RBC (RY) Barclays 24th Annual Global Financial Services Conference summary

Strategic progress and achievements

• Achieved or exceeded several Investor Day targets, including strong Canadian business growth and market share gains in mortgages and commercial deposits.

• Mortgages grew 4% year-over-year, capturing about 50% of market share in recent quarters; commercial deposits up 9% year-over-year.

• Investment banking and global businesses also showed increasing market share.

• Launched Global Transaction Banking to unify capabilities and drive stable, ancillary revenue.

• U.S. region strategy progressing well, with City National contributing to improved efficiency and profitability.

Financial performance and efficiency

• Q3 ROE exceeded 18% with a CET1 ratio of 13.5%, up from 15.5% in 2024 and 16.7% in 2025.

• NIM expanded by 18 basis points over two years; revenue per RWA increased 15-20 basis points, driven by wealth management and capital markets.

• Efficiency ratio improved to just over 52%, ahead of the 53% target, aided by CAD 760 million in HSBC cost synergies.

• AI initiatives expected to deliver CAD 700 million to CAD 1 billion in net benefits, scaling up in 2027.

• HSBC revenue synergies of CAD 300 million and further U.S. region improvements anticipated in 2027.

Capital allocation and priorities

• Comfortable operating CET1 range is 12.5%-13.5%, targeting around 13% post-OSFI buffer reduction.

• Capital deployment priorities: organic growth, dividends (targeting 40%-50% payout), tactical buybacks, and selective inorganic opportunities.

• Book value per share grew 10% over four quarters; buybacks used as a tactical lever to maintain capital ratios.

• Inorganic growth considered only for strategic acceleration, with a high bar for M&A, especially in U.S. and U.K. wealth and commercial banking.