2021q2 Report

Royal Bank of Canada second quarter 2021 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.
PCL(2) CET1 Ratio
Net Income Diluted EPS(1) ROE(4)
$4.0 Billion $2.76 $(96) Million 19.4% 12.8%
PCL on loans ratio down Well above regulatory
Up $2.5 Billion YoY Up from $1.00 in Q2 2020 Up from 7.3% last year
12 bps(3) QoQ requirements
TORONTO, May 27, 2021 — Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $4.0 billion for the quarter ended April 30, 2021, up $2.5 billion from the
prior year. Diluted EPS was $2.76, up significantly over the same period. Our results this quarter included releases of provisions on performing loans of $260 million compared
to elevated provisions on performing loans of $2.1 billion in the prior year.
Pre-provision, pre-tax earnings5 of $5.1 billion were up 11% from a year ago, mainly reflecting constructive markets and strong volume growth, partially offset by the impact of
low interest rates, and higher expenses largely due to higher variable compensation on improved results and higher stock-based compensation. Personal & Commercial
Banking and Capital Markets generated solid earnings growth, with Capital Markets reporting record earnings this quarter. Higher results in Wealth Management and
Insurance also contributed to the increase. These factors were partially offset by lower results in Investor & Treasury Services.
Compared to last quarter, net income was up $168 million with higher results in Personal & Commercial Banking, Wealth Management and Capital Markets. These results were
partially offset by lower earnings in Insurance and Investor & Treasury Services.
The PCL on loans ratio of (5) bps was down 12 bps from last quarter primarily due to lower provisions in Personal & Commercial Banking and Capital Markets, partially offset by
higher recoveries in Wealth Management in the prior quarter. The PCL on impaired loans ratio of 11 bps decreased 2 bps from last quarter.
Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 12.8% supporting strong client-driven volume growth and $1.5 billion in common share
dividends paid. We also had a strong average Liquidity Coverage Ratio (LCR) of 133%.
“I’m tremendously proud of how our employees continue to demonstrate resilience, and bring our Purpose to life to deliver for our clients, communities and shareholders.
The strong momentum we’ve achieved in the first half of 2021 reflects our focused strategy to deliver exceptional experiences and create more value for clients. RBC brings
this to life through the combination of our powerful scale, strong market share growth, prudent risk management, and significant multi-year investments in talent and
technology. While there is reason for optimism as recovery continues to take hold, we know the pandemic’s path forward still poses challenges. We remain firmly committed
to helping our clients thrive and communities prosper, and to being an enabler of a more inclusive and sustainable future.”
- Dave McKay, RBC President and Chief Executive Officer
Q2 2021 • Net income of $4,015 million ↑ 171%

• Diluted EPS of $2.76 ↑ 176%
Compared to • ROE of 19.4% ↑ 1,210 bps
Q2 2020 • CET1 ratio of 12.8% ↑ 110 bps
Q2 2021 • Net income of $4,015 million ↑ 4%

• Diluted EPS of $2.76 ↑ 4%
Compared to • ROE of 19.4% ↑ 80 bps
Q1 2021 • CET1 ratio of 12.8% ↑ 30 bps
YTD 2021 • Net income of $7,862 million ↑ 58%

Compared to • Diluted EPS of $5.42 ↑ 59%
YTD 2020 • ROE of 19.0% ↑ 650 bps
(1) Earnings per share (EPS).

(2) Provision for credit losses (PCL).
(3) Basis points (bps).
(4) Return on equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key performance and non-GAAP measures section of this
Q2 2021 Report to Shareholders.
(5) Pre-provision, pre-tax earnings is calculated as income before income taxes plus PCL. This is a non-GAAP measure. For further information, refer to the Key Performance and Non-GAAP
Measures section of our Q2 2021 Earnings Release.
Table of contents
1 Second quarter highlights 12 Key performance and non-GAAP 45 Capital management
2 Management’s Discussion and Analysis measures 50 Accounting and control matters
2 Caution regarding forward-looking 14 Personal & Commercial Banking 50 Summary of accounting policies and
statements 15 Wealth Management estimates
2 Overview and outlook 16 Insurance 50 Changes in accounting policies and
2 About Royal Bank of Canada 17 Investor & Treasury Services disclosures
3 Selected financial and other 18 Capital Markets 50 Controls and procedures
highlights 20 Corporate Support 50 Related party transactions
4 Economic, market and regulatory 21 Quarterly results and trend analysis 51 Enhanced Disclosure Task Force
review and outlook 23 Financial condition recommendations index
6 Impact of COVID-19 pandemic 23 Condensed balance sheets 52 Interim Condensed Consolidated
8 Financial performance 24 Off-balance sheet arrangements Financial Statements (unaudited)
8 Overview 24 Risk management 58 Notes to the Interim Condensed
12 Business segment results 24 Credit risk Consolidated Financial Statements
12 How we measure and report our 31 Market risk (unaudited)
business segments 36 Liquidity and funding risk 83 Shareholder Information
2 Royal Bank of Canada Second Quarter 2021
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 six month periods ended or as at April 30, 2021, compared to the corresponding periods in the prior
fiscal year and the three month period ended January 31, 2021. This MD&A should be read in conjunction with our unaudited
Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2021 (Condensed Financial Statements)
and related notes and our 2020 Annual Report. This MD&A is dated May 26, 2021. 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 2020 Annual Information Form, is available free of charge on our website at
rbc.com/investorrelations, on the Canadian Securities Administrators’ website at sedar.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 Q2 2021 Report to Shareholders, in other filings with
Canadian regulators or the SEC, in other reports to shareholders, and in other communications. Forward-looking statements in
this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic
goals, the Economic, market, and regulatory review and outlook for Canadian, U.S., European and global economies, the
regulatory environment in which we operate, and the risk environment including our credit risk, liquidity and funding risk,
expectations with respect to our CET1 ratio, and the potential continued impacts of the coronavirus (COVID-19) pandemic on
our business operations, financial results, condition and objectives and on the global economy and financial market conditions
and includes our President and Chief Executive Officer’s statements. The forward-looking information contained in this
document is 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 and strategic goals, and may not be appropriate for other purposes. Forward-looking
statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”,
“goal”, “plan” and “project” and similar expressions of future or conditional verbs such as “will”, “may”, “should”, “could” or
“would”.
By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not
prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and
strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk
factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements.
These factors – many of which are beyond our control and the effects of which can be difficult to predict – include: credit,
market, liquidity and funding, insurance, operational, regulatory 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 and other risks discussed in the risk
sections and Significant developments: COVID-19 section of our 2020 Annual Report and the Risk management and Impact of
COVID-19 pandemic sections of this Q2 2021 Report to Shareholders; including business and economic conditions, information
technology and cyber risks, Canadian housing and household indebtedness, geopolitical uncertainty, privacy, data and third-
party related risks, regulatory changes, environmental and social risk (including climate change), and digital disruption and
innovation, culture and conduct, the business and economic conditions in the geographic regions in which we operate, the
effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and the emergence of
widespread health emergencies or public health crises such as pandemics and epidemics, including the COVID-19 pandemic
and its impact on the global economy and financial market conditions and our business operations, and financial results,
condition and objectives.
We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results.
When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events. Material economic assumptions underlying the
forward-looking statements contained in this Q2 2021 Report to Shareholders 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
2020 Annual Report, as updated by the Economic, market and regulatory review and outlook and Impact of COVID-19 pandemic
sections of this Q2 2021 Report to Shareholders. 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 and Significant developments:
COVID-19 section of our 2020 Annual Report and the Risk management and Impact of COVID-19 pandemic sections of this Q2
2021 Report to Shareholders.
Overview and outlook
About Royal Bank of Canada
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 86,000+ 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 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
Royal Bank of Canada Second Quarter 2021 3
Selected financial and other highlights
As at or for the three months ended As at or for the six months ended
(Millions of Canadian dollars, except per share, April 30 January 31 April 30 April 30 April 30
number of and percentage amounts) 2021 2021 2020 2021 2020
Total revenue $ 11,618 $ 12,943 $ 10,333 $ 24,561 $ 23,169
Provision for credit losses (PCL) (96) 110 2,830 14 3,249
Insurance policyholder benefits, claims and
acquisition expense (PBCAE) 149 1,406 (177) 1,555 1,437
Non-interest expense 6,379 6,542 5,942 12,921 12,320
Income before income taxes 5,186 4,885 1,738 10,071 6,163
Net income $ 4,015 $ 3,847 $ 1,481 $ 7,862 $ 4,990
Segments – net income
Personal & Commercial Banking $ 1,908 $ 1,793 $ 532 $ 3,701 $ 2,218
Wealth Management 691 649 424 1,340 1,047
Insurance 187 201 180 388 361
Investor & Treasury Services 120 123 226 243 369
Capital Markets 1,071 1,067 105 2,138 987
Corporate Support 38 14 14 52 8
Net income $ 4,015 $ 3,847 $ 1,481 $ 7,862 $ 4,990
Selected information
Earnings per share (EPS) – basic $ 2.76 $ 2.66 $ 1.00 $ 5.42 $ 3.41
– diluted 2.76 2.66 1.00 5.42 3.40
Return on common equity (ROE) (1), (2) 19.4% 18.6% 7.3% 19.0% 12.5%
Average common equity (1) $ 83,450 $ 80,750 $ 79,100 $ 82,050 $ 78,450
Net interest margin (NIM) – on average earning assets, net 1.50% 1.50% 1.61% 1.50% 1.60%
PCL on loans as a % of average net loans and acceptances (0.05)% 0.07% 1.65% 0.01% 0.96%
PCL on performing loans as a % of average net loans
and acceptances (0.16)% (0.06)% 1.28% (0.11)% 0.67%
PCL on impaired loans as a % of average net loans
and acceptances 0.11% 0.13% 0.37% 0.12% 0.29%
Gross impaired loans (GIL) as a % of loans and acceptances 0.40% 0.41% 0.51% 0.40% 0.51%
Liquidity coverage ratio (LCR) (3) 133% 141% 130% 133% 130%
Net stable funding ratio (NSFR) (4) 118% 118% n.a. 118% n.a.
Capital ratios and Leverage ratio
Common Equity Tier 1 (CET1) ratio 12.8% 12.5% 11.7% 12.8% 11.7%
Tier 1 capital ratio 14.1% 13.8% 12.7% 14.1% 12.7%
Total capital ratio 15.8% 15.5% 14.6% 15.8% 14.6%
Leverage ratio 5.0% 4.8% 4.5% 5.0% 4.5%
Selected balance sheet and other information (5)
Total assets $ 1,615,316 $ 1,671,151 $ 1,675,682 $ 1,615,316 $ 1,675,682
Securities, net of applicable allowance 255,152 287,482 269,941 255,152 269,941
Loans, net of allowance for loan losses 673,511 672,563 673,448 673,511 673,448
Derivative related assets 97,236 110,917 140,807 97,236 140,807
Deposits 1,033,323 1,054,597 1,009,447 1,033,323 1,009,447
Common equity 85,544 82,934 79,236 85,544 79,236
Total risk-weighted assets 555,607 557,519 558,412 555,607 558,412
Assets under management (AUM) 929,800 897,400 789,000 929,800 789,000
Assets under administration (AUA) (6) 6,111,000 6,133,600 5,381,800 6,111,000 5,381,800
Common share information
Shares outstanding (000s) – average basic 1,424,889 1,423,350 1,422,754 1,424,107 1,425,203
– average diluted 1,427,107 1,425,280 1,427,871 1,426,183 1,430,468
– end of period 1,424,727 1,424,083 1,422,566 1,424,727 1,422,566
Dividends declared per common share $ 1.08 $ 1.08 $ 1.08 $ 2.16 $ 2.13
Dividend yield (7) 3.9% 4.3% 4.7% 4.1% 4.7%
Dividend payout ratio 39% 41% 108% 40% 62%
Common share price (RY on TSX) (8) $ 117.31 $ 103.50 $ 85.63 $ 117.31 $ 85.63
Market capitalization (TSX) (8) 167,135 147,393 121,814 167,135 121,814
Business information (number of)
Employees (full-time equivalent) (FTE) 83,709 84,030 82,499 83,709 82,499
Bank branches 1,307 1,328 1,329 1,307 1,329
Automated teller machines (ATMs) 4,469 4,523 4,564 4,469 4,564
Period average US$ equivalent of C$1.00 (9) 0.798 0.779 0.725 0.789 0.742
Period-end US$ equivalent of C$1.00 0.813 0.782 0.718 0.813 0.718
(1) Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes average common equity used in the
calculation of ROE. For further details, refer to the Key performance and non-GAAP measures section.
(2) This measure may not have a standardized meaning under generally accepted accounting principles (GAAP) and may not be comparable to similar measures disclosed by
other financial institutions. For further details, refer to the Key performance and non-GAAP measures section.
(3) LCR is the average for the three months ended for each respective period and is calculated in accordance with the Office of the Superintendent of Financial Institutions’ (OSFI)
Liquidity Adequacy Requirements (LAR) guidance as updated in accordance with the regulatory guidance issued in fiscal 2020. For further details, refer to the Liquidity and
funding risk section.
(4) Beginning in Q1 2021, OSFI requires Canadian Domestic Systemically Important Banks (D-SIBs) to disclose the NSFR on a prospective basis. The NSFR is calculated in
accordance with OSFI’s LAR guideline, which, in turn, reflects liquidity related requirements issued by the Basel Committee on Banking Supervision (BCBS). For further details,
refer to the Liquidity and funding risk section.
(5) Represents period-end spot balances.
(6) AUA includes $15.0 billion and $2.9 billion (January 31, 2021 – $15.3 billion and $4.1 billion; April 30, 2020 – $16.1 billion and $6.7 billion) of securitized residential mortgages and
credit card loans, respectively.
(7) Defined as dividends per common share divided by the average of the high and low share price in the relevant period.
(8) Based on TSX closing market price at period-end.
(9) Average amounts are calculated using month-end spot rates for the period.
n.a. not applicable
Economic, market and regulatory review and outlook – data as at May 26, 2021
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

A resurgence in the spread of COVID-19 in some regions, including the emergence and progression of new variants of
COVID-19, has resulted in certain regions re-imposing or increasing the level of containment measures. This continues to
restrain the pace of near-term economic activity. However, containment measures have generally been more targeted by
region and industry since the initial shutdowns in the spring of 2020, and the economic impact from subsequent shutdowns
has been less severe. Vaccine distribution has been uneven across jurisdictions, but continues to increase, which is expected
to allow for more significant and sustainable easing of containment measures over the summer of 2021 in many economies.
Government support programs have maintained household purchasing power and are expected to support a recovery in
spending as containment measures ease. Despite these positive developments, uncertainty remains regarding vaccine
efficacy against new variants of COVID-19 and vaccine supply and availability which could impact the timing and extent of a
full recovery.
Canada
The Canadian economy grew sharply in spite of a resurgence in the spread of COVID-19 in the latter part of 2020 that was
accompanied by increased containment measures, which extended into 2021 and continued to weigh heavily on activity in the
travel and hospitality sectors. GDP rose 9.6%1 in the final calendar quarter of 2020 and is expected to have grown another
6.5%1 in the first calendar quarter of 2021. The unemployment rate fell to 7.5% in March 2021, down from 8.8% in December
2020, but rose back to 8.1% in April 2021 as re-imposed containment measures led to another round of job losses. Substantial
government support for households and businesses remains in place, and extensions have already been announced to
previously expanded employment insurance programs as well as business wage and rent subsidies. The Bank of Canada (BoC)
recently announced a plan to slow the pace of monthly asset purchases and indicated that interest rates are likely to begin to
rise earlier than the BoC previously expected, although still not until the second half of calendar 2022. Further resurgence in
virus spread remains a significant headwind for the economy in the second calendar quarter of 2021, but rising vaccination
rates are expected to ease pressure on healthcare services and allow for a more significant and sustainable easing of
containment measures over the summer.
U.S.
Growth in the U.S. economy has accelerated alongside a rapid rollout of vaccines and large government stimulus spending.
GDP grew 4.3%1 in the final calendar quarter of 2020, and 6.4%1 in the first calendar quarter of 2021. While employment rose
with 1.8 million jobs added in the first four months of calendar 2021, the remaining shortfall in jobs relative to pre-pandemic
levels is still substantial at 8.2 million, with more than one third concentrated in the leisure and hospitality sectors where
containment measures are the most stringent. The recovery of the labour market is expected to accelerate as containment
measures ease more significantly and sustainably. Household incomes continue to be supported by exceptionally large
government stimulus spending including additional support that was made available as part of the stimulus package passed
in March 2021. The Federal Reserve has committed to maintaining extraordinary policy support by keeping benchmark interest
rates low and continuing with asset purchases until the labour market has recovered. Supportive fiscal and monetary policy is
expected to help to accelerate growth in spending in calendar 2021, alongside the expectation that rising vaccination rates will
enable a more substantial and sustainable easing of containment measures.
Europe
A resurgence in virus spread has prompted the re-imposition of containment measures in Euro area countries, and vaccine
distribution in the Euro area has progressed more slowly than in many other regions. Euro area GDP declined by 0.6% in the
first calendar quarter of 2021 following a 0.7% decline in the fourth calendar quarter of 2020. The economy is expected to
return to growth in the second calendar quarter of 2021 and beyond as vaccination rates increase more significantly. In the
U.K., GDP declined by 1.5% in the first calendar quarter of 2021 reflecting a resurgence in virus spread and re-imposition of
containment measures during that period. A sharp increase in economic output in the U.K. is expected beginning in the second
calendar quarter of 2021 as vaccine distribution in the U.K. has been running ahead of other regions and containment
measures have begun to ease. Both the European Central Bank (ECB) and the Bank of England have held interest rates low
while further expanding the scope and length of their quantitative easing programs. Fiscal stimulus is also expected to
continue to support household incomes despite still weak underlying labour market conditions.
Financial markets
Government bond yields remain historically low but have increased on optimism that the economic recovery is poised to
accelerate alongside rising vaccination rates and inflation expectations. Major indices rose to all-time highs as equity
markets continued to be supported by monetary policy stimulus, massive government income support and positive vaccine
developments. Monetary policy is expected to remain accommodative for an extended period.
1 Annualized rate
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 and 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 2020 Annual Report, as updated below. A summary of the additional
regulatory changes and relief instituted by governments globally and by OSFI during 2020 in response to the COVID-19
pandemic is included in the Significant developments: COVID-19, Liquidity and funding risk and Capital management sections
of our 2020 Annual Report, with updates provided in the Impact of COVID-19 pandemic, Liquidity and funding risk and Capital
management sections of this Q2 2021 Report to Shareholders.
Global uncertainty
Significant uncertainty about the impacts of the COVID-19 pandemic, trade policy and geopolitical tensions continue to pose
risks to the global economic outlook. In April 2021, the International Monetary Fund (IMF) projected global growth of 6.0% in
2021, up from its previous forecast of 5.5% in January 2021, reflecting expectations of a stronger recovery in economic activity
as rising vaccination rates enable more substantial and sustainable easing of containment measures, supported by additional
fiscal support in a few large economies and the continued adaptation of economic activity to subdued mobility. Despite these
positive developments, uncertainty remains regarding vaccine efficacy against new variants of COVID-19 and vaccine supply
and availability. Trade policy also remains a source of global uncertainty as the impacts of the new U.S. administration’s trade
agenda and the U.K.’s progress on an international trade policy remain to be seen. Finally, global financial markets remain
vulnerable to geopolitical tensions, such as those between the U.S. and China, many of which center around trade and
technology. Our diversified business model, as well as our product and geographic diversification, continue to help mitigate
the risks posed by global uncertainty.
Minimum qualifying rates for insured and uninsured mortgages in Canada

On May 20, 2021, OSFI announced that effective June 1, 2021, the proposed minimum qualifying rate for uninsured mortgages
will be the greater of the mortgage contract rate plus 2% or 5.25%. OSFI also announced that it will review and communicate
the qualifying rate at a minimum annually, every December. The Department of Finance Canada, who is responsible for setting
the benchmark rate for qualifying insured mortgages, also announced on May 20, 2021 that it would align the rate for insured
mortgages with the rate set by OSFI for uninsured mortgages and that this new rate would apply to insured mortgages
approved on June 1, 2021 or later. The minimum qualifying rate for insured mortgages will be subject to review and periodic
adjustment.
Interest rate benchmark reform

London Interbank Offered Rate (LIBOR) is the most widely referenced benchmark interest rate across the globe for
derivatives, bonds, loans and other floating rate instruments; however, there is a regulator-led push to transition the market
from LIBOR and certain other benchmark interest rates to alternative risk-free, or nearly risk-free, rates that are based on
actual overnight transactions. On March 5, 2021, the Financial Conduct Authority (FCA), the regulator of the ICE Benchmark
Administration (IBA) which administers LIBOR, announced the permanent cessation or loss of representativeness of all 35
LIBOR benchmark settings currently published by the IBA. For further details, refer to Note 2 of our Condensed Financial
Statements.
U.K. and European regulatory reform

EU Sustainability-Related Disclosures Regulation requires financial services firms to disclose their approaches to considering
environmental, social and governance factors as part of their advice and investment decision processes. These requirements
were effective on March 10, 2021 and there has been no material impact on us; however, we will continue to monitor future
guidance and the impact, if any, on us.
For a discussion on risk factors, including our framework and activities to manage these risks and other regulatory
developments which may affect our business and financial results, refer to the Significant developments: COVID-19 section,
including the Impact of pandemic risk factor, and the Risk management – Top and emerging risks and Legal and regulatory
environment risk sections of our 2020 Annual Report and the Impact of COVID-19 pandemic, Risk and Capital management
sections of this Q2 2021 Report to Shareholders.
Impact of COVID-19 pandemic
On March 11, 2020, the World Health Organization declared the outbreak of a strain of novel coronavirus disease, COVID-19, a
global pandemic. The breadth and depth of the impact of the COVID-19 pandemic on the global economy and financial markets
has continued to evolve with disruptive effects in countries in which we operate and beyond, while also contributing to
increased market volatility and changes to the macroeconomic environment. In addition, the COVID-19 pandemic has
continued to affect our employees, clients and communities, with resultant impacts on our operations, financial results and
present and future risks to our business.
Measures to contain the spread of COVID-19, including business closures, social distancing protocols, travel restrictions,
school closures, quarantines, and restrictions on gatherings and events, have been and continue to be widespread. These
measures have had and continue to have extensive implications for the global economy, including the pace and magnitude of
recovery, as well as on related market functions, unemployment rates, and fiscal and monetary policies. The easing of
containment measures and progress towards reopening plans have been accompanied by resurgences in the spread of
COVID-19 in some regions, resulting in the re-imposition of restrictions in certain regions. As the COVID-19 pandemic continues
to evolve, including through the emergence and progression of new variants of COVID-19 in different regions, governments
continue to adjust their response and approach to the pandemic. Consequently, the extent of containment measures and
progress towards reopening continues to vary and fluctuate across different regions. While vaccines have been approved for
use and are being administered in many countries, uncertainty remains regarding vaccine efficacy against new variants of
COVID-19, vaccine supply and availability, and the ability of governments to quickly and effectively distribute vaccines to
inoculate a sufficient proportion of the population to enable widespread easing of containment measures and support the
transition to a fully reopened economy. All of these factors contribute to the uncertainty regarding the timing of a full
recovery. The COVID-19 pandemic, the containment measures and the phased reopening approach taken in several regions
could have longer-term effects on economic and commercial activity and consumer behaviour after the COVID-19 pandemic
recedes and containment measures are fully lifted. In conjunction with the COVID-19 pandemic containment measures,
governments, regulatory bodies, central banks and private organizations around the globe have provided and continue to
provide unprecedented relief programs and temporary measures to facilitate the continued operation of the global economy
and financial system, all of which are intended to provide support to individuals and businesses. While some programs have
come to an end, other programs remain in place or have continued to be developed in an effort to support the overall
economy. We expect that these governments, regulatory bodies, central banks and private organizations will continue to
assess the need for these programs and measures.
In addition to the broad impacts of the COVID-19 pandemic on our employees, clients, communities and operations, the
COVID-19 pandemic has impacted and will continue to impact our financial results. Results across all of our business
segments have been and continue to be impacted to varying degrees by downstream implications from changes in the
macroeconomic environment, including lower interest rates, modest consumer spending relative to pre-pandemic levels,
market volatility, fluctuations in credit spreads, as well as other impacts including changes in credit risk, increased client-
driven volumes and changes in operating costs. Notwithstanding these challenges, our financial results and condition amid
these challenges demonstrate the resilience of our capital and liquidity positions, which have been bolstered by our position
of strength at the time of entering this crisis and throughout the period.
Given the uncertainty of the extent and duration of the COVID-19 pandemic and its impacts on the economy and society as
a whole, as well as the timeline of the transition to a fully reopened economy, the future impact on our businesses and our
financial results and condition remains uncertain. We are closely monitoring the potential continued effects and impacts of
the COVID-19 pandemic.
For further details regarding the impact of the COVID-19 pandemic, including associated risks, relief programs, programs
in support of funding and liquidity, and other government measures, refer to the Significant developments: COVID-19, including
the Impact of pandemic risk factor, risk and Capital management sections of our 2020 Annual Report.
Relief programs
In response to the COVID-19 pandemic, several government programs have been and continue to be developed to provide
financial aid to individuals and businesses, which include wage replacement for individuals, wage subsidies and rent relief for
businesses, and lending programs for businesses, which we are administering for our clients. To further support our clients in
financial need, various temporary relief programs were launched beyond the available government programs.
A summary of RBC and government relief programs is included in the Significant developments: COVID-19 section of our
2020 Annual Report, with updates noted below.
RBC relief programs

During the second quarter of 2020, we announced the RBC Client Relief program which aimed to provide immediate and long-
term relief for clients impacted by the COVID-19 pandemic. The RBC Client Relief program for the majority of our commercial
and small business clients closed on June 30, 2020 and loan deferrals within the program closed for retail clients on
September 30, 2020.
As at April 30, 2021, payment deferral periods for clients that participated in these programs have largely concluded;
however, we have assessed and will continue to assess the needs of each individual client and continue to provide support to
clients on a case by case basis. The majority of our clients that have exited these programs have returned to making regular
payments on their loans following the expiry of their payment deferral periods.
Government programs in response to the COVID-19 pandemic

In response to the COVID-19 pandemic, both the Canadian and U.S. federal governments established programs intended to
support businesses experiencing cash flow challenges during this unprecedented time, through which financial institutions
have facilitated and continue to facilitate the provision of financial relief. In Canada, these programs include the Canada
Emergency Business Account (CEBA) and the Business Credit Availability Program (BCAP), which is comprised of the Export
Development Canada (EDC) BCAP Guarantee, the Business Development Bank of Canada (BDC) Co-Lending Program, the BDC
Mid-Market Financing Program, and the EDC Mid-Market Guarantee and Financing Program. In the U.S., the federal
government has established the Paycheck Protection Program (PPP). There have been no significant changes to these
programs since October 31, 2020, except as noted below:
• On March 22, 2021, the Canadian Federal government announced that the application deadline for the CEBA program
has been extended from March 31, 2021 to June 30, 2021.
• In January 2021, the U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department,
pursuant to the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (Economic Aid Act)
relaunched the PPP, extending it through March 31, 2021, and announced a number of updates to the PPP for current and
future loans. The expanded program includes new categories of eligible expenses, including operating expenditures,
property damage costs, supplier costs and worker protection expenditures, in addition to payroll costs, utilities and
mortgage interest. Borrowers are also provided with additional flexibility, including the ability to set their covered
period for forgivable expenditures to be any length between 8 and 24 weeks. Certain borrowers with existing PPP loans
may qualify for a second draw loan and may be eligible for a supplemental increase to their first draw. On March 30,
2021, the “PPP Extension Act” was signed into law, extending the PPP for an additional two months to May 31, 2021, and
providing an additional 30-day period for the SBA to process pending applications.
• On January 26, 2021, the Canadian Federal government announced the BDC Highly Affected Sectors Credit Availability
Program (HASCAP). Under this program, Canadian banks are able to provide low-interest loans ranging from $25,000 to
$1 million to businesses that have been heavily impacted by COVID-19 to cover operational cash flow needs. Loans
funded under this program are fully guaranteed by the BDC. The application deadline for this program is June 30, 2021.
As at April 30, 2021, we have facilitated the administration of relief to more than 194,000 clients (January 31, 2021 – 184,800)
who have enrolled in the Canadian federal government programs, with corresponding exposures of $10.8 billion (January 31,
2021 – $9.3 billion), of which $10.2 billion (January 31, 2021 – $8.7 billion) was funded. For further details, refer to Note 6 of our
2020 Annual Consolidated Financial Statements. As at April 30, 2021, we have provided $6.4 billion (US$5.2 billion) of funding
(January 31, 2021 – $5.7 billion, (US$4.5 billion)) to 20,341 clients (January 31, 2021 – 16,835 clients) through the PPP.
Financial performance
Overview
Q2 2021 vs. Q2 2020

Net income of $4,015 million was up $2,534 million from a year ago. Diluted earnings per share (EPS) of $2.76 was up $1.76 and
return on common equity (ROE) of 19.4% was up from 7.3% last year. Our Common Equity Tier 1 (CET1) ratio of 12.8% was up
110 bps from a year ago.
Our results reflected higher earnings in Personal & Commercial Banking, Capital Markets, Wealth Management and
Insurance, partially offset by lower earnings in Investor & Treasury Services. The same quarter last year reflected elevated
provisions on performing loans due to the impact of the onset of the COVID-19 pandemic, which unfavourably impacted
results in Personal & Commercial Banking, Capital Markets and Wealth Management in the prior year.
Q2 2021 vs. Q1 2021

Net income of $4,015 million was up $168 million or 4% from last quarter. Diluted EPS of $2.76 was up $0.10 or 4% and ROE of
19.4% was up from 18.6% in the prior quarter. Our CET1 ratio of 12.8% was up 30 bps from last quarter.
Our results reflected earnings growth in Personal & Commercial Banking, Wealth Management and Capital Markets,
partially offset by lower results in Insurance and Investor & Treasury Services.
Q2 2021 vs. Q2 2020 (Six months ended)

Net income of $7,862 million was up $2,872 million or 58% from the same period last year. Diluted EPS of $5.42 was up $2.02 or
59% and ROE of 19.0% was up from 12.5% in the prior year.
Our results reflected higher earnings in Personal & Commercial Banking, Capital Markets, Wealth Management and
Insurance, partially offset by lower earnings in Investor & Treasury Services. The same period last year reflected elevated
provisions on performing loans due to the impact of the onset of the COVID-19 pandemic, which unfavourably impacted
results in Personal & Commercial Banking, Capital Markets and Wealth Management in the prior year.
For further details on our business segment results and CET1 ratio, refer to the Business segment results and Capital
management sections, respectively.
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 six months ended
Q2 2021 vs. Q2 2021 vs. Q2 2021 vs.

(Millions of Canadian dollars, except per share amounts) Q2 2020 Q1 2021 Q2 2020
Increase (decrease):
Total revenue $ (356) $ (95) $ (429)
PCL 13 6 15
Non-interest expense (256) (71) (305)
Income taxes (24) (7) (26)
Net income (89) (23) (113)
Impact on EPS
Basic $ (0.06) $ (0.02) $ (0.08)
Diluted (0.06) (0.02) (0.08)
The relevant average exchange rates that impact our business are shown in the following table:
April 30 January 31 April 30 April 30 April 30
(Average foreign currency equivalent of C$1.00) (1) 2021 2021 2020 2021 2020
U.S. dollar 0.798 0.779 0.725 0.789 0.742
British pound 0.577 0.574 0.575 0.575 0.577
Euro 0.669 0.644 0.659 0.656 0.671
(1) Average amounts are calculated using month-end spot rates for the period.
Total revenue
(Millions of Canadian dollars, except percentage amounts) 2021 2021 2020 2021 2020
Interest and dividend income $ 6,898 $ 7,236 $ 9,226 $ 14,134 $ 19,464
Interest expense 2,044 2,201 3,761 4,245 8,778
Net interest income 4,854 5,035 5,465 9,889 10,686
NIM 1.50% 1.50% 1.61% 1.50% 1.60%
Insurance premiums, investment and fee income 536 1,809 197 2,345 2,191
Trading revenue 377 524 (66) 901 392
Investment management and custodial fees 1,711 1,703 1,500 3,414 3,035
Mutual fund revenue 1,014 1,000 890 2,014 1,836
Securities brokerage commissions 431 401 460 832 778
Service charges 460 458 468 918 956
Underwriting and other advisory fees 747 590 544 1,337 1,171
Foreign exchange revenue, other than trading 292 289 280 581 533
Card service revenue 281 272 212 553 499
Credit fees 368 332 304 700 664
Net gains on investment securities 82 35 45 117 56
Share of profit in joint ventures and associates 24 25 15 49 37
Other 441 470 19 911 335
Non-interest income 6,764 7,908 4,868 14,672 12,483
Total revenue $ 11,618 $ 12,943 $ 10,333 $ 24,561 $ 23,169
Additional trading information
Net interest income $ 642 $ 740 $ 1,064 $ 1,382 $ 1,764
Non-interest income 377 524 (66) 901 392
Total trading revenue $ 1,019 $ 1,264 $ 998 $ 2,283 $ 2,156
Q2 2021 vs. Q2 2020

Total revenue increased $1,285 million or 12% from a year ago, mainly due to higher trading revenue, other revenue and
insurance premiums, investment and fee income (Insurance revenue). Higher investment management and custodial fees,
underwriting and other advisory fees, as well as mutual fund revenue also contributed to the increase. These factors were
partially offset by lower net interest income. The impact of foreign exchange translation decreased total revenue by
$356 million.
Net interest income decreased $611 million or 11%, largely due to lower spreads in Personal & Commercial Banking and
Wealth Management, and lower trading revenue in Capital Markets primarily in repo products. The impact of foreign exchange
translation also contributed to the decrease. These factors were partially offset by volume growth in Canadian Banking and
Wealth Management.
NIM was down 11 bps compared to last year, mainly due to lower spreads in Personal & Commercial Banking and Wealth
Management primarily due to the impact of lower interest rates.
Insurance revenue increased $339 million, primarily reflecting the change in fair value of investments backing
policyholder liabilities, which is largely offset in PBCAE.
Trading revenue increased $443 million, as the prior year included loan underwriting markdowns impacting fixed income
trading in the U.S. and Europe driven by widening credit spreads. Higher equity trading across most regions reflecting
increased client activity also contributed to the increase.
Investment management and custodial fees increased $211 million or 14%, mainly due to higher average fee-based client
assets reflecting market appreciation and net sales.
Mutual fund revenue increased $124 million or 14%, primarily due to higher average fee-based client assets reflecting
market appreciation and net sales in Wealth Management, and higher average balances driving higher mutual fund
distribution fees in Canadian Banking.
Underwriting and other advisory fees increased $203 million or 37%, largely driven by higher equity origination, higher
M&A activity and higher debt origination, all largely in the U.S.
Other revenue increased $422 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.
Q2 2021 vs. Q1 2021

Total revenue decreased $1,325 million or 10% from last quarter, mainly due to lower insurance revenue. Lower net interest
income and trading revenue also contributed to the decrease. These factors were partially offset by higher underwriting and
other advisory fees. The impact of foreign exchange translation decreased total revenue by $95 million.
Net interest income decreased $181 million or 4%, mainly due to the impact of three less days in the current quarter, and
lower trading revenue in Capital Markets. These factors were partially offset by volume growth in Canadian Banking.
Insurance revenue decreased $1,273 million or 70%, mainly reflecting the change in fair value of investments backing
policyholder liabilities and lower group annuity sales, both of which are largely offset in PBCAE.
Trading revenue decreased $147 million or 28%, mainly attributable to lower fixed income trading across all regions driven
by reduced client activity.
Underwriting and other advisory fees increased $157 million or 27%, primarily driven by higher debt and equity origination
across all regions.

Total revenue increased $1,392 million or 6% from the same period last year, primarily driven by higher other revenue and
trading revenue. Higher investment management and custodial fees, mutual fund revenue, underwriting and other advisory
fees, and insurance revenue also contributed to the increase. These factors were partially offset by lower net interest income.
The impact of foreign exchange translation decreased total revenue by $429 million.
Net interest income decreased $797 million or 7%, largely due to lower spreads in Personal & Commercial Banking and
Wealth Management. Lower trading revenue in Capital Markets and the impact of foreign exchange translation also
contributed to the decrease. These factors were partially offset by volume growth in Canadian Banking and Wealth
Management.
Insurance revenue increased $154 million or 7%, mainly reflecting the change in fair value of investments backing
policyholder liabilities, partially offset by lower group annuity sales, both of which are largely offset in PBCAE.
Trading revenue increased $509 million, as the prior year included loan underwriting markdowns impacting fixed income
trading in the U.S. and Europe driven by widening credit spreads. Higher equity trading across all regions reflecting increased
client activity also contributed to the increase.
Investment management and custodial fees increased $379 million or 12%, largely driven by higher average fee-based
client assets reflecting market appreciation and net sales.
Mutual fund revenue increased $178 million or 10%, primarily due to higher average fee-based client assets reflecting
market appreciation and net sales in Wealth Management, and higher average balances driving higher mutual fund
distribution fees in Canadian Banking.
Underwriting and other advisory fees increased $166 million or 14%, mainly due to higher equity origination across most
regions.
Other revenue increased $576 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.
Provision for credit losses

Q2 2021 vs. Q2 2020
Total PCL decreased $2,926 million from a year ago.
PCL on loans of $(83) million decreased $2,817 million, as the prior year reflected elevated provisions on performing loans
due to the impact of the onset of the COVID-19 pandemic. The PCL on loans ratio was (5) bps.
Q2 2021 vs. Q1 2021

Total PCL decreased $206 million from last quarter.
PCL on loans of $(83) million decreased $204 million, primarily due to lower provisions in Personal & Commercial Banking
and Capital Markets, partially offset by higher recoveries in Wealth Management in the prior quarter. The PCL on loans ratio
of (5) bps decreased 12 bps.

Total PCL decreased $3,235 million from the same period last year.
PCL on loans of $38 million decreased $3,117 million from the same period last year, as the prior year reflected elevated
provisions on performing loans due to the impact of the onset of the COVID-19 pandemic. The PCL on loans ratio was 1 bp.
For further details on PCL, refer to Credit quality performance in the Credit risk section.
Insurance policyholder benefits, claims and acquisition expense (PBCAE)

Q2 2021 vs. Q2 2020
PBCAE increased $326 million from a year ago, primarily reflecting the change in fair value of investments backing
policyholder liabilities, which is largely offset in revenue. The impact of lower new longevity reinsurance contracts also
contributed to the increase. These factors were partially offset by lower claims costs, mainly in our travel-related and
disability products, as well as the impact of actuarial adjustments.
Q2 2021 vs. Q1 2021

PBCAE decreased $1,257 million or 89% from last quarter, primarily reflecting the change in fair value of investments backing
policyholder liabilities and lower group annuity sales, both of which are largely offset in revenue.

PBCAE increased $118 million or 8% from the same period last year, mainly reflecting the change in fair value of investments
backing policyholder liabilities, which is largely offset in revenue. Lower new longevity reinsurance contracts also contributed
to the increase. These factors were partially offset by lower claims costs, primarily in our travel-related and disability
products, and lower group annuity sales.
Non-interest expense
Salaries $ 1,641 $ 1,655 $ 1,671 $ 3,296 $ 3,323
Variable compensation 1,874 1,804 1,370 3,678 3,016
Benefits and retention compensation 503 543 508 1,046 1,049
Share-based compensation 134 286 24 420 245
Human resources 4,152 4,288 3,573 8,440 7,633
Equipment 487 493 468 980 930
Occupancy 400 404 417 804 814
Communications 212 213 252 425 502
Professional fees 314 291 324 605 608
Amortization of other intangibles 318 319 315 637 618
Other 496 534 593 1,030 1,215
Non-interest expense $ 6,379 $ 6,542 $ 5,942 $ 12,921 $ 12,320
Efficiency ratio (1) 54.9% 50.5% 57.5% 52.6% 53.2%
Efficiency ratio adjusted (2) 52.3% 51.9% 52.6% 52.1% 52.1%
(1) Efficiency ratio is calculated as Non-interest expense divided by Total revenue.
(2) Measure has been adjusted by excluding the change in fair value of investments backing policyholder liabilities. This is a non-GAAP measure. For
further details, refer to the Key performance and non-GAAP measures section.
Q2 2021 vs. Q2 2020

Non-interest expense increased $437 million or 7% from a year ago, mainly due to higher variable compensation on improved
results, and the change in the fair value of our U.S. share-based compensation plans, which was largely offset in Other
revenue. These factors were partially offset by the impact of foreign exchange translation.
Our efficiency ratio of 54.9% decreased 260 bps from 57.5% last year. Excluding the change in fair value of investments
backing policyholder liabilities, our efficiency ratio of 52.3% decreased 30 bps from 52.6% last year.
Q2 2021 vs. Q1 2021

Non-interest expense decreased $163 million or 2% from last quarter, primarily due to the impact of foreign exchange
translation and lower staff related costs. A favourable sales tax adjustment in the current quarter as well as 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
decrease. These factors were partially offset by higher variable compensation on improved results.
Our efficiency ratio of 54.9% increased 440 bps from 50.5% last quarter. Excluding the change in fair value of investments
backing policyholder liabilities, our efficiency ratio of 52.3% increased 40 bps from 51.9% last quarter.

Non-interest expense increased $601 million or 5% from the same period last year, mainly attributable to higher variable
compensation on improved results and the change in the fair value of our U.S. share-based compensation plans, which was
largely offset in Other revenue. These factors were partially offset by the impact of foreign exchange translation.
Our efficiency ratio of 52.6% decreased 60 bps from 53.2% last year. Excluding the change in fair value of investments
backing policyholder liabilities, our efficiency ratio of 52.1% remained unchanged from 52.1% last year.
Efficiency ratio excluding the change in fair value of investments backing policyholder liabilities is a non-GAAP measure. For
further details, including a reconciliation, refer to the Key performance and non-GAAP measures section.
Income taxes
Income taxes $ 1,171 $ 1,038 $ 257 $ 2,209 $ 1,173
Income before income taxes 5,186 4,885 1,738 10,071 6,163
Effective income tax rate 22.6% 21.2% 14.8% 21.9% 19.0%
Q2 2021 vs. Q2 2020

Income tax expense increased $914 million from a year ago, primarily due to higher income before income taxes in the current
quarter.
The effective income tax rate of 22.6% increased 780 bps, mainly due to the impact of changes in earnings mix and the
proportion of tax exempt income relative to lower earnings in the prior year.
Q2 2021 vs. Q1 2021

Income tax expense increased $133 million or 13% from last quarter, primarily due to higher income before income taxes and
net favourable tax adjustments in the prior quarter.
The effective income tax rate of 22.6% increased 140 bps, mainly due to the net favourable tax adjustments in the prior
quarter.

Income tax expense increased $1,036 million or 88% from the same period last year, primarily due to higher income before
income taxes.
The effective income tax rate of 21.9% increased 290 bps, mainly due to changes in earnings mix combined with the impact
of lower earnings in the same period last year.
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. They remain unchanged from October 31, 2020.
For further details on our key methodologies and assumptions used in our management reporting framework, refer to the How
we measure and report our business segments section of our 2020 Annual Report.
Key performance and non-GAAP measures
Performance measures
Return on common equity
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. 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. ROE does not have a standardized meaning under
GAAP and may not be comparable to similar measures disclosed by other financial institutions. For further details, refer to the
Key performance and non-GAAP measures section of our 2020 Annual Report.
The following table provides a summary of our ROE calculations:
For the three months ended

April 30 January 31 April 30
2021 2021 2020
Personal & Investor &
(Millions of Canadian dollars, Commercial Wealth Treasury Capital Corporate
except percentage amounts) Banking Management Insurance Services Markets Support Total Total Total
Net income available to

common shareholders $ 1,885 $ 676 $ 185 $ 117 $ 1,050 $ 25 $ 3,938 $ 3,787 $ 1,420
Total average common
equity (1), (2) 24,250 16,100 2,350 3,350 22,850 14,550 83,450 80,750 79,100
ROE (3) 31.8% 17.2% 32.1% 14.3% 18.9% n.m. 19.4% 18.6% 7.3%
For the six months ended

April 30 April 30
2021 2020
(Millions of Canadian dollars, Commercial Wealth Treasury Capital Corporate
except percentage amounts) Banking Management Insurance Services Markets Support Total Total
Net income available to

common shareholders $ 3,659 $ 1,313 $ 384 $ 238 $ 2,101 $ 30 $ 7,725 $ 4,859
Total average common
equity (1), (2) 23,800 16,150 2,300 3,250 22,700 13,850 82,050 78,450
ROE (3) 31.0% 16.4% 33.3% 14.8% 18.7% n.m. 19.0% 12.5%
(1) Total average common equity represents rounded figures.
(2) The amounts for the segments are referred to as attributed capital.
(3) ROE is based on actual balances of average common equity before rounding.
n.m. not meaningful
Non-GAAP measures
We believe that certain non-GAAP measures described below are more reflective of our ongoing operating results and provide
readers with a better understanding of management’s perspective on our performance. These measures enhance the
comparability of our financial performance for the three and six months ended April 30, 2021 with the corresponding periods
in the prior year and the three months ended January 31, 2021. Non-GAAP measures 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 we use in evaluating our operating results.
Efficiency ratio excluding the change in fair value of investments in Insurance

Our efficiency ratio is impacted by the change in fair value of investments backing policyholder liabilities, which is reported in
revenue and largely offset in PBCAE.
The following table provides calculations of our consolidated efficiency ratio excluding the change in fair value of investments
backing policyholder liabilities:
2021 2021 2020
Item excluded Item excluded Item excluded
Change in fair value of Change in fair value of Change in fair value of
(Millions of Canadian dollars, investments backing investments backing investments backing
except percentage amounts) As reported policyholder liabilities Adjusted As reported policyholder liabilities Adjusted As reported policyholder liabilities Adjusted
Total revenue $ 11,618 $ 568 $ 12,186 $ 12,943 $ (346) $ 12,597 $ 10,333 $ 953 $ 11,286
Non-interest expense 6,379 – 6,379 6,542 – 6,542 5,942 – 5,942
Efficiency ratio 54.9% 52.3% 50.5% 51.9% 57.5% 52.6%

April 30 April 30
2021 2020
Item excluded Item excluded
Change in fair value of Change in fair value of
investments backing investments backing
(Millions of Canadian dollars, except percentage amounts) As reported policyholder liabilities Adjusted As reported policyholder liabilities Adjusted
Total revenue $ 24,561 $ 222 $ 24,783 $ 23,169 $ 485 $ 23,654
Non-interest expense 12,921 – 12,921 12,320 – 12,320
Efficiency ratio 52.6% 52.1% 53.2% 52.1%
Personal & Commercial Banking
(Millions of Canadian dollars, except April 30 January 31 April 30 April 30 April 30

percentage amounts and as otherwise noted) 2021 2021 2020 2021 2020
Net interest income $ 3,085 $ 3,161 $ 3,149 $ 6,246 $ 6,375
Total revenue 4,527 4,563 4,400 9,090 9,010
PCL on performing assets (166) (60) 1,370 (226) 1,436
PCL on impaired assets 201 225 336 426 612
PCL 35 165 1,706 200 2,048
Income before income taxes 2,577 2,420 747 4,997 3,031
Net income $ 1,908 $ 1,793 $ 532 $ 3,701 $ 2,218
Revenue by business
Canadian Banking $ 4,341 $ 4,352 $ 4,170 $ 8,693 $ 8,538
Caribbean & U.S. Banking 186 211 230 397 472
Selected balance sheet and other information
ROE 31.8% 30.1% 9.0% 31.0% 18.7%
NIM 2.56% 2.56% 2.73% 2.56% 2.75%
Efficiency ratio 42.3% 43.3% 44.3% 42.8% 43.6%
Operating leverage 4.5% (0.7)% (1.7)% 1.9% (0.4)%
Average total earning assets, net $ 493,400 $ 489,800 $ 468,400 $ 491,600 $ 465,900
Average loans and acceptances, net 497,400 493,500 471,300 495,400 469,000
Average deposits 495,000 490,100 428,700 492,500 421,100
AUA (1) 339,000 320,900 275,700 339,000 275,700
Average AUA 334,400 315,900 275,900 325,000 283,300
and acceptances 0.17% 0.18% 0.28% 0.18% 0.26%
Other selected information – Canadian Banking
Net income $ 1,872 $ 1,754 $ 649 $ 3,626 $ 2,273
NIM 2.55% 2.54% 2.70% 2.55% 2.71%
Efficiency ratio 40.8% 41.9% 42.7% 41.3% 42.0%
Operating leverage 4.7% (1.6)% (1.8)% 1.5% (0.4)%
(1) AUA represents period-end spot balances and includes securitized residential mortgages and credit card loans as at April 30, 2021 of $15.0 billion and $2.9 billion, respectively
(January 31, 2021 – $15.3 billion and $4.1 billion; April 30, 2020 – $16.1 billion and $6.7 billion).
Q2 2021 vs. Q2 2020
Net income increased $1,376 million from a year ago, primarily attributable to lower PCL. Average volume growth of 11% in
Canadian Banking was mostly offset by lower spreads due to the lower interest rate environment.
Total revenue increased $127 million or 3%.
Canadian Banking revenue increased $171 million or 4%, primarily driven by average volume growth of 16% in deposits and
6% in loans, higher card service revenue and higher average balances driving higher mutual fund distribution fees. Higher
securities brokerage commissions reflecting increased client activity also contributed to the increase. These factors were
partially offset by lower spreads and the impact of one less day in the current quarter.
Caribbean & U.S. Banking revenue decreased $44 million or 19%, primarily reflecting lower spreads and the impact of
foreign exchange translation.
Net interest margin was down 17 bps, primarily due to lower interest rates.
PCL decreased $1,671 million, as the prior year reflected elevated provisions on performing loans due to the impact of the
onset of the COVID-19 pandemic as compared to releases in the current quarter driven by improvements in our
macroeconomic and credit quality outlook. Lower provisions on impaired loans also contributed to the decrease, resulting in
a decrease of 11 bps in the impaired loans ratio. For further details, refer to Credit quality performance in the Credit risk
section.
Non-interest expense decreased $32 million or 2%, largely attributable to lower discretionary spend and a favourable
sales tax adjustment in the current quarter, partially offset by higher staff-related costs.
Q2 2021 vs. Q1 2021
Net income increased $115 million or 6% from last quarter, primarily due to lower PCL resulting from higher releases of
provisions on performing loans in the current quarter. Average volume growth of 1% in Canadian Banking and lower staff-
related costs also contributed to the increase. These factors were partially offset by the impact of three less days in the
current quarter.
Net interest margin remained flat.
Net income increased $1,483 million or 67% from the same period last year, largely reflecting lower PCL. Average volume
growth of 11% in Canadian Banking was more than offset by lower spreads due to the lower interest rate environment.
Total revenue increased $80 million or 1%, largely due to average volume growth in Canadian Banking of 18% in deposits
and 6% in loans. Higher securities brokerage commissions reflecting increased client activity, higher average balances driving
higher mutual fund distribution fees, and higher card service revenue also contributed to the increase. These factors were
partially offset by lower spreads.
PCL decreased $1,848 million, as the same period last year reflected elevated provisions on performing loans due to the
impact of the onset of the COVID-19 pandemic as compared to releases in the current year driven by improvements in our
macroeconomic and credit quality outlook. Lower provisions on impaired loans also contributed to the decrease, resulting in
a decrease of 8 bps in the impaired loans ratio. For further details, refer to Credit quality performance in the Credit risk
section.
Non-interest expense decreased $38 million or 1%.
Wealth Management
(Millions of Canadian dollars, except number of, April 30 January 31 April 30 April 30 April 30
Net interest income $ 666 $ 666 $ 737 $ 1,332 $ 1,475
Total revenue 3,394 3,387 2,822 6,781 5,988
PCL on performing assets (5) (2) 76 (7) 75
PCL on impaired assets 3 (27) 15 (24) 14
PCL (2) (29) 91 (31) 89
Income before income taxes 901 853 562 1,754 1,360
Net income $ 691 $ 649 $ 424 $ 1,340 $ 1,047
Revenue by business
Canadian Wealth Management $ 964 $ 900 $ 835 $ 1,864 $ 1,678
U.S. Wealth Management (including City National) 1,700 1,702 1,384 3,402 3,008
U.S. Wealth Management (including City National)
(US$ millions) 1,358 1,326 1,003 2,684 2,237
Global Asset Management 628 695 500 1,323 1,094
International Wealth Management 102 90 103 192 208
ROE 17.2% 15.6% 10.4% 16.4% 13.0%
NIM 2.38% 2.34% 2.97% 2.36% 3.07%
Pre-tax margin (1) 26.5% 25.2% 19.9% 25.9% 22.7%
Number of advisors (2) 5,459 5,457 5,333 5,459 5,333
Average total earning assets, net $ 114,800 $ 112,900 $ 100,900 $ 113,800 $ 96,700
AUA (3) 1,227,000 1,180,400 1,053,700 1,227,000 1,053,700
U.S. Wealth Management (including City National) (3) 651,300 623,000 559,200 651,300 559,200
U.S. Wealth Management (including City National)
(US$ millions) (3) 529,800 487,000 401,700 529,800 401,700
AUM (3) 922,300 890,000 782,100 922,300 782,100
Average AUA 1,218,200 1,171,300 1,040,200 1,194,400 1,068,900
Average AUM 910,400 883,800 770,400 896,800 775,300
and acceptances 0.02% (0.13)% 0.08% (0.06)% 0.04%
For the three For the six

Estimated impact of U.S. dollar, British pound months ended months ended
and Euro translation on key income statement items Q2 2021 vs. Q2 2021 vs. Q2 2021 vs.
(Millions of Canadian dollars, except percentage amounts) Q2 2020 Q1 2021 Q2 2020
Total revenue $ (181) $ (47) $ (222)
PCL – – 1
Net income (28) (7) (34)
Percentage change in average U.S. dollar equivalent of C$1.00 10% 2% 6%
Percentage change in average British pound equivalent of C$1.00 –% 1% –%
Percentage change in average Euro equivalent of C$1.00 2% 4% (2)%
(1) Pre-tax margin is defined as Income before income taxes divided by Total revenue.
(2) Represents client-facing advisors across all of our Wealth Management businesses.
(3) Represents period-end spot balances.
Q2 2021 vs. Q2 2020
Net income increased $267 million or 63% from a year ago, primarily due to average loan growth and higher average fee-based
client assets, net of the associated variable compensation. Lower PCL and higher transactional revenue also contributed to
the increase. These factors were partially offset by the impact of lower interest rates.
Canadian Wealth Management revenue increased $129 million or 15%, mainly due to higher average fee-based client
assets, reflecting market appreciation and net sales.
U.S. Wealth Management (including City National) revenue increased $316 million or 23%. In U.S. dollars, revenue
increased $355 million or 35%, primarily 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. Average loan growth of 23%, higher average fee-based
client assets reflecting market appreciation and net sales and higher transactional revenue, mainly driven by client activity,
also contributed to the increase. These factors were partially offset by the impact of lower interest rates on net interest
income.
Global Asset Management revenue increased $128 million or 26%, largely due to higher average fee-based client assets
reflecting market appreciation and net sales.
PCL decreased $93 million in U.S. Wealth Management (including City National), as the prior year reflected elevated
provisions on performing loans due to the impact of the onset of the COVID-19 pandemic as compared to releases in the
current quarter. Lower provisions on impaired loans also contributed to the decrease, resulting in a decrease of 6 bps in the
impaired loans ratio. For further details, refer to Credit quality performance in the Credit risk section.
Non-interest expense increased $326 million or 15%, primarily due to changes in the fair value of our U.S. share-based
compensation plans, which was largely offset in revenue, and higher variable compensation commensurate with increased
commissionable revenue. These factors were partially offset by the impact of foreign exchange translation.
Q2 2021 vs. Q1 2021

Net income increased $42 million or 6% from last quarter, largely attributable to higher average fee-based client assets, net of
the associated variable compensation, lower staff related costs and higher transactional revenue. These factors were
partially offset by unfavourable changes in the fair value of seed capital investments.

Net income increased $293 million or 28% from the same period last year, primarily due to average loan growth and higher
average fee-based client assets, net of the associated variable compensation. Lower PCL and higher transactional revenue
also contributed to the increase. These factors were partially offset by the impact of lower interest rates on loans and sweep
deposits.
Total revenue increased $793 million or 13%, primarily due to higher average fee-based client assets reflecting market
appreciation and net sales, 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, and average loan growth of 14%. Higher transactional revenue, mainly driven by
client activity, also contributed to the increase. These factors were partially offset by the impact of lower interest rates on net
interest income and revenue from sweep deposits, as well as the impact of foreign exchange translation.
PCL decreased $120 million in U.S. Wealth Management (including City National), as the same period last year reflected
elevated provisions on performing loans due to the impact of the onset of the COVID-19 pandemic as compared to releases in
the current year. Recoveries on impaired loans in the current year as compared to provisions taken in the same period last
year also contributed to the decrease, resulting in a decrease of 10 bps in the impaired loans ratio. For further details, refer to
Credit quality performance in the Credit risk section.
Non-interest expense increased $519 million or 11%, primarily due to changes in the fair value of our U.S. share-based
compensation plans, which was largely offset in revenue, and higher variable compensation commensurate with increased
commissionable revenue. These factors were partially offset by the impact of foreign exchange translation.
Insurance
As at or for the three months ended As at or the six months ended

Non-interest income
Net earned premiums $ 929 $ 1,248 $ 957 $ 2,177 $ 2,307
Investment income, gains/(losses) on assets
supporting insurance policyholder liabilities (1) (432) 524 (796) 92 (187)
Fee income 39 37 36 76 71
Total revenue 536 1,809 197 2,345 2,191
PCL – – 1 – 1
Insurance policyholder benefits and claims (1) 59 1,331 (257) 1,390 1,278
Insurance policyholder acquisition expense 90 75 80 165 159
Non-interest expense 140 149 148 289 301
Income before income taxes 247 254 225 501 452
Net income $ 187 $ 201 $ 180 $ 388 $ 361
Revenue by business
Canadian Insurance $ (172) $ 1,157 $ (344) $ 985 $ 1,039
International Insurance 708 652 541 1,360 1,152
Selected balances and other information
ROE 32.1% 34.5% 33.0% 33.3% 32.7%
Premiums and deposits (2) $ 1,161 $ 1,444 $ 1,148 $ 2,605 $ 2,690
Fair value changes on investments backing
policyholder liabilities (1) (568) 346 (953) (222) (485)
(1) Includes unrealized gains and losses on investments backing policyholder liabilities attributable to fluctuation of assets designated as FVTPL. The investments which support
actuarial liabilities are predominantly fixed income assets designated as FVTPL. Consequently, changes in the fair values of these assets are recorded in Insurance premiums,
investment and fee income in the Consolidated Statements of Income and are largely offset by changes in the fair value of the actuarial liabilities, the impact of which is
reflected in PBCAE.
(2) Premiums and deposits include premiums on risk-based insurance and annuity products, and individual and group segregated fund deposits, consistent with insurance
industry practices.
Q2 2021 vs. Q2 2020
Net income increased $7 million or 4% from a year ago, mainly due to lower claims costs and the favourable impact of
actuarial adjustments. These factors were partially offset by the impact of realized investment gains in the prior year and
lower new longevity reinsurance contracts.
Total revenue increased $339 million.
Canadian Insurance revenue increased $172 million or 50%, primarily reflecting the change in fair value of investments
backing policyholder liabilities, which is largely offset in PBCAE as indicated below. This was partially offset by the impact of
realized investment gains in the prior year.
International Insurance revenue increased $167 million or 31%, primarily reflecting the change in fair value of investments
backing policyholder liabilities, which is largely offset in PBCAE as indicated below. This was partially offset by lower
international life volumes.
PBCAE increased $326 million, primarily reflecting the change in fair value of investments backing policyholder liabilities,
which is largely offset in revenue. The impact of lower new longevity reinsurance contracts also contributed to the increase.
These factors were partially offset by lower claims costs, mainly in our travel-related and disability products, as well as the
impact of actuarial adjustments.
Non-interest expense decreased $8 million or 5%, reflecting benefits from ongoing efficiency initiatives.
Q2 2021 vs. Q1 2021

Net income decreased $14 million or 7% from last quarter, largely due to lower new longevity reinsurance contracts.

Net income increased $27 million or 7% from the same period last year, largely due to lower claims costs partially offset by the
impact of lower new longevity reinsurance contracts.
Total revenue increased $154 million or 7%, mainly reflecting the change in fair value of investments backing policyholder
liabilities, partially offset by lower group annuity sales, both of which are largely offset in PBCAE as indicated below.
PBCAE increased $118 million or 8%, mainly reflecting the change in fair value of investments backing policyholder
liabilities, which is largely offset in revenue. Lower new longevity reinsurance contracts also contributed to the increase.
These factors were partially offset by lower claims costs, primarily in our travel-related and disability products, and lower
group annuity sales.
Non-interest expense decreased $12 million or 4%, reflecting benefits from ongoing efficiency initiatives.
Investor & Treasury Services

Net interest income $ 87 $ 91 $ 74 $ 178 $ 132
Non-interest income 447 474 635 921 1,174
Total revenue 534 565 709 1,099 1,306
PCL on impaired assets – – – – –
PCL (2) (2) 14 (4) 14
Non-interest expense 375 401 392 776 794
Income before income taxes 161 166 303 327 498
Net income $ 120 $ 123 $ 226 $ 243 $ 369
ROE 14.3% 15.3% 28.4% 14.8% 23.2%
Average deposits $ 220,400 $ 204,300 $ 194,700 $ 212,200 $ 184,500
Average client deposits 64,000 63,100 64,900 63,600 61,300
Average wholesale funding deposits 156,400 141,200 129,800 148,600 123,200
AUA (1) 4,530,100 4,617,300 4,037,700 4,530,100 4,037,700
Average AUA 4,579,400 4,628,700 4,292,800 4,604,500 4,289,500
(1) Represents period-end spot balances
Q2 2021 vs. Q2 2020
Net income decreased $106 million or 47% from a year ago, primarily driven by lower revenue from funding and liquidity and
client deposits.
Total revenue decreased $175 million or 25%, primarily due to lower funding and liquidity revenue as the prior year
benefitted from the impact of interest rate movements and higher gains from the disposition of investment securities. Lower
client deposit revenue largely driven by lower interest rates, and lower revenue from our asset services business as the prior
year reflected increased client activity due to elevated market volatility, also contributed to the decrease.
Non-interest expense decreased $17 million or 4%, largely attributable to a favourable sales tax adjustment in the current
quarter, and lower staff-related costs including the benefit from ongoing efficiency initiatives.
Q2 2021 vs. Q1 2021

Net income decreased $3 million or 2% from last quarter, mainly driven by lower funding and liquidity revenue as the prior
quarter benefitted from money market opportunities, partially offset by the impact of annual regulatory costs in the prior
quarter.

Net income decreased $126 million or 34% from the same period last year, largely driven by lower revenue from funding and
liquidity and client deposits.
Total revenue decreased $207 million or 16%, primarily due to lower funding and liquidity revenue as the same period last
year benefitted from the impact of interest rate movements and market volatility. Lower client deposit revenue largely driven
by lower interest rates also contributed to the decrease.
Non-interest expense decreased $18 million or 2%, largely attributable to lower staff-related costs including the benefit
from ongoing efficiency initiatives, and a favourable sales tax adjustment in the current period.
Capital Markets

Net interest income (1) $ 1,121 $ 1,199 $ 1,456 $ 2,320 $ 2,617
Non-interest income (1) 1,597 1,509 857 3,106 2,244
Total revenue (1) 2,718 2,708 2,313 5,426 4,861
PCL on impaired assets (29) 18 294 (11) 355
PCL (127) (23) 1,017 (150) 1,096
Income before income taxes 1,377 1,290 5 2,667 1,039
Net income $ 1,071 $ 1,067 $ 105 $ 2,138 $ 987
Revenue by business
Corporate and Investment Banking $ 1,197 $ 1,112 $ 722 $ 2,309 $ 1,863
Global Markets 1,562 1,626 1,694 3,188 3,144
Other (41) (30) (103) (71) (146)
ROE 18.9% 18.5% 1.5% 18.7% 8.3%
Average total assets $ 694,600 $ 743,100 $ 820,700 $ 719,200 $ 767,800
Average trading securities 120,900 125,200 108,100 123,100 112,000
and acceptances (0.13)% 0.07% 0.94% (0.02)% 0.62%
For the three For the six

Estimated impact of U.S. dollar, British pound months ended months ended
and Euro translation on key income statement items Q2 2021 vs. Q2 2021 vs. Q2 2021 vs.
(Millions of Canadian dollars, except percentage amounts) Q2 2020 Q1 2021 Q2 2020
Total revenue $ (160) $ (40) $ (198)
PCL 13 6 14
Net income (71) (19) (89)
Percentage change in average U.S. dollar equivalent of C$1.00 10% 2% 6%
Percentage change in average British pound equivalent of C$1.00 –% 1% –%
Percentage change in average Euro equivalent of C$1.00 2% 4% (2)%
(1) The taxable equivalent basis (teb) adjustment for the three months ended April 30, 2021 was $135 million (January 31, 2021 – $128 million; April 30, 2020 – $132 million) and for the
six months ended April 30, 2021 was $263 million (April 30, 2020 – $260 million). For further discussion, refer to the How we measure and report our business segments section of
our 2020 Annual Report.
Q2 2021 vs. Q2 2020
Net income increased $966 million from a year ago, primarily driven by lower PCL and higher revenue in Corporate and
Investment Banking. These factors were partially offset by higher taxes reflecting an increase in the proportion of earnings
from higher tax rate jurisdictions, and higher compensation on improved results.
Corporate and Investment Banking revenue increased $475 million or 66%, as the prior year included loan underwriting
markdowns impacting fixed income trading revenue in the U.S. and Europe driven by widening credit spreads. Higher M&A
activity and higher equity and debt origination, all largely in the U.S., as well as higher loan syndication activity in North
America also contributed to the increase. These factors were partially offset by the impact of foreign exchange translation.
Global Markets revenue decreased $132 million or 8%, largely driven by lower fixed income trading revenue across most
regions as the prior year benefitted from increased client activity in rates and repo products amidst elevated market volatility.
The impact of foreign exchange translation also contributed to the decrease. These factors were partially offset by higher
equity trading revenue across most regions reflecting increased client activity, as well as gains from the disposition of certain
investment securities.
Other revenue improved $62 million, mainly reflecting lower residual funding costs.
PCL decreased $1,144 million, as the prior year reflected elevated provisions on performing loans due to the impact of the
onset of the COVID-19 pandemic as compared to releases in the current quarter driven by improvements in our
macroeconomic and credit quality outlook and lower exposures. Recoveries on impaired loans in the oil & gas and other
services sectors in the current quarter as compared to provisions taken in the prior year also contributed to the decrease,
resulting in a decrease of 107 bps in the impaired loans ratio. For further details, refer to Credit quality performance in the
Credit risk section.
Non-interest expense increased $177 million or 14%, primarily due to higher compensation on improved results, partially
offset by the impact of foreign exchange translation.
Q2 2021 vs. Q1 2021

Net income remained relatively flat as lower PCL and higher debt and equity origination across all regions were offset by
lower fixed income trading revenue across all regions driven by reduced client activity, and higher taxes as the prior quarter
reflected favourable tax adjustments.

Net income increased $1,151 million from the same period last year, primarily due to lower PCL and higher revenue in
Corporate and Investment Banking. These factors were partially offset by higher taxes reflecting an increase in the proportion
of earnings from higher tax rate jurisdictions, and higher compensation on improved results.
Total revenue increased $565 million or 12%, primarily due to higher equity trading revenue across all regions driven by
increased client activity, and higher equity origination across most regions. The impact of residual funding costs and gains on
the disposition of certain investment securities also contributed to the increase. These factors were partially offset by the
impact of foreign exchange translation.
PCL decreased $1,246 million, as the same period last year reflected elevated provisions on performing loans due to the
impact of the onset of the COVID-19 pandemic as compared to releases in the current year driven by improvements in our
macroeconomic and credit quality outlook and lower exposures. Recoveries on impaired loans in the oil & gas sector in the
current year as compared to provisions taken in the same period last year also contributed to the decrease, resulting in a
decrease of 64 bps in the impaired loans ratio. For further details, refer to Credit quality performance in the Credit risk
section.
Non-interest expense increased $183 million or 7%, primarily driven by higher compensation on improved results, partially
offset by the impact of foreign exchange translation.
Corporate Support
(Millions of Canadian dollars) 2021 2021 2020 2021 2020
Net interest income (loss) (1) $ (105) $ (82) $ 49 $ (187) $ 87
Non-interest income (loss) (1) 14 (7) (157) 7 (274)
Total revenue (1) (91) (89) (108) (180) (187)
PCL – (1) 1 (1) 1
Non-interest expense (14) 10 (5) (4) 29
Income (loss) before income taxes (1) (77) (98) (104) (175) (217)
Income taxes (recoveries) (1) (115) (112) (118) (227) (225)
Net income (loss) $ 38 $ 14 $ 14 $ 52 $ 8
(1) Teb adjusted.
Due to the nature of activities and consolidation adjustments reported in this segment, we believe that a comparative period
analysis is not relevant. The following identifies material items affecting the reported results in each period.
Total revenue and Income taxes (recoveries) in each period in Corporate Support include the deduction of the teb
adjustments related to the gross-up of income from Canadian taxable corporate dividends and the U.S. tax credit investment
business recorded in Capital Markets. The amount deducted from revenue was offset by an equivalent increase in Income
taxes (recoveries).
The teb amount for the three months ended April 30, 2021 was $135 million, compared to $128 million in the prior quarter and
$132 million in the same quarter last year. The teb amount for the six months ended April 30, 2021 was $263 million, compared
to $260 million in the same period last year.
The following identifies the material items, other than the teb impacts noted previously, affecting the reported results in each
period.
Q2 2021
Net income was $38 million, primarily due to asset/liability management activities.
Q1 2021
Net income was $14 million, primarily due to asset/liability management activities.
Q2 2020
Net income was $14 million, largely due to asset/liability management activities, partially offset by net unfavourable tax
adjustments.
Q2 2021 (Six months ended)

Net income was $52 million, mainly due to asset/liability management activities.
Q2 2020 (Six months ended)

Net income was $8 million, mainly due to asset/liability management activities, partially offset by net unfavourable tax
adjustments and residual unallocated costs.
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)

2021 2020 2019
(Millions of Canadian dollars,
except per share and percentage amounts) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
Personal & Commercial Banking $ 4,527 $ 4,563 $ 4,373 $ 4,348 $ 4,400 $ 4,610 $ 4,568 $ 4,546
Wealth Management 3,394 3,387 3,068 3,164 2,822 3,166 3,187 3,029
Insurance 536 1,809 958 2,212 197 1,994 1,153 1,463
Investor & Treasury Services 534 565 521 484 709 597 566 561
Capital Markets (2) 2,718 2,708 2,275 2,748 2,313 2,548 1,987 2,034
Corporate Support (2) (91) (89) (103) (36) (108) (79) (91) (89)
Total revenue 11,618 12,943 11,092 12,920 10,333 12,836 11,370 11,544
PCL (96) 110 427 675 2,830 419 499 425
PBCAE 149 1,406 461 1,785 (177) 1,614 654 1,046
Non-interest expense 6,379 6,542 6,058 6,380 5,942 6,378 6,319 5,992
Income before income taxes 5,186 4,885 4,146 4,080 1,738 4,425 3,898 4,081
Income taxes 1,171 1,038 900 879 257 916 692 818
Net income $ 4,015 $ 3,847 $ 3,246 $ 3,201 $ 1,481 $ 3,509 $ 3,206 $ 3,263
EPS – basic $ 2.76 $ 2.66 $ 2.23 $ 2.20 $ 1.00 $ 2.41 $ 2.19 $ 2.23
– diluted 2.76 2.66 2.23 2.20 1.00 2.40 2.18 2.22
Effective income tax rate 22.6% 21.2% 21.7% 21.5% 14.8% 20.7% 17.8% 20.0%
Period average US$ equivalent of C$1.00 $ 0.798 $ 0.779 $ 0.756 $ 0.737 $ 0.725 $ 0.760 $ 0.755 $ 0.754
(1) Fluctuations in the Canadian dollar relative to other foreign currencies have affected our consolidated results over the period.
(2) Teb adjusted. For further discussion, refer to the How we measure and report our business segments section of our 2020 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 have generally trended upward over the period. However, earnings in the second quarter of 2020 reflected the
impact of the onset of the COVID-19 pandemic across all of our business segments which resulted in a significant increase in
PCL and fluctuations in revenue from the impact of market volatility, including interest rates and credit spreads, as well as
client activity. While market conditions subsequently improved, our earnings continued to be impacted by the COVID-19
pandemic and its associated downstream implications. Quarterly earnings are also affected by the impact of foreign
exchange translation.
Personal & Commercial Banking revenue has benefitted from solid volume growth over the period. NIM has been
negatively impacted by margin compression over the latter part of the period from the lower interest rate environment,
including cumulative BoC rate cuts of 150 bps in the second quarter of 2020.
Wealth Management revenue has benefitted from growth in average-fee based client assets and loans over the period.
The latter part of the period has been negatively impacted by a lower interest rate environment, mainly reflecting the U.S. Fed
rate cuts. Changes in the fair value of hedges related to our U.S. share-based compensation plans, which are largely offset in
Non-interest expense, have contributed to fluctuations in revenue over the period. The fourth quarter of 2019 included a gain
on the sale of the private debt business of BlueBay.
Insurance revenue has fluctuated over the period, primarily due to the impact of changes in the fair value of investments
backing policyholder liabilities as well as the timing of group annuity sales, both of which are largely offset in PBCAE. The first
quarters of 2020 and 2021 reflect higher group annuity sales.
Investor & Treasury Services revenue has been impacted by interest rate movements, market volatility and client activity
over the period, which resulted in heightened fluctuations in the second and third quarters of 2020 following the onset of the
COVID-19 pandemic. The latter part of the period has also been impacted by elevated enterprise liquidity.
Capital Markets revenue is influenced, to a large extent, by market conditions that impact client activity, with first quarter
results generally stronger than those in the remaining quarters. Client activity in 2019 was impacted by challenging market
conditions resulting in lower investment banking fee revenues experienced across the industry. Following the onset of the
COVID-19 pandemic, 2020 was characterized by unprecedented levels of market volatility which drove increased client activity
over that period, resulting in higher trading revenue. Elevated market volatility in the second quarter of 2020 also resulted in
loan underwriting markdowns, with reversals in the latter half of 2020 as market conditions improved. The first quarters of
2020 and 2021 reflected favourable market conditions and increased client activity resulting in higher trading revenue and
M&A activity. The second quarter of 2021 saw strong equity and debt origination as well as M&A activity.
PCL on assets is comprised of provisions taken on performing assets and provisions taken on impaired assets. PCL on
performing assets has fluctuated over the period as it is impacted by macroeconomic conditions, changes in exposures and
credit quality as well as model changes. The impact of the COVID-19 pandemic resulted in a significant increase in provisions
in 2020, largely in the second quarter. While uncertainty over the impact of the COVID-19 pandemic remains, the first half of
2021 saw improvements in our macroeconomic and credit quality outlook resulting in releases of provisions on performing
assets. PCL on impaired assets reflected normalized levels of credit losses towards the end of 2019, though the first quarter of
2020 saw lower provisions on impaired loans in Personal & Commercial Banking and Wealth Management. The remainder of
2020 saw higher provisions on impaired loans in Capital Markets largely in the oil & gas sector. The impact of the COVID-19
related government support and payment deferral programs contributed to lower provisions on impaired loans in our
Canadian Banking retail portfolios since the second half of 2020. In the first half of 2021, we saw lower provisions on impaired
loans in Capital Markets, largely due to recoveries in the oil & gas sector.
PBCAE has fluctuated over the period as it includes the impact of changes in the fair value of investments backing
policyholder liabilities and the impact of group annuity sales, both of which are largely offset in Revenue. The fair value of
investments backing policyholder liabilities is impacted by changes in market conditions. PBCAE has also fluctuated due to
the impact of reinsurance contract negotiations, investment-related experience and claims costs over the period. Actuarial
adjustments, which generally occur in the fourth quarter of each year, also impact PBCAE.
Non-interest expense has generally trended upwards over the period. Variable compensation has fluctuated over the
period, commensurate with fluctuations in revenue and earnings, including the impact of decreased results in the second
quarter of 2020. Changes in the fair value of our U.S. share-based compensation plans, which are largely offset in revenue,
also cause fluctuations in staff-related costs and are impacted by market conditions. While we continue to focus on efficiency
management activities, expenses over the period generally reflect higher costs in support of business growth, including staff-
related costs, and our ongoing investments in technology and related costs, including digital initiatives. The fourth quarter of
2019 reflected severance and related costs associated with the repositioning of our Investor & Treasury Services business.
Beginning in the second quarter of 2020, Non-interest expense was also impacted by additional compensation for certain
employees, primarily those client-facing amidst the COVID-19 pandemic, as well as other incremental COVID-19 related costs,
which were more than offset by lower discretionary spend over that period.
Our effective income tax rate has fluctuated over the period, mostly due to varying levels of tax adjustments and changes
in earnings mix. The second quarter of 2020 saw a decrease mainly due to a higher proportion of tax exempt income and
income from lower tax rate jurisdictions relative to lower earnings in that quarter.
Financial condition
Condensed balance sheets
As at
April 30 October 31
(Millions of Canadian dollars) 2021 2020
Assets
Cash and due from banks $ 114,307 $ 118,888
Interest-bearing deposits with banks 63,438 39,013
Securities, net of applicable allowance (1) 255,152 275,814
Assets purchased under reverse repurchase agreements and securities borrowed 308,031 313,015
Loans
Retail 476,230 457,976
Wholesale 202,427 208,655
Allowance for loan losses (5,146) (5,639)
Other – Derivatives 97,236 113,488
– Other (2) 103,641 103,338
Total assets $1,615,316 $ 1,624,548
Liabilities
Deposits $1,033,323 $ 1,011,885
Other – Derivatives 92,402 109,927
– Other (2) 387,755 406,102
Subordinated debentures 9,014 9,867
Total liabilities 1,522,494 1,537,781
Equity attributable to shareholders 92,735 86,664
Non-controlling interests 87 103
Total equity 92,822 86,767
Total liabilities and equity $1,615,316 $ 1,624,548
(1) Securities are comprised of Trading and Investment securities.
(2) Other – Other assets and liabilities include Segregated fund net assets and liabilities, respectively.
Q2 2021 vs. Q4 2020

Total assets decreased $9.2 billion or 1% from October 31, 2020. Foreign exchange translation decreased total assets by
$84.4 billion.
Cash and due from banks was down $4.6 billion or 4%, primarily due to lower deposits with central banks, reflecting our
short term cash and liquidity management activities. The impact of foreign exchange translation also contributed to the
decrease.
Interest-bearing deposits with banks increased $24.4 billion or 63%, primarily due to higher deposits with central banks,
reflecting our short term cash and liquidity management activities.
Securities, net of applicable allowance, were down $20.7 billion or 7%, mainly due to lower government debt securities
largely driven by our short-term cash management activities and the impact of foreign exchange translation. These factors
were partially offset by higher equity trading securities.
Assets purchased under reverse repurchase agreements (reverse repos) and securities borrowed decreased $5.0 billion
or 2%, largely due to the impact of foreign exchange translation and our liquidity management activities, largely offset by
increased client demand.
Loans (net of Allowance for loan losses) were up $12.5 billion or 2%, largely due to volume growth in residential mortgages
and wholesale loans. These factors were largely offset by the impact of foreign exchange translation.
Derivative assets were down $16.3 billion or 14%, mainly attributable to the impact of foreign exchange translation and
lower fair values on interest rate contracts. These factors were largely offset by higher fair values on foreign exchange
contracts.
Total liabilities decreased $15.3 billion or 1%. Foreign exchange translation decreased total liabilities by $84.4 billion.
Deposits increased $21.4 billion or 2%, mainly due to higher business and retail deposits driven by client activity as well as
our clients’ preference for the safety of higher cash balances amidst the COVID-19 pandemic and lower client spending. Higher
issuances of fixed term notes due to funding requirements also contributed to the increase. These factors were largely offset
by the impact of foreign exchange translation.
Derivative liabilities were down $17.5 billion or 16%, mainly attributable to the impact of foreign exchange translation and
lower fair values on interest rate contracts. These factors were largely offset by higher fair values on foreign exchange
contracts.
Other liabilities decreased $18.3 billion or 5%, mainly attributable to the impact of foreign exchange translation.
Total equity increased $6.1 billion or 7%, reflecting earnings, net of dividends and the issuance of limited recourse capital
notes.
Off-balance 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 issuance of guarantees. These transactions give rise to, among other risks, varying degrees of market, credit,
and liquidity and funding risk, which are discussed in the Risk management section of this Q2 2021 Report to Shareholders. Our
significant off-balance sheet transactions include those described on pages 51 to 53 of our 2020 Annual Report.
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 Credit Risk Framework (CRF) 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 CRF as described in our 2020
Annual Report.
Residential mortgages and home equity lines of credit (insured vs. uninsured)
Residential mortgages and home equity lines of credit are secured by residential properties. The following table presents a
breakdown by geographic region.
As at April 30, 2021
Home equity
(Millions of Canadian dollars, Residential mortgages lines of credit
except percentage amounts) Insured (1) Uninsured Total Total
Region (2)
Canada
Atlantic provinces $ 8,387 50% $ 8,365 50% $ 16,752 $ 1,603
Quebec 12,902 33 25,617 67 38,519 3,066
Ontario 36,033 23 121,729 77 157,762 15,525
Alberta 20,978 51 20,033 49 41,011 5,556
Saskatchewan and Manitoba 9,243 47 10,438 53 19,681 2,008
B.C. and territories 14,006 23 47,249 77 61,255 7,535
Total Canada (3) 101,549 30 233,431 70 334,980 35,293
U.S. (4) – – 20,279 100 20,279 1,419
Other International (4) – – 2,744 100 2,744 1,315
Total International – – 23,023 100 23,023 2,734
Total $ 101,549 28% $ 256,454 72% $ 358,003 $ 38,027
As at January 31, 2021

Home equity
(Millions of Canadian dollars, Residential mortgages lines of credit
except percentage amounts) Insured (1) Uninsured Total Total
Region (2)
Canada
Atlantic provinces $ 8,374 51% $ 8,127 49% $ 16,501 $ 1,632
Quebec 13,103 35 24,857 65 37,960 3,144
Ontario 37,394 24 116,704 76 154,098 15,643
Alberta 21,173 52 19,686 48 40,859 5,697
Saskatchewan and Manitoba 9,366 48 10,326 52 19,692 2,058
B.C. and territories 14,415 24 45,469 76 59,884 7,611
Total Canada (3) 103,825 32 225,169 68 328,994 35,785
U.S. (4) – – 20,083 100 20,083 1,532
Other International (4) – – 2,855 100 2,855 1,339
Total International – – 22,938 100 22,938 2,871
Total $ 103,825 30% $ 248,107 70% $ 351,932 $ 38,656
(1) Insured residential mortgages are mortgages whereby our exposure to default is mitigated by insurance through CMHC or other private mortgage
default insurers.
(2) 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, and B.C. and territories are comprised of British Columbia, Nunavut, Northwest Territories and Yukon.
(3) Total consolidated residential mortgages in Canada of $335.0 billion (January 31, 2021 – $329.0 billion) was largely comprised of $305.5 billion
(January 31, 2021 – $299.6 billion) of residential mortgages and $11.1 billion (January 31, 2021 – $10.9 billion) of mortgages with commercial clients, of
which $7.7 billion (January 31, 2021 – $7.5 billion) are insured mortgages, both in Canadian Banking, and $18.4 billion (January 31, 2021 – $18.5 billion) of
residential mortgages in Capital Markets held for securitization purposes.
(4) Home equity lines of credit include term loans collateralized by residential mortgages.
Home equity lines of credit are uninsured and reported within the personal loan category.
Residential mortgages portfolio by amortization period

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
April 30 January 31
2021 2021
U.S. and other U.S. and other
Canada International Total Canada International Total
Amortization period
≤ 25 years 77% 34% 74% 77% 36% 74%
> 25 years ≤ 30 years 23 66 26 22 64 25
> 30 years ≤ 35 years – – – 1 – 1
Total 100% 100% 100% 100% 100% 100%
Average loan-to-value (LTV) ratios

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.
2021 2021 2021
Uninsured Uninsured Uninsured
Residential RBC Homeline Residential RBC Homeline Residential RBC Homeline
mortgages (1) Plan® products (2) mortgages (1) Plan® products (2) mortgages (1) Plan® products (2)
Region (3)
Atlantic provinces 75% 75% 73% 75% 75% 75%
Quebec 72 74 72 74 72 74
Ontario 71 69 71 69 71 69
Alberta 73 73 73 72 73 72
Saskatchewan and Manitoba 74 75 74 75 74 75
B.C. and territories 70 67 70 67 70 67
U.S. 72 n.m. 72 n.m. 72 n.m.
Other International 71 n.m. 71 n.m. 71 n.m.
Average of newly originated and
acquired for the period (4), (5) 72% 69% 72% 69% 72% 69%
Total Canadian
Banking residential
mortgages portfolio (6) 55% 48% 56% 48% 55% 48%
(1) Residential mortgages exclude residential mortgages within the RBC Homeline Plan® products.
(2) RBC Homeline Plan® products are comprised of both residential mortgages and home equity lines of credit.
(3) 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, and B.C. and territories are comprised of British Columbia, Nunavut, Northwest Territories and Yukon.
(4) 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.
(5) 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.
(6) Weighted by mortgage balances and adjusted for property values based on the Teranet – National Bank National Composite House Price Index.
n.m. not meaningful
Net European exposure by country, asset type and client type (1), (2)
As at
April 30 January 31
2021 2021 (3)
Asset type Client type
Loans Repo-style
(Millions of Canadian dollars) Outstanding Securities (4) transactions Derivatives Financials Sovereign Corporate Total Total
U.K. $ 10,069 $ 19,526 $ 680 $ 2,639 $ 11,206 $ 11,970 $ 9,738 $ 32,914 $ 33,895
Germany 1,580 8,087 1 101 3,874 3,990 1,905 9,769 10,240
France 1,457 8,704 8 326 1,940 7,520 1,035 10,495 7,588
Total U.K., Germany, France 13,106 36,317 689 3,066 17,020 23,480 12,678 53,178 51,723
Ireland 714 577 386 47 778 1 945 1,724 1,808
Italy 100 230 – 7 133 71 133 337 256
Portugal – 24 2 – 5 – 21 26 15
Spain 348 168 47 7 146 – 424 570 612
Total peripheral 1,162 999 435 61 1,062 72 1,523 2,657 2,691
Luxembourg 3,055 4,460 85 63 2,229 3,959 1,475 7,663 6,076
Netherlands 1,020 708 32 90 439 63 1,348 1,850 2,157
Norway 162 1,181 7 23 943 241 189 1,373 1,626
Sweden 402 1,425 2 20 810 828 211 1,849 1,957
Switzerland 956 12,118 206 42 1,979 10,664 679 13,322 11,249
Other 2,099 2,004 74 135 1,637 738 1,937 4,312 4,355
Total other Europe 7,694 21,896 406 373 8,037 16,493 5,839 30,369 27,420
Net exposure to Europe (5), (6) $ 21,962 $ 59,212 $ 1,530 $ 3,500 $ 26,119 $ 40,045 $ 20,040 $ 86,204 $ 81,834
(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 $151.3 billion against repo-style transactions (January 31, 2021 – $150.7 billion) and
$10.0 billion against derivatives (January 31, 2021 – $13.1 billion).
(3) Amounts have been revised from those previously presented.
(4) Securities include $11.1 billion of trading securities (January 31, 2021 – $12.2 billion), $34.6 billion of deposits (January 31, 2021 – $25.4 billion) and $13.5 billion of investment
securities (January 31, 2021 – $13.7 billion). Trading and investment securities amounts have been revised from those previously presented.
(5) Excludes $2.2 billion (January 31, 2021 – $2.5 billion) of exposures to supranational agencies, predominantly in Luxembourg.
(6) Reflects $1.5 billion of mitigation through credit default swaps, which are largely used to hedge single name exposures and market risk (January 31, 2021 – $1.4 billion).
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.

Personal & Commercial Banking $ 39 $ 168 $ 1,687 $ 207 $ 2,030
Wealth Management (2) (28) 87 (30) 85
Capital Markets (116) (19) 950 (135) 1,030
Corporate Support and other (4) – 10 (4) 10
PCL – Loans (83) 121 2,734 38 3,155
PCL – Other financial assets (13) (11) 96 (24) 94
Total PCL $ (96) $ 110 $ 2,830 $ 14 $ 3,249
PCL on loans is comprised of:
Retail $ (104) $ (63) $ 725 $ (167) $ 759
Wholesale (156) (34) 1,396 (190) 1,445
PCL on performing loans (260) (97) 2,121 (357) 2,204
Retail 166 180 281 346 552
Wholesale 11 38 332 49 399
PCL on impaired loans 177 218 613 395 951
PCL – Loans $ (83) $ 121 $ 2,734 $ 38 $ 3,155
PCL on loans as a % of average net loans and acceptances (0.05)% 0.07% 1.65% 0.01% 0.96%
and acceptances 0.11% 0.13% 0.37% 0.12% 0.29%
Additional information by geography (1)

Canada
Residential mortgages $ 5 $ 15 $ 9 $ 20 $ 19
Personal 69 85 138 154 267
Credit cards 79 67 139 146 276
Small business 8 9 14 17 26
Retail 161 176 300 337 588
Wholesale 29 34 76 63 82
PCL on impaired loans 190 210 376 400 670
U.S.
Retail 2 (1) 2 1 –
Wholesale 7 (21) 178 (14) 233
PCL on impaired loans 9 (22) 180 (13) 233
Other International
Retail 3 5 (21) 8 (36)
Wholesale (25) 25 78 – 84
PCL on impaired loans (22) 30 57 8 48
PCL on impaired loans $ 177 $ 218 $ 613 $ 395 $ 951
(1) Geographic information is based on residence of the borrower.
Q2 2021 vs. Q2 2020

Total PCL was $(96) million. PCL on loans of $(83) million decreased $2,817 million from a year ago, primarily due to lower
provisions in Personal & Commercial Banking, Capital Markets and Wealth Management. The PCL on loans ratio was (5) bps.
PCL on performing loans was $(260) million, compared to $2,121 million in the prior year, as the prior year reflected
elevated provisions due to the impact of the onset of the COVID-19 pandemic as compared to releases in the current quarter.
While uncertainty over the impact of the COVID-19 pandemic remains, the releases were driven by improvements in our
macroeconomic and credit quality outlook.
PCL on impaired loans of $177 million decreased $436 million, mainly due to recoveries in Capital Markets in the current
quarter as compared to provisions taken in the prior year. Lower provisions in Personal & Commercial Banking and Wealth
Management also contributed to the decrease.
PCL on loans in Personal & Commercial Banking decreased $1,648 million, primarily reflecting provisions taken on performing
loans in our Canadian Banking portfolios in the prior year as compared to releases in the current quarter, as described above.
Lower provisions on impaired loans in our Canadian Banking retail portfolios also contributed to the decrease.
PCL on loans in Wealth Management decreased $89 million, due to lower provisions in U.S. Wealth Management
(including City National). The decrease primarily reflected provisions on performing loans taken in the prior year as compared
to releases in the current quarter, as described above. Lower provisions on impaired loans also contributed to the decrease.
PCL on loans in Capital Markets decreased $1,066 million, largely reflecting provisions on performing loans taken in the
prior year as compared to releases in the current quarter, as described above, and lower exposures. Recoveries on impaired
loans in a few sectors, including the oil & gas and other services sectors, in the current quarter as compared to provisions in
the prior year also contributed to the decrease.
Q2 2021 vs. Q1 2021

PCL on loans of $(83) million decreased $204 million from last quarter, primarily due to lower provisions in Personal &
Commercial Banking and Capital Markets, partially offset by higher recoveries in Wealth Management in the prior quarter. The
PCL on loans ratio of (5) bps decreased 12 bps.
PCL on performing loans of $(260) million decreased $163 million, primarily reflecting higher releases of provisions in
Personal & Commercial Banking and Capital Markets. While uncertainty over the impact of the COVID-19 pandemic remains,
the releases were driven by improvements in our macroeconomic and credit quality outlook.
PCL on impaired loans of $177 million decreased $41 million, primarily due to recoveries in Capital Markets as compared
to provisions in the last quarter and lower provisions in Personal & Commercial Banking, partially offset by recoveries in
Wealth Management in the prior quarter.
PCL on loans in Personal & Commercial Banking decreased $129 million, mainly due to higher releases of provisions on
performing loans in our Canadian Banking portfolios, as described above. Lower provisions on impaired loans in the majority
of our Canadian Banking portfolios also contributed to the decrease.
PCL on loans in Wealth Management increased $26 million, primarily due to recoveries on impaired loans in U.S. Wealth
Management (including City National), largely in the consumer discretionary and consumer staples sectors, in the prior
quarter as compared to provisions in the current quarter in the consumer discretionary sector.
PCL on loans in Capital Markets decreased $97 million, largely due to higher releases of provisions on performing loans in
the current quarter, as described above. Recoveries on impaired loans in the other services and oil & gas sectors in the
current quarter as compared to provisions taken in a few sectors in the prior quarter, also contributed to the decrease.

Total PCL was $14 million. PCL on loans of $38 million decreased $3,117 million from the same period last year, primarily due to
lower provisions in Personal & Commercial Banking, Capital Markets and Wealth Management. The PCL on loans ratio was
1 bp.
PCL on performing loans was $(357) million, compared to $2,204 million in the same period last year, primarily reflecting
elevated provisions in Personal & Commercial Banking, Capital Markets and Wealth Management in the prior year due to the
impact of the onset of the COVID-19 pandemic and releases in the current year. While uncertainty over the impact of the
COVID-19 pandemic remains, the releases in the current year were driven by improvements in our macroeconomic and credit
quality outlook.
PCL on impaired loans of $395 million decreased $556 million, largely due to recoveries in Capital Markets in the current
year as compared to provisions taken in the same period last year. Lower provisions in Personal & Commercial Banking and
Wealth Management also contributed to the decrease.
PCL on loans in Personal & Commercial Banking decreased $1,823 million, primarily reflecting provisions taken on performing
loans in our Canadian Banking portfolios in the same period last year as compared to releases in the current year, as
described above. Lower provisions on impaired loans in the majority of our Canadian Banking retail portfolios, partially offset
by recoveries in the same period last year in our Caribbean Banking portfolios, also contributed to the decrease.
PCL on loans in Wealth Management decreased $115 million in U.S. Wealth Management (including City National), largely
reflecting provisions taken on performing loans in the same period last year as compared to releases in the current year, as
described above. Recoveries on impaired loans in a few sectors in the current year, including the consumer staples sector, as
compared to provisions taken in the same period last year also contributed to the decrease.
PCL on loans in Capital Markets decreased $1,165 million, largely reflecting provisions taken on performing loans in the
same period last year as compared to releases in the current year, as described above, and lower exposures. Recoveries on
impaired loans in the oil & gas sector in the current year as compared to provisions taken in the same period last year, also
contributed to the decrease.
Gross impaired loans

As at and for the three months ended
(Millions of Canadian dollars, except percentage amounts) 2021 2021 2020
Personal & Commercial Banking $ 1,739 $ 1,726 $ 1,637
Wealth Management 338 289 329
Capital Markets 700 857 1,563
Total GIL $ 2,777 $ 2,872 $ 3,529
Canada (1)
Retail $ 822 $ 768 $ 832
Wholesale 613 708 625
GIL 1,435 1,476 1,457
U.S. (1)
Retail 22 27 31
Wholesale 651 677 1,311
GIL 673 704 1,342
Other International (1)
Retail 226 215 211
GIL 669 692 730
Total GIL $ 2,777 $ 2,872 $ 3,529
Impaired loans, beginning balance $ 2,872 $ 3,195 $ 2,936
Classified as impaired during the period (new impaired) (2) 605 530 1,308
Net repayments (2) (285) (206) (253)
Amounts written off (301) (314) (423)
Other (2), (3) (114) (333) (39)
Impaired loans, balance at end of period $ 2,777 $ 2,872 $ 3,529
GIL as a % of related loans and acceptances
Total GIL as a % of related loans and acceptances 0.40% 0.41% 0.51%
Personal & Commercial Banking 0.34% 0.35% 0.34%
Canadian Banking 0.28% 0.28% 0.28%
Caribbean Banking 4.98% 4.36% 3.84%
Wealth Management 0.40% 0.34% 0.40%
Capital Markets 0.73% 0.84% 1.19%
(2) Certain GIL movements for Canadian Banking retail and wholesale portfolios are generally allocated to new impaired, as Net repayments and certain Other movements are not
reasonably determinable. Certain GIL movements for Caribbean Banking retail and wholesale portfolios are generally allocated to Net repayments and new impaired, as Net
repayments and certain Other movements are not reasonably determinable.
(3) Includes return to performing status during the period, recoveries of loans and advances previously written off, sold, and foreign exchange translation and other movements.
Q2 2021 vs. Q2 2020

Total GIL of $2,777 million decreased $752 million or 21% from a year ago and the total GIL ratio of 40 bps decreased 11 bps,
primarily reflecting lower impaired loans in Capital Markets, partially offset by higher impaired loans in Personal &
Commercial Banking.
GIL in Personal & Commercial Banking increased $102 million or 6%, primarily due to higher impaired loans in our
Canadian Banking commercial portfolios, largely in the other services sector, and our Caribbean Banking portfolios.
GIL in Capital Markets decreased $863 million or 55%, primarily due to lower impaired loans in a few sectors, including the
oil & gas, utilities and consumer discretionary sectors.
Q2 2021 vs. Q1 2021

Total GIL decreased $95 million or 3% from last quarter, and the total GIL ratio of 40 bps decreased 1 bp, reflecting lower
impaired loans in Capital Markets, partially offset by higher impaired loans in Wealth Management and Personal &
Commercial Banking.
GIL in Personal & Commercial Banking increased $13 million or 1%, primarily due to higher impaired loans in our Canadian
Banking retail and Caribbean Banking portfolios, partially offset by lower impaired loans in our Canadian Banking commercial
portfolios.
GIL in Wealth Management increased $49 million or 17%, reflecting higher impaired loans in U.S. Wealth Management
(including City National) in a few sectors, including the consumer discretionary and information technology sectors.
GIL in Capital Markets decreased $157 million or 18%, primarily due to lower impaired loans in a few sectors, including the
oil & gas sector, partially offset by higher impaired loans in the real estate & related sector.
Allowance for credit losses (ACL)

As at
(Millions of Canadian dollars) 2021 2021 2020
Personal & Commercial Banking $ 4,204 $ 4,391 $ 4,102
Wealth Management 353 365 336
Capital Markets 966 1,152 1,415
Corporate Support and other 2 6 12
ACL on loans 5,525 5,914 5,865
ACL on other financial assets 114 131 118
Total ACL $ 5,639 $ 6,045 $ 5,983
ACL on loans is comprised of:
Retail $ 2,798 $ 2,859 $ 2,635
Wholesale 1,908 2,161 2,158
ACL on performing loans $ 4,706 $ 5,020 $ 4,793
ACL on impaired loans 819 894 1,072
Additional information by geography (1)

Canada
Retail $ 183 $ 195 $ 216
ACL on impaired loans 399 410 423
U.S.
Retail 1 1 2
Other International
Retail 112 116 117
ACL on impaired loans $ 819 $ 894 $ 1,072
Q2 2021 vs. Q2 2020

Total ACL of $5,639 million decreased $344 million or 6% from a year ago, primarily reflecting a decrease of $340 million in
ACL on loans.
ACL on performing loans of $4,706 million decreased $87 million, primarily reflecting lower ACL in Capital Markets driven
by improvements in our macroeconomic and credit quality outlook, as well as the impact of foreign exchange translation,
partially offset by higher ACL in Personal & Commercial Banking and Wealth Management.
ACL on impaired loans of $819 million decreased $253 million, due to lower ACL in Capital Markets, Wealth Management
and Personal & Commercial Banking.
Q2 2021 vs. Q1 2021

Total ACL of $5,639 million decreased $406 million or 7% from last quarter, primarily reflecting a decrease of $389 million in
ACL on loans.
ACL on performing loans of $4,706 million decreased $314 million, primarily reflecting lower ACL in Personal & Commercial
Banking, Capital Markets and Wealth Management. While uncertainty over the impact of the COVID-19 pandemic remains, the
decrease was driven by improvements in our macroeconomic and credit quality outlook in the current quarter. The impact of
foreign exchange translation also contributed to the decrease.
ACL on impaired loans of $819 million decreased $75 million, due to lower ACL in Capital Markets and Personal &
Commercial Banking, partially offset by higher ACL in Wealth Management.
For further details, refer to Note 5 of our Condensed Financial Statements.

Market risk
Market risk is defined to be the impact of market prices upon our financial condition. This includes potential 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 Framework from the
framework described in our 2020 Annual Report. We continue to manage the controls and governance procedures that ensure
that our market risk exposure is consistent with risk appetite constraints set by the Board of Directors. These controls include
limits on probabilistic measures of potential loss in trading positions, such as Value-at-Risk (VaR), Stressed Value-at-Risk
(SVaR) and Incremental Risk Charge (IRC).
Market risk controls are also in place to manage Interest Rate Risk in the Banking Book (IRRBB) that arises primarily from
traditional customer-originated banking products such as deposits and loans, and also includes related hedges as well as the
interest rate risk from securities held for liquidity management. Factors contributing to IRRBB include the mismatch between
asset and liability repricing dates, relative changes in asset and liability rates in response to market rate scenarios, and other
product features that could affect the expected timing of cash flows, such as options to pre-pay loans or redeem term
deposits prior to contractual maturity. 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 IRRBB measurement methodology, controls, or limits from those described in our 2020 Annual
Report. For further details of our approach to the management of market risk, refer to the Market risk section of our 2020
Annual Report.
Market risk measures – FVTPL positions

VaR and SVaR
The following table presents our Market risk VaR and Market risk SVaR figures.
April 30, 2021 January 31, 2021 April 30, 2020

For the three For the three For the three
months ended months ended months ended
(Millions of Canadian dollars) As at Average High Low As at Average As at Average
Equity $ 20 $ 18 $ 33 $ 12 $ 17 $ 17 $ 55 $ 39
Foreign exchange 5 4 6 3 4 3 3 3
Commodities 2 2 3 2 2 3 5 3
Interest rate (1) 48 44 64 21 36 40 132 61
Credit specific (2) 9 8 9 7 7 7 6 6
Diversification (3) (30) (34) n.m. n.m. (25) (31) (15) (20)
Market risk VaR $ 54 $ 42 $ 70 $ 23 $ 41 $ 39 $ 186 $ 92
Market risk Stressed VaR $ 58 $ 53 $ 84 $ 32 $ 49 $ 55 $ 139 $ 147
April 30, 2021 April 30, 2020

For the six For the six
months ended months ended
(Millions of Canadian dollars) As at Average High Low As at Average
Equity $ 20 $ 17 $ 33 $ 12 $ 55 $ 30
Foreign exchange 5 4 6 2 3 3
Commodities 2 2 4 2 5 2
Interest rate (1) 48 42 64 21 132 37
Credit specific (2) 9 8 9 6 6 5
Diversification (3) (30) (33) n.m. n.m. (15) (19)
Market risk VaR $ 54 $ 40 $ 72 $ 23 $ 186 $ 58
Market risk Stressed VaR $ 58 $ 54 $ 101 $ 30 $ 139 $ 115
(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) Market risk VaR is less than the sum of the individual risk factor VaR results due to portfolio diversification.
n.m. not meaningful
Q2 2021 vs. Q2 2020

Average market risk VaR of $42 million decreased $50 million and average SVaR of $53 million decreased $94 million from last
year as Q2 2020 credit spread and volatility levels were heightened relative to the current quarter. This impacted loan
underwriting commitments as well as fixed income and equity portfolios last year. Since Q3 2020, VaR levels have remained
relatively stable as overall market volatility and credit spreads improved, and diversification increased.
Q2 2021 vs. Q1 2021

Average market risk VaR of $42 million and average SVaR of $53 million both remained stable.

Average market risk VaR of $40 million decreased $18 million and average SVaR of $54 million decreased $61 million as the
same period last year reflected the market turmoil from March 2020. The impact from the inclusion of the March 2020 period
of significant market volatility in the current historical VaR period was partially offset by the impact of diversification.
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 April 30, 2021 and January 31, 2021.
Trading revenue (1) and VaR (Millions of Canadian dollars)
150
100
50
-50
-100
-150
-200
-250
0 02
0
21 21
02 02
0 20
1, 2 2 31, 2 1, 20 30,
ay 31, ct n3 pr
M Jul O Ja A
Trading revenue (1) VaR

(1) Includes 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 the future obligations to policyholders. The
investments which support actuarial liabilities are predominantly fixed income assets designated as FVTPL. Consequently,
changes in the fair values of these assets are recorded in the Consolidated Statements of Income and are largely offset by
changes in the fair value of the actuarial liabilities, the impact of which is reflected in Insurance policyholder benefits, claims
and acquisition expense. As at April 30, 2021, we held assets in support of $12.1 billion of liabilities with respect to insurance
obligations (January 31, 2021 – $12.8 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 12-month NII and EVE, assuming no subsequent hedging. Rate floors are applied within the
declining rates scenarios which prevent EVE valuation and NII simulation rate levels from falling below a minimum average
level of negative 25 bps across major currencies. Interest rate risk measures are based upon interest rate exposures at a
specific time, which over time, can change in response to business activities and management actions.

2021 2021 2020
EVE risk NII risk (1)
Canadian U.S. Canadian U.S.
dollar dollar dollar dollar
(Millions of Canadian dollars) impact impact Total impact impact Total EVE risk NII risk (1) EVE risk NII risk (1)
Before-tax impact of:

100 bps increase in rates (2) $ (1,719) $ (345) $ (2,064) $ 471 $ 387 $ 858 $ (1,882) $ 836 $ (1,708) $ 701
100 bps decrease in rates (2) 1,500 271 1,771 (554) (304) (858) 1,433 (714) 1,459 (726)
(1) Represents the 12-month NII exposure to an instantaneous and sustained shift in interest rates.
(2) Effective Q4 2020 the IRRBB 100 bps increase and decrease in rates scenarios were updated on a prospective basis in accordance with OSFI’s B-12: Interest Rate Risk
Management guideline. This resulted in the inclusion of EVE and NII risk arising from Capital Markets and treasury related services within Investor & Treasury Services banking
book activities beginning in Q4 2020.
As at April 30, 2021, an immediate and sustained -100 bps shock would have had a negative impact to our NII of $858 million, up
from $714 million last quarter. An immediate and sustained +100 bps shock at the end of April 30, 2021 would have had a
negative impact to the bank’s EVE of $2,064 million, up from $1,882 million reported last quarter. The quarter-over-quarter
change in NII sensitivity, in particular for the -100 bps shock, was largely attributable to continued growth in low cost deposits
in the current quarter, while the quarter-over-quarter change in EVE sensitivity was largely attributable to continued growth in
the bank’s book capital. During the second quarter of 2021, NII and EVE risks remained within approved limits.
Market risk measures for other material non-trading portfolios

Investment securities carried at FVOCI
We held $63.1 billion of investment securities carried at FVOCI as at April 30, 2021, compared to $76.8 billion in the prior
quarter. We hold debt securities carried at FVOCI primarily as investments, as well as to manage liquidity risk and hedge
interest rate risk in our non-trading banking balance sheet. As at April 30, 2021, our portfolio of investment securities carried at
FVOCI is interest rate sensitive and would impact OCI by a pre-tax change in value of $6 million as measured by the change in
the value of the securities for a one basis point parallel increase in yields. The portfolio also exposes us to credit spread risk
of a pre-tax change in value of $17 million, as measured by the change in value for a one basis point widening of credit
spreads. The value of the investment securities carried at FVOCI included in our IRRBB measures as at April 30, 2021 was
$60.5 billion. Our investment securities carried at FVOCI also include equity exposures of $0.5 billion as at April 30, 2021,
compared to $0.5 billion in the prior quarter.
Non-trading foreign exchange rate risk

Foreign exchange rate risk is the potential adverse impact on earnings and economic value due to changes in foreign
currency rates. Our revenue, expenses and income denominated in currencies other than the Canadian dollar are subject
to fluctuations as a result of changes in the value of the average Canadian dollar relative to the average value of those
currencies. Our most significant exposure is to the U.S. dollar, due to our operations in the U.S. and other activities conducted
in U.S. dollars. Other significant exposures are to the British pound and the Euro, due to our activities conducted
internationally in these currencies. A strengthening or weakening of the Canadian dollar compared to the U.S. dollar, British
pound and the Euro could reduce or increase, as applicable, the translated value of our foreign currency denominated
revenue, expenses and earnings and could have a significant effect on the results of our operations. We are also exposed to
foreign exchange rate risk arising from our investments in foreign operations. For unhedged equity investments, when the
Canadian dollar appreciates against other currencies, the unrealized translation losses on net foreign investments decreases
our shareholders’ equity through the other components of equity and decreases the translated value of the risk-weighted
assets (RWA) of the foreign currency-denominated asset. The reverse is true when the Canadian dollar depreciates against
other currencies. Consequently, we consider these impacts in selecting an appropriate level of our investments in foreign
operations to be hedged.
Derivatives related to non-trading activity

Derivatives are also used to hedge market risk exposure unrelated to our trading activity. Hedge accounting is elected where
applicable. These derivatives are included in our IRRBB measure and other internal non-trading market risk measures. We
use interest rate swaps to manage our IRRBB, funding and investment activities. Interest rate swaps are also used to hedge
changes in the fair value of certain fixed-rate instruments. We also use foreign exchange derivatives to manage our exposure
to equity investments in subsidiaries that are denominated in foreign currencies, particularly the U.S. dollar, British Pound,
and Euro.
For further details on the application of hedge accounting and the use of derivatives for hedging activities, refer to Notes 2
and 8 of our 2020 Annual Consolidated Financial Statements.
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:

Market risk measure
Balance sheet Non-traded Non-traded risk
(Millions of Canadian dollars) amount Traded risk (1) risk (2) primary risk sensitivity
Assets subject to market risk

Cash and due from banks $ 114,307 $ – $ 114,307 Interest rate
Interest-bearing deposits with banks 63,438 41,380 22,058 Interest rate
Securities
Trading 125,733 114,777 10,956 Interest rate, credit spread
Investment, net of applicable allowance 129,419 – 129,419 Interest rate, credit spread, equity
Assets purchased under reverse repurchase
agreements and securities borrowed 308,031 265,880 42,151 Interest rate
Loans
Retail 476,230 8,147 468,083 Interest rate
Wholesale 202,427 7,107 195,320 Interest rate
Allowance for loan losses (5,146) – (5,146) Interest rate
Segregated fund net assets 2,338 – 2,338 Interest rate
Other
Derivatives 97,236 93,285 3,951 Interest rate, foreign exchange
Other assets 90,223 8,513 81,710 Interest rate
Assets not subject to market risk (3) 11,080
Total assets $ 1,615,316 $ 539,089 $ 1,065,147
Liabilities subject to market risk
Deposits $ 1,033,323 $ 125,786 $ 907,537 Interest rate
Segregated fund liabilities 2,338 – 2,338 Interest rate
Other
Obligations related to securities sold short 31,817 31,817 –
Obligations related to assets sold
under repurchase agreements and
securities loaned 257,049 235,509 21,540 Interest rate
Other liabilities 81,235 8,234 73,001 Interest rate
Subordinated debentures 9,014 – 9,014 Interest rate
Liabilities not subject to market risk (4) 15,316
Total liabilities $ 1,522,494 $ 491,655 $ 1,015,523
Total equity 92,822
Total liabilities and equity $ 1,615,316
(1) Traded risk includes positions that are classified or designated as FVTPL and positions whose revaluation gains and losses are reported in revenue. Market risk measures of
VaR and SVaR and stress testing are used as risk controls for traded risk.
(2) Non-traded risk includes positions used in the management of IRRBB and other non-trading portfolios. Other material non-trading 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.

Market risk measure
Balance sheet Non-traded Non-traded risk
(Millions of Canadian dollars) amount Traded risk (1) risk (2) primary risk sensitivity
Assets subject to market risk

Cash and due from banks $ 149,588 $ – $ 149,588 Interest rate
Interest-bearing deposits with banks 33,731 18,440 15,291 Interest rate
Securities
Trading 148,023 136,539 11,484 Interest rate, credit spread
Investment, net of applicable allowance 139,459 – 139,459 Interest rate, credit spread, equity
Assets purchased under reverse repurchase
agreements and securities borrowed 311,033 253,347 57,686 Interest rate
Loans
Retail 464,579 5,919 458,660 Interest rate
Wholesale 213,462 8,807 204,655 Interest rate
Allowance for loan losses (5,478) – (5,478) Interest rate
Segregated fund net assets 2,127 – 2,127 Interest rate
Other
Other assets 92,033 7,391 84,642 Interest rate
Assets not subject to market risk (3) 11,677
Total assets $ 1,671,151 $ 536,403 $ 1,123,071
Liabilities subject to market risk
Deposits $ 1,054,597 $ 121,815 $ 932,782 Interest rate
Segregated fund liabilities 2,127 – 2,127 Interest rate
Other
Obligations related to securities sold short 32,569 32,569 –
under repurchase agreements and
securities loaned 274,907 250,747 24,160 Interest rate
Other liabilities 88,046 8,597 79,449 Interest rate
Subordinated debentures 9,186 – 9,186 Interest rate
Liabilities not subject to market risk (4) 13,399
Total liabilities $ 1,580,902 $ 518,061 $ 1,049,442
Total equity 90,249
Total liabilities and equity $ 1,671,151
(1) Traded risk includes positions that are classified or designated as FVTPL and positions whose revaluation gains and losses are reported in revenue. Market risk measures of
VaR and SVaR and stress testing are used as risk controls for traded risk.
(2) Non-traded risk includes positions used in the management of IRRBB and other non-trading portfolios. Other material non-trading portfolios include positions from RBC
Insurance® and investment securities, net of applicable allowance, not included in IRBB.
(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.
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 Framework (LRMF) is designed to ensure that we have sufficient liquidity to satisfy
current and prospective commitments in both normal and stressed conditions. There have been no material changes to our
LRMF as described in our 2020 Annual Report.
We continue to maintain liquidity and funding that is appropriate for the execution of our strategy. Liquidity risk remains
well within our risk appetite.
Commencing in the second quarter of 2020, OSFI announced a series of regulatory measures and provided additional
guidance to allow banks to focus on their resilience efforts and to enhance the financial system’s stability. These measures
contained temporary modifications in limits, including those used for covered bonds. For further details, refer to the Liquidity
and funding risk section of our 2020 Annual Report. On April 6, 2021, OSFI announced the unwinding of the temporary increase
in the covered bond limit, effective immediately.
Liquidity reserve
Our liquidity reserve consists of available unencumbered liquid assets. Although unused wholesale funding capacity, which is
regularly assessed, could be another potential source of liquidity to mitigate stressed conditions, it is excluded in the
determination of the liquidity reserve. Similarly, uncommitted and undrawn central bank borrowing facilities that could be
accessed subject to satisfying certain preconditions as set by various central banks (e.g., BoC, the Fed, Bank of England, and
Bank of France), as well as amounts that qualify as eligible collateral at the Federal Reserve Bank of New York (FRBNY) and
Federal Home Loan Bank (FHLB) are also excluded from the determination of the liquidity reserve.

Securities
received as
collateral
from securities
financing and
Bank-owned derivative Total liquid Encumbered Unencumbered
(Millions of Canadian dollars) liquid assets transactions assets liquid assets liquid assets
Cash and due from banks $ 114,307 $ – $ 114,307 $ 3,369 $ 110,938

Interest-bearing deposits with banks 63,438 – 63,438 – 63,438
Securities issued or guaranteed by sovereigns, central
banks or multilateral development banks (1) 200,981 305,131 506,112 346,565 159,547
Other securities 98,467 122,165 220,632 124,822 95,810
Other liquid assets (2) 27,227 – 27,227 25,335 1,892
Total liquid assets $ 504,420 $ 427,296 $ 931,716 $ 500,091 $ 431,625

Securities
received as
collateral from
securities
financing and
Bank-owned derivative Total liquid Encumbered Unencumbered
(Millions of Canadian dollars) liquid assets transactions assets liquid assets liquid assets
Cash and due from banks $ 149,588 $ – $ 149,588 $ 3,666 $ 145,922

Interest-bearing deposits with banks 33,731 – 33,731 – 33,731
Securities issued or guaranteed by sovereigns, central
banks or multilateral development banks (1) 235,660 310,209 545,869 362,186 183,683
Other securities 104,878 114,407 219,285 113,748 105,537
Other liquid assets (2) 28,584 – 28,584 26,711 1,873
Total liquid assets $ 552,441 $ 424,616 $ 977,057 $ 506,311 $ 470,746
As at
April 30 January 31
Royal Bank of Canada $ 240,130 $ 291,003
Foreign branches 55,895 46,361
Subsidiaries 135,600 133,382
Total unencumbered liquid assets $ 431,625 $ 470,746
(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 OTC and exchange-traded derivative transactions.
The liquidity reserve is typically most affected by routine flows of client banking activity where liquid asset portfolios adjust to
the change in cash balances, and additionally from capital markets activities where business strategies and client flows may
also affect the addition or subtraction of liquid assets in the overall calculation of the liquidity reserve. Corporate Treasury
also affects liquidity reserves through the management of funding issuances where reserves absorb timing mismatches
between debt issuances and deployment into business activities.
Q2 2021 vs. Q1 2021

Total liquid assets decreased $45.3 billion or 5% and total unencumbered liquid assets decreased $39.1 billion or 8% from last
quarter, mainly due to a decrease in bank-owned securities balances, reflecting lower wholesale funding levels.
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 or 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 April 30, 2021, our unencumbered assets available as collateral comprised 26% of
total assets (January 31, 2021 – 28%).
As at
April 30 January 31
2021 2021
Encumbered Unencumbered Encumbered Unencumbered
Pledged as Available as Pledged as Available as
(Millions of Canadian dollars) collateral Other (1) collateral (2) Other (3) Total collateral Other (1) collateral (2) Other (3) Total
Cash and due from banks $ – $ 3,369 $ 110,938 $ – $ 114,307 $ – $ 3,666 $ 145,922 $ – $ 149,588
Interest-bearing deposits with
banks – – 63,438 – 63,438 – – 33,731 – 33,731
Securities
Trading 50,179 – 80,271 3,817 134,267 52,656 – 99,899 3,486 156,041
Investment, net of
applicable allowance 12,075 – 117,291 53 129,419 12,634 – 126,772 53 139,459
Assets purchased under reverse
repurchase agreements and
securities borrowed (4) 420,370 17,663 29,668 5,899 473,600 422,751 17,587 31,568 5,851 477,757
Loans
Retail
Mortgage securities 30,803 – 34,337 – 65,140 31,212 – 37,968 – 69,180
Mortgage loans 44,423 – 26,936 221,504 292,863 62,108 – 26,490 194,154 282,752
Non-mortgage loans 3,165 – 9,139 105,923 118,227 3,806 – 10,629 98,212 112,647
Wholesale – – – 202,427 202,427 – – – 213,462 213,462
Allowance for loan losses – – – (5,146) (5,146) – – – (5,478) (5,478)
Segregated fund net assets – – – 2,338 2,338 – – – 2,127 2,127
Other
Derivatives – – – 97,236 97,236 – – – 110,917 110,917
Others (5) 25,335 – 1,892 74,076 101,303 26,711 – 1,873 75,126 103,710
Total assets $ 586,350 $ 21,032 $ 473,910 $ 708,127 $ 1,789,419 $ 611,878 $ 21,253 $ 514,852 $ 697,910 $ 1,845,893
(1) Includes assets restricted from use to generate secured funding due to legal or other constraints.
(2) Represents assets that are readily available for use as collateral, including NHA MBS, our unencumbered mortgage loans that qualify as eligible collateral at FHLB, as well as
loans that qualify as eligible collateral for discount window facility available to us and lodged at the 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 readily available. This also includes
loans that could be used to collateralize central bank advances, including those for pledging to the BoC under the expanded eligibility criteria announced in Q2 2020. For
further details on programs in support of liquidity and funding announced in fiscal 2020, refer to the Significant developments: COVID-19 section of our 2020 Annual Report.
(4) Includes bank-owned liquid assets and securities received as collateral from off-balance sheet securities financing, derivative transactions, and margin lending. Includes
$17.7 billion (January 31, 2021 – $17.6 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.
Funding
Funding strategy
Core funding, comprising capital, longer-term wholesale liabilities and a diversified pool of personal and, to a lesser extent,
commercial and institutional deposits, is the foundation of our structural liquidity position.
Deposit and funding profile

As at April 30, 2021, relationship-based deposits, which are the primary source of funding for retail loans and mortgages, were
$732.0 billion or 55% of our total funding (January 31, 2021 – $716.2 billion or 52%). 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 April 30, 2021, the notional value of issued and
outstanding long-term debt subject to conversion under the Bail-in regime was $41.8 billion (January 31, 2021 – $39.9 billion).
For further details on our wholesale funding, refer to the Composition of wholesale funding tables below.
Long-term debt issuance

Our 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 operate long-term
debt issuance registered programs. The following table summarizes these programs with their authorized limits by geography.
Programs by geography
Canada U.S. Europe/Asia

• Canadian Shelf Program – $25 billion • U.S. Shelf Program – US$40 billion • European Debt Issuance Program – US$40 billion
• Global Covered Bond Program – €60 billion
• Japanese Issuance Programs – ¥1 trillion
We also raise long-term funding using Canadian Senior Notes, Canadian National Housing Act MBS, Canada Mortgage Bonds,
credit card receivable-backed securities, 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). 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. As presented in the following
charts, our current long-term debt profile is well-diversified by both currency and product. Maintaining competitive credit
ratings is also critical to cost-effective funding.
Long-term debt (1) – funding mix by currency of issuance Long-term debt (1) – funding mix by product
MBS/CMB (2)
Euro 16%
U.S. dollar 18% Covered

30% Bonds
29%
Cards
securitization
Canadian 3%
dollar Other Unsecured funding
39% 13% 52%
(1) Based on original term to maturity greater than 1 year (1) Based on original term to maturity greater than 1 year
(2) Mortgage-backed securities and Canada Mortgage Bonds
The following table provides our composition of wholesale funding based on remaining term to maturity:
Composition of wholesale funding (1)

Less than 1 1 to 3 3 to 6 6 to 12 Less than 1 1 year 2 years and
(Millions of Canadian dollars) month months months months year sub-total to 2 years greater Total
Deposits from banks (2) $ 5,820 $ 12 $ – $ – $ 5,832 $ – $ – $ 5,832

Certificates of deposit and commercial paper 4,397 11,634 21,417 24,782 62,230 31 – 62,261
Asset-backed commercial paper (3) 2,578 3,107 4,459 2,568 12,712 – – 12,712
Senior unsecured medium-term notes (4) 198 3,575 3,356 9,851 16,980 7,070 36,259 60,309
Senior unsecured structured notes (5) 162 338 289 1,461 2,250 1,678 7,423 11,351
Mortgage securitization – 1,728 437 1,662 3,827 2,568 11,532 17,927
Covered bonds/asset-backed securities (6) 553 1,274 2,997 1,341 6,165 8,453 20,954 35,572
Subordinated liabilities – – 999 – 999 242 7,642 8,883
Other (7) 6,445 569 370 640 8,024 8,070 443 16,537
Total $ 20,153 $ 22,237 $ 34,324 $ 42,305 $ 119,019 $ 28,112 $ 84,253 $ 231,384
Of which:
– Secured $ 9,223 $ 6,376 $ 8,126 $ 5,571 $ 29,296 $ 11,021 $ 32,909 $ 73,226
– Unsecured 10,930 15,861 26,198 36,734 89,723 17,091 51,344 158,158

Less than 1 1 to 3 3 to 6 6 to 12 Less than 1 1 year 2 years and
(Millions of Canadian dollars) month months months months year sub-total to 2 years greater Total
Deposits from banks (2) $ 11,689 $ 361 $ 70 $ – $ 12,120 $ – $ – $ 12,120

Certificates of deposit and commercial paper 6,124 14,356 10,640 31,961 63,081 – – 63,081
Asset-backed commercial paper (3) 2,030 2,251 3,836 4,496 12,613 – – 12,613
Senior unsecured medium-term notes (4) 880 4,983 7,667 4,375 17,905 13,797 36,209 67,911
Senior unsecured structured notes (5) 419 590 292 1,133 2,434 1,400 8,449 12,283
Mortgage securitization – 265 1,730 793 2,788 3,441 11,544 17,773
Covered bonds/asset-backed securities (6) – 5,798 1,890 3,994 11,682 7,044 24,138 42,864
Subordinated liabilities – – – 1,000 1,000 253 7,677 8,930
Other (7) 8,287 438 934 229 9,888 630 6,459 16,977
Total $ 29,429 $ 29,042 $ 27,059 $ 47,981 $ 133,511 $ 26,565 $ 94,476 $ 254,552
Of which:
– Secured $ 9,016 $ 8,562 $ 7,649 $ 9,427 $ 34,654 $ 10,485 $ 35,682 $ 80,821
– Unsecured 20,413 20,480 19,410 38,554 98,857 16,080 58,794 173,731
(1) Excludes bankers’ acceptances and repos.
(2) Excludes deposits associated with services we provide to banks (e.g., custody, cash management).
(3) Only includes consolidated liabilities, including our collateralized commercial paper program.
(4) Includes deposit notes.
(5) Includes notes where the payout is tied to movements in foreign exchange, commodities and equities.
(6) Includes credit card and mortgage loans.
(7) Includes tender option bonds (secured) of $7,008 million (January 31, 2021 – $7,560 million), bearer deposit notes (unsecured) of $1,259 million (January 31, 2021 – $1,659 million),
other long-term structured deposits (unsecured) of $8,264 million (January 31, 2021 – $7,751 million), and FHLB advances (secured) of $6 million (January 31, 2021 – $7 million).
Credit ratings
Our ability to access unsecured funding markets and to engage in certain collateralized business activities on a cost-effective
basis are primarily dependent upon 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.
Other than as noted below, there have been no changes to our major credit ratings as disclosed in our 2020 Annual Report.
Credit ratings (1)

As at May 26, 2021
Short-term Legacy senior Senior long-
debt long-term debt (2) term debt (3) Outlook
Moody’s (4) P-1 Aa2 A2 stable

Standard & Poor’s (5) A-1+ AA- A stable
Fitch Ratings (6) F1+ AA+ AA negative
DBRS (7) R-1 (high) AA (high) AA stable
(1) Credit ratings are not recommendations to purchase, sell or hold a financial obligation inasmuch 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 Bail-in regime.
(3) Includes senior long-term debt issued on or after September 23, 2018 which is subject to conversion under the Bail-in regime.
(4) On November 18, 2020, Moody’s affirmed our ratings with a stable outlook.
(5) On October 28, 2020, Standard & Poor’s affirmed our ratings with a stable outlook.
(6) On January 13, 2021, Fitch Ratings affirmed our ratings with a negative outlook.
(7) On May 14, 2021, 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 to our current credit rating. The
following table provides the additional collateral obligations required at the reporting date in the event of a one-, two- or
three-notch downgrade to our credit ratings. 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 as a result of 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
April 30 January 31
2021 2021
One-notch Two-notch Three-notch One-notch Two-notch Three-notch
(Millions of Canadian dollars) downgrade downgrade downgrade downgrade downgrade downgrade
Contractual derivatives funding or margin requirements $ 404 $ 89 $ 124 $ 339 $ 79 $ 124

Other contractual funding or margin requirements (1) 153 – 3 185 – –
(1) Includes Guaranteed Investment Certificates (GICs) issued by our municipal markets business out of New York.
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 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)

April 30
2021
Total unweighted Total weighted
(Millions of Canadian dollars, except percentage amounts) value (average) (2) value (average)
High-quality liquid assets

Total high-quality liquid assets (HQLA) $ 364,160
Cash outflows
Retail deposits and deposits from small business customers, of which: $ 354,145 $ 33,062
Stable deposits (3) 122,351 3,671
Less stable deposits 231,794 29,391
Unsecured wholesale funding, of which: 408,807 192,403
Operational deposits (all counterparties) and deposits in networks of cooperative banks (4) 173,876 41,157
Non-operational deposits 203,955 120,270
Unsecured debt 30,976 30,976
Secured wholesale funding 28,412
Additional requirements, of which: 258,147 61,990
Outflows related to derivative exposures and other collateral requirements 40,727 17,499
Outflows related to loss of funding on debt products 8,454 8,454
Credit and liquidity facilities 208,966 36,037
Other contractual funding obligations (5) 26,036 26,036
Other contingent funding obligations (6) 591,502 9,391
Total cash outflows $ 351,294
Cash inflows
Secured lending (e.g., reverse repos) $ 254,959 $ 41,531
Inflows from fully performing exposures 12,550 7,312
Other cash inflows 27,905 27,905
Total cash inflows $ 76,748
Total adjusted
value
Total HQLA $ 364,160

Total net cash outflows 274,546
Liquidity coverage ratio 133%
January 31
2021
Total adjusted
(Millions of Canadian dollars, except percentage amounts) value
Total HQLA $ 358,263

Total net cash outflows 254,011
Liquidity coverage ratio 141%
(1) The LCR is calculated in accordance with OSFI’s LAR guideline, which, in turn, reflects liquidity-related requirements issued by the BCBS as updated in accordance with the
regulatory guidance issued in Q2 2020. The LCR for the quarter ended April 30, 2021 is calculated as an average of 63 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 medium-sized 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 off-balance 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 and takes into account business
mix, asset composition and funding capabilities. The range is subject to periodic review in light of changes to internal
requirements and external developments.
We maintain HQLAs in major currencies with dependable market depth and breadth. Our treasury management practices
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 89% 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.
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.
Q2 2021 vs. Q1 2021

The average LCR for the quarter ended April 30, 2021 was 133%, which translates into a surplus of approximately $89.6 billion,
compared to 141% and a surplus of approximately $104.3 billion in the prior quarter. Average LCR decreased from the prior
quarter primarily due to lower funding levels as the bank continues to optimize its liquidity position. We expect liquidity levels
will continue to be influenced by central bank policy and actions, and we will continue to manage our LCR in reflection of
these and other industry-wide developments.
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 time horizon
considered by the NSFR, which extends to one year. Required stable funding is a function of the liquidity characteristics and
residual maturities of the various assets held by the bank as well as those of its off-balance sheet exposures.
Beginning in Q1 2021, OSFI requires Canadian 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 Liquidity Adequacy
Requirements (LAR) guideline and are not necessarily aligned with the classification requirements prescribed under IFRS.
Net Stable Funding Ratio common disclosure template (1)

Unweighted value by residual maturity (2)
6 months to Weighted
(Millions of Canadian dollars, except percentage amounts) No maturity < 6 months < 1 year > 1 year value
Available Stable Funding (ASF) Item
Capital: $ 92,716 $ – $ – $ 9,497 $ 102,213
Regulatory Capital 92,716 – – 9,497 102,213
Other Capital Instruments – – – – –
Retail deposits and deposits from small business customers: 319,334 52,333 22,845 21,291 384,309
Stable deposits (3) 108,673 26,349 12,700 8,771 149,107
Less stable deposits 210,661 25,984 10,145 12,520 235,202
Wholesale funding: 305,477 370,204 50,553 88,243 283,430
Operational deposits (4) 191,921 – – – 95,960
Other wholesale funding 113,556 370,204 50,553 88,243 187,470
Liabilities with matching interdependent assets (5) – 3,302 3,303 25,923 –
Other liabilities: 36,373 174,798 12,676
NSFR derivative liabilities 14,247
All other liabilities and equity not included in the
above categories 36,373 147,776 199 12,576 12,676
Total ASF $ 782,628
Required Stable Funding (RSF) Item
Total NSFR high-quality liquid assets (HQLA) $ 31,427
Deposits held at other financial institutions for
operational purposes – 2,651 – – 1,325
Performing loans and securities: 163,508 267,717 111,797 391,638 545,542
Performing loans to financial institutions secured by
Level 1 HQLA – 110,091 18,841 161 16,608
Performing loans to financial institutions secured by
non-Level 1 HQLA and unsecured performing loans to
financial institutions 4,276 64,225 32,095 10,422 39,067
Performing loans to non-financial corporate clients, loans to
retail and small business customers, and loans to sovereigns,
central banks and PSEs, of which: 94,713 74,983 38,209 125,287 239,194
With a risk weight of less than or equal to 35% under the
Basel II standardized approach for credit risk – 1,597 1,435 5,506 5,094
Performing residential mortgages, of which: 37,183 16,713 22,166 239,443 211,782
With a risk weight of less than or equal to 35% under the
Basel II standardized approach for credit risk 37,183 16,627 20,522 239,371 210,305
Securities that are not in default and do not qualify as HQLA,
including exchange-traded equities 27,336 1,705 486 16,325 38,891
Assets with matching interdependent liabilities (5) – 3,301 3,303 25,923 –
Other assets: 1,892 225,530 63,114
Physical traded commodities, including gold 1,892 1,609
Assets posted as initial margin for derivative contracts and
contributions to default funds of CCPs 14,198 12,069
NSFR derivative assets 14,292 44
NSFR derivative liabilities before deduction of variation
margin posted 33,954 1,698
All other assets not included in the above categories – 116,303 155 46,628 47,694
Off-balance sheet items 623,369 22,236
Total RSF $ 663,644
Net Stable Funding Ratio (%) 118%

Weighted
(Millions of Canadian dollars, except percentage amounts) value
Total ASF $ 784,238

Total RSF 662,046
Net Stable Funding Ratio (%) 118%
(1) The NSFR is calculated in accordance with OSFI’s Liquidity Adequacy Requirements (LAR) guideline, which, in turn, reflects liquidity-related requirements issued by the BCBS as
updated in accordance with the regulatory guidance issued in fiscal 2020.
(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 CCPs, NSFR derivative assets, NSFR derivative liabilities before deduction of variation margin posted, and Off-balance
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 medium-sized 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 National Housing Act Mortgage-Backed Securities (NHA MBS) liabilities, including liabilities arising from transactions involving
the Canada Mortgage Bond program and their corresponding encumbered mortgages.
Available stable funding is comprised primarily of a diversified pool of personal and commercial deposits, capital, as well as
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 is available to the bank.
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.
Q2 2021 vs. Q1 2021

The NSFR as at April 30, 2021 was 118%, which translates into a surplus of approximately $119.0 billion, compared to 118% and a
surplus of approximately $122.2 billion in the prior quarter. NSFR has remained stable over the quarter as lower wholesale
funding was largely offset by continued growth in client deposits.
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) 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 section within the Liquidity
and funding risk section of our 2020 Annual Report.

With no
Less than 1 1 to 3 3 to 6 6 to 9 9 to 12 1 year 2 years 5 years specific
(Millions of Canadian dollars) month months months months months to 2 years to 5 years and greater maturity Total
Assets
Cash and deposits with banks $ 175,499 $ 1 $ – $ 11 $ – $ – $ – $ – $ 2,234 $ 177,745
Securities
Trading (1) 65,080 19 119 26 17 33 123 9,124 51,192 125,733
Investment, net of
applicable allowance 3,912 8,150 3,775 6,419 6,658 18,326 30,174 51,528 477 129,419
securities borrowed (2) 146,475 67,298 26,165 26,156 23,732 98 – – 18,107 308,031
Loans, net of applicable allowance 25,055 19,390 24,518 26,872 30,801 129,541 283,080 56,331 77,923 673,511
Other
Customers’ liability
under acceptances 13,047 5,867 – 2 9 5 – – (113) 18,817
Derivatives 6,051 7,294 4,211 6,625 2,667 10,055 17,942 42,384 7 97,236
Other financial assets 32,147 1,097 1,277 275 354 209 218 2,014 3,247 40,838
Total financial assets 467,266 109,116 60,065 66,386 64,238 158,267 331,537 161,381 153,074 1,571,330
Other non-financial assets 6,225 1,544 (52) 181 430 2,523 2,107 5,695 25,333 43,986
Total assets $ 473,491 $ 110,660 $ 60,013 $ 66,567 $ 64,668 $ 160,790 $ 333,644 $ 167,076 $ 178,407 $ 1,615,316
Liabilities and equity
Deposits (3)
Unsecured borrowing $ 75,344 $ 43,258 $ 41,162 $ 37,211 $ 41,639 $ 20,250 $ 50,477 $ 13,782 $ 623,949 $ 947,072
Secured borrowing 3,218 6,422 6,478 2,817 4,307 6,068 17,603 6,408 – 53,321
Covered bonds – 1,274 2,289 852 – 5,986 14,416 8,113 – 32,930
Other
Acceptances 13,056 5,868 – – 9 – – – 9 18,942
Obligations related to securities
sold short 31,817 – – – – – – – – 31,817
under repurchase agreements
and securities loaned (2) 203,947 26,430 9,171 171 1,992 2,956 – – 12,382 257,049
Derivatives 5,904 7,208 4,290 5,433 3,282 8,789 18,616 38,879 1 92,402
Other financial liabilities 32,815 997 813 425 546 843 2,044 10,069 679 49,231
Subordinated debentures – – – – – 188 2,042 6,784 – 9,014
Total financial liabilities 366,101 91,457 64,203 46,909 51,775 45,080 105,198 84,035 637,020 1,491,778
Other non-financial liabilities 1,089 1,088 103 3,604 1,148 991 966 12,348 9,379 30,716
Equity – – – – – – – – 92,822 92,822
Total liabilities and equity $ 367,190 $ 92,545 $ 64,306 $ 50,513 $ 52,923 $ 46,071 $ 106,164 $ 96,383 $ 739,221 $ 1,615,316
Off-balance sheet items
Financial guarantees $ 590 $ 2,171 $ 2,093 $ 2,430 $ 3,086 $ 1,297 $ 3,744 $ 673 $ 72 $ 16,156
Commitments to extend credit 7,562 8,277 8,427 12,091 19,606 51,777 150,273 16,844 3,190 278,047
Other credit-related commitments 2,178 1,104 1,366 1,648 1,529 169 843 4 91,266 100,107
Other commitments 15 11 17 18 18 64 180 350 557 1,230
Total off-balance sheet items $ 10,345 $ 11,563 $ 11,903 $ 16,187 $ 24,239 $ 53,307 $ 155,040 $ 17,871 $ 95,085 $ 395,540
(1) 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.

With no
Less than 1 to 3 3 to 6 6 to 9 9 to 12 1 year 2 years 5 years specific
(Millions of Canadian dollars) 1 month months months months months to 2 years to 5 years and greater maturity Total
Assets
Cash and deposits with banks $ 180,806 $ 1 $ – $ – $ 10 $ – $ – $ – $ 2,502 $ 183,319
Securities
Trading (1) 84,588 28 28 80 27 24 89 9,860 53,299 148,023
Investment, net of
applicable allowance 3,688 7,658 5,591 9,262 9,068 23,600 28,276 51,813 503 139,459
securities borrowed (2) 146,637 77,142 30,320 19,790 15,850 2 – – 21,292 311,033
Loans, net of applicable allowance 26,602 18,723 27,798 25,633 27,086 136,842 276,030 56,079 77,770 672,563
Other
Customers’ liability
under acceptances 12,206 6,640 16 – 5 – 5 – (116) 18,756
Derivatives 6,034 8,102 4,963 3,232 5,702 10,526 21,014 51,341 3 110,917
Other financial assets 32,811 3,033 1,557 76 224 240 261 2,048 3,241 43,491
Total financial assets 493,372 121,327 70,273 58,073 57,972 171,234 325,675 171,141 158,494 1,627,561
Other non-financial assets 5,493 1,513 1,017 40 434 2,249 2,126 5,824 24,894 43,590
Total assets $ 498,865 $ 122,840 $ 71,290 $ 58,113 $ 58,406 $ 173,483 $ 327,801 $ 176,965 $ 183,388 $ 1,671,151
Deposits (3)
Unsecured borrowing (4) $ 99,425 $ 55,458 $ 42,762 $ 31,840 $ 36,582 $ 26,661 $ 50,889 $ 14,642 $ 602,794 $ 961,053
Secured borrowing 2,089 3,763 7,787 5,618 1,371 8,904 17,875 6,272 – 53,679
Covered bonds – 5,296 1,314 2,397 882 3,971 17,283 8,722 – 39,865
Other
Acceptances 12,213 6,641 15 – 3 – – – 9 18,881
sold short 32,569 – – – – – – – – 32,569
and securities loaned (2) 206,486 46,307 1,452 1,488 176 4,957 – – 14,041 274,907
Derivatives 5,616 8,353 4,688 3,223 4,407 9,504 21,705 48,569 6 106,071
Other financial liabilities (4) 36,535 1,884 1,215 334 509 854 2,070 10,643 565 54,609
Subordinated debentures – – – – – 196 2,159 6,831 – 9,186
Total financial liabilities 394,933 127,702 59,233 44,900 43,930 55,047 111,981 95,679 617,415 1,550,820
Other non-financial liabilities 1,225 1,052 297 982 2,796 848 850 12,707 9,325 30,082
Equity – – – – – – – – 90,249 90,249
Total liabilities and equity $ 396,158 $ 128,754 $ 59,530 $ 45,882 $ 46,726 $ 55,895 $ 112,831 $ 108,386 $ 716,989 $ 1,671,151
Off-balance sheet items
Financial guarantees $ 575 $ 1,696 $ 2,794 $ 2,078 $ 2,438 $ 1,200 $ 4,520 $ 663 $ 63 $ 16,027
Commitments to extend credit 3,214 9,807 15,776 9,660 15,265 53,484 153,137 14,503 3,170 278,016
Other credit-related commitments 1,835 1,154 1,635 1,421 1,534 225 940 6 84,333 93,083
Other commitments 108 12 18 18 18 72 181 332 526 1,285
Total off-balance sheet items $ 5,732 $ 12,669 $ 20,223 $ 13,177 $ 19,255 $ 54,981 $ 158,778 $ 15,504 $ 88,092 $ 388,411
(1) 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.
(4) Amounts previously presented were reclassified to reflect the contractual maturities of certain term deposits and related balances.
Capital management
We continue to manage our capital in accordance with our Capital Management Framework as described in our 2020 Annual
Report. In addition, we continue to monitor for new regulatory capital developments, including OSFI guidance relating to the
BCBS Basel III reforms and guidance issued in response to the COVID-19 pandemic, in order to ensure timely and accurate
compliance with these requirements as disclosed in the Capital management section in our 2020 Annual Report, as updated
below.
OSFI expects Canadian banks to meet the Basel III targets for CET1, Tier 1 and Total capital ratios. Under Basel III, banks
select from two main approaches, the Standardized Approach (SA) or the IRB approach, to calculate their minimum regulatory
capital required to support credit, market and operational risks.
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 risk-weighted
assets) of 1% consistent with the D-SIB requirement.
On March 13, 2020, OSFI announced a decrease in the Domestic Stability Buffer (DSB) from 2.25% to 1.0% of total RWA in
response to the disruption related to the COVID-19 pandemic and in support of a D-SIB’s ability to supply additional credit to
the economy. At that time, OSFI also committed to not increasing the DSB for a period of 18 months. On December 8, 2020,
OSFI reaffirmed the DSB at 1.0% of total RWA, consistent with its commitment. On December 14, 2020, OSFI reaffirmed its
expectation, as initially announced in March 2020, that all banks should not increase their dividend payments and should stop
any share buybacks, and clarified that certain exceptions for non-recurring special dividends may be acceptable, subject to
approval.
In Q2 2020, OSFI announced a series of regulatory adjustments and guidance, and continues to release regulations
implementing and/or clarifying certain aspects or requirements on a rolling basis, to further support the financial and
operational resilience of the banking sector in response to the ongoing COVID-19 pandemic. Such measures and guidance to
date include, but are not limited to:
• Regulatory adjustments to RWA, including temporary measures to reduce stressed VaR (SVaR) multipliers from three to
one and the permanent exclusion of Funding Valuation Adjustment hedges from market risk.
O On March 16, 2021, OSFI announced the unwinding of the temporary measures to reduce SVaR multipliers, requiring
banks to revert to pre-pandemic levels effective May 1, 2021.

• Modifications for increases in expected credit loss provisions on CET1 capital by applying a 70% after-tax exclusion rate
for growth in Stage 1 and Stage 2 allowances between Q1 2020 and the respective quarters of fiscal 2020. Thereafter, the
exclusion rate will be reduced to 50% and 25% in fiscal 2021 and 2022, respectively. These modifications are not
available for a financial institution’s IRB portfolio in any quarter in which the financial institution has a shortfall in
allowances.
• Leverage ratio exposure amounts are to exclude central bank reserves and sovereign-issued securities that qualify as
HQLA until December 31, 2021.
• Reduction in the current regulatory capital floor for financial institutions using the IRB approach from 75% to 70% of
RWA under the SA. The reduced floor factor will remain in place until the adoption of the Basel III reforms in Q1 2023.
• Clarification of the applicable capital and leverage ratio treatment of certain government relief programs. For further
details, refer to the Capital management section of our 2020 Annual Report, as updated below:
O On January 27, 2021, OSFI provided guidance on the associated capital treatment of the BDC Highly Affected Sectors
Credit Availability Program (HASCAP), noting that the risk-weighting should be in accordance with existing regulatory
guidelines. In addition, the full amount of the loan is required to be included in the leverage ratio calculation.
OSFI has assessed and will continue to assess the need for these relief measures. We have incorporated the effective
adjustments and guidance, as applicable, into our results and in our on-going capital planning activities.
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 and leverage requirements imposed by OSFI:
RBC Minimum including

OSFI regulatory target requirements for large banks under Basel III
Basel III capital and Domestic Capital Buffers,
capital and Minimum Minimum including leverage Stability D-SIB/G-SIB
leverage ratios Capital including D-SIB/G-SIB Capital Buffers ratios as at Buffer (3) surcharge and
Minimum
Buffers (1) Capital Surcharge (2) and D-SIB/G-SIB April 30, Domestic Stability
Buffers surcharge (2) 2021 Buffer
Common Equity Tier 1 4.5% 2.5% 7.0% 1.0% 8.0% 12.8% 1.0% 9.0%
Tier 1 capital 6.0% 2.5% 8.5% 1.0% 9.5% 14.1% 1.0% 10.5%
Total capital 8.0% 2.5% 10.5% 1.0% 11.5% 15.8% 1.0% 12.5%
Leverage ratio 3.0% n.a. 3.0% n.a. 3.0% 5.0% n.a. 3.0%
(1) The capital buffers include the capital conservation buffer and the countercyclical capital buffer as prescribed by OSFI.
(2) A capital surcharge, equal to the higher of our D-SIB surcharge and the BCBS’s G-SIB surcharge, is applicable to risk-weighted capital.
(3) Effective March 13, 2020, in accordance with the revised guidance noted above, OSFI lowered the level for the DSB to 1.0% of RWA from 2.25%. On December 8, 2020, OSFI
reaffirmed the DSB at 1.0% of total RWA.
n.a. not applicable
The following table provides details on our regulatory capital, RWA, and capital and leverage ratios. Our capital position
remains strong and our capital and leverage ratios remain well above OSFI regulatory targets.
As at
April 30 January 31 October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted) 2021 2021 2020
Capital (1)
CET1 capital $ 70,970 $ 69,555 $ 68,082
Tier 1 capital 78,139 76,733 74,005
Total capital 87,636 86,543 84,928
Risk-weighted assets (RWA) used in calculation of capital ratios (1)
Credit risk $ 452,857 $ 458,162 $ 448,821
Market risk 30,617 28,449 27,374
Operational risk 72,133 70,908 70,047
Total RWA $ 555,607 $ 557,519 $ 546,242
Capital ratios and Leverage ratio (1)
CET1 ratio 12.8% 12.5% 12.5%
Tier 1 capital ratio 14.1% 13.8% 13.5%
Total capital ratio 15.8% 15.5% 15.5%
Leverage ratio 5.0% 4.8% 4.8%
Leverage ratio exposure (billions) $ 1,576.3 $ 1,585.3 $ 1,552.9
(1) Capital, RWA, and capital ratios are calculated using OSFI’s CAR guideline and the Leverage ratio is calculated using OSFI’s LR guideline as updated in accordance with
the regulatory guidance issued by OSFI in response to the COVID-19 pandemic. Both the CAR guideline and LR guideline are based on the Basel III framework.
Q2 2021 vs. Q1 2021
Continuity of CET1 ratio (Basel III)
43 bps 3 bps (21) bps 4 bps 12.8%

12.5%
January 31, Internal capital Pension and post- RWA growth Other April 30,
2021 (1) generation (2) employment benefit (excluding FX) 2021 (1)
obligations
(1) Represents rounded figures.

(2) Internal capital generation of $2.4 billion which represents Net income available to shareholders, less common and preferred shares dividends and distributions on other
equity instruments.
Our CET1 ratio was 12.8%, up 30 bps from last quarter, mainly reflecting internal capital generation and the impact of higher
discount rates in determining our pension and other post-employment benefit obligations, partially offset by RWA growth
(excluding FX).
Our Tier 1 capital ratio of 14.1% was up 30 bps, reflecting the factors noted above under the CET1 ratio.
Our Total capital ratio of 15.8% was up 30 bps, reflecting the factors noted above under the Tier 1 capital ratio.
RWA decreased by $1.9 billion, primarily driven by the impact of foreign exchange translation and net credit upgrades.
These factors were partially offset by growth in wholesale lending, client-driven trading activity and residential mortgages.
The impact of foreign exchange translation on RWA is largely mitigated with economic hedges in our CET1 ratio.
Our Leverage ratio of 5.0% was up 20 bps, mainly reflecting internal capital generation and the impact of foreign
exchange translation, partially offset by lower regulatory modifications for central bank reserves and sovereign-issued
securities qualifying as HQLA.
Leverage exposures decreased by $9.0 billion, mainly due to the impact of foreign exchange translation, partially offset by
lower regulatory modifications for central bank reserves and sovereign-issued securities qualifying as HQLA.
In Q3 2021, we expect to reflect model parameter updates to increase the threshold for determining small business clients
subject to retail capital treatment, as permitted under regulatory capital requirements, and to recalibrate probability of
default parameters for the remaining borrowers in our wholesale portfolio. We expect the implementation of these parameter
updates to increase our CET1 ratio by approximately 70-80 bps in Q3 2021. This impact will be partially offset by the increase in
SVaR multipliers effective May 1, 2021, as discussed above, which is expected to decrease our CET1 ratio by approximately
10-15 bps. Both of these estimates are subject to change based on portfolio size or portfolio mix held.
Selected capital management activity

The following table provides our selected capital management activity:
April 30, 2021 April 30, 2021
Issuance or Number of Number of
(Millions of Canadian dollars, except number of shares) redemption date shares (000s) Amount shares (000s) Amount
Tier 1 capital
Common shares activity
Issued in connection with share-based
compensation plans (1) 324 $ 25 820 $ 61
Issuance of limited recourse capital notes
(LRCNs) Series 2 (2), (3), (4) November 2, 2020 – – 1,250 1,250
Tier 2 capital
Redemption of January 20, 2026
subordinated debentures (3), (4) January 20, 2021 $ – $ (1,500)
Issuance of January 28, 2033
subordinated debentures (3), (4) January 28, 2021 – 1,000
(1) Amounts include cash received for stock options exercised during the period and fair value adjustments to stock options.
(2) For the LRCNs, the number of shares represent the number of notes issued.
(3) For further details, refer to Note 9 of our Condensed Financial Statements.
(4) Non-Viability Contingent Capital (NVCC) instruments.
On February 27, 2020, we announced a normal course issuer bid (NCIB) to purchase up to 20 million of our common shares.
This NCIB expired on March 1, 2021, with 0.4 million common shares repurchased and cancelled at a cost of $39 million. In
accordance with OSFI’s announcement of its expectation that share buybacks should be stopped, we ceased the repurchase
of our common shares effective March 13, 2020.
As at April 30, 2021, we do not have an active NCIB.
We determine the amount and timing of purchases under an 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 2, 2020, we issued $1,250 million of LRCN Series 2, at a price per note of $1,000. The LRCN Series 2 bear
interest at a fixed rate of 4.0% per annum until February 24, 2026, and thereafter at a rate per annum, reset every fifth year,
equal to the 5-Year Government of Canada Yield plus 3.617% until maturity on February 24, 2081.
On January 20, 2021, we redeemed all $1,500 million of our outstanding 3.31% subordinated debentures due on January 20,
2026 for 100% of their principal amount plus interest accrued to, but excluding, the redemption date.
On January 28, 2021, we issued $1,000 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of
1.67% per annum until January 28, 2028, and at the three-month Canadian Dollar Offered Rate plus 0.55% thereafter until their
maturity on January 28, 2033.
On May 24, 2021, we redeemed all 29 million of our issued and outstanding Non-Cumulative 5-Year Rate Reset First
Preferred Shares Series BK at a price of $25 per share.
During the quarter, we also announced our intention to redeem all 30 million of our issued and outstanding Non-Cumulative 5-
Year Rate Reset First Preferred Shares Series BM at a price of $25 per share. The shares will be redeemed on August 24, 2021.
Selected share data (1)

Dividends
(Millions of Canadian dollars, Number of declared per
except number of shares and as otherwise noted) shares (000s) Amount share
Common shares issued 1,424,681 $ 17,689 $ 1.08

Treasury shares – common shares (2) 46 9
Common shares outstanding 1,424,727 $ 17,698
Stock options and awards
Outstanding 8,169
Exercisable 3,677
First preferred shares issued
Non-cumulative Series AZ (3), (4) 20,000 $ 500 $
0.23
Non-cumulative Series BB (3), (4) 20,000 500 0.23
Non-cumulative Series BD (3), (4) 24,000 600 0.20
Non-cumulative Series BF (3), (4) 12,000 300 0.19
Non-cumulative Series BH (4) 6,000 150 0.31
Non-cumulative Series BI (4) 6,000 150 0.31
Non-cumulative Series BJ (4) 6,000 150 0.33
Non-cumulative Series BK (3), (4) 29,000 725 0.34
Non-cumulative Series BM (3), (4) 30,000 750 0.34
Non-cumulative Series BO (3), (4) 14,000 350 0.30
Non-cumulative Series C-2 (5) 15 23 US$ 16.88
Other equity instruments issued
Limited recourse capital notes Series 1 (3), (4), (6), (7) 1,750 1,750 4.50%
Limited recourse capital notes Series 2 (3), (4), (6), (8) 1,250 1,250 4.00%
Preferred shares and other equity instruments issued 170,015 7,198
Treasury instruments – preferred shares and other
equity instruments (6) (7)
Preferred shares and other equity
instruments outstanding 170,009 $ 7,191
Dividends on common shares $ 1,540
Dividends on preferred shares and distributions on
other equity instruments (9) 76
(1) For further details about our capital management activity, refer to Note 9 of our Condensed Financial Statements.
(2) Positive amounts represent a short position in treasury shares.
(3) Dividend rate will reset every five years.
(4) NVCC instruments.
(5) Represents 615,400 depositary shares relating to preferred shares Series C-2. Each depositary share represents one-fortieth
interest in a share of Series C-2.
(6) For LRCNs, 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) at a price of $1,000 per Series BQ share. The Series BQ were issued to a consolidated trust to be held as trust
assets in connection with the LRCN structure.
(8) 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) at a price of $1,000 per Series BR share. The Series BR were issued to a consolidated trust to be held as
trust assets in connection with the LRCN structure.
(9) Excludes distributions to non-controlling interests.
As at May 21, 2021, the number of outstanding common shares was 1,425,096,393, net of treasury shares held of (270,601), and
the number of stock options and awards was 8,027,735.
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
April 30, 2021, which were the preferred shares Series AZ, BB, BD, BF, BH, BI, BJ, BK, BM, BO, LRCN Series 1, LRCN Series 2 and
subordinated debentures due on September 29, 2026, January 27, 2026, July 25, 2029, December 23, 2029, June 30, 2030 and
January 28, 2033 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, 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 3,922 million common shares, in
aggregate, which would represent a dilution impact of 73.36% based on the number of common shares outstanding as at
April 30, 2021.
Total loss absorbing capacity (TLAC)

On April 18, 2018, OSFI released its final guideline on Total Loss Absorbing Capacity (TLAC), which applies to Canadian D-SIBs
as part of the Federal Government’s Bail-in regime. The guideline is consistent with the TLAC standard released on
November 9, 2015 by the Financial Stability Board for institutions designated as G-SIBs, but tailored to the Canadian context.
The TLAC requirement is intended to address the sufficiency of a systemically important bank’s loss 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
other 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 guideline.
TLAC requirements established two minimum standards, which are required to be met effective November 1, 2021: the
risk-based TLAC ratio, which builds on the risk-based capital ratios described in the Capital Adequacy Requirements (CAR)
guideline, and the TLAC leverage ratio, which builds on the leverage ratio described in OSFI’s Leverage Requirements
guideline. On April 16, 2020, OSFI notified systemically important banks of the requirement to maintain a minimum TLAC ratio
of 22.5%, which includes the DSB currently set at 1.0%. OSFI continues to require a TLAC leverage ratio of 6.75%. We began
issuing bail-in eligible debt in the fourth quarter of 2018 and this has contributed to increasing our TLAC ratio. We expect our
TLAC ratio to increase through normal course refinancing of maturing unsecured term debt.
Regulatory developments
Basel III reforms
On March 11, 2021, OSFI launched industry consultations on the adoption of the BCBS Basel III reforms into its existing Capital
Adequacy Requirements, Leverage Requirements and Liquidity Adequacy Requirements Guidelines and related Pillar 3
disclosure requirements. While adopting the international standards, OSFI is also tailoring requirements for the Canadian
market. We expect to continue to engage with OSFI on the domestic implementation of the Basel III reforms and are taking
appropriate steps to ensure required adoption readiness based on guidance provided to date. The revised guidelines noted
above will be effective November 1, 2022 for Canadian D-SIBs.
Accounting and control matters
Summary of accounting policies and estimates
Our Condensed Financial Statements are presented in compliance with International Accounting Standard (IAS) 34 Interim
Financial Reporting. Our significant accounting policies are described in Note 2 of our audited 2020 Annual Consolidated
Financial Statements and our Q2 2021 Condensed Financial Statements.
Application of critical accounting judgments, estimates and assumptions

The COVID-19 pandemic has continued to evolve and the economic environment in which we operate could be subject to
sustained volatility, which could continue to impact our financial results, as the duration of the COVID-19 pandemic, the
effectiveness of steps undertaken by governments and central banks in response to the COVID-19 pandemic and vaccine
efficacy against new variants of COVID-19, supply and availability remains uncertain. Certain critical judgments are particularly
complex in the current uncertain environment and significantly different amounts could be reported under different conditions
or assumptions. We continue to monitor and assess the impacts of the COVID-19 pandemic on our critical accounting
judgments, estimates and assumptions, which are described in Note 2 of our Annual Consolidated Financial Statements.
Changes in accounting policies and disclosures
Changes in accounting policies

During the first quarter of 2021, we adopted the revised Conceptual Framework. The amendments had no material impact on
our Consolidated Financial Statements.
During the first quarter of 2021, we early adopted the Phase 2 amendments to IFRS 9 Financial Instruments, IAS 39 Financial
Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance contracts, and IFRS 16
Leases (Amendments). Refer to Note 2 of our Condensed Financial Statements for details of these changes.
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
2020 Annual Consolidated Financial Statements.
Controls and procedures
Disclosure controls and procedures

As of April 30, 2021, 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 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 April 30, 2021.
Internal control over financial reporting

No changes were made in our internal control over financial reporting during the quarter ended April 30, 2021 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 26 of our audited 2020 Annual Consolidated Financial Statements.
EDTF recommendations index
We aim to present transparent, high-quality risk disclosures by providing disclosures in our 2020 Annual Report, Q2 2021
Report to Shareholders (RTS), Supplementary Financial Information package (SFI), and Pillar 3 Report, in accordance with
recommendations from the Financial Stability Board’s (FSB) 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 Q2 2021 Report to Shareholders.
The following index summarizes our disclosure by EDTF recommendation:
Location of disclosure
RTS Annual SFI
Type of Risk Recommendation Disclosure page Report page page
1 Table of contents for EDTF risk disclosure 51 117 1
2 Define risk terminology and measures 56-61, –
General 222-223
3 Top and emerging risks 53-55 –
4 New regulatory ratios 45-47 96-101 –
5 Risk management organization 56-61 –
Risk governance, 6 Risk culture 57-61 –
risk management 7 Risk in the context of our business activities 104 –
and business model 8 Stress testing 58-59, 73 –
9 Minimum Basel III capital ratios and Domestic 46 97-101 –
systemically important bank surcharge
10 Composition of capital and reconciliation of the – *
accounting balance sheet to the regulatory
balance sheet
11 Flow statement of the movements in regulatory – 20
Capital adequacy capital
and risk-weighted 12 Capital strategic planning 96-101 –
assets (RWA) 13 RWA by business segments – 21
14 Analysis of capital requirement, and related 62-65 *
measurement model information
15 RWA credit risk and related risk measurements – *
16 Movement of risk-weighted assets by risk type – 21
17 Basel back-testing 58, 62 32
Liquidity 18 Quantitative and qualitative analysis of our 36-37 80-81, –

liquidity reserve 85-86
19 Encumbered and unencumbered assets by balance 37, 40 81, 84 –
sheet category, and contractual obligations for
rating downgrades
20 Maturity analysis of consolidated total assets, 44-45 86-87 –
Funding liabilities and off-balance sheet commitments
analyzed by remaining contractual maturity at
the balance sheet date
21 Sources of funding and funding strategy 38-39 81-83 –
22 Relationship between the market risk measures for 34-35 77-78 –
trading and non-trading portfolios and the
balance sheet
Market risk 23 Decomposition of market risk factors 31-33 73-76 –
24 Market risk validation and back-testing 73 –
25 Primary risk management techniques beyond 73-76 –
reported risk measures and parameters
26 Bank’s credit risk profile 24-30 61-72, 22-32, *
165-172
Quantitative summary of aggregate credit risk 70-76 111-116 *
exposures that reconciles to the balance sheet
27 Policies for identifying impaired loans 63-65, –
106-107,
136-139
Credit risk 28 Reconciliation of the opening and closing balances – 24, 29
of impaired loans and impairment allowances
during the year
29 Quantification of gross notional exposure for OTC 66 33
derivatives or exchange-traded derivatives
30 Credit risk mitigation, including collateral held for 64-65 *
all sources of credit risk
31 Other risk types 89-96 –
Other 32 Publicly known risk events 92-93, –
210-211
* These disclosure requirements are satisfied or partially satisfied by disclosures provided in our Pillar 3 Report for the quarter ended April 30, 2021 and for the year ended
October 31, 2020.
Interim Condensed Consolidated Financial Statements (unaudited)
Interim Condensed Consolidated Balance Sheets (unaudited)
As at
April 30 October 31
Assets
Cash and due from banks $ 114,307 $ 118,888
Interest-bearing deposits with banks 63,438 39,013
Securities
Trading 125,733 136,071
Investment, net of applicable allowance (Note 4) 129,419 139,743
255,152 275,814
Assets purchased under reverse repurchase agreements and securities borrowed 308,031 313,015
Loans (Note 5)
Retail 476,230 457,976
Wholesale 202,427 208,655
678,657 666,631
Allowance for loan losses (Note 5) (5,146) (5,639)
673,511 660,992
Segregated fund net assets 2,338 1,922

Other
Customers’ liability under acceptances 18,817 18,507
Derivatives 97,236 113,488
Premises and equipment 7,601 7,934
Goodwill 10,816 11,302
Other intangibles 4,497 4,752
Other assets 59,572 58,921
198,539 214,904
Total assets $ 1,615,316 $ 1,624,548
Deposits (Note 6)
Personal $ 348,114 $ 343,052
Business and government 644,283 624,311
Bank 40,926 44,522
1,033,323 1,011,885
Segregated fund net liabilities 2,338 1,922

Other
Acceptances 18,942 18,618
Obligations related to securities sold short 31,817 29,285
Obligations related to assets sold under repurchase agreements and securities loaned 257,049 274,231
Derivatives 92,402 109,927
Insurance claims and policy benefit liabilities 12,109 12,215
Other liabilities 65,500 69,831
477,819 514,107
Subordinated debentures (Note 9) 9,014 9,867

Total liabilities 1,522,494 1,537,781
Equity attributable to shareholders
Preferred shares and other equity instruments (Note 9) 7,191 5,945
Common shares (Note 9) 17,698 17,499
Retained earnings 66,163 59,806
Other components of equity 1,683 3,414
92,735 86,664
Non-controlling interests 87 103
Total equity 92,822 86,767
Total liabilities and equity $ 1,615,316 $ 1,624,548
The accompanying notes are an integral part of these Interim Condensed Consolidated Financial Statements.
Interim Condensed Consolidated Statements of Income (unaudited)
April 30 April 30 April 30 April 30
(Millions of Canadian dollars, except per share amounts) 2021 2020 2021 2020
Interest and dividend income (Note 3)
Loans $ 5,296 $ 5,937 $ 10,803 $ 12,295
Securities 1,217 1,730 2,493 3,472
Assets purchased under reverse repurchase agreements
and securities borrowed 322 1,492 711 3,501
Deposits and other 63 67 127 196
6,898 9,226 14,134 19,464
Interest expense (Note 3)
Deposits and other 1,392 2,337 2,900 5,357
Other liabilities 609 1,343 1,250 3,257
Subordinated debentures 43 81 95 164
2,044 3,761 4,245 8,778
Net interest income 4,854 5,465 9,889 10,686
Non-interest income
Insurance premiums, investment and fee income 536 197 2,345 2,191
Trading revenue 377 (66) 901 392
Investment management and custodial fees 1,711 1,500 3,414 3,035
Mutual fund revenue 1,014 890 2,014 1,836
Securities brokerage commissions 431 460 832 778
Service charges 460 468 918 956
Underwriting and other advisory fees 747 544 1,337 1,171
Foreign exchange revenue, other than trading 292 280 581 533
Card service revenue 281 212 553 499
Credit fees 368 304 700 664
Net gains on investment securities 82 45 117 56
Share of profit in joint ventures and associates 24 15 49 37
Other 441 19 911 335
6,764 4,868 14,672 12,483
Total revenue 11,618 10,333 24,561 23,169
Provision for credit losses (Notes 4 and 5) (96) 2,830 14 3,249
Insurance policyholder benefits, claims and acquisition expense 149 (177) 1,555 1,437
Non-interest expense
Human resources (Note 7) 4,152 3,573 8,440 7,633
Equipment 487 468 980 930
Occupancy 400 417 804 814
Communications 212 252 425 502
Professional fees 314 324 605 608
Amortization of other intangibles 318 315 637 618
Other 496 593 1,030 1,215
6,379 5,942 12,921 12,320
Income before income taxes 5,186 1,738 10,071 6,163
Income taxes 1,171 257 2,209 1,173
Net income $ 4,015 $ 1,481 $ 7,862 $ 4,990
Net income attributable to:

Shareholders $ 4,014 $ 1,484 $ 7,859 $ 4,988
Non-controlling interests 1 (3) 3 2
$ 4,015 $ 1,481 $ 7,862 $ 4,990
Basic earnings per share (in dollars) (Note 10) $ 2.76 $ 1.00 $ 5.42 $ 3.41
Diluted earnings per share (in dollars) (Note 10) 2.76 1.00 5.42 3.40
Dividends per common share (in dollars) 1.08 1.08 2.16 2.13
Interim Condensed Consolidated Statements of Comprehensive Income (unaudited)
(Millions of Canadian dollars) 2021 2020 2021 2020
Net income $ 4,015 $ 1,481 $ 7,862 $ 4,990
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 (79) (989) 290 (806)
Provision for credit losses recognized in income 15 24 13 23
Reclassification of net losses (gains) on debt securities and loans at fair value
through other comprehensive income to income (66) (64) (102) (73)
(130) (1,029) 201 (856)
Foreign currency translation adjustments
Unrealized foreign currency translation gains (losses) (2,466) 2,937 (4,634) 3,348
Net foreign currency translation gains (losses) from hedging activities 1,035 (1,126) 1,827 (1,304)
Reclassification of losses (gains) on foreign currency translation to income (7) – (7) –
(1,438) 1,811 (2,814) 2,044
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges 669 (1,103) 796 (1,277)
Reclassification of losses (gains) on derivatives designated as cash flow
hedges to income 33 108 78 100
702 (995) 874 (1,177)
Items that will not be reclassified subsequently to income:
Remeasurements of employee benefit plans (Note 7) 938 457 1,719 (12)
Net fair value change due to credit risk on financial liabilities designated at fair value
through profit or loss 88 662 (36) 553
Net gains (losses) on equity securities designated at fair value through other
comprehensive income (5) 20 (1) 21
1,021 1,139 1,682 562
Total other comprehensive income (loss), net of taxes 155 926 (57) 573
Total comprehensive income (loss) $ 4,170 $ 2,407 $ 7,805 $ 5,563
Total comprehensive income attributable to:
Shareholders $ 4,173 $ 2,404 $ 7,810 $ 5,555
Non-controlling interests (3) 3 (5) 8
$ 4,170 $ 2,407 $ 7,805 $ 5,563
The income tax effect on the Interim Condensed Consolidated Statements of Comprehensive Income is shown in the table
below.
Income taxes on other comprehensive income
Net unrealized gains (losses) on debt securities and loans at fair value through other
comprehensive income $ (49) $ (147) $ (2) $ (92)
Provision for credit losses recognized in income 6 3 6 3
Reclassification of net losses (gains) on debt securities and loans
at fair value through other comprehensive income to income (10) (23) (23) (26)
Unrealized foreign currency translation gains (losses) – 1 2 1
Net foreign currency translation gains (losses) from hedging activities 354 (384) 620 (446)
Net gains (losses) on derivatives designated as cash flow hedges 238 (394) 283 (457)
Reclassification of losses (gains) on derivatives designated as cash flow
hedges to income 12 39 28 36
Remeasurements of employee benefit plans 331 165 608 (2)
Net fair value change due to credit risk on financial liabilities designated at fair value
through profit or loss 31 237 (13) 198
Net gains (losses) on equity securities designated at fair value through other
comprehensive income (1) 7 (1) 5
Total income tax expenses (recoveries) $ 912 $ (496) $ 1,508 $ (780)
Interim Condensed Consolidated Statements of Changes in Equity (unaudited)
For the three months ended April 30, 2021

Other components of equity
Treasury –
Preferred preferred
shares and shares and Treasury – FVOCI Foreign Total other Equity
other equity Common other equity common Retained securities currency Cash flow components attributable to Non-controlling Total
(Millions of Canadian dollars) instruments shares instruments shares earnings and loans translation hedges of equity shareholders interests equity
Balance at beginning of period $ 7,198 $ 17,664 $ 17 $ (26) $ 62,751 $ 192 $ 3,260 $ (907) $ 2,545 $ 90,149 $ 100 $ 90,249
Changes in equity
Issues of share capital and other equity
instruments – 25 – – – – – – – 25 – 25
Common shares purchased for cancellation – – – – – – – – – – – –
Redemption of preferred shares and other
equity instruments – – – – – – – – – – – –
Sales of treasury shares and other equity
instruments – – 153 1,039 – – – – – 1,192 – 1,192
Purchases of treasury shares and other
equity instruments – – (177) (1,004) – – – – – (1,181) – (1,181)
Share-based compensation awards – – – – (2) – – – – (2) – (2)
Dividends on common shares – – – – (1,540) – – – – (1,540) – (1,540)
Dividends on preferred shares and
distributions on other equity instruments – – – – (76) – – – – (76) (1) (77)
Other – – – – (5) – – – – (5) (9) (14)
Net income – – – – 4,014 – – – – 4,014 1 4,015
Total other comprehensive income (loss),
net of taxes – – – – 1,021 (130) (1,434) 702 (862) 159 (4) 155
Balance at end of period $ 7,198 $ 17,689 $ (7) $ 9 $ 66,163 $ 62 $ 1,826 $ (205) $ 1,683 $ 92,735 $ 87 $ 92,822

Treasury –
Preferred preferred
Balance at beginning of period $ 5,698 $ 17,577 $ 1 $ (72) $ 56,279 $ 206 $ 4,454 $ (188) $ 4,472 $ 83,955 $ 106 $ 84,061
Changes in equity
instruments – 26 – – – – – – – 26 – 26
Common shares purchased for cancellation – (11) – – (76) – – – – (87) – (87)
instruments – – 30 1,605 – – – – – 1,635 – 1,635
Royal Bank of Canada

Other – – – – 244 – – – – 244 (1) 243
Net income – – – – 1,484 – – – – 1,484 (3) 1,481
net of taxes – – – – 1,139 (1,029) 1,805 (995) (219) 920 6 926
Second Quarter 2021
Balance at end of period $ 5,698 $ 17,592 $ 1 $ (75) $ 57,466 $ (823) $ 6,259 $ (1,183) $ 4,253 $ 84,935 $ 105 $ 85,040
55
56
For the six months ended April 30, 2021

Treasury –
Preferred preferred
Balance at beginning of period $ 5,948 $ 17,628 $ (3) $ (129) $ 59,806 $ (139) $ 4,632 $ (1,079) $ 3,414 $ 86,664 $ 103 $ 86,767
Royal Bank of Canada
Changes in equity
instruments 1,250 61 – – (3) – – – – 1,308 – 1,308
Common shares purchased for cancellation – – – – – – – – – – – –
instruments – – 199 1,942 – – – – – 2,141 – 2,141
Second Quarter 2021

Other – – – – 36 – – – – 36 (9) 27
Net income – – – – 7,859 – – – – 7,859 3 7,862
net of taxes – – – – 1,682 201 (2,806) 874 (1,731) (49) (8) (57)
Balance at end of period $ 7,198 $ 17,689 $ (7) $ 9 $ 66,163 $ 62 $ 1,826 $ (205) $ 1,683 $ 92,735 $ 87 $ 92,822

Treasury –
Preferred preferred
Adjusted balance at beginning of period $ 5,706 $ 17,645 $ 1 $ (58) $ 55,874 $ 33 $ 4,221 $ (6) $ 4,248 $ 83,416 $ 102 $ 83,518
Changes in equity
instruments – 44 – – – – – – – 44 – 44
Common shares purchased for cancellation – (97) – – (717) – – – – (814) – (814)
equity instruments (8) – – – – – – – – (8) – (8)
instruments – – 63 3,171 – – – – – 3,234 – 3,234
Share-based compensation awards – – – – – – – – – – – –
Other – – – – (78) – – – – (78) (1) (79)
Net income – – – – 4,988 – – – – 4,988 2 4,990
net of taxes – – – – 562 (856) 2,038 (1,177) 5 567 6 573
Balance at end of period $ 5,698 $ 17,592 $ 1 $ (75) $ 57,466 $ (823) $ 6,259 $ (1,183) $ 4,253 $ 84,935 $ 105 $ 85,040
Interim Condensed Consolidated Statements of Cash Flows (unaudited)
Cash flows from operating activities
Net income $ 4,015 $ 1,481 $ 7,862 $ 4,990
Adjustments for non-cash items and others
Provision for credit losses (96) 2,830 14 3,249
Depreciation 318 326 632 659
Deferred income taxes 454 (428) 786 (414)
Amortization and impairment of other intangibles 319 316 639 627
Net changes in investments in joint ventures and associates (24) (13) (48) (35)
Losses (Gains) on investment securities (82) (86) (123) (98)
Losses (Gains) on disposition of businesses (26) – (26) 8
Adjustments for net changes in operating assets and liabilities
Insurance claims and policy benefit liabilities (645) (876) (106) (18)
Net change in accrued interest receivable and payable (138) (231) (359) (329)
Current income taxes 394 (699) 673 (954)
Derivative assets 13,681 (46,825) 16,252 (39,247)
Derivative liabilities (13,669) 50,099 (17,525) 46,167
Trading securities 22,295 8,788 10,343 10,292
Loans, net of securitizations (605) (46,092) (11,980) (57,727)
Assets purchased under reverse repurchase agreements and
securities borrowed 3,002 (1,347) 4,984 (18,573)
Obligations related to assets sold under repurchase agreements and
securities loaned (17,858) 24,214 (17,182) 52,019
Obligations related to securities sold short (752) 4,723 2,532 5,278
Deposits, net of securitizations (21,296) 107,220 21,368 124,456
Brokers and dealers receivable and payable 440 2,997 (698) 2,353
Other 3,718 (14,436) 6,220 (20,798)
Net cash from (used in) operating activities (6,555) 91,961 24,258 111,905
Cash flows from investing activities
Change in interest-bearing deposits with banks (29,700) (17,068) (24,418) (10,052)
Proceeds from sales and maturities of investment securities 33,637 35,777 63,310 52,581
Purchases of investment securities (28,584) (43,533) (61,765) (78,733)
Net acquisitions of premises and equipment and other intangibles (496) (758) (925) (1,503)
Proceeds from dispositions 78 – 78 –
Net cash from (used in) investing activities (25,065) (25,582) (23,720) (37,707)
Cash flows from financing activities
Issuance of subordinated debentures – – 1,000 1,500
Repayment of subordinated debentures – – (1,500) (2,000)
Issue of common shares, net of issuance costs 22 23 53 39
Common shares purchased for cancellation – (87) – (814)
Issue of preferred shares and other equity instruments, net of
issuance costs – – 1,247 –
Redemption of preferred shares and other equity instruments – – – (8)
Sales of treasury shares and other equity instruments 1,192 1,635 2,141 3,234
Purchases of treasury shares and other equity instruments (1,181) (1,638) (2,007) (3,251)
Dividends paid on shares and distributions paid on other
equity instruments (1,597) (1,561) (3,210) (3,128)
Dividends/distributions paid to non-controlling interests (1) (3) (2) (4)
Change in short-term borrowings of subsidiaries (1) (1,248) (8) 1,531
Repayment of lease liabilities (152) (155) (298) (296)
Net cash from (used in) financing activities (1,718) (3,034) (2,584) (3,197)
Effect of exchange rate changes on cash and due from banks (1,943) 1,312 (2,535) 1,466
Net change in cash and due from banks (35,281) 64,657 (4,581) 72,467
Cash and due from banks at beginning of period (1) 149,588 34,120 118,888 26,310
Cash and due from banks at end of period (1) $ 114,307 $ 98,777 $ 114,307 $ 98,777
Cash flows from operating activities include:
Amount of interest paid $ 2,161 $ 3,811 $ 4,295 $ 8,568
Amount of interest received 6,692 8,903 13,471 18,654
Amount of dividends received 696 646 1,351 1,304
Amount of income taxes paid 1,248 842 2,274 1,717
(1) We are required to maintain balances with central banks and other regulatory authorities. The total balances were $2.2 billion as at April 30, 2021 (January 31, 2021 – $2.5 billion;
October 31, 2020 – $2.5 billion; April 30, 2020 – $2.6 billion; October 31, 2019 – $2.6 billion).
Note 1 General information
Our unaudited Interim Condensed Consolidated Financial Statements (Condensed Financial Statements) are presented in
compliance with International Accounting Standard (IAS) 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 2020 Annual Consolidated Financial Statements and the accompanying notes included on pages
127 to 220 in our 2020 Annual Report. Tabular information is stated in millions of Canadian dollars, except per share amounts
and percentages. On May 26, 2021, the Board of Directors authorized the Condensed Financial Statements for issue.
Note 2 Summary of significant accounting policies, estimates and judgments
Except as indicated below, the Condensed Financial Statements have been prepared using the same accounting policies and
methods used in preparation of our audited 2020 Annual Consolidated Financial Statements. Our significant 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 2020 Annual Consolidated Financial Statements.
Changes in accounting policies

Conceptual Framework for Financial Reporting (Conceptual Framework)
During the first quarter of 2021, we adopted the revised Conceptual Framework, which replaces the previous version of the
Conceptual Framework issued in 2010. The Conceptual Framework is not a standard, and does not override the concepts or
requirements in any standard. It may be used to develop consistent accounting policies where there is no applicable standard
in place. The revisions include a few new concepts, updated definitions and recognition criteria for assets and liabilities and
clarifies some important concepts. These amendments had no material impact on our Consolidated Financial Statements.
Interest Rate Benchmark Reform

During the first quarter of 2021, we early adopted the Phase 2 amendments to IFRS 9 Financial Instruments, IAS 39 Financial
Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance contracts, and IFRS 16
Leases (Amendments). The Amendments provide two key reliefs which are applicable to changes undertaken as a direct
consequence of the interest rate benchmark reform (the Reform) and where the transition from interbank offered rates
(IBORs) to alternative benchmark rates are transacted on an economically equivalent basis:
• For modifications of financial instruments carried at amortized cost resulting from the Reform which are transacted on
an economically equivalent basis, the Amendments allow the benchmark interest rate change to be reflected
prospectively in the effective interest rate of the instrument rather than as an immediate gain or loss.
• If qualifying criteria are met, hedging relationships that are directly impacted by the Reform would be able to continue
hedge accounting upon transition to alternative benchmark interest rates.
Hedge Accounting
Our hedge accounting policies are described in Note 2 and Note 8 of our 2020 Annual Report. We apply hedge accounting when
the hedge is expected to be highly effective in achieving offsetting changes in fair value or variable cash flows attributable to
the hedged risk, both at inception and throughout the hedge term. Where hedge accounting can be applied, a hedge
relationship is designated and documented at inception to detail the particular risk management objective and strategy for
undertaking the hedge transaction. For changes related to the Reform, hedge documentation will be amended for alternative
benchmark interest rate risk, including consequential changes to the description of the hedging instrument(s) and the hedged
item(s), and the method for assessing hedge effectiveness without terminating the hedge relationship where the scoping
requirements are met.
Fair value hedges

Hedge accounting is applicable when the benchmark interest rate designated as the hedged risk can be separately identified
as a component of the interest rate risk inherent in the fixed-rate instrument. Generally, this requirement is met when the
benchmark interest rate impacting changes in fair value of the instrument is widely accepted and used. In order for alternative
benchmark rates to qualify for fair value hedge accounting, the separately identifiable requirement must be met within 24
months of the first designation of that rate in a hedging relationship. If, subsequently, we reasonably expect that the
alternative benchmark interest rate will not be separately identifiable within that timeframe, we will discontinue hedge
accounting prospectively.
Cash flow hedges

We apply hedge accounting to groups of similar assets or similar liabilities when individual items in the group share similar
risk characteristics, and we treat these items and related derivatives as a single hedging relationship. Where hedged cash
flows of some items in the group are changed to reference an alternative benchmark interest rate before other items in the
group are changed, the individual hedged items within the group are allocated to a subgroup based on the benchmark interest
rate being hedged. Each subgroup would be assessed separately to determine whether it meets the eligibility requirements. If
a subgroup fails the eligibility requirements, we would discontinue hedge accounting prospectively for the hedging
relationship in its entirety.
Progress in and risks arising from the transition to alternative benchmark interest rates
The transition from IBORs to alternative benchmark interest rates will impact financial instruments referencing IBOR rates for
terms that extend beyond December 31, 2021.
On March 5, 2021 the Financial Conduct Authority (FCA), the regulator of the ICE Benchmark Administration (IBA) which
administers LIBOR, made an announcement regarding the permanent cessation or loss of representativeness of all 35 LIBOR
settings currently published by the IBA. Details related to certain settings to which we are exposed are noted below.
• Publication of the 1-week and 2-month U.S. dollar LIBOR settings will cease immediately after December 31, 2021.
Publication of the overnight and 12-month U.S. dollar LIBOR settings will cease immediately after June 30, 2023, while
the 1-month, 3-month and 6-month U.S. dollar LIBOR settings will no longer be representative of the underlying market
and economic reality they are intended to measure after June 30, 2023. The FCA may consult on requiring the IBA to
publish 1-month, 3-month and 6- month USD LIBOR settings after the end of June 2023 on a non-representative
“synthetic” basis.
• Publication of the overnight, 1-week, 2-month and 12-month sterling LIBOR settings will cease immediately after
December 31, 2021, while the 1-month, 3-month and 6-month sterling LIBOR settings will no longer be representative of
the underlying market and economic reality they are intended to measure after December 31, 2021. The FCA will consult
on requiring the IBA to publish the 1-month, 3-month and 6-month sterling LIBOR settings after the end of 2021, for an
unspecified period of time, on a non-representative “synthetic” basis.
The FCA announcement triggered fallback provisions related to our LIBOR linked products, including certain loans, bonds, and
derivatives, and defined the dates of their transition to alternative benchmark rates. The fixed spreads to be used in the
transition to the relevant alternative benchmark rate for each LIBOR setting were also defined as a result of the
announcement.
The details regarding our transition program related to the Reform are described in Note 2 of our 2020 Annual Report.
Transition activities are focused on two broad streams of work: (i) developing new alternative risk-free rate linked products,
and (ii) converting existing LIBOR based contracts to alternative risk-free rates. Notable transition activities include:
• Our continued incorporation of contractual provisions in new IBOR-based products which provides a means to
determine new alternative benchmark rates upon the cessation of IBORs (fallback language).
• The development of new products for clients, including interest-rate derivatives and loans referencing the relevant
alternative benchmark interest rates.
Our program timelines are ultimately dependent on broader market acceptance of products that reference the new
alternative risk-free rates and our clients’ readiness and ability to adopt the replacement products. Significant matters that
we continue to evaluate include client product offerings, short and long term funding strategies, and our hedging programs.
We are following the recommended target dates for cessation of LIBOR-based products provided by our regulators.
Financial instruments that have yet to transition to alternative benchmark interest rates
On March 5, 2021, the final cessation date of certain USD LIBOR settings was revised from December 31, 2021 to June 30, 2023.
As a result of the change in cessation date, our significant exposures to USD LIBOR as at November 1, 2020 for non-derivative
financial assets, non-derivative financial liabilities, derivative notional and undrawn balances of loan commitments subject to
the Reform, that have yet to transition and are maturing after June 30, 2023, were $57,432 million, $941 million, $3,368,307
million and $82,054 million, respectively.
The tables below show our significant exposures to financial instruments referencing benchmark interest rates subject to the
Reform that have yet to transition to alternative benchmark interest rates and are maturing after December 31, 2021 as at
November 1, 2020, which represent our opening balances for the annual period ending on October 31, 2021. Changes in our
exposures during the quarter did not result in significant changes to the risks arising from transition since November 1, 2020. In
the normal course of business, our derivative notional amounts may fluctuate with minimal impact to our IBOR conversion
plans.
As at November 1, 2020
Non-derivative Non-derivative Derivative
(Millions of Canadian dollars) financial assets (1) financial liabilities (2) notional (3)
USD LIBOR $ 79,123 $ 5,135 $ 4,894,150

GBP LIBOR 7,518 1,227 1,773,893
Other IBOR currencies 324 2,456 263,299
$ 86,965 $ 8,818 $ 6,931,342
Cross currency swaps
USD LIBOR – GBP LIBOR n.a. n.a. $ 384,263
Other combinations n.a. n.a. 52,875
n.a. n.a. $ 437,138
$ 86,965 $ 8,818 $ 7,368,480
(1) Non-derivative assets represent the drawn outstanding balance of Loans and the fair value of Securities.
(2) Non-derivative liabilities represent Deposits.
(3) The notional amount of derivative instruments excludes cross currency swaps with multiple LIBOR legs, which are presented separately in the Cross currency swaps section of
this table.
n.a. not applicable
Note 2 Summary of significant accounting policies, estimates and judgments (continued)
The following table presents the undrawn balances of loan commitments referencing benchmark interest rates subject to the
Reform.
(Millions of Canadian dollars) As at November 1, 2020
Authorized and committed undrawn commitments

USD LIBOR $ 136,725
GBP LIBOR 7,533
Other IBOR currencies 1,370
$ 145,628
We continue to manage significant exposures to benchmarks that have no announced plans for cessation or further reform,
including the Canadian Dollar Offered Rate (CDOR), EURO Interbank Offered Rate (EURIBOR) and Australian Bank Bill Swap
Rate (BBSW), which are excluded from the tables above.
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).
Embedded derivatives are presented on a combined basis with the host contracts. Refer to Note 2 and Note 3 of our audited
2020 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.
Carrying value and fair value Carrying value Fair value
Financial Financial Financial Financial Financial Financial
instruments instruments instruments instruments instruments instruments
classified as designated as classified as designated as measured at measured at Total carrying
(Millions of Canadian dollars) FVTPL FVTPL FVOCI FVOCI amortized cost amortized cost amount Total fair value
Financial assets
Interest-bearing deposits
with banks $ – $ 41,380 $ – $ – $ 22,058 $ 22,058 $ 63,438 $ 63,438
Securities
Trading 116,265 9,468 – – – – 125,733 125,733
Investment, net of applicable
allowance – – 62,619 505 66,295 66,612 129,419 129,736
116,265 9,468 62,619 505 66,295 66,612 255,152 255,469
securities borrowed 265,880 – – – 42,151 42,151 308,031 308,031
Loans, net of applicable allowance
Retail – 243 259 – 472,783 478,217 473,285 478,719
Wholesale 6,576 2,027 817 – 190,806 192,567 200,226 201,987
6,576 2,270 1,076 – 663,589 670,784 673,511 680,706
Other
Derivatives 97,236 – – – – – 97,236 97,236
Other assets (1) 4,048 – – – 55,563 55,528 59,611 59,576
Financial liabilities
Deposits
Personal $ 270 $ 17,305 $ 330,539 $ 330,101 $ 348,114 $ 347,676
Business and government (2) 590 122,791 520,902 522,490 644,283 645,871
Bank (3) – 14,844 26,082 26,079 40,926 40,923
860 154,940 877,523 878,670 1,033,323 1,034,470
Other
sold short 31,817 – – – 31,817 31,817
and securities loaned – 235,509 21,540 21,540 257,049 257,049
Derivatives 92,402 – – – 92,402 92,402
Other liabilities (4) (11) 136 62,841 62,844 62,966 62,969
Subordinated debentures – – 9,014 9,279 9,014 9,279
As at October 31, 2020

Carrying value and fair value Carrying value Fair value
Financial Financial Financial Financial Financial Financial
instruments instruments instruments instruments instruments instruments
classified as designated as classified as designated as measured at measured at Total carrying
(Millions of Canadian dollars) FVTPL FVTPL FVOCI FVOCI amortized cost amortized cost amount Total fair value
Financial assets
Interest-bearing deposits
with banks $ – $ 21,603 $ – $ – $ 17,410 $ 17,410 $ 39,013 $ 39,013
Securities
Trading 126,027 10,044 – – – – 136,071 136,071
Investment, net of applicable
allowance – – 81,395 525 57,823 58,627 139,743 140,547
126,027 10,044 81,395 525 57,823 58,627 275,814 276,618
securities borrowed 264,394 – – – 48,621 48,621 313,015 313,015
Loans, net of applicable allowance
Retail – 253 260 – 454,429 462,884 454,942 463,397
Wholesale 6,197 2,363 744 – 196,746 198,753 206,050 208,057
6,197 2,616 1,004 – 651,175 661,637 660,992 671,454
Other
Derivatives 113,488 – – – – – 113,488 113,488
Other assets (1) 3,414 – – – 57,065 57,065 60,479 60,479
Deposits
Personal $ 104 $ 17,096 $ 325,852 $ 324,804 $ 343,052 $ 342,004
Business and government (2) 389 107,466 516,456 518,501 624,311 626,356
Bank (3) – 18,015 26,507 26,518 44,522 44,533
493 142,577 868,815 869,823 1,011,885 1,012,893
Other
sold short 29,285 – – – 29,285 29,285
and securities loaned – 255,922 18,309 18,309 274,231 274,231
Derivatives 109,927 – – – 109,927 109,927
Other liabilities (4) 80 86 65,712 65,719 65,878 65,885
Subordinated debentures – – 9,867 10,071 9,867 10,071
(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.
Note 3 Fair value of financial instruments (continued)
Fair value of assets and liabilities measured at fair value on a recurring basis and classified using the fair value hierarchy
As at
April 30, 2021 October 31, 2020
Fair value measurements using Fair value measurements using
Netting Netting
(Millions of Canadian dollars) Level 1 Level 2 Level 3 adjustments Fair value Level 1 Level 2 Level 3 adjustments Fair value
Financial assets
Interest-bearing deposits with
banks $ – $ 41,380 $ – $ $ 41,380 $ – $ 21,603 $ – $ $ 21,603
Securities
Trading
Debt issued or guaranteed by:
Canadian government (1)
Federal 8,901 2,251 – 11,152 12,773 3,012 – 15,785
Provincial and municipal – 10,598 – 10,598 – 11,562 – 11,562
U.S. federal, state, municipal
and agencies (1) 652 21,610 33 22,295 1,508 35,029 44 36,581
Other OECD government (2) 4,092 3,289 – 7,381 3,085 3,380 – 6,465
Mortgage-backed securities (1) – 24 – 24 – 39 – 39
Asset-backed securities
Non-CDO securities (3) – 511 2 513 – 526 2 528
Corporate debt and other debt – 22,560 18 22,578 – 21,464 30 21,494
Equities 47,065 2,761 1,366 51,192 39,795 2,561 1,261 43,617
60,710 63,604 1,419 125,733 57,161 77,573 1,337 136,071
Investment
Canadian government (1)
Federal 793 2,094 – 2,887 647 1,894 – 2,541
Provincial and municipal – 3,325 – 3,325 – 3,233 – 3,233
U.S. federal, state, municipal
and agencies (1) 265 25,530 – 25,795 160 38,364 – 38,524
Other OECD government – 5,890 – 5,890 – 7,345 – 7,345
Mortgage-backed securities (1) – 2,207 20 2,227 – 2,343 27 2,370
CDO – 7,003 – 7,003 – 7,414 – 7,414
Non-CDO securities – 504 – 504 – 854 – 854
Corporate debt and other debt – 14,842 146 14,988 – 18,954 160 19,114
Equities 44 139 322 505 38 152 335 525
1,102 61,534 488 63,124 845 80,553 522 81,920
securities borrowed – 265,880 – 265,880 – 264,394 – 264,394
Loans – 8,777 1,145 9,922 – 8,747 1,070 9,817
Other
Derivatives
Interest rate contracts – 37,376 272 37,648 1 53,720 501 54,222
Foreign exchange contracts – 42,027 75 42,102 – 39,246 57 39,303
Credit derivatives – 510 – 510 – 463 – 463
Other contracts 2,821 15,495 20 18,336 4,458 16,767 36 21,261
Valuation adjustments – (777) 11 (766) – (1,112) 8 (1,104)
Total gross derivatives 2,821 94,631 378 97,830 4,459 109,084 602 114,145
Netting adjustments (594) (594) (657) (657)
Total derivatives 97,236 113,488
Other assets 1,489 2,557 2 4,048 1,154 2,207 53 3,414
$ 66,122 $ 538,363 $ 3,432 $ (594) $ 607,323 $ 63,619 $ 564,161 $ 3,584 $ (657) $ 630,707
Deposits
Personal $ – 17,505 $ 70 $ $ 17,575 $ – $ 17,061 $ 139 $ $ 17,200
Business and government – 123,381 – 123,381 – 107,855 – 107,855
Bank – 14,844 – 14,844 – 18,015 – 18,015
Other
Obligations related to
securities sold short 13,533 18,284 – 31,817 12,484 16,801 – 29,285
Obligations related to assets
sold under repurchase
agreements and
securities loaned – 235,509 – 235,509 – 255,922 – 255,922
Derivatives
Interest rate contracts – 31,177 938 32,115 – 46,723 1,089 47,812
Foreign exchange contracts – 39,698 29 39,727 – 38,210 35 38,245
Credit derivatives – 674 – 674 – 531 – 531
Other contracts 3,322 16,736 361 20,419 5,734 18,041 337 24,112
Valuation adjustments – 71 (10) 61 – (84) (32) (116)
Total gross derivatives 3,322 88,356 1,318 92,996 5,734 103,421 1,429 110,584
Netting adjustments (594) (594) (657) (657)
Total derivatives 92,402 109,927
Other liabilities 220 (106) 11 125 118 10 38 166
$ 17,075 $ 497,773 $ 1,399 $ (594) $ 515,653 $ 18,336 $ 519,085 $ 1,606 $ (657) $ 538,370
(1) As at April 30, 2021, residential and commercial mortgage-backed securities (MBS) included in all fair value levels of trading securities were $14,141 million and $nil
(October 31, 2020 – $20,520 million and $nil), respectively, and in all fair value levels of Investment securities were $7,917 million and $2,041 million (October 31, 2020 –
$9,487 million and $2,137 million), respectively.
(2) OECD stands for Organisation for Economic Co-operation and Development.
(3) CDO stands for collateralized debt obligations.
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 April 30, 2021, 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 April 30, 2021, 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 2020 Annual Consolidated Financial Statements.
Changes in fair value measurement for instruments measured on a recurring basis and categorized in Level 3
Gains
Fair value Gains (losses) Gains (losses) Settlement Transfers Transfers Fair value (losses) included
at beginning included included in Purchases (sales) and into out of at end of in earnings for
(Millions of Canadian dollars) of period in earnings OCI (1) (issuances) other (2) Level 3 Level 3 period positions still held
Assets
Securities
Trading
U.S. state, municipal and agencies $ 39 $ – $ (2)$ – $ (4)$ – $ – $ 33 $ –
Non-CDO securities 2 – – – – – – 2 –
Corporate debt and other debt 36 (1) – – (4) – (13) 18 (1)
Equities 1,332 30 (33) 55 (43) 25 – 1,366 50
1,409 29 (35) 55 (51) 25 (13) 1,419 49
Investment
Mortgage-backed securities 21 – (1) – – – – 20 n.a.
Corporate debt and other debt 154 – (9) – 1 – – 146 n.a.
Equities 336 – (14) – – – – 322 n.a.
511 – (24) – 1 – – 488 n.a.
Loans 1,113 (18) (15) 51 (4) 54 (36) 1,145 18
Other
Net derivative balances (3)
Interest rate contracts (643) (32) – 15 (2) (6) 2 (666) (32)
Foreign exchange contracts 42 12 (2) 10 (8) 6 (14) 46 12
Other contracts (100) 14 2 (39) – (232) 14 (341) 6
Valuation adjustments 36 – – – (15) – – 21 –
Other assets 9 – – – (7) – – 2 –
$ 2,377 $ 5 $ (74)$ 92 $ (86)$ (153)$ (47)$ 2,114 $ 53
Liabilities
Deposits $ (169)$ (26)$ 2 $ (47)$ 34 $ (5)$ 141 $ (70)$ 9
Other
Other liabilities (13) – – – 2 – – (11) –
$ (182)$ (26)$ 2 $ (47)$ 36 $ (5)$ 141 $ (81)$ 9

Gains
Assets
Securities
Trading
U.S. state, municipal and agencies $ 55 $ – $ 4 $ – $ (5)$ – $ – $ 54 $ –
Corporate debt and other debt 19 – – – – – – 19 –
Equities 1,236 (51) 43 47 (19) – – 1,256 (37)
1,312 (51) 47 47 (24) – – 1,331 (37)
Investment
Mortgage-backed securities 27 – 1 – – – – 28 n.a.
Corporate debt and other debt 158 – 6 1 – – – 165 n.a.
Equities 293 – 36 4 – – – 333 n.a.
478 – 43 5 – – – 526 n.a.
Loans 995 (7) – 172 (490) 332 (8) 994 16
Other
Interest rate contracts (610) (114) (2) (3) 7 34 92 (596) (55)
Foreign exchange contracts 25 39 1 5 – – (4) 66 33
Other contracts (155) (79) (8) (72) (1) (23) 12 (326) (60)
Other assets 80 (26) 4 – (9) – – 49 (27)
$ 2,141 $ (238)$ 85 $ 154 $ (523)$ 343 $ 92 $ 2,054 $ (130)
Liabilities
Deposits $ (268)$ 87 $ (4)$ (39)$ 8 $ (66)$ 119 $ (163)$ 96
Other
Other liabilities (59) 16 (3) 1 9 – – (36) 16
$ (327)$ 103 $ (7)$ (38)$ 17 $ (66)$ 119 $ (199)$ 112

Gains
Assets
Securities
Trading
U.S. state, municipal and agencies $ 44 $ – $ (3)$ – $ (8)$ – $ – $ 33 $ –
Corporate debt and other debt 30 (1) – 3 (4) 14 (24) 18 (1)
Equities 1,261 48 (66) 164 (66) 25 – 1,366 89
1,337 47 (69) 167 (78) 39 (24) 1,419 88
Investment
Mortgage-backed securities 27 – (7) – – – – 20 n.a.
Corporate debt and other debt 160 – (16) – 2 – – 146 n.a.
Equities 335 – (15) – 2 – – 322 n.a.
522 – (38) – 4 – – 488 n.a.
Loans 1,070 (23) (9) 133 – 70 (96) 1,145 38
Other
Interest rate contracts (588) (31) (2) 12 (40) (9) (8) (666) (23)
Foreign exchange contracts 22 25 1 15 (14) 7 (10) 46 29
Other contracts (301) 3 13 (56) 47 (224) 177 (341) 20
Other assets 53 (39) (2) – (10) – – 2 (39)
$ 2,155 $ (18)$ (106)$ 271 $ (110)$ (117)$ 39 $ 2,114 $ 113
Liabilities
Deposits $ (139)$ (55)$ 5 $ (92)$ 47 $ (77)$ 241 $ (70)$ 12
Other
Other liabilities (38) 22 1 – 4 – – (11) 22
$ (177)$ (33)$ 6 $ (92)$ 51 $ (77)$ 241 $ (81)$ 34

Gains
Assets
Securities
Trading
U.S. state, municipal and agencies $ 58 $ – $ 4 $ – $ (8)$ – $ – $ 54 $ –
Corporate debt and other debt 21 (1) – – (1) – – 19 –
Equities 1,219 (78) 47 118 (47) – (3) 1,256 (49)
1,300 (79) 51 118 (56) – (3) 1,331 (49)
Investment
Mortgage-backed securities 27 – 1 – – – – 28 n.a.
Corporate debt and other debt 153 – 11 1 – – – 165 n.a.
Equities 294 – 36 4 (1) – – 333 n.a.
474 – 48 5 (1) – – 526 n.a.
Loans 680 19 – 490 (499) 340 (36) 994 17
Other
Interest rate contracts (585) (110) (2) (39) 8 34 98 (596) (56)
Foreign exchange contracts 21 40 1 16 – (5) (7) 66 31
Other contracts (195) (94) (7) (74) 7 (33) 70 (326) (72)
Other assets 77 (19) 4 – (13) – – 49 (20)
$ 1,794 $ (243)$ 95 $ 516 $ (566)$ 336 $ 122 $ 2,054 $ (149)
Liabilities
Deposits $ (156)$ 86 $ (4)$ (213)$ 18 $ (82)$ 188 $ (163)$ 94
Other
Other liabilities (60) 12 (3) 4 11 – – (36) 12
$ (216)$ 98 $ (7)$ (209)$ 29 $ (82)$ 188 $ (199)$ 106
(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 losses on Investment securities recognized in OCI were $8 million for the three months ended April 30, 2021 (April 30, 2020 – gains of $25 million) and losses of
$11 million for the six months ended April 30, 2021 (April 30, 2020 – gains of $29 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 April 30, 2021 included derivative assets of $378 million (April 30, 2020 – $698 million) and derivative liabilities of $1,318 million (April 30, 2020 –
$1,544 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 April 30, 2021, transfers out of Level 1 to Level 2 included Obligations related to securities
sold short of $360 million.
During the three months ended April 30, 2021 transfers out of Level 2 to Level 1 included Obligations related to securities
sold short of $130 million.
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 April 30, 2021 transfers out of Level 2 to Level 3 included:
• $232 million of OTC equity options in Other contracts, comprised primarily of $233 million of derivative related
liabilities, due to changes in the significance of unobservable inputs.
During the three months ended April 30, 2021, transfers out of Level 3 to Level 2 included:
• $141 million of Personal deposits, due to changes in the significance of unobservable 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.
Interest and dividend income (1), (2)
Financial instruments measured at fair value through profit or loss $ 1,080 $ 2,436 $ 2,252 $ 5,421
Financial instruments measured at fair value through other comprehensive income 92 305 194 614
Financial instruments measured at amortized cost 5,726 6,485 11,688 13,429
6,898 9,226 14,134 19,464
Interest expense (1)
Financial instruments measured at fair value through profit or loss $ 702 $ 1,635 $ 1,439 $ 3,995
Financial instruments measured at amortized cost 1,342 2,126 2,806 4,783
2,044 3,761 4,245 8,778
Net interest income $ 4,854 $ 5,465 $ 9,889 $ 10,686
(1) Excludes the following amounts related to our insurance operations and included in Insurance premiums, investment and fee income in the Interim Consolidated Statements
of Income: for the three months ended April 30, 2021, Interest income of $139 million (April 30, 2020 – $123 million), and Interest expense of $1 million (April 30, 2020 – $1 million);
for the six months ended April 30, 2021, Interest income of $288 million (April 30, 2020 – $255 million), and Interest expense of $2 million (April 30, 2020 – $3 million).
(2) Includes dividend income for the three months ended April 30, 2021 of $609 million (April 30, 2020 – $614 million) and for the six months ended April 30, 2021 of $1,217 million
(April 30, 2020 – $1,222 million), which is presented in Interest and dividend income in the Interim Consolidated Statements of Income.
Note 4 Securities
Unrealized gains and losses on securities at FVOCI (1), (2)

As at
April 30, 2021 October 31, 2020
Cost/ Gross Gross Cost/ Gross Gross
Amortized unrealized unrealized Amortized unrealized unrealized
(Millions of Canadian dollars) cost gains losses Fair value cost gains losses Fair value

Canadian government
Federal (3) $ 3,003 $ 2 $ (118) $ 2,887 $ 2,562 $ 1 $ (22) $ 2,541
Provincial and municipal 3,547 3 (225) 3,325 3,237 27 (31) 3,233
U.S. federal, state, municipal and
agencies (3) 25,472 422 (99) 25,795 38,523 323 (322) 38,524
Other OECD government 5,888 3 (1) 5,890 7,336 11 (2) 7,345
Mortgage-backed securities (3) 2,237 3 (13) 2,227 2,418 5 (53) 2,370
CDO 7,004 1 (2) 7,003 7,504 – (90) 7,414
Non-CDO securities 498 6 – 504 859 2 (7) 854
Corporate debt and other debt 14,934 58 (4) 14,988 19,041 76 (3) 19,114
Equities 264 242 (1) 505 276 253 (4) 525
$ 62,847 $ 740 $ (463) $ 63,124 $ 81,756 $ 698 $ (534) $ 81,920
(1) Excludes $66,295 million of held-to-collect securities as at April 30, 2021 that are carried at amortized cost, net of allowance for credit losses (October 31, 2020 – $57,823 million).
(2) Gross unrealized gains and losses includes $1 million of allowance for credit losses on debt securities at FVOCI as at April 30, 2021 (October 31, 2020 – $8 million) recognized in
income and Other components of equity.
(3) The majority of the MBS are residential. Cost/Amortized cost, Gross unrealized gains, Gross unrealized losses and Fair value related to commercial MBS are $2,052 million,
$1 million, $12 million and $2,041 million, respectively as at April 30, 2021 (October 31, 2020 – $2,185 million, $nil, $48 million and $2,137 million, respectively).
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.
Note 4 Securities (continued)
Allowance for credit losses – securities at FVOCI (1)

April 30, 2021 April 30, 2020
Performing Impaired Performing Impaired
(Millions of Canadian dollars) Stage 1 Stage 2 Stage 3 (2) Total Stage 1 Stage 2 Stage 3 (2) Total
Balance at beginning of period $ 7 $ 3 $ (5) $ 5 $ 6 $ – $ (9) $ (3)

Transfers to stage 1 – – – – – – – –
Purchases 3 – – 3 9 – – 9
Sales and maturities (3) (1) – (4) (2) – – (2)
Changes in risk, parameters and exposures – – (2) (2) 9 – 10 19
Exchange rate and other – (1) – (1) 1 – (1) –
Balance at end of period $ 7 $ 1 $ (7) $ 1 $ 23 $ – $ – $ 23

April 30, 2021 April 30, 2020
Balance at beginning of period $ 12 $ – $ (4) $ 8 $ 4 $ – $ (7) $ (3)

Purchases 5 – – 5 11 – – 11
Sales and maturities (7) (1) – (8) (2) – – (2)
Changes in risk, parameters and exposures (2) 3 (4) (3) 9 – 8 17
Exchange rate and other (1) (1) 1 (1) 1 – (1) –
Balance at end of period $ 7 $ 1 $ (7) $ 1 $ 23 $ – $ – $ 23
(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

April 30, 2021 April 30, 2020
(Millions of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Balance at beginning of period $ 8 $ 18 $ – $ 26 $ 5 $ 17 $ – $ 22

Purchases 4 – – 4 3 – – 3
Sales and maturities (1) – – (1) (1) – – (1)
Changes in risk, parameters and exposures – (1) – (1) 2 2 – 4
Exchange rate and other – – – – – 1 – 1
Balance at end of period $ 11 $ 17 $ – $ 28 $ 9 $ 20 $ – $ 29

April 30, 2021 April 30, 2020
Balance at beginning of period $ 10 $ 19 $ – $ 29 $ 5 $ 19 $ – $ 24

Purchases 7 – – 7 5 – – 5
Sales and maturities (1) – – (1) (1) – – (1)
Changes in risk, parameters and exposures (5) – – (5) – 1 – 1
Exchange rate and other – (2) – (2) – – – –
Balance at end of period $ 11 $ 17 $ – $ 28 $ 9 $ 20 $ – $ 29
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 2020 Annual Report.
As at
April 30, 2021 October 31, 2020
Investment securities
Securities at FVOCI
Investment grade $ 62,074 $ 38 $ – $ 62,112 $ 80,719 $ 87 $ – $ 80,806
Non-investment grade 363 – – 363 431 1 – 432
Impaired – – 144 144 – – 157 157
62,437 38 144 62,619 81,150 88 157 81,395
Items not subject to impairment (2) 505 525
$ 63,124 $ 81,920
Securities at amortized cost
Investment grade $ 65,196 $ – $ – $ 65,196 $ 56,885 $ – $ – $ 56,885
Non-investment grade 849 278 – 1,127 647 320 – 967
Impaired – – – – – – – –
66,045 278 – 66,323 57,532 320 – 57,852
Allowance for credit losses 11 17 – 28 10 19 – 29
Amortized cost $ 66,034 $ 261 $ – $ 66,295 $ 57,522 $ 301 $ – $ 57,823
(1) Reflects $144 million of purchased credit impaired securities (October 31, 2020 – $157 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

April 30, 2021 April 30, 2020
Balance at Provision Exchange Balance at Balance at Provision Exchange Balance at
beginning for credit Net rate and end of beginning for credit Net rate and end of
(Millions of Canadian dollars) of period losses write-offs other period of period losses write-offs other period
Retail
Residential mortgages $ 512 $ 2 $ (7) $ (12) $ 495 $ 367 $ 126 $ (8) $ (1) $ 484
Personal 1,315 42 (79) (3) 1,275 940 437 (119) – 1,258
Credit cards 1,201 17 (81) (2) 1,135 868 393 (142) 2 1,121
Small business 143 1 (5) 50 189 66 50 (9) – 107
Wholesale 2,622 (143) (36) (132) 2,311 1,191 1,660 (67) 6 2,790
Customers’ liability under
acceptances 121 (2) – 1 120 39 68 – (2) 105
$ 5,914 $ (83) $ (208) $ (98) $ 5,525 $ 3,471 $ 2,734 $ (345) $ 5 $ 5,865
Presented as:
Allowance for loan losses $ 5,478 $ 5,146 $ 3,139 $ 5,230
Other liabilities – Provisions 309 227 292 529
acceptances 121 120 39 105
Other components of equity 6 32 1 1

April 30, 2021 April 30, 2020
Balance at Provision Exchange Balance at Balance at Provision Exchange Balance at
beginning for credit Net rate and end of beginning for credit Net rate and end of
(Millions of Canadian dollars) of period losses write-offs other period of period losses write-offs other period
Retail
Residential mortgages $ 518 $ 17 $ (14) $ (26) $ 495 $ 402 $ 119 $ (16) $ (21) $ 484
Personal 1,309 111 (138) (7) 1,275 935 558 (230) (5) 1,258
Credit cards 1,246 42 (150) (3) 1,135 832 570 (281) – 1,121
Small business 140 9 (10) 50 189 61 64 (17) (1) 107
Wholesale 2,795 (154) (122) (208) 2,311 1,165 1,762 (108) (29) 2,790
acceptances 107 13 – – 120 24 82 – (1) 105
$ 6,115 $ 38 $ (434) $ (194) $ 5,525 $ 3,419 $ 3,155 $ (652) $ (57) $ 5,865
Presented as:
Allowance for loan losses $ 5,639 $ 5,146 $ 3,100 $ 5,230
Other liabilities – Provisions 363 227 295 529
acceptances 107 120 24 105
Other components of equity 6 32 – 1
The following table reconciles the opening and closing 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.
Allowance for credit losses – Retail and wholesale loans

April 30, 2021 April 30, 2020
Residential mortgages
Balance at beginning of period $ 192 $ 162 $ 158 $ 512 $ 132 $ 80 $ 155 $ 367
Transfers to stage 1 46 (41) (5) – 33 (21) (12) –
Transfers to stage 2 (4) 4 – – (22) 23 (1) –
Transfers to stage 3 (1) (14) 15 – (1) (7) 8 –
Originations 23 – – 23 11 – – 11
Maturities (10) (14) – (24) (3) (4) – (7)
Changes in risk, parameters and exposures (52) 55 – 3 (39) 159 2 122
Write-offs – – (10) (10) – – (10) (10)
Recoveries – – 3 3 – – 2 2
Exchange rate and other (2) (4) (6) (12) 3 (7) 3 (1)
Balance at end of period $ 192 $ 148 $ 155 $ 495 $ 114 $ 223 $ 147 $ 484
Personal
Balance at beginning of period $ 476 $ 721 $ 118 $ 1,315 $ 273 $ 517 $ 150 $ 940
Transfers to stage 3 – (18) 18 – (1) (19) 20 –
Originations 28 – – 28 28 – – 28
Maturities (25) (42) – (67) (11) (24) – (35)
Changes in risk, parameters and exposures (108) 140 49 81 (20) 352 112 444
Write-offs – – (112) (112) – – (148) (148)
Recoveries – – 33 33 – – 29 29
Exchange rate and other – (2) (1) (3) 1 – (1) –
Balance at end of period $ 491 $ 680 $ 104 $ 1,275 $ 343 $ 757 $ 158 $ 1,258
Credit cards
Balance at beginning of period $ 353 $ 848 $ – $ 1,201 $ 174 $ 694 $ – $ 868
Transfers to stage 1 152 (152) – – 117 (117) – –
Transfers to stage 2 (28) 28 – – (25) 25 – –
Transfers to stage 3 – (76) 76 – (1) (94) 95 –
Originations 1 – – 1 3 – – 3
Maturities (2) (7) – (9) (4) (6) – (10)
Write-offs – – (121) (121) – – (173) (173)
Recoveries – – 40 40 – – 31 31
Exchange rate and other (1) – (1) (2) 2 – – 2
Balance at end of period $ 326 $ 809 $ – $ 1,135 $ 246 $ 875 $ – $ 1,121
Small business
Maturities (5) (3) – (8) (2) – – (2)
Changes in risk, parameters and exposures (39) 32 8 1 22 11 14 47
Write-offs – – (7) (7) – – (10) (10)
Recoveries – – 2 2 – – 1 1
Exchange rate and other 22 30 (2) 50 – 1 (1) –
Wholesale
Balance at beginning of period $ 895 $ 1,145 $ 582 $ 2,622 $ 300 $ 407 $ 484 $ 1,191
Transfers to stage 2 (40) 52 (12) – (37) 37 – –
Originations 153 – – 153 413 – – 413
Maturities (133) (135) – (268) (34) (42) – (76)
Changes in risk, parameters and exposures (194) 163 3 (28) 555 463 305 1,323
Write-offs – – (51) (51) – – (82) (82)
Recoveries – – 15 15 – – 15 15
Exchange rate and other (42) (56) (34) (132) 11 7 (12) 6
Balance at end of period $ 764 $ 1,024 $ 523 $ 2,311 $ 1,246 $ 807 $ 737 $ 2,790
Note 5 Loans and allowance for credit losses (continued)

April 30, 2021 April 30, 2020
Residential mortgages
Transfers to stage 2 (10) 12 (2) – (26) 29 (3) –
Originations 53 – – 53 27 – – 27
Maturities (16) (18) – (34) (7) (7) – (14)
Changes in risk, parameters and exposures (156) 141 13 (2) (84) 188 2 106
Write-offs – – (19) (19) – – (22) (22)
Recoveries – – 5 5 – – 6 6
Exchange rate and other (4) (10) (12) (26) – (10) (11) (21)
Personal
Balance at beginning of period $ 480 $ 733 $ 96 $ 1,309 $ 272 $ 520 $ 143 $ 935
Originations 61 – – 61 53 – – 53
Maturities (47) (69) – (116) (23) (47) – (70)
Write-offs – – (206) (206) – – (297) (297)
Recoveries – – 68 68 – – 67 67
Exchange rate and other (2) (2) (3) (7) 1 (1) (5) (5)
Balance at end of period $ 491 $ 680 $ 104 $ 1,275 $ 343 $ 757 $ 158 $ 1,258
Credit cards
Balance at beginning of period $ 364 $ 882 $ – $ 1,246 $ 173 $ 659 $ – $ 832
Maturities (4) (15) – (19) (5) (14) – (19)
Write-offs – – (227) (227) – – (347) (347)
Recoveries – – 77 77 – – 66 66
Exchange rate and other (1) (1) (1) (3) – – – –
Balance at end of period $ 326 $ 809 $ – $ 1,135 $ 246 $ 875 $ – $ 1,121
Small business
Transfers to stage 3 – (1) 1 – – (1) 1 –
Maturities (11) (6) – (17) (3) (1) – (4)
Changes in risk, parameters and exposures (59) 52 16 9 20 15 25 60
Write-offs – – (14) (14) – – (20) (20)
Recoveries – – 4 4 – – 3 3
Exchange rate and other 23 30 (3) 50 – – (1) (1)
Wholesale
Balance at beginning of period $ 995 $ 1,132 $ 668 $ 2,795 $ 281 $ 396 $ 488 $ 1,165
Transfers to stage 2 (87) 113 (26) – (45) 46 (1) –
Originations 360 – – 360 479 – – 479
Maturities (298) (274) – (572) (77) (95) – (172)
Changes in risk, parameters and exposures (401) 420 39 58 538 562 355 1,455
Write-offs – – (149) (149) – – (136) (136)
Recoveries – – 27 27 – – 28 28
Exchange rate and other (58) (78) (72) (208) 6 7 (42) (29)
Balance at end of period $ 764 $ 1,024 $ 523 $ 2,311 $ 1,246 $ 807 $ 737 $ 2,790
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 of our Condensed Financial Statements, and Note 2 and Note 5 of our 2020 Annual Report.
The COVID-19 pandemic significantly impacted our determination of allowance for credit losses and required the application
of heightened judgment. A resurgence in the spread of COVID-19 in some regions, including the emergence and progression of
new variants of COVID-19, has resulted in certain regions re-imposing or increasing the level of containment measures.
Significant fiscal and monetary policy stimulus, as well as bank-led deferral programs introduced in the spring of 2020, have
generally supported lower defaults. As the COVID-19 pandemic continues to evolve, including through the emergence and
progression of new variants of COVID-19 in different regions, governments continue to adjust their response and approach to
the pandemic. Consequently, the extent of containment measures and progress towards reopening continues to vary and
fluctuate across regions. While vaccines have been approved for use in many countries, uncertainty remains regarding
vaccine efficacy against new variants of COVID-19, vaccine supply and availability, and the ability of governments to quickly
and effectively distribute vaccines to inoculate a sufficient proportion of the population to enable widespread easing of
containment measures and support the transition to a fully reopened economy. All of these factors contribute to the
uncertainty regarding the timing of a full recovery. Accordingly, our allowances continue to have a higher than usual degree of
uncertainty and the inputs used are inherently subject to change, which may materially change our estimate of Stage 1 and
Stage 2 allowance for credit losses in future periods.
To address the uncertainties inherent in the current and future environment and to reflect all relevant risk factors not
captured in our modelled results, we applied expert credit judgment in determining significant increases in credit risk since
origination and on our weighted allowance for credit losses. In light of the significant uncertainty, the impact of expert credit
judgment on our allowances remains elevated as compared to pre-pandemic levels. We applied quantitative and qualitative
adjustments for the impacts of the unprecedented macroeconomic scenarios arising from the COVID-19 pandemic, including
the efficacy and distribution of vaccines, the temporary effects of the bank and extended government led payment support
programs which may not completely mitigate future losses, and the impacts to particularly vulnerable sectors affected by the
COVID-19 pandemic.
All of our IFRS 9 scenarios are designed to include the impact of COVID-19 and depict an ongoing stressed environment as at
April 30, 2021 relative to pre-pandemic conditions. Despite positive developments and continuous economic improvement, the
possibility of a more prolonged recovery period, including the duration of containment measures in some regions of varying
degrees, as well as heightened risk in the real estate sector, have been reflected in our scenario design and weights.
Our base scenario reflects a continuation of the recovery that has been underway since the sharp drop in economic
activity in calendar Q2 2020. Vaccine distribution has accelerated since Q1 2021, and the recovery is expected to occur more
quickly than our January 31, 2021 forecast. Canadian and U.S. unemployment rates are expected to remain above pre-shock
levels at the end of calendar 2021 but we expect the pace of GDP growth to pick up from Q2 2021 onwards alongside the
expectation that rising vaccination rates will enable a more significant and sustainable easing of containment measures.
Downside scenarios, including two additional and more severe downside scenarios designed for the energy and real
estate sectors, reflect the possibility of a double-dip recession, with conditions deteriorating from Q2 2021 levels for up to two
years, followed by a recovery for the remainder of the period. These scenarios assume a monetary policy response that
returns the economy to a long-run, sustainable growth rate within the forecast period.
The upside scenario reflects a slightly faster and larger economic recovery than the base scenario, without prompting an
offsetting monetary policy response, followed by a return to a long-run sustainable growth rate within the forecast period, at
levels slightly above the base scenario.
The following provides additional detail about our forecasts for certain key macroeconomic variables used in the models to
estimate ACL:
• Unemployment – In our calendar Q2 2021 base forecast, unemployment rates are expected to decline to 7.8% in Canada
and 5.8% in the U.S. We expect unemployment rates to continuously improve in both regions for the remainder of the
year. We expect the Canadian unemployment rate to stabilize around its long run equilibrium by the latter half of
calendar 2022 and for the U.S. unemployment rate to improve to better than the long run equilibrium beginning Q2 2022
through most of the remaining forecast horizon.
Canada Unemployment Rate (1) U.S. Unemployment Rate (1)

% %
11 10
9 8
7 6
5 4
3 2
20
20
Q 22
Q 022
Q 22
Q 22
Q 22
Q 022
Q 22
Q 22
Q 24
Q 024
Q 24
Q 24
Q 24
Q 024
Q 024
Q 24
Q 23
Q 023
Q 23
Q 023
Q 23
Q 023
Q 23
Q 023
Q 25
Q 025
Q 025
Q 25
Q 25
Q 025
Q 025
Q 25
21
Q 021
Q 21
Q 021
21
Q 021
Q 21
Q 021
26
26
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
2
2
2
2
2
2
4-
1-
2-
3-
4-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
2-
3-
4-
1-
1-
Q
Q
Q
Q
Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021) Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021)
Base case (January 31, 2021) Base case (October 31, 2020) Base case (January 31, 2021) Base case (October 31, 2020)
(1) Represents the average quarterly unemployment level over the calendar quarters presented. (1) Represents the average quarterly unemployment level over the calendar quarters presented.
• Gross Domestic Product (GDP) – In our base forecast, we expect GDP in calendar Q2 2021 to be 1% below pre-shock
levels in Canada and 0.7% above such levels in the U.S. Canadian and U.S. GDP are expected to be 2.2% and 3.8% above
pre-shock levels by the end of calendar 2021.
Canada Real GDP (1) U.S. Real GDP (1)

Trillions of Canadian dollars Trillions of U.S. dollars
2.5 22.0
21.5
2.4
21.0
2.3
20.5
2.2 20.0
19.5
2.1
19.0
2.0
18.5
1.9 18.0
Q 20
Q 020
Q 021
Q 021
Q 021
Q 022
Q 022
Q 022
Q 23
Q 023
Q 23
Q 023
Q 24
Q 024
Q 024
Q 24
Q 25
Q 025
Q 25
Q 025
Q 22
Q 022
Q 22
Q 022
Q 24
Q 024
Q 24
Q 24
Q 23
Q 023
Q 023
Q 023
26
Q 21
Q 22
Q 25
Q 025
Q 25
Q 025
Q 21
Q 021
Q 021
Q 021
26
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
2
2
2
20
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2-
3-
4-
2-
1-
2-
3-
4-
3-
4-
1-
2-
3-
4-
4-
1-
2-
3-
4-
4-
1-
2-
3-
4-
1-
1-
2-
3-
4-
1-
2-
3-
4-
1-
1-
1-
2-
3-
4-
1-
2-
3-
4-
1-
Q
Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021) Range of alternative scenarios (April 30, 2021) Base case (April 30, 2021)
Base case (January 31, 2021) Base case (October 31, 2020) Base case (January 31, 2021) Base case (October 31, 2020)
(1) Represents the seasonally adjusted annual rate indexed to 2012 Canadian dollars over the calendar (1) Represents the seasonally adjusted annual rate indexed to 2012 U.S. dollars over the calendar
quarters presented. quarters presented.
• Oil price (West Texas Intermediate in US$) – In our base forecast, we expect oil prices to average $61 per barrel over
the next 12 months and $53 per barrel in the following 2 to 5 years. The range of average prices in our alternative
downside and upside scenarios is $25 to $74 per barrel for the next 12 months and $35 to $55 per barrel for the following
2 to 5 years. As at October 31, 2020, our base forecast included an average price of $43 per barrel for the next 12 months
and $48 per barrel for the following 2 to 5 years.
• Canadian housing price index – In our base forecast, we expect housing prices to increase by 3.0% over the next
12 months, with a compound annual growth rate of 3.7% for the following 2 to 5 years. The range of annual housing price
growth (contraction) in our alternative downside and upside scenarios is (29.6)% to 10.9% over the next 12 months and
4.2% to 11.1% for the following 2 to 5 years. As at October 31, 2020, our base forecast included housing price growth of
0.6% for the next 12 months and 4.5% for the following 2 to 5 years.
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. 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 2020 Annual Report.
As at
April 30, 2021 October 31, 2020
Retail
Loans outstanding – Residential mortgages
Low risk $ 287,863 $ 2,291 $ – $ 290,154 $ 270,396 $ 2,848 $ – $ 273,244
Medium risk 14,628 2,685 – 17,313 15,230 3,307 – 18,537
High risk 4,755 1,184 – 5,939 4,346 1,467 – 5,813
Not rated (1) 42,641 1,010 – 43,651 43,176 936 – 44,112
Impaired – – 703 703 – – 638 638
349,887 7,170 703 357,760 333,148 8,558 638 342,344
Items not subject to impairment (2) 243 253
Total $ 358,003 $ 342,597
Loans outstanding – Personal

Low risk $ 69,836 $ 711 $ – $ 70,547 $ 71,245 $ 1,084 $ – $ 72,329
Medium risk 3,827 5,187 – 9,014 3,974 5,415 – 9,389
High risk 860 1,347 – 2,207 817 1,416 – 2,233
Not rated (1) 8,370 130 – 8,500 7,704 144 – 7,848
Impaired – – 251 251 – – 212 212
Total $ 82,893 $ 7,375 $ 251 $ 90,519 $ 83,740 $ 8,059 $ 212 $ 92,011
Loans outstanding – Credit cards

Low risk $ 11,373 $ 25 $ – $ 11,398 $ 11,824 $ 63 $ – $ 11,887
Medium risk 1,455 2,006 – 3,461 1,596 2,360 – 3,956
High risk 137 1,078 – 1,215 132 1,105 – 1,237
Not rated (1) 468 54 – 522 490 56 – 546
Total $ 13,433 $ 3,163 $ – $ 16,596 $ 14,042 $ 3,584 $ – $ 17,626
Loans outstanding – Small business (3)

Low risk $ 7,527 $ 295 $ – $ 7,822 $ 2,034 $ 172 $ – $ 2,206
Medium risk 1,611 1,014 – 2,625 1,976 1,143 – 3,119
High risk 306 240 – 546 126 192 – 318
Not rated (1) 3 – – 3 9 – – 9
Impaired – – 116 116 – – 90 90
Total $ 9,447 $ 1,549 $ 116 $ 11,112 4,145 $ 1,507 $ 90 $ 5,742
Undrawn loan commitments – Retail

Low risk $ 224,206 $ 713 $ – $ 224,919 $ 214,176 $ 887 $ – $ 215,063
Medium risk 10,350 131 – 10,481 10,402 291 – 10,693
High risk 1,276 116 – 1,392 1,141 129 – 1,270
Not rated (1) 4,733 110 – 4,843 5,238 117 – 5,355
Total $ 240,565 $ 1,070 $ – $ 241,635 $ 230,957 $ 1,424 $ – $ 232,381
Wholesale – Loans outstanding (3)

Investment grade $ 50,970 $ 265 $ – $ 51,235 $ 50,998 $ 328 $ – $ 51,326
Non-investment grade 111,018 21,136 – 132,154 112,434 26,575 – 139,009
Not rated (1) 8,292 436 – 8,728 7,093 432 – 7,525
Impaired – – 1,707 1,707 – – 2,235 2,235
170,280 21,837 1,707 193,824 170,525 27,335 2,235 200,095
Items not subject to impairment (2) 8,603 8,560
Total $ 202,427 $ 208,655
Undrawn loan commitments – Wholesale

Investment grade $ 238,391 $ 164 $ – $ 238,555 $ 242,244 $ 1,022 $ – $ 243,266
Non-investment grade 105,539 11,242 – 116,781 92,262 21,581 – 113,843
Not rated (1) 3,419 – – 3,419 3,918 – – 3,918
Total $ 347,349 $ 11,406 $ – $ 358,755 $ 338,424 $ 22,603 $ – $ 361,027
(1) 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.
(2) Items not subject to impairment are loans held at FVTPL.
(3) Commencing Q2 2021, certain loans are now classified as Retail – Small business and were previously classified as Wholesale, reflecting an alignment with capital
measurement and reporting.
Loans past due but not impaired (1), (2)

As at
April 30, 2021 October 31, 2020
90 days 90 days
(Millions of Canadian dollars) 30 to 89 days and greater Total 30 to 89 days and greater Total
Retail $ 1,007 $ 158 $ 1,165 $ 1,013 $ 129 $ 1,142

Wholesale 433 10 443 574 13 587
$ 1,440 $ 168 $ 1,608 $ 1,587 $ 142 $ 1,729
(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) Loans in our payment deferral programs established to help clients manage through the challenges of the COVID-19 pandemic have been re-aged to current and are not aged
further during the deferral period. Subsequent to the payment deferral period, loans will commence re-aging from current. 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 refinance, which can fluctuate based on business
volumes. Past due loans arising from administrative processes are not representative of the borrowers’ ability to meet their payment obligations.
Note 6 Deposits
As at
April 30, 2021 October 31, 2020
(Millions of Canadian dollars) Demand (1) Notice (2) Term (3) Total Demand (1) Notice (2) Term (3) Total
Personal $ 194,114 $ 62,462 $ 91,538 $ 348,114 $ 182,745 $ 61,761 $ 98,546 $ 343,052

Business and government 333,729 19,085 291,469 644,283 315,472 16,585 292,254 624,311
Bank 13,872 686 26,368 40,926 12,502 956 31,064 44,522
$ 541,715 $ 82,233 $ 409,375 $ 1,033,323 $ 510,719 $ 79,302 $ 421,864 $ 1,011,885
Non-interest-bearing (4)
Canada $ 139,665 $ 7,871 $ 518 $ 148,054 $ 123,402 $ 7,390 $ 368 $ 131,160
United States 46,606 – – 46,606 43,831 – – 43,831
Europe (5) 447 – – 447 654 – – 654
Other International 7,143 – – 7,143 7,372 – – 7,372
Interest-bearing (4)
Canada 300,002 19,698 288,866 608,566 287,046 19,036 310,492 616,574
United States 6,605 53,856 72,017 132,478 7,190 52,046 57,037 116,273
Europe (5) 34,740 808 36,390 71,938 33,810 830 37,250 71,890
Other International 6,507 – 11,584 18,091 7,414 – 16,717 24,131
$ 541,715 $ 82,233 $ 409,375 $ 1,033,323 $ 510,719 $ 79,302 $ 421,864 $ 1,011,885
(1) Demand deposits are deposits for which we do not have the right to require notice of withdrawal, which includes 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 April 30, 2021, deposits denominated in
U.S. dollars, British pounds, Euro and other foreign currencies were $355.0 billion, $30.5 billion, $41.8 billion and $28.1 billion, respectively (October 31, 2020 – $347.5 billion,
$31.9 billion, $46.6 billion and $33.4 billion, respectively).
(5) Europe includes the United Kingdom, Luxembourg, the Channel Islands, France and Italy.
Contractual maturities of term deposits

As at
April 30 October 31
(Millions of Canadian dollars) 2021 2020 (1)
Within 1 year:
less than 3 months $ 129,516 $ 123,290
3 to 6 months 49,929 65,782
6 to 12 months 86,826 80,737
1 to 2 years 32,304 34,400
2 to 3 years 35,986 42,907
3 to 4 years 25,332 21,136
4 to 5 years 21,179 22,885
Over 5 years 28,303 30,727
$ 409,375 $ 421,864
Aggregate amount of term deposits in denominations of one hundred thousand dollars or more $ 378,000 $ 388,000
(1) Amounts previously presented were reclassified to reflect the contractual maturities of certain term deposits.
Note 7 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 other comprehensive income.
Pension and other post-employment benefit expense

Pension plans Other post-employment benefit plans
Current service costs $ 90 $ 91 $ 11 $ 12
Net interest expense (income) 2 5 14 15
Remeasurements of other long term benefits – – (11) –
Administrative expense 3 5 – –
Defined benefit pension expense 95 101 14 27
Defined contribution pension expense 57 55 – –
$ 152 $ 156 $ 14 $ 27

Pension plans Other post-employment benefit plans
Current service costs $ 180 $ 183 $ 22 $ 23
Net interest expense (income) 4 10 28 30
Remeasurements of other long term benefits – – (10) 4
Administrative expense 6 9 – –
Defined benefit pension expense 190 202 40 57
Defined contribution pension expense 123 118 – –
$ 313 $ 320 $ 40 $ 57
Pension and other post-employment benefit remeasurements (1)

Defined benefit pension plans Other post-employment benefit plans
Actuarial (gains) losses:
Changes in financial assumptions (2) $ (1,380) $ (1,009) $ (113) $ (95)
Experience adjustments – – (3) (2)
Return on plan assets (excluding interest based on discount rate) 227 484 – –
$ (1,153) $ (525) $ (116) $ (97)

Defined benefit pension plans Other post-employment benefit plans
Actuarial (gains) losses:
Changes in financial assumptions (2) $ (1,392) $ 38 $ (135) $ 1
Experience adjustments – – (3) (2)
Return on plan assets (excluding interest based on discount rate) (797) (23) – –
$ (2,189) $ 15 $ (138) $ (1)
(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 8 Income taxes
Tax examinations and assessments

During the second quarter of 2021, we received proposal letters (the Proposals) from the Canada Revenue Agency (CRA), in
respect of the 2016 taxation year which suggests that Royal Bank of Canada owes additional taxes of approximately $298
million as they denied the deductibility of certain dividends. This amount represents the maximum additional taxes owing for
that year. The Proposals are consistent with the previously received reassessments as described in Note 22 of our 2020
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.
During the first quarter of 2021, we received a reassessment that is consistent with the previously received proposal
letters from the CRA in respect of the 2015 taxation year.
In all cases, we are confident that our tax filing position was appropriate and intend to defend ourselves vigorously.
Note 9 Significant capital and funding transactions
Preferred shares and other equity instruments

On November 2, 2020, we issued $1,250 million of Limited Recourse Capital Notes Series 2 (LRCN Series 2) with recourse
limited to assets (Trust Assets) held by a third party trustee in a consolidated trust (Limited Recourse Trust). The Trust Assets
consist of $1,250 million of our First Preferred Shares, Series BR (Series BR Preferred Shares), issued concurrently with LRCN
Series 2 at a price of $1,000 per Series BR Preferred Share.
The price per LRCN Series 2 note is $1,000 and will bear interest paid semi-annually at a fixed rate of 4.0% per annum until
February 24, 2026 and thereafter at a rate per annum, reset every fifth year, equal to the 5-year Government of Canada Yield
plus 3.617% until maturity on February 24, 2081. 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 LRCN Series 2, (iii) non-payment of principal at the
maturity of LRCN Series 2, or (iv) an event of default on the notes, noteholders will have recourse only to the Trust Assets and
each noteholder will be entitled to receive its pro rata share of the Trust Assets. In such an event, the delivery of the Trust
Assets will represent the full and complete extinguishment of our obligations under LRCN Series 2.
LRCN Series 2 are redeemable on or prior to maturity to the extent we redeem Series BR Preferred Shares on certain
redemption dates as set out in the terms of Series BR Preferred Shares and subject to the consent and approval of the Office
of the Superintendent of Financial Institutions (OSFI).
The terms of Series BR Preferred Shares and LRCN Series 2 include non-viability contingency capital (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, LRCN Series 2 will be automatically redeemed and the redemption price will be satisfied by the delivery of Trust
Assets, which will consist of common shares pursuant to an automatic conversion of Series BR Preferred Shares. The terms of
Series BR Preferred Shares include an automatic conversion formula with a conversion price based on the greater of: (i) a
floor price of $5.00 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
BR Preferred Shares will be determined by dividing the share value of Series BR Preferred Shares (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 Trust Assets.
LRCN Series 2 are compound instruments with both equity and liability features as payments of interest and principal in
cash are made at our discretion. Non-payment of interest and principal in cash does not constitute an event of default and will
trigger a delivery of Series BR 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.
Subordinated debentures
On January 20, 2021, we redeemed all $1,500 million of our outstanding 3.31% subordinated debentures due on January 20, 2026
for 100% of their principal amount plus interest accrued to, but excluding, the redemption date.
On January 28, 2021, we issued $1,000 million of NVCC subordinated debentures. The notes bear interest at a fixed rate of
1.67% per annum until January 28, 2028, and at the three-month Canadian Dollar Offered Rate plus 0.55% thereafter until their
maturity on January 28, 2033.
Common shares issued (1)

April 30, 2021 April 30, 2020
Number of Number of
shares shares
(Millions of Canadian dollars, except number of shares) (thousands) Amount (thousands) Amount
Issued in connection with share-based compensation plans (2) 324 $ 25 314 $ 26

Purchased for cancellation (3) – – (867) (11)
324 $ 25 (553) $ 15

April 30, 2021 April 30, 2020
Number of Number of
shares shares
(Millions of Canadian dollars, except number of shares) (thousands) Amount (thousands) Amount
Issued in connection with share-based compensation plans (2) 820 $ 61 547 $ 44

Purchased for cancellation (3) – – (7,860) (97)
820 $ 61 (7,313) $ (53)
(1) 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 six
months ended April 30, 2021 and April 30, 2020, our DRIP’s requirements were satisfied through open market share purchases.
(2) Amounts include cash received for stock options exercised during the period and the fair value adjustment to stock options.
(3) During the three and six months ended April 30, 2021, we did not purchase for cancellation any common shares. During the three months ended April 30, 2020, we purchased for
cancellation common shares at a total fair value of $87 million (average cost of $100.34 per share), with a book value of $11 million (book value of $12.35 per share). During the
six months ended April 30, 2020, we purchased for cancellation common shares at a total fair value of $814 million (average cost of $103.62 per share), with a book value of $97
million (book value of $12.34 per share).
Note 10 Earnings per share
(Millions of Canadian dollars, except share and per share amounts) 2021 2020 2021 2020
Basic earnings per share
Net income $ 4,015 $ 1,481 $ 7,862 $ 4,990
Dividends on preferred shares and distributions on other
equity instruments (76) (64) (134) (129)
Net income attributable to non-controlling interests (1) 3 (3) (2)
Net income available to common shareholders 3,938 1,420 7,725 4,859
Weighted average number of common shares (in thousands) 1,424,889 1,422,754 1,424,107 1,425,203
Basic earnings per share (in dollars) $ 2.76 $ 1.00 $ 5.42 $ 3.41
Diluted earnings per share
Net income available to common shareholders $ 3,938 $ 1,420 $ 7,725 $ 4,859
Dilutive impact of exchangeable shares – 3 – 7
Net income available to common shareholders including dilutive
impact of exchangeable shares 3,938 1,423 7,725 4,866
Weighted average number of common shares (in thousands) 1,424,889 1,422,754 1,424,107 1,425,203
Stock options (1) 1,533 906 1,362 1,280
Issuable under other share-based compensation plans 685 753 714 751
Exchangeable shares – 3,458 – 3,234
Average number of diluted common shares (in thousands) 1,427,107 1,427,871 1,426,183 1,430,468
Diluted earnings per share (in dollars) $ 2.76 $ 1.00 $ 5.42 $ 3.40
(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 April 30, 2021, no outstanding options were
excluded from the calculation of diluted earnings per share. For the three months ended April 30, 2020, an average of 2,941,928 outstanding options with an average exercise
price of $101.06 were excluded from the calculation of diluted earnings per share. For the six months ended April 30, 2021, no outstanding options were excluded from the
calculation of diluted earnings per share. For the six months ended April 30, 2020, an average of 1,584,011 outstanding options with an average exercise price of $103.55 were
excluded from the calculation of diluted earnings per share.
Note 11 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. 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 accruals
could be material to our results of operations in any particular period.
Our significant legal proceeding and regulatory matters are described in Note 25 of our 2020 Annual Consolidated
Financial Statements as updated below.
Royal Bank of Canada Trust Company (Bahamas) Limited proceedings

On January 6, 2021, the French Supreme Court issued a judgment reversing the decision of the French Court of Appeal dated
June 29, 2018 and sent the case back to the French Court of Appeal for rehearing.
Interchange fees litigation

A settlement agreement has been reached with class counsel, contingent on court approval. This settlement upon final court
approval would resolve the claims of all Canadian merchants subject to limited rights to opt-out for Quebec merchants.
Foreign exchange matters

Royal Bank of Canada and multiple other foreign exchange dealers were named in an action filed in the U.K. by several
institutional investors alleging, among other things, collusive behaviour in global foreign exchange trading.
Note 12 Results by business segment

Commercial Wealth Treasury Capital Corporate
(Millions of Canadian dollars) Banking Management Insurance Services Markets (1) Support (1) Total
Net interest income (2) $ 3,085 $ 666 $ – $ 87 $ 1,121 $ (105) $ 4,854

Non-interest income 1,442 2,728 536 447 1,597 14 6,764
Total revenue 4,527 3,394 536 534 2,718 (91) 11,618
Provision for credit losses 35 (2) – (2) (127) – (96)
acquisition expense – – 149 – – – 149
Non-interest expense 1,915 2,495 140 375 1,468 (14) 6,379
Income (loss) before income taxes 2,577 901 247 161 1,377 (77) 5,186
Income taxes (recoveries) 669 210 60 41 306 (115) 1,171
Net income $ 1,908 $ 691 $ 187 $ 120 $ 1,071 $ 38 $ 4,015
Non-interest expense includes:
Depreciation and amortization $ 229 $ 218 $ 15 $ 47 $ 126 $ 1 $ 636

Net interest income (2) $ 3,149 $ 737 $ – $ 74 $ 1,456 $ 49 $ 5,465

Non-interest income 1,251 2,085 197 635 857 (157) 4,868
Total revenue 4,400 2,822 197 709 2,313 (108) 10,333
Provision for credit losses 1,706 91 1 14 1,017 1 2,830
acquisition expense – – (177) – – – (177)
Income (loss) before income taxes 747 562 225 303 5 (104) 1,738
Income taxes (recoveries) 215 138 45 77 (100) (118) 257
Net income $ 532 $ 424 $ 180 $ 226 $ 105 $ 14 $ 1,481
Depreciation and amortization $ 223 $ 223 $ 14 $ 54 $ 127 $ – $ 641

Net interest income (2) $ 6,246 $ 1,332 $ – $ 178 $ 2,320 $ (187) $ 9,889
Non-interest income 2,844 5,449 2,345 921 3,106 7 14,672
Total revenue 9,090 6,781 2,345 1,099 5,426 (180) 24,561
Provision for credit losses 200 (31) – (4) (150) (1) 14
acquisition expense – – 1,555 – – – 1,555
Income (loss) before income taxes 4,997 1,754 501 327 2,667 (175) 10,071
Income taxes (recoveries) 1,296 414 113 84 529 (227) 2,209
Net income $ 3,701 $ 1,340 $ 388 $ 243 $ 2,138 $ 52 $ 7,862
Depreciation and amortization $ 453 $ 438 $ 29 $ 96 $ 251 $ 2 $ 1,269

Net interest income (2) $ 6,375 $ 1,475 $ – $ 132 $ 2,617 $ 87 $ 10,686

Non-interest income 2,635 4,513 2,191 1,174 2,244 (274) 12,483
Total revenue 9,010 5,988 2,191 1,306 4,861 (187) 23,169
Provision for credit losses 2,048 89 1 14 1,096 1 3,249
acquisition expense – – 1,437 – – – 1,437
Non-interest expense 3,931 4,539 301 794 2,726 29 12,320
Income (loss) before income taxes 3,031 1,360 452 498 1,039 (217) 6,163
Income taxes (recoveries) 813 313 91 129 52 (225) 1,173
Net income $ 2,218 $ 1,047 $ 361 $ 369 $ 987 $ 8 $ 4,990
Depreciation and amortization $ 457 $ 433 $ 29 $ 104 $ 254 $ – $ 1,277
(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.
Total assets and total liabilities by business segment

(Millions of Canadian dollars) Banking Management Insurance Services Markets Support Total
Total assets $ 523,063 $ 133,488 $ 21,011 $ 217,607 $ 669,157 $ 50,990 $ 1,615,316

Total liabilities 522,979 133,468 21,263 217,519 668,854 (41,589) 1,522,494
As at October 31, 2020

(Millions of Canadian dollars) Banking Management Insurance Services Markets Support Total
Total assets $ 509,679 $ 129,706 $ 21,253 $ 230,695 $ 688,054 $ 45,161 $ 1,624,548

Total liabilities 509,682 129,673 21,311 230,618 688,314 (41,817) 1,537,781
Note 13 Capital management
Regulatory capital and capital ratios

OSFI formally establishes risk-based capital and leverage targets for deposit-taking institutions in Canada. During the second
quarter of 2021, we complied with all capital and leverage requirements, including the domestic stability buffer, imposed by
OSFI.
As at
April 30 October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted) 2021 2020
Capital (1)
CET1 capital $ 70,970 $ 68,082
Tier 1 capital 78,139 74,005
Total capital 87,636 84,928
Risk-weighted assets (RWA) used in calculation of capital ratios (1)
Credit risk $ 452,857 $ 448,821
Market risk 30,617 27,374
Operational risk 72,133 70,047
Total RWA $ 555,607 $ 546,242
Capital ratios and Leverage ratio (1)
CET1 ratio 12.8% 12.5%
Tier 1 capital ratio 14.1% 13.5%
Total capital ratio 15.8% 15.5%
Leverage ratio 5.0% 4.8%
Leverage ratio exposure (billions) $ 1,576.3 $ 1,552.9
(1) Capital, RWA, and capital ratios are calculated using OSFI’s Capital Adequacy Requirements (CAR) guideline and the Leverage ratio is calculated using OSFI Leverage
Requirements Guideline as updated in accordance with the regulatory guidance issued by OSFI in response to the COVID-19 pandemic. Both the CAR guideline and Leverage
Requirements Guideline are based on the Basel III framework.
Note 14 Subsequent events
On May 24, 2021, we redeemed all 29 million of our issued and outstanding Non-Cumulative 5-Year Rate Reset First Preferred
Shares Series BK at a price of $25 per share.
Shareholder Information
Corporate headquarters Valuation day price Eligible dividend designation Common share repurchases
Street address: For Canadian income tax For purposes of the Income Tax As at April 30, 2021, we do not
Royal Bank of Canada purposes, Royal Bank of Canada’s Act (Canada) and any have an active normal course
200 Bay Street common stock was quoted at corresponding provincial and issuer bid (NCIB). For further
Toronto, Ontario M5J 2J5 $29.52 per share on the Valuation territorial tax legislation, all details, refer to the Capital
Canada Day (December 22, 1971). This is dividends (and deemed management section.
Tel: 1-888-212-5533 equivalent to $7.38 per share after dividends) paid by RBC to
adjusting for the two-for-one Canadian residents on both its 2021 Quarterly earnings
Mailing address: stock split of March 1981 and the common and preferred shares, release dates
P.O. Box 1 two-for-one stock split of are designated as “eligible First quarter February 24
Royal Bank Plaza February 1990. The one-for-one dividends”, unless stated Second quarter May 27
Toronto, Ontario M5J 2J5 stock dividends in October 2000 otherwise. Third quarter August 25
Canada and April 2006 did not affect the Fourth quarter December 1
website: rbc.com Valuation Day amount for our
common shares. Dividend dates for 2021
Transfer Agent and Registrar Subject to approval by the Board of Directors
Main Agent: Shareholder contacts
For dividend information, change Record Payment
Computershare Trust Company
in share registration or address, dates dates
of Canada
1500 Robert-Bourassa Blvd. lost stock certificates, tax forms, Common and preferred shares January 26 February 24
Suite 700 estate transfers or dividend series AZ, BB, BD, BF, BH, BI, BJ, April 22 May 21
Montreal, Quebec H3A 3S8 reinvestment, please contact: BM and BO July 26 August 24
Canada Computershare Trust Company of October 26 November 24
Tel: 1-866-586-7635 (Canada and Canada
100 University Avenue, 8th Floor Preferred shares series C-2 January 26 February 5
the U.S.) or 514-982-7555 (US$) April 27 May 7
(International) Toronto, Ontario M5J 2Y1
Canada July 27 August 6
Fax: 514-982-7580 October 26 November 5
website: computershare.com/rbc
Tel: 1-866-586-7635 (Canada and
Co-Transfer Agent (U.S.): the U.S.) or 514-982-7555 Governance
Computershare Trust (International) Summaries of the significant ways in which corporate governance
Company, N.A. Fax: 1-888-453-0330 (Canada and practices followed by RBC differ from corporate governance
250 Royall Street the U.S.) or 416-263-9394 practices required to be followed by U.S. domestic companies
Canton, Massachusetts 02021 (International) under the NYSE listing standards are available on our website at
U.S.A. email: service@computershare.com rbc.com/governance.
Co-Transfer Agent (U.K.): Financial analysts, portfolio

Computershare Investor managers, institutional
Services PLC investors
Securities Services – Registrars For financial information
P.O. Box 82, The Pavilions, inquiries, please contact:
Bridgwater Road, Investor Relations
Bristol BS99 6ZZ Royal Bank of Canada
U.K. 200 Bay Street
South Tower
Stock exchange listings Toronto, Ontario M5J 2J5
(Symbol: RY) Canada
Tel: 416-955-7802
Common shares are listed on:
Canada – Toronto Stock or visit our website at
Exchange (TSX) rbc.com/investorrelations
U.S. – New York Stock Exchange
(NYSE) Direct deposit service
Switzerland – Swiss Exchange Shareholders in Canada and the
(SIX) U.S. may have their common share
dividends deposited directly to
Preferred shares AZ, BB, BD, BF, their bank account by electronic
BH, BI, BJ, BM and BO are listed on funds transfer. To arrange for this
the TSX. The related depository service, please contact our
shares of the series C-2 preferred Transfer Agent and Registrar,
shares are listed on the NYSE. Computershare Trust Company
of Canada.
Information contained in or otherwise accessible through the websites mentioned in this report to shareholders does not form a part of this report. All references to websites are
inactive textual references and are for your information only.
Trademarks used in this report include the LION & GLOBE Symbol, ROYAL BANK OF CANADA, RBC, RBC INSURANCE and RBC HOMELINE PLAN which are trademarks of Royal Bank of
Canada used by Royal Bank of Canada and/or by its subsidiaries under license. All other trademarks mentioned in this report, which are not the property of Royal Bank of Canada,
are owned by their respective holders.

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Royal Bank of Canada second quarter 2021 results

Q2 2021 • Net income of $4,015 million ↑ 171%

Q2 2021 • Net income of $4,015 million ↑ 4%

YTD 2021 • Net income of $7,862 million ↑ 58%

(1) Earnings per share (EPS).

Management’s Discussion and Analysis

Caution regarding forward-looking statements

Overview and outlook

About Royal Bank of Canada

Selected financial and other highlights

Economic and market review and outlook

Minimum qualifying rates for insured and uninsured mortgages in Canada

Interest rate benchmark reform

U.K. and European regulatory reform

Impact of COVID-19 pandemic

RBC relief programs

Government programs in response to the COVID-19 pandemic

Q2 2021 vs. Q2 2020

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Impact of foreign currency translation

Q2 2021 vs. Q2 2021 vs. Q2 2021 vs.

Q2 2021 vs. Q2 2020

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Provision for credit losses

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Insurance policyholder benefits, claims and acquisition expense (PBCAE)

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Q2 2021 vs. Q2 2020

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Q2 2021 vs. Q2 2020

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Business segment results

How we measure and report our business segments

Key performance and non-GAAP measures

The following table provides a summary of our ROE calculations:

For the three months ended

Net income available to

For the six months ended

Net income available to

Efficiency ratio excluding the change in fair value of investments in Insurance

For the six months ended

Personal & Commercial Banking

(Millions of Canadian dollars, except April 30 January 31 April 30 April 30 April 30

For the three For the six

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

As at or for the three months ended As at or the six months ended

(Millions of Canadian dollars, except April 30 January 31 April 30 April 30 April 30

Q2 2021 vs. Q1 2021

Q2 2021 vs. Q2 2020 (Six months ended)

Investor & Treasury Services

(Millions of Canadian dollars, except April 30 January 31 April 30 April 30 April 30