404			$	851,054
Financial liabilities
Deposits
Personal	$	–	$	39,560		$	569				$	40,129			$	–		$	33,829			$	478			$	34,307
Business and government		–		161,337			–					161,337				–			156,429				–				156,429
Bank		–		2,612			–					2,612				–			10,530				–				10,530
Other
Obligations related to securities sold short		16,877		30,195			–					47,072				15,172			20,114				–				35,286
Obligations related to assets sold under repurchase agreements and securities loaned		–		233,863			–					233,863				–			270,663				–				270,663
Derivatives
Interest rate contracts		–		21,497			907					22,404				–			24,852				847				25,699
Foreign exchange contracts		–		88,524			46					88,570				–			93,164				54				93,218
Credit derivatives		–		257			–					257				–			218				–				218
Other contracts		2,963		46,362			375					49,700				3,212			42,961				324				46,497
Valuation adjustments		–		(288	)		(5	)				(293	)			–			(297	)			(4	)			(301	)
Total gross derivatives		2,963		156,352			1,323					160,638				3,212			160,898				1,221				165,331
Netting adjustments												(1,776	)														(1,568	)
Total derivatives												158,862															163,763
Other liabilities		323		18,359			–					18,682				287			(1,694	)			–				(1,407	)
Subordinated debentures		–		239			–					239				–			–				–				–
	$	20,163	$	642,517		$	1,892				$	662,796			$	18,671		$	650,769			$	1,699			$	669,571

All values are in US Dollars.

(1)	As at July 31, 2025, residential and commercial mortgage-backed securities (MBS) included in all fair value levels of Trading securities were $18,164 million and $70 million (October 31, 2024 – $17,154 million and $nil), respectively, and in all fair value levels of Investment securities were $27,577 million and $2,683 million (October 31, 2024 – $27,048 million and $2,568 million), respectively.
(2)	United States (U.S.).
---	---
(3)	Organisation for Economic Co-operation and Development (OECD).
---	---

Table of Contents

60 Royal Bank of Canada Third Quarter 2025

Note 3 Fair value of financial instruments<br><br>(continued)

Fair value measurements using significant unobservable inputs (Level 3 Instruments)

A financial instrument is classified as Level 3 in the fair value hierarchy if one or more of its unobservable inputs may significantly affect the measurement of its fair value. In preparing the financial statements, appropriate levels for these unobservable input parameters are chosen so that they are consistent with prevailing market evidence or management judgment. Due to the unobservable nature of the prices or rates, there may be uncertainty about the valuation of these Level 3 financial instruments.

During the three months ended July 31, 2025, there were no significant changes made to the valuation techniques and ranges and weighted averages of unobservable inputs used in the determination of fair value of Level 3 financial instruments. As at July 31, 2025, the impacts of adjusting one or more of the unobservable inputs by reasonably possible alternative assumptions did not change significantly from the impacts disclosed in our audited 2024 Annual Consolidated Financial Statements.

Changes in fair value measurement for instruments measured on a recurring basis and categorized in Level 3

	For the three months ended July 31, 2025
(Millions of Canadian dollars)	Fair value<br> at beginning<br> of period			Gains (losses)<br> included<br> in earnings			Gains (losses)<br> included in<br> OCI<br>(1)			Purchases<br> (issuances)			Settlement<br> (sales) and<br> other<br>(2)			Transfers<br> into<br> Level 3			Transfers<br> out of<br> Level 3			Fair value<br> at end of<br> period			Gains<br> (losses) included<br> in earnings for<br> positions still held
Assets
Securities
Trading
Corporate debt and other debt	$	32		$	–		$	–		$	3		$	(3	)	$	51		$	–		$	83		$	–
Equities		2,655			(104	)		6			159			(31	)		1			(8	)		2,678			(81	)
		2,687			(104	)		6			162			(34	)		52			(8	)		2,761			(81	)
Investment
Mortgage-backed securities		31			–			(2	)		–			–			–			–			29			n.a.
Corporate debt and other debt		134			–			3			–			(3	)		–			–			134			n.a.
Equities		570			–			5			–			(1	)		–			–			574			n.a.
		735			–			6			–			(4	)		–			–			737			n.a.
Loans		1,207			(63	)		(3	)		20			(1	)		–			(11	)		1,149			(62	)
Other
Net derivative balances <br>(3)
Interest rate contracts		(522	)		(68	)		1			34			(42	)		(28	)		(21	)		(646	)		(81	)
Foreign exchange contracts		(53	)		7			(1	)		1			–			–			–			(46	)		7
Other contracts		(392	)		(48	)		(2	)		(22	)		(7	)		(27	)		202			(296	)		(34	)
Valuation adjustments		25			–			–			–			(7	)		–			–			18			–
Other assets		5			–			–			–			(1	)		–			–			4			–
	$	3,692		$	(276	)	$	7		$	195		$	(96	)	$	(3	)	$	162		$	3,681		$	(251	)
Liabilities
Deposits	$	(542	)	$	(51	)	$	(1	)	$	(208	)	$	27		$	(61	)	$	267		$	(569	)	$	(32	)
	$	(542	)	$	(51	)	$	(1	)	$	(208	)	$	27		$	(61	)	$	267		$	(569	)	$	(32	)

Table of Contents

Royal Bank of Canada Third Quarter 2025 61

	For the three months ended July 31, 2024
(Millions of Canadian dollars)	Fair value<br> at beginning<br> of period			Gains (losses)<br> included<br> in earnings			Gains (losses)<br> included in<br> OCI (1)			Purchases<br> (issuances)			Settlement<br> (sales) and<br> other (2)			Transfers<br> into<br> Level 3			Transfers<br> out of<br> Level 3			Fair value<br> at end of<br> period			Gains<br> (losses) included<br> in earnings for<br> positions still held
Assets
Securities
Trading
Corporate debt and other debt	$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–
Equities		2,392			(136	)		2			216			(38	)		1			(1	)		2,436			(117	)
		2,392			(136	)		2			216			(38	)		1			(1	)		2,436			(117	)
Investment
Mortgage-backed securities		30			–			(1	)		–			–			–			–			29			n.a.
Corporate debt and other debt		144			–			6			–			(4	)		–			–			146			n.a.
Equities		476			–			11			–			(3	)		–			–			484			n.a.
		650			–			16			–			(7	)		–			–			659			n.a.
Loans		1,837			(33	)		21			78			(84	)		9			(14	)		1,814			(30	)
Other
Net derivative balances <br>(3)
Interest rate contracts		(647	)		43			–			(66	)		122			18			(18	)		(548	)		43
Foreign exchange contracts		(27	)		(9	)		1			(1	)		–			–			(10	)		(46	)		(9	)
Other contracts		(298	)		(24	)		(1	)		(11	)		4			(198	)		132			(396	)		(13	)
Valuation adjustments		(6	)		–			–			–			16			–			–			10			–
Other assets		9			–			–			–			(1	)		–			–			8			–
	$	3,910		$	(159	)	$	39		$	216		$	12		$	(170	)	$	89		$	3,937		$	(126	)
Liabilities
Deposits	$	(633	)	$	(39	)	$	–		$	(60	)	$	38		$	(3	)	$	89		$	(608	)	$	(23	)
	$	(633	)	$	(39	)	$	–		$	(60	)	$	38		$	(3	)	$	89		$	(608	)	$	(23	)
	For the nine months ended July 31, 2025
(Millions of Canadian dollars)	Fair value<br> at beginning<br> of period			Gains (losses)<br> included<br> in earnings			Gains (losses)<br> included in<br> OCI<br>(1)			Purchases<br> (issuances)			Settlement<br> (sales) and<br> other<br>(2)			Transfers<br> into<br> Level 3			Transfers<br> out of<br> Level 3			Fair value<br> at end of<br> period			Gains<br> (losses) included<br> in earnings for<br> positions still held
Assets
Securities
Trading
Corporate debt and other debt	$	–		$	–		$	–		$	3		$	(3	)	$	83		$	–		$	83		$	–
Equities		2,544			(174	)		(8	)		493			(171	)		2			(8	)		2,678			(129	)
		2,544			(174	)		(8	)		496			(174	)		85			(8	)		2,761			(129	)
Investment
Mortgage-backed securities		31			–			(2	)		–			–			–			–			29			n.a.
Corporate debt and other debt		143			–			5			–			(14	)		–			–			134			n.a.
Equities		506			–			40			32			(4	)		–			–			574			n.a.
		680			–			43			32			(18	)		–			–			737			n.a.
Loans		1,781			32			(3	)		161			(815	)		7			(14	)		1,149			(43	)
Other
Net derivative balances <br>(3)
Interest rate contracts		(493	)		(103	)		3			(5	)		(37	)		(19	)		8			(646	)		(115	)
Foreign exchange contracts		(51	)		(4	)		2			2			(1	)		–			6			(46	)		(16	)
Other contracts		(303	)		32			1			(34	)		–			(301	)		309			(296	)		75
Valuation adjustments		18			–			–			6			(6	)		–			–			18			–
Other assets		7			–			–			–			(3	)		–			–			4			–
	$	4,183		$	(217	)	$	38		$	658		$	(1,054	)	$	(228	)	$	301		$	3,681		$	(228	)
Liabilities
Deposits	$	(478	)	$	(42	)	$	–		$	(609	)	$	115		$	(271	)	$	716		$	(569	)	$	14
	$	(478	)	$	(42	)	$	–		$	(609	)	$	115		$	(271	)	$	716		$	(569	)	$	14

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62 Royal Bank of Canada Third Quarter 2025

Note 3 Fair value of financial instruments<br><br>(continued)
	For the nine months ended July 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars)	Fair value<br> at beginning<br> of period			Gains (losses)<br> included<br> in earnings			Gains (losses)<br> included in<br> OCI (1)			Purchases<br> (issuances)			Settlement<br> (sales) and<br> other (2)			Transfers<br> into<br> Level 3			Transfers<br> out of<br> Level 3			Fair value<br> at end of<br> period			Gains<br> (losses) included<br> in earnings for<br> positions still held
Assets
Securities
Trading
Corporate debt and other debt	$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–
Equities		2,266			(190	)		(6	)		445			(78	)		1			(2	)		2,436			(149	)
		2,266			(190	)		(6	)		445			(78	)		1			(2	)		2,436			(149	)
Investment
Mortgage-backed securities		29			–			–			–			–			–			–			29			n.a.
Corporate debt and other debt		149			–			10			–			(13	)		–			–			146			n.a.
Equities		466			–			16			3			(3	)		2			–			484			n.a.
		644			–			26			3			(16	)		2			–			659			n.a.
Loans		1,859			(87	)		25			445			(324	)		50			(154	)		1,814			(81	)
Other
Net derivative balances <br>(3)
Interest rate contracts		(662	)		46			–			(80	)		135			30			(17	)		(548	)		55
Foreign exchange contracts		(49	)		(10	)		6			14			3			2			(12	)		(46	)		(3	)
Other contracts		(438	)		(139	)		5			(59	)		5			(284	)		514			(396	)		1
Valuation adjustments		3			–			–			(1	)		8			–			–			10			–
Other assets		11			–			–			–			(3	)		–			–			8			–
	$	3,634		$	(380	)	$	56		$	767		$	(270	)	$	(199	)	$	329		$	3,937		$	(177	)
Liabilities
Deposits	$	(383	)	$	(90	)	$	1		$	(417	)	$	76		$	(93	)	$	298		$	(608	)	$	(44	)
	$	(383	)	$	(90	)	$	1		$	(417	)	$	76		$	(93	)	$	298		$	(608	)	$	(44	)
(1)	These amounts include the foreign currency translation gains or losses arising on consolidation of foreign subsidiaries relating to the Level 3 instruments, where applicable. The unrealized gains on Investment securities recognized in OCI were $2 million for the three months ended July 31, 2025 (July 31, 2024 – gains of $10 million) and gains of $33 million for the nine months ended July 31, 2025 (July 31, 2024 – gains of $20 million), excluding the translation gains or losses arising on consolidation.
---	---
(2)	Other includes amortization of premiums or discounts recognized in net income.
---	---
(3)	Net derivatives as at July 31, 2025 included derivative assets of $353 million (July 31, 2024 – $401 million) and derivative liabilities of $1,323 million (July 31, 2024 – $1,381 million).
---	---
n.a.	not applicable
---	---

Transfers between fair value hierarchy levels for instruments carried at fair value on a recurring basis

Transfers between Level 1 and Level 2, and transfers into and out of Level 3 are assumed to occur at the end of the period. For an asset or a liability that transfers into Level 3 during the period, the entire change in fair value for the period is excluded from the Gains (losses) included in earnings for positions still held column of the above reconciliation, whereas for transfers out of Level 3 during the period, the entire change in fair value for the period is included in the same column of the above reconciliation.

Transfers between Level 1 and 2 are dependent on whether fair value is obtained on the basis of quoted market prices in active markets (Level 1).

During the three months ended July 31, 2025, there were no significant transfers out of Level 1 to Level 2. During the three months ended July 31, 2024, transfers out of Level 1 to Level 2 included Trading U.S. federal, state, municipal and agencies debt of $564 million and Investment U.S. federal, state, municipal and agencies debt of $417 million.

During the three months ended July 31, 2025 and July 31, 2024, there were no significant transfers out of Level 2 to Level 1.

During the nine months ended July 31, 2025, transfers out of Level 1 to Level 2 included Trading U.S. federal, state, municipal and agencies debt of $938 million. During the nine months ended July 31, 2024, transfers out of Level 1 to Level 2 included Investment U.S. federal, state, municipal and agencies debt of $1,038 million and Trading U.S. federal, state, municipal and agencies debt of $822 million.

During the nine months ended July 31, 2025 and July 31, 2024, there were no significant transfers out of Level 2 to Level 1.

Transfers between Level 2 and Level 3 are primarily due to either a change in the market observability for an input, or a change in an unobservable input’s significance to a financial instrument’s fair value.

During the three months ended July 31, 2025, there were no significant transfers out of Level 2 to Level 3. During the three months ended July 31, 2024, transfers out of Level 2 to Level 3 included Other contracts due to changes in the significance of unobservable inputs.

During the three months ended July 31, 2025, transfers out of Level 3 to Level 2 included Deposits and Other contracts due to changes in the significance of unobservable inputs. During the three months ended July 31, 2024, transfers out of Level 3 to Level 2 included Other contracts due to changes in the significance of unobservable inputs and changes in the market observability of inputs.

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Royal Bank of Canada Third Quarter 2025 63

During the nine months ended July 31, 2025, transfers out of Level 2 to Level 3 included Other contracts and Deposits due to changes in the significance of unobservable inputs. During the nine months ended July 31, 2024, transfers out of Level 2 to Level 3 included Other contracts due to changes in the significance of unobservable inputs and changes in the market observability of inputs.

During the nine months ended July 31, 2025, transfers out of Level 3 to Level 2 included Deposits and Other contracts due to changes in the significance of unobservable inputs and changes in the market observability of inputs. During the nine months ended July 31, 2024, transfers out of Level 3 to Level 2 included Other contracts, Deposits and Loans due to changes in the significance of unobservable inputs and changes in the market observability of inputs.

Net interest income from financial instruments

Interest and dividend income arising from financial assets and financial liabilities and the associated costs of funding are reported in Net interest income.

	For the three months ended				For the nine months ended
(Millions of Canadian dollars)	July 31<br><br>2025		July 31<br><br>2024		July 31<br><br>2025		July 31<br><br>2024
Interest and dividend income<br><br>(1), (2)
Financial instruments measured at fair value through profit or loss	$	7,679	$	8,678	$	22,932	$	27,583
Financial instruments measured at fair value through other comprehensive income		2,240		1,927		6,395		5,162
Financial instruments measured at amortized cost		16,191		16,485		48,208		45,708
		26,110		27,090		77,535		78,453
Interest expense<br><br>(1)
Financial instruments measured at fair value through profit or loss		7,623		8,432		22,985		26,227
Financial instruments measured at amortized cost		10,136		11,331		30,195		31,944
		17,759		19,763		53,180		58,171
Net interest income	$	8,351	$	7,327	$	24,355	$	20,282
(1)	Excludes interest and dividend income for the three months ended July 31, 2025 of $300 million (July 31, 2024 – $222 million) and for the nine months ended July 31, 2025 of $957 million (July 31, 2024 – $656 million), and interest expense for the three months ended July 31, 2025 of $52 million (July 31, 2024 – $54 million) and for the nine months ended July 31, 2025 of $170 million (July 31, 2024 – $77 million) presented in Insurance investment result in the Interim Condensed Consolidated Statements of Income.
---	---
(2)	Includes dividend income for the three months ended July 31, 2025 of $905 million (July 31, 2024 – $778 million) and for the nine months ended July 31, 2025 of $2,904 million (July 31, 2024 – $2,511 million) presented in Interest and dividend income in the Interim Condensed Consolidated Statements of Income.
---	---
Note 4 Securities
---

Unrealized gains and losses on securities at FVOCI

(1), (2)

	As at
	July 31, 2025									October 31, 2024
(Millions of Canadian dollars)	Cost/<br> Amortized<br> cost		Gross<br> unrealized<br> gains		Gross<br> unrealized<br> losses			Fair value		Cost/<br> Amortized<br> cost		Gross<br> unrealized<br> gains		Gross<br> unrealized<br> losses			Fair value
Debt issued or guaranteed by:
Canadian government
Federal	$	46,054	$	44	$	(23	)	$	46,075	$	13,165	$	31	$	(27	)	$	13,169
Provincial and municipal		9,442		29		(69	)		9,402		7,563		27		(36	)		7,554
U.S. federal, state, municipal and agencies		113,122		280		(1,487	)		111,915		81,632		333		(1,699	)		80,266
Other OECD government		18,123		17		(39	)		18,101		10,199		6		(49	)		10,156
Mortgage-backed securities		2,685		6		(8	)		2,683		2,646		3		(15	)		2,634
Asset-backed securities		9,914		12		(4	)		9,922		9,343		17		(3	)		9,357
Corporate debt and other debt		33,644		111		(30	)		33,725		31,932		101		(51	)		31,982
Equities		763		612		(5	)		1,370		728		519		(5	)		1,242
	$	233,747	$	1,111	$	(1,665	)	$	233,193	$	157,208	$	1,037	$	(1,885	)	$	156,360
(1)	Excludes $100,665 million of held-to-collect securities as at July 31, 2025 that are carried at amortized cost, net of allowance for credit losses (October 31, 2024 – $100,258 million).
---	---
(2)	Gross unrealized gains and losses includes $(39) million of allowance for credit losses on debt securities at FVOCI as at July 31, 2025 (October 31, 2024 – $(35) million) recognized in income and Other components of equity.
---	---

Allowance for credit losses on investment securities

The following tables reconcile the opening and closing allowance for debt securities at FVOCI and amortized cost by stage. Reconciling items include the following:

•	Transfers between stages, which are presumed to occur before any corresponding remeasurement of the allowance.
•	Purchases, which reflect the allowance related to assets newly recognized during the period, including those assets that were derecognized following a modification of terms.
---	---
•	Sales and maturities, which reflect the allowance related to assets derecognized during the period without a credit loss being incurred, including those assets that were derecognized following a modification of terms.
---	---
•	Changes in risk, parameters and exposures, which comprise the impact of changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions; partial repayments; changes in the measurement following a transfer between stages; and unwinding of the time value discount due to the passage of time.
---	---

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64 Royal Bank of Canada Third Quarter 2025

Note 4 Securities<br><br>(continued)

Allowance for credit losses – securities at FVOCI

(1)

	For the three months ended
	July 31, 2025											July 31, 2024
	Performing					Impaired						Performing					Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2		Stage 3<br>(2)			Total			Stage 1			Stage 2		Stage 3 (2)			Total
Balance at beginning of period	$	5		$	–	$	(40	)	$	(35	)	$	6		$	–	$	(39	)	$	(33	)
Provision for credit losses
Transfers to stage 1		–			–		–			–			–			–		–			–
Transfers to stage 2		–			–		–			–			–			–		–			–
Transfers to stage 3		–			–		–			–			–			–		–			–
Purchases		1			–		–			1			2			–		–			2
Sales and maturities		(1	)		–		–			(1	)		(1	)		–		–			(1	)
Changes in risk, parameters and exposures		–			–		(4	)		(4	)		(2	)		–		(2	)		(4	)
Exchange rate and other		(1	)		–		1			–			–			–		1			1
Balance at end of period	$	4		$	–	$	(43	)	$	(39	)	$	5		$	–	$	(40	)	$	(35	)
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025											July 31, 2024
	Performing					Impaired						Performing					Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2		Stage 3<br>(2)			Total			Stage 1			Stage 2		Stage 3 (2)			Total
Balance at beginning of period	$	6		$	–	$	(41	)	$	(35	)	$	4		$	–	$	(37	)	$	(33	)
Provision for credit losses
Transfers to stage 1		–			–		–			–			–			–		–			–
Transfers to stage 2		–			–		–			–			–			–		–			–
Transfers to stage 3		–			–		–			–			–			–		–			–
Purchases		5			–		–			5			8			–		–			8
Sales and maturities		(3	)		–		–			(3	)		(3	)		–		–			(3	)
Changes in risk, parameters and exposures		(4	)		–		(8	)		(12	)		(5	)		–		(6	)		(11	)
Exchange rate and other		–			–		6			6			1			–		3			4
Balance at end of period	$	4		$	–	$	(43	)	$	(39	)	$	5		$	–	$	(40	)	$	(35	)
(1)	Expected credit losses on debt securities at FVOCI are not separately recognized on the balance sheet as the related securities are recorded at fair value. The cumulative amount of credit losses recognized in income is presented in Other components of equity.
---	---
(2)	Reflects changes in the allowance for purchased credit-impaired securities.
---	---

Allowance for credit losses – securities at amortized cost

	For the three months ended
	July 31, 2025											July 31, 2024
	Performing						Impaired					Performing						Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2			Stage 3		Total			Stage 1			Stage 2			Stage 3		Total
Balance at beginning of period	$	6		$	8		$	–	$	14		$	8		$	13		$	–	$	21
Provision for credit losses
Transfers to stage 1		–			–			–		–			–			–			–		–
Transfers to stage 2		–			–			–		–			–			–			–		–
Transfers to stage 3		–			–			–		–			–			–			–		–
Purchases		3			–			–		3			2			–			–		2
Sales and maturities		–			–			–		–			(2	)		–			–		(2	)
Changes in risk, parameters and exposures		(3	)		–			–		(3	)		–			(2	)		–		(2	)
Exchange rate and other		1			(1	)		–		–			(1	)		1			–		–
Balance at end of period	$	7		$	7		$	–	$	14		$	7		$	12		$	–	$	19
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025											July 31, 2024
	Performing						Impaired					Performing						Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2			Stage 3		Total			Stage 1			Stage 2			Stage 3		Total
Balance at beginning of period	$	6		$	8		$	–	$	14		$	8		$	15		$	–	$	23
Provision for credit losses
Transfers to stage 1		–			–			–		–			–			–			–		–
Transfers to stage 2		–			–			–		–			–			–			–		–
Transfers to stage 3		–			–			–		–			–			–			–		–
Purchases		5			–			–		5			6			–			–		6
Sales and maturities		–			–			–		–			(2	)		–			–		(2	)
Changes in risk, parameters and exposures		(4	)		(1	)		–		(5	)		(4	)		(3	)		–		(7	)
Exchange rate and other		–			–			–		–			(1	)		–			–		(1	)
Balance at end of period	$	7		$	7		$	–	$	14		$	7		$	12		$	–	$	19

Table of Contents

Royal Bank of Canada Third Quarter 2025 65

Credit risk exposure by internal risk rating

The following table presents the fair value of debt securities at FVOCI and gross carrying amount of securities at amortized cost. Risk ratings are based on internal ratings used in the measurement of expected credit losses as at the reporting date, as outlined in the internal ratings maps in the Credit risk section of our 2024 Annual Report.

	As at
	July 31, 2025								October 31, 2024
	Performing				Impaired				Performing				Impaired
(Millions of Canadian dollars)	Stage 1		Stage 2		Stage 3<br>(1)		Total		Stage 1		Stage 2		Stage 3 (1)		Total
Investment securities
Securities at FVOCI
Investment grade	$	230,817	$	5	$	–	$	230,822	$	154,100	$	–	$	–	$	154,100
Non-investment grade		867		–		–		867		875		–		–		875
Impaired		–		–		134		134		–		–		143		143
		231,684		5		134		231,823		154,975		–		143		155,118
Items not subject to impairment <br>(2)								1,370								1,242
							$	233,193							$	156,360
Securities at amortized cost
Investment grade	$	99,512	$	–	$	–	$	99,512	$	99,224	$	–	$	–	$	99,224
Non-investment grade		1,008		159		–		1,167		856		192		–		1,048
		100,520		159		–		100,679		100,080		192		–		100,272
Allowance for credit losses		7		7		–		14		6		8		–		14
	$	100,513	$	152	$	–	$	100,665	$	100,074	$	184	$	–	$	100,258
(1)	Reflects $134 million of purchased credit-impaired securities (October 31, 2024 – $143 million).
---	---
(2)	Investment securities at FVOCI not subject to impairment represent equity securities designated as FVOCI.
---	---
Note 5 Loans and allowance for credit losses
---

Allowance for credit losses

	For the three months ended
	July 31, 2025													July 31, 2024
(Millions of Canadian dollars)	Balance at<br> beginning<br> of period		Provision<br> for credit<br> losses			Net<br> <br>write-offs			Exchange<br> rate and<br> other			Balance at<br> end of<br> period		Balance at<br> beginning<br> of period		Provision<br> for credit<br> losses			Net<br> <br>write-offs			Exchange<br> rate and<br> other			Balance at<br> end of<br> period
Retail
Residential mortgages	$	730	$	46		$	1		$	(10	)	$	767	$	569	$	36		$	(2	)	$	(4	)	$	599
Personal		1,633		184			(197	)		3			1,623		1,371		188			(154	)		(8	)		1,397
Credit cards		1,320		217			(214	)		–			1,323		1,139		169			(155	)		3			1,156
Small business		343		34			(25	)		(7	)		345		230		46			(24	)		(6	)		246
Wholesale		3,455		405			(187	)		(89	)		3,584		2,714		246			(202	)		(50	)		2,708
Customers’ liability under acceptances		–		(1	)		–			1			–		51		(20	)		–			1			32
	$	7,481	$	885		$	(622	)	$	(102	)	$	7,642	$	6,074	$	665		$	(537	)	$	(64	)	$	6,138
Presented as:
Allowance for loan losses	$	7,125										$	7,272	$	5,715										$	5,798
Other liabilities – Provisions		353											367		302											303
Customers’ liability under acceptances		–											–		51											32
Other components of equity		3											3		6											5

Table of Contents

66 Royal Bank of Canada Third Quarter 2025

Note 5 Loans and allowance for credit losses<br><br>(continued)
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025													July 31, 2024
(Millions of Canadian dollars)	Balance at<br> beginning<br> of period		Provision<br> for credit<br> losses			Net<br> <br>write-offs			Exchange<br> rate and<br> other			Balance at<br> end of<br> period		Balance at<br> beginning<br> of period		Provision<br> for credit<br> losses			Net<br> <br>write-offs			Exchange<br> rate and<br> other			Balance at<br> end of<br> period
Retail
Residential mortgages	$	572	$	240		$	(3	)	$	(42	)	$	767	$	481	$	138		$	(8	)	$	(12	)	$	599
Personal		1,482		719			(564	)		(14	)		1,623		1,228		603			(427	)		(7	)		1,397
Credit cards		1,233		697			(606	)		(1	)		1,323		1,069		575			(490	)		2			1,156
Small business		272		168			(77	)		(18	)		345		194		122			(58	)		(12	)		246
Wholesale		2,793		1,535			(536	)		(208	)		3,584		2,326		980			(484	)		(114	)		2,708
Customers’ liability under acceptances		–		(1	)		–			1			–		50		(19	)		–			1			32
	$	6,352	$	3,358		$	(1,786	)	$	(282	)	$	7,642	$	5,348	$	2,399		$	(1,467	)	$	(142	)	$	6,138
Presented as:
Allowance for loan losses	$	6,037										$	7,272	$	5,004										$	5,798
Other liabilities – Provisions		311											367		288											303
Customers’ liability under acceptances		–											–		50											32
Other components of equity		4											3		6											5

The following table reconciles the opening and closing allowance for each major product of loans and commitments as determined by our modelled, scenario-weighted allowance and the application of expert credit judgment as applicable. Reconciling items include the following:

•	Transfers between stages, which are presumed to occur before any corresponding remeasurements of the allowance.
•	Originations, which reflect the allowance related to assets newly recognized during the period, including those assets that were derecognized following a modification of terms.
---	---
•	Maturities, which reflect the allowance related to assets derecognized during the period without a credit loss being incurred, including those assets that were derecognized following a modification of terms.
---	---
•	Changes in risk, parameters and exposures, which comprise the impact of changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions; partial repayments and additional draws on existing facilities; changes in the measurement following a transfer between stages; and unwinding of the time value discount due to the passage of time in stage 1 and stage 2.
---	---

Table of Contents

Royal Bank of Canada Third Quarter 2025 67

Allowance for credit losses – Retail and wholesale loans

	For the three months ended
	July 31, 2025												July 31, 2024
	Performing						Impaired						Performing						Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Residential mortgages
Balance at beginning of period	$	259		$	209		$	262		$	730		$	245		$	118		$	206		$	569
Provision for credit losses
Transfers to stage 1		57			(53	)		(4	)		–			39			(37	)		(2	)		–
Transfers to stage 2		(15	)		15			–			–			(8	)		8			–			–
Transfers to stage 3		(2	)		(12	)		14			–			(2	)		(13	)		15			–
Originations		27			–			–			27			21			–			–			21
Maturities		(7	)		(6	)		–			(13	)		(5	)		(6	)		–			(11	)
Changes in risk, parameters and exposures		(50	)		66			16			32			(66	)		68			24			26
Write-offs		–			–			(3	)		(3	)		–			–			(6	)		(6	)
Recoveries		–			–			4			4			–			–			4			4
Exchange rate and other		(1	)		2			(11	)		(10	)		(1	)		1			(4	)		(4	)
Balance at end of period	$	268		$	221		$	278		$	767		$	223		$	139		$	237		$	599
Personal
Balance at beginning of period	$	304		$	1,110		$	219		$	1,633		$	296		$	887		$	188		$	1,371
Provision for credit losses
Transfers to stage 1		155			(155	)		–			–			149			(148	)		(1	)		–
Transfers to stage 2		(22	)		22			–			–			(17	)		18			(1	)		–
Transfers to stage 3		(1	)		(42	)		43			–			(2	)		(36	)		38			–
Originations		26			–			–			26			27			–			–			27
Maturities		(13	)		(62	)		–			(75	)		(12	)		(48	)		–			(60	)
Changes in risk, parameters and exposures		(157	)		238			152			233			(141	)		226			136			221
Write-offs		–			–			(237	)		(237	)		–			–			(190	)		(190	)
Recoveries		–			–			40			40			–			–			36			36
Exchange rate and other		1			(1	)		3			3			3			(4	)		(7	)		(8	)
Balance at end of period	$	293		$	1,110		$	220		$	1,623		$	303		$	895		$	199		$	1,397
Credit cards
Balance at beginning of period	$	202		$	1,118		$	–		$	1,320		$	192		$	947		$	–		$	1,139
Provision for credit losses
Transfers to stage 1		169			(169	)		–			–			151			(151	)		–			–
Transfers to stage 2		(27	)		27			–			–			(26	)		26			–			–
Transfers to stage 3		(1	)		(159	)		160			–			(1	)		(127	)		128			–
Originations		7			–			–			7			10			–			–			10
Maturities		(2	)		(13	)		–			(15	)		(1	)		(15	)		–			(16	)
Changes in risk, parameters and exposures		(135	)		306			54			225			(123	)		270			28			175
Write-offs		–			–			(262	)		(262	)		–			–			(210	)		(210	)
Recoveries		–			–			48			48			–			–			55			55
Exchange rate and other		–			–			–			–			2			2			(1	)		3
Balance at end of period	$	213		$	1,110		$	–		$	1,323		$	204		$	952		$	–		$	1,156
Small business
Balance at beginning of period	$	98		$	114		$	131		$	343		$	74		$	78		$	78		$	230
Provision for credit losses
Transfers to stage 1		14			(14	)		–			–			15			(15	)		–			–
Transfers to stage 2		(6	)		6			–			–			(5	)		5			–			–
Transfers to stage 3		–			(4	)		4			–			–			(1	)		1			–
Originations		12			–			–			12			11			–			–			11
Maturities		(6	)		(7	)		–			(13	)		(5	)		(5	)		–			(10	)
Changes in risk, parameters and exposures		(16	)		16			35			35			(10	)		14			41			45
Write-offs		–			–			(31	)		(31	)		–			–			(27	)		(27	)
Recoveries		–			–			6			6			–			–			3			3
Exchange rate and other		–			2			(9	)		(7	)		–			1			(7	)		(6	)
Balance at end of period	$	96		$	113		$	136		$	345		$	80		$	77		$	89		$	246
Wholesale
Balance at beginning of period	$	946		$	1,104		$	1,405		$	3,455		$	757		$	924		$	1,033		$	2,714
Provision for credit losses
Transfers to stage 1		107			(107	)		–			–			101			(101	)		–			–
Transfers to stage 2		(33	)		34			(1	)		–			(26	)		29			(3	)		–
Transfers to stage 3		(3	)		(35	)		38			–			(1	)		(7	)		8			–
Originations		168			–			–			168			150			–			–			150
Maturities		(133	)		(121	)		–			(254	)		(96	)		(109	)		–			(205	)
Changes in risk, parameters and exposures		(169	)		258			402			491			(108	)		198			211			301
Write-offs		–			–			(210	)		(210	)		–			–			(211	)		(211	)
Recoveries		–			–			23			23			–			–			9			9
Exchange rate and other		1			3			(93	)		(89	)		1			1			(52	)		(50	)
Balance at end of period	$	884		$	1,136		$	1,564		$	3,584		$	778		$	935		$	995		$	2,708

Table of Contents

68 Royal Bank of Canada Third Quarter 2025

Note 5 Loans and allowance for credit losses<br><br>(continued)
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025												July 31, 2024
	Performing						Impaired						Performing						Impaired
(Millions of Canadian dollars)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Residential mortgages
Balance at beginning of period	$	215		$	126		$	231		$	572		$	223		$	90		$	168		$	481
Provision for credit losses
Transfers to stage 1		116			(112	)		(4	)		–			72			(70	)		(2	)		–
Transfers to stage 2		(33	)		39			(6	)		–			(18	)		26			(8	)		–
Transfers to stage 3		(4	)		(36	)		40			–			(4	)		(29	)		33			–
Originations		74			–			–			74			72			–			–			72
Maturities		(17	)		(20	)		–			(37	)		(13	)		(13	)		–			(26	)
Changes in risk, parameters and exposures		(83	)		224			62			203			(110	)		135			67			92
Write-offs		–			–			(12	)		(12	)		–			–			(17	)		(17	)
Recoveries		–			–			9			9			–			–			9			9
Exchange rate and other		–			–			(42	)		(42	)		1			–			(13	)		(12	)
Balance at end of period	$	268		$	221		$	278		$	767		$	223		$	139		$	237		$	599
Personal
Balance at beginning of period	$	305		$	966		$	211		$	1,482		$	280		$	793		$	155		$	1,228
Provision for credit losses
Transfers to stage 1		440			(439	)		(1	)		–			408			(407	)		(1	)		–
Transfers to stage 2		(75	)		78			(3	)		–			(54	)		57			(3	)		–
Transfers to stage 3		(3	)		(121	)		124			–			(3	)		(95	)		98			–
Originations		79			–			–			79			88			–			–			88
Maturities		(39	)		(168	)		–			(207	)		(33	)		(134	)		–			(167	)
Changes in risk, parameters and exposures		(415	)		796			466			847			(383	)		681			384			682
Write-offs		–			–			(675	)		(675	)		–			–			(525	)		(525	)
Recoveries		–			–			111			111			–			–			98			98
Exchange rate and other		1			(2	)		(13	)		(14	)		–			–			(7	)		(7	)
Balance at end of period	$	293		$	1,110		$	220		$	1,623		$	303		$	895		$	199		$	1,397
Credit cards
Balance at beginning of period	$	207		$	1,026		$	–		$	1,233		$	203		$	866		$	–		$	1,069
Provision for credit losses
Transfers to stage 1		503			(503	)		–			–			426			(426	)		–			–
Transfers to stage 2		(83	)		83			–			–			(81	)		81			–			–
Transfers to stage 3		(2	)		(442	)		444			–			(2	)		(353	)		355			–
Originations		12			–			–			12			23			–			–			23
Maturities		(4	)		(40	)		–			(44	)		(3	)		(36	)		–			(39	)
Changes in risk, parameters and exposures		(418	)		986			161			729			(364	)		819			136			591
Write-offs		–			–			(742	)		(742	)		–			–			(670	)		(670	)
Recoveries		–			–			136			136			–			–			180			180
Exchange rate and other		(2	)		–			1			(1	)		2			1			(1	)		2
Balance at end of period	$	213		$	1,110		$	–		$	1,323		$	204		$	952		$	–		$	1,156
Small business
Balance at beginning of period	$	80		$	86		$	106		$	272		$	70		$	66		$	58		$	194
Provision for credit losses
Transfers to stage 1		37			(37	)		–			–			27			(27	)		–			–
Transfers to stage 2		(17	)		17			–			–			(14	)		14			–			–
Transfers to stage 3		(1	)		(10	)		11			–			–			(6	)		6			–
Originations		32			–			–			32			31			–			–			31
Maturities		(16	)		(18	)		–			(34	)		(12	)		(15	)		–			(27	)
Changes in risk, parameters and exposures		(22	)		73			119			170			(23	)		44			97			118
Write-offs		–			–			(91	)		(91	)		–			–			(67	)		(67	)
Recoveries		–			–			14			14			–			–			9			9
Exchange rate and other		3			2			(23	)		(18	)		1			1			(14	)		(12	)
Balance at end of period	$	96		$	113		$	136		$	345		$	80		$	77		$	89		$	246
Wholesale
Balance at beginning of period	$	787		$	1,038		$	968		$	2,793		$	774		$	785		$	767		$	2,326
Provision for credit losses
Transfers to stage 1		206			(205	)		(1	)		–			203			(202	)		(1	)		–
Transfers to stage 2		(97	)		107			(10	)		–			(121	)		128			(7	)		–
Transfers to stage 3		(9	)		(241	)		250			–			(5	)		(54	)		59			–
Originations		592			–			–			592			519			–			–			519
Maturities		(436	)		(318	)		–			(754	)		(288	)		(291	)		–			(579	)
Changes in risk, parameters and exposures		(158	)		757			1,098			1,697			(299	)		572			767			1,040
Write-offs		–			–			(590	)		(590	)		–			–			(521	)		(521	)
Recoveries		–			–			54			54			–			–			37			37
Exchange rate and other		(1	)		(2	)		(205	)		(208	)		(5	)		(3	)		(106	)		(114	)
Balance at end of period	$	884		$	1,136		$	1,564		$	3,584		$	778		$	935		$	995		$	2,708

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Royal Bank of Canada Third Quarter 2025 69

Key inputs and assumptions

The following provides an update on the key inputs and assumptions used in the measurement of expected credit losses. For further details, refer to Note 2 and Note 5 of our audited 2024 Annual Consolidated Financial Statements.

Our base scenario reflects the Canadian unemployment rate peaking in calendar Q3 2025, followed by gradual declines beginning in early calendar 2026 and for the U.S. unemployment rate to rise, peaking in calendar Q1 2026, followed by a return to equilibrium by calendar Q4 2026. The central bank policy rate in Canada is expected to remain unchanged until the end of calendar 2026 and cuts are expected to resume in the U.S. later this calendar year until mid-2026.

Our downside scenarios include two additional and more severe downside scenarios designed for trade disruptions and the real estate sector. During Q2 2025, in response to U.S. international trade policy, we designed a trade disruption scenario to replace our energy sector scenario. Our downside scenarios reflect the possibility of moderate and escalating macroeconomic shocks beginning in calendar Q4 2025 relative to our base scenario. In these scenarios, conditions are expected to deteriorate from calendar Q3 2025 levels for up to 18 months, followed by a recovery for the remainder of the period. These scenarios assume monetary policy responses that return the economy to a long-run, sustainable growth rate within the forecast period.

Our upside scenario reflects slightly stronger economic growth than the base scenario, without prompting a further offsetting monetary policy response as compared to our base scenario, followed by a return to a long-run sustainable growth rate within the forecast period.

In Q2 2025, we increased weight to our downside scenarios relative to October 31, 2024 to reflect the heightened economic uncertainty related to U.S. international trade policy as compared to our base scenario.

The following provides additional detail about our calendar quarter forecasts for certain key macroeconomic variables used in the models to estimate the allowance for credit losses:

•	Unemployment rates<br> –<br>In our base forecast, we expect the Canadian unemployment rate to rise, peaking at 7.1% in calendar Q3 2025, then returning to its long run equilibrium by calendar Q1 2028. The U.S. unemployment rate is expected to rise to 4.3% in calendar Q3 2025, peaking at 4.6% in calendar Q1 2026, then returning to its long run equilibrium level by calendar Q4 2026.
•	Gross Domestic Product (GDP<br><br>)<br> – In our base forecast, we expect both Canadian and U.S. GDP to continuously grow in calendar Q3 2025 and thereafter. GDP in calendar Q4 2025 is expected to be 0.9% above Q4 2024 levels in both Canada and the U.S.
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70 Royal Bank of Canada Third Quarter 2025

Note 5 Loans and allowance for credit losses<br><br>(continued)
•	Canadian housing price index<br> – In our base forecast, we expect housing prices to increase by 0.8% over the next 12 months from calendar Q3 2025, with a compound annual growth rate of <br>3.5<br>% for the following 2 to 5 years. The range of annual housing price growth (contraction) in our alternative real estate downside and upside scenarios is (<br>30.0<br>)% to <br>10.9<br>% over the next 12 months and <br>4.2<br>% to <br>9.6<br>% for the following 2 to 5 years. As at October 31, 2024, our base forecast included housing price growth of <br>0.7<br>% from calendar Q4 2024 for the next 12 months and housing price growth of <br>3.0<br>% for the following 2 to 5 years.
---	---
•	Oil price (West Texas Intermediate in US$)<br> – In our base forecast, we expect oil prices to average $<br>58<br> per barrel over the next 12 months from calendar Q3 2025 and $<br>65<br> per barrel in the following 2 to 5 years. The range of average prices in our alternative downside and upside scenarios is $<br>33<br> to $<br>79<br> per barrel for the next 12 months and $<br>45<br> to $<br>69<br> per barrel for the following 2 to 5 years. As at October 31, 2024, our base forecast included an average price of $<br>69<br> per barrel for the next 12<br><br>months and $<br>66<br> per barrel for the following 2 to 5 years.
---	---

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Royal Bank of Canada Third Quarter 2025 71

Credit risk exposure by internal risk rating

The following table presents the gross carrying amount of loans measured at amortized cost, and the full contractual amount of undrawn loan commitments subject to the impairment requirements of IFRS 9 Financial Instruments . Risk ratings are based on internal ratings used in the measurement of expected credit losses as at the reporting date, as outlined in the internal ratings maps for Wholesale and Retail facilities in the Credit risk section of our 2024 Annual Report.

	As at
	July 31, 2025								October 31, 2024
(Millions of Canadian dollars)	Stage 1		Stage 2		Stage 3<br>(1)		Total		Stage 1		Stage 2		Stage 3 (1)		Total
Retail
Loans outstanding – Residential mortgages
Low risk	$	379,064	$	19,919	$	–	$	398,983	$	388,742	$	1,354	$	–	$	390,096
Medium risk		20,684		2,890		–		23,574		18,419		4,479		–		22,898
High risk		2,119		6,317		–		8,436		1,761		6,593		–		8,354
Not rated <br>(2)		53,284		1,885		–		55,169		52,569		1,479		–		54,048
Impaired		–		–		1,554		1,554		–		–		1,233		1,233
		455,151		31,011		1,554		487,716		461,491		13,905		1,233		476,629
Items not subject to impairment <br>(3)								982								915
Total							$	488,698							$	477,544
Loans outstanding – Personal
Low risk	$	85,998	$	3,075	$	–	$	89,073	$	82,904	$	1,680	$	–	$	84,584
Medium risk		4,038		3,736		–		7,774		5,525		3,063		–		8,588
High risk		662		2,521		–		3,183		592		2,365		–		2,957
Not rated <br>(2)		11,651		1,004		–		12,655		11,303		498		–		11,801
Impaired		–		–		417		417		–		–		408		408
Total	$	102,349	$	10,336	$	417	$	113,102	$	100,324	$	7,606	$	408	$	108,338
Loans outstanding – Credit cards
Low risk	$	18,216	$	164	$	–	$	18,380	$	17,363	$	177	$	–	$	17,540
Medium risk		2,053		2,242		–		4,295		1,999		2,436		–		4,435
High risk		67		2,339		–		2,406		75		2,289		–		2,364
Not rated <br>(2)		1,095		294		–		1,389		1,173		53		–		1,226
Total	$	21,431	$	5,039	$	–	$	26,470	$	20,610	$	4,955	$	–	$	25,565
Loans outstanding – Small business
Low risk	$	10,343	$	638	$	–	$	10,981	$	9,428	$	773	$	–	$	10,201
Medium risk		2,492		1,009		–		3,501		2,740		962		–		3,702
High risk		257		1,376		–		1,633		214		1,086		–		1,300
Not rated <br>(2)		9		–		–		9		7		–		–		7
Impaired		–		–		397		397		–		–		321		321
Total	$	13,101	$	3,023	$	397	$	16,521	$	12,389	$	2,821	$	321	$	15,531
Undrawn loan commitments – Retail
Low risk	$	288,151	$	5,088	$	–	$	293,239	$	284,036	$	592	$	–	$	284,628
Medium risk		13,330		426		–		13,756		12,110		381		–		12,491
High risk		768		717		–		1,485		746		602		–		1,348
Not rated <br>(2)		13,916		241		–		14,157		10,715		88		–		10,803
Total	$	316,165	$	6,472	$	–	$	322,637	$	307,607	$	1,663	$	–	$	309,270
Wholesale – Loans outstanding
Investment grade	$	126,751	$	1,639	$	–	$	128,390	$	116,549	$	1,471	$	–	$	118,020
Non-investment grade		202,626		26,413		–		229,039		189,889		26,826		–		216,715
Not rated <br>(2)		12,965		556		–		13,521		12,871		721		–		13,592
Impaired		–		–		6,383		6,383		–		–		3,905		3,905
		342,342		28,608		6,383		377,333		319,309		29,018		3,905		352,232
Items not subject to impairment <br>(3)								10,608								8,207
Total							$	387,941							$	360,439
Undrawn loan commitments – Wholesale
Investment grade	$	367,309	$	1,234	$	–	$	368,543	$	345,236	$	516	$	–	$	345,752
Non-investment grade		173,546		16,063		–		189,609		170,212		14,512		–		184,724
Not rated <br>(2)		3,398		19		–		3,417		3,290		17		–		3,307
Total	$	544,253	$	17,316	$	–	$	561,569	$	518,738	$	15,045	$	–	$	533,783
(1)	Includes $149 million of purchased or originated credit-impaired loans (October 31, 2024 – $109 million).
---	---
(2)	In certain cases where an internal risk rating is not assigned, we use other approved credit risk assessment or rating methodologies, policies and tools to manage our credit risk.
---	---
(3)	Items not subject to impairment are loans held at FVTPL.
---	---

Loans past due but not impaired

(1), (2)

	As at
	July 31, 2025						October 31, 2024
(Millions of Canadian dollars)	30 to 89 days		90 days<br> and greater		Total		30 to 89 days		90 days<br> and greater		Total
Retail	$	2,549	$	281	$	2,830	$	2,542	$	263	$	2,805
Wholesale		1,079		7		1,086		1,454		4		1,458
	$	3,628	$	288	$	3,916	$	3,996	$	267	$	4,263
(1)	Excludes loans less than 30 days past due as they are not generally representative of the borrowers’ ability to meet their payment obligations.
---	---
(2)	Amounts presented may include loans past due as a result of administrative processes, such as mortgage loans on which payments are restrained pending payout due to sale or refinancing. Past due loans arising from administrative processes are not representative of the borrowers’ ability to meet their payment obligations.
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72 Royal Bank of Canada Third Quarter 2025

Note 6 Deposits
	As at
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025								October 31, 2024
(Millions of Canadian dollars)	Demand<br>(1)		Notice<br>(2)		Term<br>(3)		Total		Demand (1)		Notice (2)		Term (3)		Total
Personal	$	222,617	$	54,627	$	246,083	$	523,327	$	205,714	$	62,845	$	253,580	$	522,139
Business and government		405,098		22,042		491,023		918,163		369,943		20,157		449,570		839,670
Bank		11,974		–		28,013		39,987		9,675		641		37,406		47,722
	$	639,689	$	76,669	$	765,119	$	1,481,477	$	585,332	$	83,643	$	740,556	$	1,409,531
Non-interest-bearing<br><br>(4)
Canada	$	152,555	$	8,881	$	254	$	161,690	$	144,712	$	7,164	$	203	$	152,079
United States		37,067		–		–		37,067		38,520		–		–		38,520
Europe <br>(5)		9		–		–		9		11		–		–		11
Other International		8,217		–		–		8,217		7,758		–		–		7,758
Interest-bearing<br><br>(4)
Canada		379,954		16,410		593,325		989,689		355,221		14,468		594,066		963,755
United States		50,379		50,479		70,897		171,755		28,389		61,087		75,933		165,409
Europe <br>(5)		5,776		734		77,553		84,063		5,013		851		53,295		59,159
Other International		5,732		165		23,090		28,987		5,708		73		17,059		22,840
	$	639,689	$	76,669	$	765,119	$	1,481,477	$	585,332	$	83,643	$	740,556	$	1,409,531
(1)	Demand deposits are deposits for which we do not have the right to require notice of withdrawal, which include both savings and chequing accounts.
---	---
(2)	Notice deposits are deposits for which we can legally require notice of withdrawal. These deposits are primarily savings accounts.
---	---
(3)	Term deposits are deposits payable on a fixed date, and include term deposits, guaranteed investment certificates and similar instruments.
---	---
(4)	The geographical splits of the deposits are based on the point of origin of the deposits and where the revenue is recognized. As at July 31, 2025, deposits denominated in U.S. dollars, British pounds, Euro and other foreign currencies were $539 billion, $41 billion, $77 billion and $34 billion, respectively (October 31, 2024 – $511 billion, $34 billion, $53 billion and $29 billion, respectively).
---	---
(5)	Europe includes the United Kingdom and the Channel Islands.
---	---

Contractual maturities of term deposits

(1)

	As at
(Millions of Canadian dollars)	July 31<br><br>2025		October 31<br><br>2024
Within 1 year:
less than 3 months	$	217,276	$	207,698
3 to 6 months		112,849		94,585
6 to 12 months		165,608		173,603
1 to 2 years		85,660		79,777
2 to 3 years		60,223		61,175
3 to 4 years		36,863		45,767
4 to 5 years		16,387		20,692
Over 5 years		70,253		57,259
	$	765,119	$	740,556
(1)	The aggregate amount of term deposits in denominations of one hundred thousand dollars or more is $701 billion (October 31, 2024 – $670 billion).
---	---
Note 7 Insurance and reinsurance
---

Insurance service and insurance investment results

The following table provides the composition of Insurance service result and Insurance investment result for insurance contracts issued and reinsurance contracts held.

	For the three months ended						For the nine months ended
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Insurance service result
Insurance revenue	$	1,369		$	1,303		$	4,108		$	3,755
Insurance service expense		(1,074	)		(1,059	)		(3,290	)		(3,043	)
Net income (expense) from reinsurance contracts held		(16	)		(30	)		(29	)		(108	)
	$	279		$	214		$	789		$	604
Insurance investment result
Net investment income	$	122		$	185		$	747		$	2,289
Insurance finance income (expense)		(68	)		(159	)		(574	)		(2,155	)
Reinsurance finance income (expense)		(6	)		2			35			94
	$	48		$	28		$	208		$	228
Insurance service and insurance investment results	$	327		$	242		$	997		$	832

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Royal Bank of Canada Third Quarter 2025 73

Note 8 Employee benefits – Pension and other post-employment benefits

We offer a number of defined benefit and defined contribution plans which provide pension and post-employment benefits to eligible employees. The following tables present the composition of our pension and other post-employment benefit expense and the effects of remeasurements recorded in OCI:

Pension and other post-employment benefit expense

	For the three months ended
	Pension plans						Other post-employment benefit plans
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025		July 31<br><br>2024
Current service costs	$	53		$	47		$	9	$	9
Past service costs		–			–			–		(6	)
Net interest expense (income)		(41	)		(37	)		18		20
Remeasurements of other long-term benefits		–			–			2		(5	)
Administrative expense		6			5			–		–
Defined benefit pension expense		18			15			29		18
Defined contribution pension expense		143			115			–		–
	$	161		$	130		$	29	$	18
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---
	Pension plans						Other post-employment benefit plans
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025		July 31<br><br>2024
Current service costs	$	157		$	140		$	25	$	25
Past service costs		49			–			–		(6	)
Net interest expense (income)		(122	)		(112	)		57		60
Remeasurements of other long-term benefits		–			–			7		4
Administrative expense		17			13			–		–
Defined benefit pension expense		101			41			89		83
Defined contribution pension expense		431			319			–		–
	$	532		$	360		$	89	$	83

Pension and other post-employment benefit remeasurements

(1)

	For the three months ended
	Defined benefit pension plans						Other post-employment benefit plans
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Actuarial (gains) losses:
Changes in financial assumptions <br>(2)	$	(150	)	$	658		$	(14	)	$	68
Experience adjustments		–			–			3			3
Return on plan assets (excluding interest based on discount rate)		(222	)		(785	)		–			–
	$	(372	)	$	(127	)	$	(11	)	$	71
	For the nine months ended
	Defined benefit pension plans						Other post-employment benefit plans
(Millions of Canadian dollars)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Actuarial (gains) losses:
Changes in financial assumptions <br>(2)	$	(333	)	$	1,381		$	(28	)	$	138
Experience adjustments		(1	)		–			1			3
Return on plan assets (excluding interest based on discount rate)		(90	)		(1,789	)		–			–
	$	(424	)	$	(408	)	$	(27	)	$	141
(1)	Market based assumptions, including Changes in financial assumptions and Return on plan assets, are reviewed on a quarterly basis. All other assumptions are updated during our annual review of plan assumptions.
---	---
(2)	Changes in financial assumptions in our defined benefit pension plans primarily relate to changes in discount rates.
---	---
Note 9 Income taxes
---

Tax examinations and assessments

During the third quarter of 2025, we received a reassessment from the Canada Revenue Agency (CRA) in respect of the 2020 taxation year, which suggested that Royal Bank of Canada owes additional taxes of approximately $411 million as the CRA denied the deductibility of certain dividends. This amount represents the maximum additional taxes owing for that year. The reassessment is consistent with the previously received reassessments as described in Note 21 of our audited 2024 Annual Consolidated Financial Statements. It is possible that the CRA will reassess us for significant additional income taxes for subsequent years on the same basis. In all cases, we are confident that our tax filing position was appropriate and intend to defend ourselves vigorously.

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74 Royal Bank of Canada Third Quarter 2025

Note 9 Income taxes<br><br>(continued)

Pillar Two legislation

The Organisation for Economic Co-operation and Development’s two-pillar plan includes a 15% global minimum corporate tax on certain multinational enterprises (Pillar Two). Pillar Two legislation in certain countries in which RBC operates became effective for us beginning November 1, 2024, including the Global Minimum Tax Act (GMTA) in Canada, which increased RBC’s effective tax rate by approximately 1.3% for the three months ended July 31, 2025, and by approximately 1.5% for the nine months ended July 31, 2025.

Note 10 Significant capital and funding transactions

Preferred shares and other equity instruments

On November 1, 2024, we issued US$1,000 million of Limited Recourse Capital Notes (LRCNs) Series 5 (LRCN Series 5) with recourse limited to assets (Trust Assets) held by a third-party trustee in a consolidated trust (Limited Recourse Trust). The Trust Assets for LRCN Series 5 consist of US$1,000 million of our First Preferred Shares, Series BX (Series BX Preferred Shares), issued concurrently with LRCN Series 5 at a price of US$1,000 per Series BX Preferred Share. The price per LRCN Series 5 note is US$1,000 and will bear interest paid quarterly at a fixed rate of 6.35% per annum until November 24, 2034 and thereafter at a rate per annum, reset every fifth year, equal to the prevailing 5-year U.S. Treasury Rate plus 2.257% until maturity on November 24, 2084.

On June 11, 2025, we issued US$1,250 million of Limited Recourse Capital Notes Series 6 (LRCN Series 6) with recourse limited to the Trust Assets held by the Limited Recourse Trust. The Trust Assets for LRCN Series 6 consist of US$1,250 million of our First Preferred Shares, Series BY (Series BY Preferred Shares), issued concurrently with LRCN Series 6 at a price of US$1,000 per Series BY Preferred Share. The price per LRCN Series 6 note is US$1,000 and will bear interest paid quarterly at a fixed rate of 6.75% per annum until August 24, 2030 and thereafter at a rate per annum, reset every fifth year, equal to the prevailing 5-year U.S. Treasury Rate plus 2.815% until maturity on August 24, 2085.

In the event of (i) non-payment of interest on any interest payment date, (ii) non-payment of the redemption price in case of a redemption of a LRCN series, (iii) non-payment of principal at the maturity of a LRCN series, or (iv) an event of default on the notes, noteholders will have recourse only to the Trust Assets related to each LRCN series and each noteholder will be entitled to receive its pro rata share of the applicable Trust Assets. In such an event, the delivery of the Trust Assets will represent the full and complete extinguishment of our obligations under the related LRCN series.

Each LRCN series is redeemable on or prior to maturity to the extent we redeem the related series of preferred shares on certain redemption dates as set out in the terms of such series of preferred shares and subject to the consent and approval of OSFI.

Each LRCN series includes NVCC provisions necessary for them to qualify as Tier 1 regulatory capital under Basel III. NVCC provisions require the conversion of the instrument into a variable number of common shares in the event that OSFI deems the Bank non-viable or a federal or provincial government in Canada publicly announces that the Bank has accepted or agreed to accept a capital injection. In such an event, each LRCN series will be automatically redeemed and the redemption price will be satisfied by the delivery of the Trust Assets for the related LRCN series, which will consist of common shares pursuant to an automatic conversion of the applicable series of preferred shares. Each series of preferred shares includes an automatic conversion formula with a conversion price based on the greater of: (i) a floor price of $5.00 (subject to adjustment in certain circumstances), and (ii) the current market price of our common shares based on the volume weighted average trading price of our common shares on the Toronto Stock Exchange. The number of common shares issued in respect of each series of preferred shares will be determined by dividing the preferred share value (including declared and unpaid dividends) by the conversion price. The number of common shares delivered to each noteholder will be based on such noteholder’s pro rata interest in the related Trust Assets.

Each LRCN series is a compound instrument with both equity and liability features as payments of interest and principal in cash are made at our discretion. The non-payment of interest and principal in cash does not constitute an event of default and will trigger delivery of the related series of preferred shares. The liability component of the notes has a nominal value and, as a result, the full proceeds received have been presented as equity.

On May 24, 2025, we redeemed all 24 million of our issued and outstanding Non-Cumulative 5-Year Rate Reset First Preferred Shares Series BD at a redemption price of $25.00 per share.

Subordinated debentures

On December 23, 2024, we redeemed all $1,500 million of our outstanding NVCC 2.88% subordinated debentures due December 23, 2029 for 100% of their principal amount plus interest accrued to, but excluding, the redemption date.

On July 3, 2025, we issued $1,250 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of 4.214% per annum until July 3, 2030

, and at the Daily Compounded CORRA plus 1.51% thereafter until maturity on July 3, 2035.

On July 17, 2025, we issued ¥26,000 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of 1.963% per annum until July 17, 2030, and at the 5-year Tokyo Overnight Average Rate mid-swap rate plus 1.02% thereafter until maturity on July 17, 2035.

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Royal Bank of Canada Third Quarter 2025 75

Common shares issued

	For the three months ended
	July 31, 2025						July 31, 2024
(Millions of Canadian dollars, except number of shares)	Number of<br> shares<br> (thousands)			Amount			Number of<br> shares<br> (thousands)			Amount
Issued in connection with share-based compensation plans <br>(1)		227		$	22			683		$	66
Issued in connection with dividend reinvestment plan <br>(2)		–			–			–			–
Purchased for cancellation <br>(3)		(5,445	)		(81	)		(480	)		(7	)
		(5,218	)	$	(59	)		203		$	59
	For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	July 31, 2025						July 31, 2024
(Millions of Canadian dollars, except number of shares)	Number of<br> shares<br> (thousands)			Amount			Number of<br> shares<br> (thousands)			Amount
Issued in connection with share-based compensation plans <br>(1)		601		$	58			1,311		$	126
Issued in connection with dividend reinvestment plan <br>(2)		–			–			11,850			1,460
Purchased for cancellation <br>(3)		(10,400	)		(155	)		(480	)		(7	)
		(9,799	)	$	(97	)		12,681		$	1,579
(1)	Amounts include cash received for stock options exercised during the period and the fair value adjustment to stock options.
---	---
(2)	The requirements of our dividend reinvestment plan (DRIP) are satisfied through either open market share purchases or shares issued from treasury. During the three and nine months ended July 31, 2025, our DRIP requirements were satisfied through open market share purchases. During the three months ended July 31, 2024, our DRIP requirements were satisfied through open market share purchases. During the nine months ended July 31, 2024, our DRIP requirements were satisfied through shares issued from treasury in the first six months and open market share purchases in the last three months.
---	---
(3)	Our previous NCIB to purchase up to 30 million of our common shares ended June 11, 2025. On June 10, 2025, we announced a new NCIB to purchase up to 35 million of our common shares, commencing on June 12, 2025, and continuing until June 11, 2026, or such earlier date as we complete the repurchase of all shares permitted under the bid. During the three months ended July 31, 2025, under the NCIB programs we purchased for cancellation common shares at a total fair value of $955 million (average cost of $175.27 per share), with a book value of $81 million (book value of $14.88 per share). During the nine months ended July 31, 2025, under the NCIB programs we purchased for cancellation common shares at a total fair value of $1,781 million (average cost of $171.22 per share), with a book value of $155 million (book value of $14.87 per share). During the three and nine months ended July 31, 2024, we purchased for cancellation common shares at a total fair value of $73 million (average cost of $152.66 per share), with a book value of $7 million (book value of $14.82 per share).
---	---
Note 11 Earnings per share
---
	For the three months ended						For the nine months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
(Millions of Canadian dollars, except share and per share amounts)	July 31<br><br>2025			July 31<br><br>2024			July 31<br><br>2025			July 31<br><br>2024
Basic earnings per share
Net income	$	5,414		$	4,486		$	14,935		$	12,018
Dividends on preferred shares and distributions on other equity instruments		(125	)		(106	)		(355	)		(231	)
Net income attributable to non-controlling interests		1			(3	)		(5	)		(7	)
Net income available to common shareholders	$	5,290		$	4,377		$	14,575		$	11,780
Weighted average number of common shares (in thousands)		1,407,280			1,414,194			1,410,854			1,411,044
Basic earnings per share (in dollars)	$	3.76		$	3.09		$	10.33		$	8.35
Diluted earnings per share
Net income available to common shareholders	$	5,290		$	4,377		$	14,575		$	11,780
Weighted average number of common shares (in thousands)		1,407,280			1,414,194			1,410,854			1,411,044
Stock options <br>(1)		2,400			1,929			2,381			1,574
Issuable under other share-based compensation plans		–			26			–			26
Average number of diluted common shares (in thousands)		1,409,680			1,416,149			1,413,235			1,412,644
Diluted earnings per share (in dollars)	$	3.75		$	3.09		$	10.31		$	8.34
(1)	The dilutive effect of stock options was calculated using the treasury stock method. When the exercise price of options outstanding is greater than the average market price of our common shares, the options are excluded from the calculation of diluted earnings per share. For the three months ended July 31, 2025, an average of 915,683 outstanding options with an average exercise price of $177.97 were excluded from the calculation of diluted earnings per share. For the three months ended July 31, 2024, no outstanding options were excluded from the calculation of diluted earnings per share. For the nine months ended July 31, 2025, an average of 762,532 outstanding options with an average exercise price of $177.97 were excluded from the calculation of diluted earnings per share. For the nine months ended July 31, 2024, no outstanding options were excluded from the calculation of diluted earnings per share.
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Table of Contents

76 Royal Bank of Canada Third Quarter 2025

Note 12 Legal and regulatory matters

We are a large global institution that is subject to many different complex legal and regulatory requirements that continue to evolve. We are and have been subject to a variety of legal proceedings, including civil claims and lawsuits, regulatory examinations, investigations, audits and requests for information by various governmental regulatory agencies and law enforcement authorities in various jurisdictions. Some of these matters may involve novel legal theories and interpretations and may be advanced under criminal as well as civil statutes, and some proceedings could result in the imposition of civil, regulatory enforcement or criminal penalties. We review the status of all proceedings on an ongoing basis and will exercise judgment in resolving them in such manner as we believe to be in our best interest. In many proceedings, it is inherently difficult to determine whether any loss is probable or to reliably estimate the amount of any loss. This is an area of significant judgment and uncertainty and the extent of our financial and other exposure to these proceedings after taking into account current provisions could be material to our results of operations in any particular period though we do not believe that the ultimate resolution of any such matter will have a material effect on our consolidated financial condition.

Our significant legal proceedings and regulatory matters are described in Note 24 of our audited 2024 Annual Consolidated Financial Statements and as updated below. Based on the facts currently known, except as may otherwise be noted, it is not possible at this time for us to predict the ultimate outcome of these proceedings or the timing of their resolution.

Royal Bank of Canada Trust Company (Bahamas) Limited proceedings

On January 17, 2025, the U.S. Department of Labor (DOL) proposed exemptive relief to allow Royal Bank of Canada to continue to qualify for the Qualified Professional Asset Manager (QPAM) exemption under the Employee Retirement Income Security Act from March 5, 2025 through March 4, 2030. On March 5, 2025, the DOL granted an extension of the original relief granted to Royal Bank of Canada in 2016 until the earlier of September 4, 2025 or the effective date of a final agency action in connection with the proposed exemption published on January 17, 2025. The DOL recently granted the exemptive relief it proposed on January 17, 2025, with immaterial amendments, with effect from August 12, 2025 through March 4, 2030. Royal Bank of Canada anticipates seeking further exemptive relief from the DOL prior to the expiration of the existing relief in the future to the extent deemed necessary or advisable. No assurances can be provided that such relief, if requested, would be forthcoming.

U.K. Competition and Markets Authority investigation

In February 2025, Royal Bank of Canada and RBC Europe Limited entered into a settlement with the U.K. Competition and Markets Authority and agreed to make payment of £34.2 million in full and final resolution of the matter.

In the U.S. class action, in March 2025, the court preliminarily approved the settlement agreement entered into by RBC Europe Limited, RBC Capital Markets, LLC and certain of the other defendants to dismiss the putative class action filed in the U.S., with prejudice, against those defendants. The settlement agreement remains subject to final court approval.

Note 13 Results by business segment

Composition of business segments

For management purposes, based on the products and services offered, we are organized into five business segments: Personal Banking, Commercial Banking, Wealth Management, Insurance and Capital Markets.

	For the three months ended July 31, 2025
(Millions of Canadian dollars)	Personal<br> Banking		Commercial<br> Banking		Wealth<br> Management			Insurance		Capital<br> Markets<br>(1)		Corporate<br> Support<br>(1)			Total
Net interest income <br>(2)	$	3,698	$	1,828	$	1,321		$	–	$	1,287	$	217		$	8,351
Non-interest income		1,362		324		4,192			368		2,471		(83	)		8,634
Total revenue		5,060		2,152		5,513			368		3,758		134			16,985
Provision for credit losses		444		299		(43	)		–		180		1			881
Non-interest expense		1,958		697		4,154			74		2,059		290			9,232
Income (loss) before income taxes		2,658		1,156		1,402			294		1,519		(157	)		6,872
Income taxes (recoveries)		720		320		306			47		191		(126	)		1,458
Net income	$	1,938	$	836	$	1,096		$	247	$	1,328	$	(31	)	$	5,414
Non-interest expense includes:
Depreciation and amortization	$	269	$	26	$	303		$	12	$	143	$	1		$	754
	For the three months ended July 31, 2024
(Millions of Canadian dollars)	Personal<br> Banking (3)		Commercial<br> Banking (3)		Wealth<br> Management (3)			Insurance		Capital<br> Markets (1)		Corporate<br> Support (1)			Total
Net interest income <br>(2)	$	3,253	$	1,687	$	1,245		$	–	$	817	$	325		$	7,327
Non-interest income		1,237		349		3,719			285		2,187		(473	)		7,304
Total revenue		4,490		2,036		4,964			285		3,004		(148	)		14,631
Provision for credit losses		391		216		16			1		38		(3	)		659
Non-interest expense		1,941		691		3,762			70		1,755		380			8,599
Income (loss) before income taxes		2,158		1,129		1,186			214		1,211		(525	)		5,373
Income taxes (recoveries)		572		312		237			44		39		(317	)		887
Net income	$	1,586	$	817	$	949		$	170	$	1,172	$	(208	)	$	4,486
Non-interest expense includes:
Depreciation and amortization	$	299	$	26	$	299		$	3	$	133	$	(1	)	$	759

Table of Contents

Royal Bank of Canada Third Quarter 2025 77

	For the nine months ended July 31, 2025
(Millions of Canadian dollars)	Personal<br> Banking<br>(4)		Commercial<br> Banking<br>(4)		Wealth<br> Management<br>(4)		Insurance		Capital<br> Markets<br>(1), (4)		Corporate<br> Support<br>(1)			Total
Net interest income <br>(2)	$	10,722	$	5,358	$	4,016	$	–	$	3,480	$	779		$	24,355
Non-interest income		3,954		983		12,462		1,112		7,335		(805	)		25,041
Total revenue		14,676		6,341		16,478		1,112		10,815		(26	)		49,396
Provision for credit losses		1,586		1,177		124		–		468		–			3,355
Non-interest expense		5,925		2,105		12,456		241		5,985		506			27,218
Income (loss) before income taxes		7,165		3,059		3,898		871		4,362		(532	)		18,823
Income taxes (recoveries)		1,947		849		893		141		400		(342	)		3,888
Net income	$	5,218	$	2,210	$	3,005	$	730	$	3,962	$	(190	)	$	14,935
Non-interest expense includes:
Depreciation and amortization	$	814	$	79	$	938	$	34	$	424	$	1		$	2,290
	For the nine months ended July 31, 2024
(Millions of Canadian dollars)	Personal<br> Banking (3), (4)		Commercial<br> Banking (3), (4)		Wealth<br> Management (3), (4)		Insurance		Capital<br> Markets (1), (4)		Corporate<br> Support (1)			Total
Net interest income <br>(2)	$	9,092	$	4,298	$	3,697	$	–	$	2,242	$	953		$	20,282
Non-interest income		3,592		1,007		10,743		946		6,867		(1,167	)		21,988
Total revenue		12,684		5,305		14,440		946		9,109		(214	)		42,270
Provision for credit losses		1,319		676		54		2		342		(1	)		2,392
Non-interest expense		5,452		1,799		11,331		210		5,119		1,320			25,231
Income (loss) before income taxes		5,913		2,830		3,055		734		3,648		(1,533	)		14,647
Income taxes (recoveries)		1,571		786		602		167		60		(557	)		2,629
Net income	$	4,342	$	2,044	$	2,453	$	567	$	3,588	$	(976	)	$	12,018
Non-interest expense includes:
Depreciation and amortization	$	806	$	34	$	919	$	6	$	387	$	(10	)	$	2,142
(1)	Taxable equivalent basis.
---	---
(2)	Interest revenue is reported net of interest expense as we rely primarily on net interest income as a performance measure.
---	---
(3)	Effective the fourth quarter of 2024, the Personal & Commercial Banking segment became two standalone business segments: Personal Banking and Commercial Banking. With this change, RBC Direct Investing moved from the previous Personal & Commercial Banking segment to the Wealth Management segment. Amounts have been revised from those previously presented to conform to our new basis of segment presentation.
---	---
(4)	On March 28, 2024, we completed the acquisition of HSBC Bank Canada. HSBC Bank Canada results have been consolidated from the closing date, and are included in our Personal Banking, Commercial Banking, Wealth Management and Capital Markets segments.
---	---

Total assets and total liabilities by business segment

	As at July 31, 2025
(Millions of Canadian dollars)	Personal<br> Banking		Commercial<br> Banking		Wealth<br> Management		Insurance		Capital<br> Markets		Corporate<br> Support			Total
Total assets	$	568,962	$	195,300	$	186,356	$	30,984	$	1,145,803	$	100,488		$	2,227,893
Total liabilities		568,942		195,298		184,832		30,849		1,145,799		(33,459	)		2,092,261
	As at October 31, 2024
(Millions of Canadian dollars)	Personal<br> Banking		Commercial<br> Banking		Wealth<br> Management		Insurance		Capital<br> Markets		Corporate<br> Support			Total
Total assets	$	555,029	$	187,142	$	184,503	$	29,288	$	1,127,661	$	87,959		$	2,171,582
Total liabilities		554,970		187,135		183,055		29,158		1,127,564		(37,492	)		2,044,390

Table of Contents

78 Royal Bank of Canada Third Quarter 2025

Note 14 Capital management

Regulatory capital and capital ratios

OSFI formally establishes risk-based capital and leverage minimums and Total Loss Absorbing Capacity (TLAC) ratios for deposit-taking institutions in Canada. During the third quarter of 2025, we complied with all applicable capital, leverage and TLAC requirements, including the Domestic Stability Buffer, imposed by OSFI.

	As at
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)	July 31<br> <br>2025		October 31<br> <br>2024
Capital<br><br>(1)
CET1 capital	$	95,654	$	88,936
Tier 1 capital		107,155		97,952
Total capital		119,848		110,487
Risk-weighted assets (RWA) used in calculation of capital ratios<br><br>(1)
Credit risk	$	589,582	$	548,809
Market risk		37,936		33,930
Operational risk		95,637		89,543
Total RWA	$	723,155	$	672,282
Capital ratios and Leverage ratio<br><br>(1)
CET1 ratio		13.2%		13.2%
Tier 1 capital ratio		14.8%		14.6%
Total capital ratio		16.6%		16.4%
Leverage ratio		4.5%		4.2%
Leverage ratio exposure	$	2,404,301	$	2,344,228
TLAC available and ratios<br><br>(2)
TLAC available	$	223,343	$	196,659
TLAC ratio		30.9%		29.3%
TLAC leverage ratio		9.3%		8.4%
(1)	Capital, RWA and capital ratios are calculated using OSFI’s Capital Adequacy Requirements (CAR) guideline and the Leverage ratio is calculated using OSFI’s Leverage Requirements (LR) guideline. Both the CAR guideline and LR guideline are based on the Basel III framework.
---	---
(2)	TLAC available and TLAC ratios are calculated using OSFI’s TLAC guideline. The TLAC standard is applied at the resolution entity level which for us is deemed to be Royal Bank of Canada and its subsidiaries. A resolution entity and its subsidiaries are collectively called a resolution group. The TLAC ratio and TLAC leverage ratio are calculated using the TLAC available as a percentage of total RWA and leverage exposure, respectively.
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EX-99.3

Exhibit 99.3

Return on Equity and Assets Ratios


Return on Assets	0.89	%	0.76	%	0.85	%	0.84	%	0.77	%
Return on Equity	17.3	%	14.2	%	16.8	%	16.1	%	14.4	%
Dividend Payout Ratio	41	%	49	%	42	%	44	%	50	%

EX-31.1

Exhibit 31.1

SOX 302 Certification

I, David McKay, certify that:

1.	I have reviewed this quarterly report for the period ended July 31, 2025 (the “report”) of Royal Bank of<br>Canada (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material<br>fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present<br>in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
---	---
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure<br>controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
---	---
a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under<br>our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;<br>
---	---
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be<br>designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;<br>
---	---
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our<br>conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred<br>during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal<br>control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
---	---
a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial<br>reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
---	---
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the<br>registrant’s internal control over financial reporting.
---	---

Date: August 27, 2025

/s/ David McKay
Name:	David McKay
Title:	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

SOX 302 Certification

I, Katherine Gibson, certify that:

1.	I have reviewed this quarterly report for the period ended July 31, 2025 (the “report”) of Royal Bank of<br>Canada (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material<br>fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
---	---
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present<br>in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
---	---
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure<br>controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
---	---
a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under<br>our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;<br>
---	---
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be<br>designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;<br>
---	---
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our<br>conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
---	---
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred<br>during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
---	---
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal<br>control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
---	---
a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial<br>reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
---	---
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the<br>registrant’s internal control over financial reporting.
---	---

Date: August 27, 2025

/s/ Katherine Gibson
Name:	Katherine Gibson
Title:	Chief Financial Officer