ROYAL BANK OF CANADA REPORTS FOURTH QUARTER AND 2024 RESULTS Français

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Dec 04, 2024, 06:00 ET

All amounts are in Canadian dollars and are based on our audited Annual and unaudited Interim Consolidated Financial Statements for the year and quarter ended October 31, 2024 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, unless otherwise noted. Effective November 1, 2023, we adopted IFRS 17 Insurance Contracts (IFRS 17). Comparative amounts have been restated from those previously presented. Our 2024 Annual Report (which includes our audited Annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2024 Annual Information Form and our Supplementary Financial Information are available on our website at http://www.rbc.com/investorrelations and on https://www.sedarplus.com.

2024 Net income $16.2 Billion Up 11% YoY	2024 Diluted EPS¹ $11.25 Up 9% YoY	2024 Total PCL² $3.2 Billion PCL on loans ratio³ up 6 bps⁴ YoY	2024 ROE⁵ 14.4% Up from 14.3% last year	CET1 ratio⁶ 13.2% Above regulatory requirements
2024 Adjusted net income⁷ $17.4 Billion Up 10% YoY	2024 Adjusted diluted EPS⁷ $12.09 Up 8% YoY	2024 Total ACL⁸ $6.4 Billion ACL on loans ratio⁹ up 1 bp QoQ	2024 Adjusted ROE⁷ 15.5% Unchanged from 15.5% last year	2024 LCR¹⁰ 128% Up from 126% last quarter

TORONTO, Dec. 4, 2024 /CNW/ - Royal Bank of Canada¹¹ (TSX: RY) (NYSE: RY) today reported net income of $16.2 billion for the year ended October 31, 2024, up $1.6 billion or 11% from the prior year. Diluted EPS was $11.25, up 9% over the prior year reflecting growth across each of our business segments. The inclusion of HSBC Bank Canada (HSBC Canada) results¹² increased net income by $453 million. Adjusted net income⁷ and adjusted diluted EPS⁷ of $17.4 billion and $12.09 were up 10% and 8%, respectively, from the prior year.

Our consolidated results include higher provisions on impaired loans, largely in Commercial Banking and Personal Banking. The PCL on impaired loans ratio¹³ was 28 bps, up 7 bps from the prior year.

Pre-provision, pre-tax earnings⁷ of $23.1 billion were up 12% from last year. The inclusion of HSBC Canada results increased pre-provision, pre-tax earnings⁷ by $995 million. Excluding HSBC Canada results, pre-provision, pre-tax earnings⁷ increased 7% from last year, mainly due to higher net interest income reflecting solid average volume growth and higher spreads in both Personal Banking and Commercial Banking. Higher fee-based revenue in Wealth Management reflecting market appreciation and net sales, and higher Corporate & Investment Banking revenue in Capital Markets, also contributed to the increase. These factors were partially offset by higher expenses driven by higher variable compensation on improved results and continued investments across our businesses.

Our capital position remained robust with a CET1 ratio⁶ of 13.2% supporting solid volume growth. In addition, this year we returned $8.1 billion to our shareholders through common dividends and share buybacks. Today, we declared a quarterly dividend of $1.48 per share reflecting an increase of $0.06 or 4%.

"In 2024, RBC relentlessly pursued our ambition to stay ahead of evolving client expectations and create unparalleled value.

As our results exemplify, our premium franchises delivered diversified revenue growth, underpinned by a strong balance sheet and prudent risk management. One of our year's defining moments was the acquisition of HSBC Bank Canada, which marked a pivotal milestone in our client-driven growth story and strengthened our position as a competitive global financial institution. We also elevated a new generation of leaders across the bank to continue delivering trusted advice and experiences to rival the best in any industry.

As we enter 2025 from a position of strength, I'm fully confident in Team RBC's ability to continue going above-and-beyond to support those we serve, each and every day."

– Dave McKay, President and Chief Executive Officer of Royal Bank of Canada

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¹ Earnings per share (EPS).

² Provision for credit losses (PCL).

³ PCL on loans ratio is calculated as PCL on loans as a percentage of average net loans and acceptances.

⁴ Basis points (bps).

⁵ Return on equity (ROE). For further information, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

⁶ This ratio is calculated by dividing Common Equity Tier 1 (CET1) by risk-weighted assets (RWA), in accordance with the Office of the Superintendent of Financial Institutions' (OSFI) Basel III Capital Adequacy Requirements (CAR) guideline.

⁷ These are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

⁸ Allowance for credit losses (ACL).

⁹ ACL on loans ratio is calculated as ACL on loans as a percentage of total loans and acceptances.

¹⁰ The liquidity coverage ratio (LCR) is calculated in accordance with OSFI's Liquidity Adequacy Requirements (LAR) guideline. For further details, refer to the Liquidity and funding risk section of our 2024 Annual Report.

¹¹ When we say "we", "us", "our", "the bank" or "RBC", we mean Royal Bank of Canada and its subsidiaries, as applicable.

¹²On March 28, 2024, we completed the acquisition of HSBC Canada (HSBC Canada transaction). HSBC Canada results reflect revenue, PCL, non-interest expenses and income taxes associated with the acquired operations and clients, which include the acquired assets, assumed liabilities and employees with the exception of assets and liabilities relating to treasury and liquidity management activities. For further details, refer to the Key corporate events section of our 2024 Annual Report.

¹³ PCL on impaired loans ratio is calculated as PCL on impaired loans as a percentage of average net loans and acceptances.

2024 Full-Year Business Segment Performance

9% earnings growth in Personal Banking. The inclusion of HSBC Canada results increased net income by $133 million. Excluding HSBC Canada results, net income increased $370 million or 7%, primarily driven by higher net interest income reflecting higher spreads and average volume growth of 9% in deposits and 4% in loans in Personal Banking - Canada. Higher non-interest income, including higher distribution fees driven by higher average mutual fund balances, higher service charges, mainly reflecting higher client activity, and the prior year impact of HST on payment card clearing services also contributed to the increase. These factors were partially offset by higher PCL and higher non-interest expenses.
9% earnings growth in Commercial Banking. The inclusion of HSBC Canada results increased net income by $219 million. Excluding HSBC Canada results, net income increased $17 million or 1%, as growth in total revenue more than offset higher PCL and non-interest expenses. Commercial Banking achieved strong volume growth (9% in deposits and 13% in loans and acceptances) across most products due to our continued focus on growing our strategic client segments along with our ongoing sales enablement.
27% earnings growth in Wealth Management, primarily due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. Higher transactional revenue and lower PCL also contributed to the increase. Adjusted net income¹⁴ increased $552 million or 19%, as the prior year included the impact of the specified item relating to impairment losses on our interest in an associated company. Net new assets under administration in Canadian Wealth Management and U.S. Wealth Management (including City National Bank ("City National")) were $11 billion and $9 billion, respectively, reflecting the strength of our business driven by the quality of our advice, the breadth of our investment and holistic wealth planning solutions and clients' trust in our brand. Net flows for Global Asset Management assets under management were robust at $26 billion mainly due to favourable market conditions and the expectation of reduced interest rates versus net redemptions in the prior year.
33% earnings growth in Insurance, mainly due to higher insurance investment result, largely attributable to lower capital funding costs and favourable investment-related experience as we repositioned our portfolio for the transition to IFRS 17. Higher insurance service result, primarily due to business growth across the majority of our products, also contributed to the increase. The results in the prior period are not fully comparable as we were not managing our asset and liability portfolios under IFRS 17.
10% earnings growth in Capital Markets, mainly due to higher revenue in Corporate & Investment Banking and lower PCL. In addition to the benefit of a recovering industry-wide fee pool, particularly in the U.S. and Europe, we continued to advance our advisory capabilities and grew our market share across investment banking products which underpinned strong performance. Trading activity, supported by strong client flow, remained robust during the year as the credit trading environment was mostly constructive while rates and foreign exchange trading saw a slight normalization compared to 2023 on lower market volatility. These factors were partially offset by higher taxes reflecting favourable tax adjustments in the prior year and higher compensation on increased results.

Q4 2024 Performance

Net income and diluted EPS of $4.2 billion and $2.91 were up 7% and 5%, respectively, from a year ago. Higher results in Wealth Management, Personal Banking, Commercial Banking and Insurance were partially offset by lower results in Corporate Support. Results in Capital Markets were relatively flat. The inclusion of HSBC Canada results increased net income by $265 million. The PCL on loans ratio of 35 bps was relatively flat year over year. Results also reflect a higher effective tax rate, as results in the prior year included the favourable impact of the specified item relating to certain deferred tax adjustments of $578 million. Adjusted net income¹⁴ and adjusted diluted EPS¹⁴ of $4.4 billion and $3.07 were up 18% and 16%, respectively, compared to the prior year.

Pre-provision, pre-tax earnings¹⁴ of $6.1 billion were up 31% from a year ago. The inclusion of HSBC Canada results increased pre-provision, pre-tax earnings¹⁴ by $437 million. Excluding HSBC Canada results, pre-provision, pre-tax earnings¹⁴ increased 21% from last year, mainly due to higher average fee-based client assets in Wealth Management and higher revenue in Capital Markets including record lending revenue. Higher net interest income in our Personal Banking and Commercial Banking franchises reflecting solid client-driven growth in volumes and higher spreads also contributed to the increase. These factors were partially offset by higher staff-related costs, including higher variable compensation and salaries.

Compared to last quarter, net income was down $264 million or 6% reflecting lower results in Capital Markets, Commercial Banking and Corporate Support, partially offset by higher results in Wealth Management. Adjusted net income¹⁴ was down 6% over the same period. Results this quarter reflected higher provisions for credit losses, with a PCL on loans ratio of 35 bps, up 8 bps from the prior quarter.

	Reported:		Adjusted¹⁴:
Q4 2024	• Net income of $4,222 million	↑ 7%	• Net income of $4,439 million	↑ 18%
Compared to	• Diluted EPS of $2.91	↑ 5%	• Diluted EPS of $3.07	↑ 16%
Q4 2023	• ROE of 14.3%	↓ 60 bps	• ROE of 15.1%	↑ 90 bps
	• CET1 ratio¹⁵ of 13.2%	↓ 130 bps
Q4 2024	• Net income of $4,222 million	↓ 6%	• Net income of $4,439 million	↓ 6%
Compared to	• Diluted EPS of $2.91	↓ 6%	• Diluted EPS of $3.07	↓ 6%
Q3 2024	• ROE of 14.3%	↓ 120 bps	• ROE of 15.1%	↓ 130 bps
	• CET1 ratio¹⁵ of 13.2%14	↑ 20 bps

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¹⁴ These are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

¹⁵ This ratio is calculated by dividing CET1 by RWA, in accordance with OSFI's CAR guideline.

Our business segment performance below reflects the new basis of segment presentation effective the fourth quarter of 2024. For further information, refer to our 2024 Annual Report.

Q4 2024 Business and Reporting Segment Performance

Personal Banking

Net income of $1,579 million increased $213 million or 16% from a year ago. The inclusion of HSBC Canada results increased net income by $86 million. Excluding HSBC Canada results, net income increased $127 million or 9%, primarily driven by higher net interest income reflecting higher spreads and average volume growth of 9% in deposits and 4% in loans in Personal Banking - Canada. Higher non-interest income also contributed to the increase. These factors were partially offset by higher PCL and higher non-interest expenses.

Compared to last quarter, net income decreased $7 million, as higher net interest income reflecting higher spreads and average volume growth of 1% in Personal Banking – Canada was more than offset by higher PCL reflecting higher provisions on performing loans, largely driven by unfavourable changes in credit quality and higher non-interest expenses.

Commercial Banking

Net income of $774 million increased $106 million or 16% from a year ago. The inclusion of HSBC Canada results increased net income by $139 million. Excluding HSBC Canada results, net income decreased $33 million or 5%, as growth in total revenue was more than offset by higher PCL and higher non-interest expenses.

Compared to last quarter, net income decreased $43 million or 5%, as growth in total revenue was more than offset by higher PCL.

Wealth Management

Net income of $969 million increased $697 million from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. The prior year reflected the impact of the specified item relating to impairment losses on our interest in an associated company, as well as legal provisions. Lower PCL also contributed to the increase. Adjusted net income16 increased $520 million.

Compared to last quarter, net income increased $20 million or 2%, primarily due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation.

Insurance

Net income of $162 million increased $65 million or 67% from last year, mainly due to higher insurance service result, primarily driven by business growth across the majority of our products, partially offset by less favourable claims experience primarily in disability products. The results in the prior period are not fully comparable as we were not managing our asset and liability portfolios under IFRS 17.

Compared to last quarter, net income decreased $8 million or 5%, primarily due to lower insurance service result reflecting the impact of adjustments relating to deferred acquisition expenses and unfavourable annual actuarial assumption updates in the current quarter. These factors were partially offset by higher insurance investment result, primarily attributable to favourable investment-related experience.

Capital Markets

Net income of $985 million remained relatively flat from a year ago, as record fourth quarter revenue in Global Markets and Corporate & Investment Banking was more than offset by higher taxes reflecting favourable tax adjustments in the prior year and the impact of legal provisions in the current period.

Compared to last quarter, net income decreased $187 million or 16%, mainly due to the impact of legal provisions in the current period, lower fixed income trading in Europe and Canada, as well as the impact of elevated municipal banking activity in the prior quarter. These factors were partially offset by lower taxes reflecting changes in earnings mix.

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¹⁶ These are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

Corporate Support

Net loss was $247 million in the current quarter, primarily due to the after-tax impact of the HSBC Canada transaction and integration costs of $134 million, which is treated as a specified item. Residual and unallocated costs also contributed to the net loss.

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

Net income was $549 million in the prior year, primarily due to a specified item relating to certain deferred tax adjustments of $578 million, and a favourable impact from tax-related items. These factors were partially offset by the after-tax impact of the HSBC Canada transaction and integration costs of $167 million, which is treated as a specified item.

Capital, Liquidity and Credit Quality

Capital – As at October 31, 2024, our CET1 ratio17 was 13.2%, down 130 bps from last year, primarily reflecting the impact of the HSBC Canada transaction and RWA growth (excluding FX), partially offset by net internal capital generation and share issuances under the dividend reinvestment plan (DRIP).

Liquidity – For the quarter ended October 31, 2024, the average LCR¹⁸ was 128%, which translates into a surplus of approximately $86 billion, compared to 126% and a surplus of approximately $81 billion in the prior quarter. Average LCR¹⁸ moderately increased compared to the prior quarter mainly due to an increase in retail and wholesale deposits, largely offset by a decline due to securities and securities financing transactions.

NSFR¹⁹ as at October 31, 2024 was 114%, which translates into a surplus of approximately $137 billion, compared to 114% and a surplus of approximately $136 billion in the prior quarter. NSFR¹⁹ remained relatively stable from the previous quarter as the increase in deposits and stable funding was offset by higher funding requirements for securities, securities financing transactions and loans.

Credit Quality

Q4 2024 vs. Q4 2023

Total PCL increased $120 million or 17% from a year ago, mainly reflecting higher provisions in Commercial Banking and Personal Banking, partially offset by releases of provisions in the current quarter in Wealth Management as compared to provisions taken in the prior year and lower provisions in Capital Markets. The PCL on loans ratio increased 1 bp.

PCL on performing loans increased $14 million or 7%, mainly due to unfavourable changes in credit quality, partially offset by favourable changes to our macroeconomic forecast.

PCL on impaired loans increased $101 million or 19%, mainly due to higher provisions in Commercial Banking and Personal Banking, partially offset by lower provisions in Capital Markets and Wealth Management.

Q4 2024 vs. Q3 2024

Total PCL increased $181 million or 27% from last quarter, mainly reflecting higher provisions in Personal Banking and Commercial Banking. The PCL on loans ratio of 35 bps increased 8 bps. The PCL on impaired loans ratio of 26 bps remained unchanged.

PCL on performing loans increased $166 million, largely due to unfavourable changes in credit quality, partially offset by favourable changes to our macroeconomic forecast. Favourable changes to our scenario weights last quarter also contributed to the increase.

PCL on impaired loans increased $17 million or 3%, mainly due to higher provisions in Commercial Banking, partially offset by lower provisions in Capital Markets.

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¹⁷ This ratio is calculated by dividing CET1 by RWA, in accordance with OSFI's CAR guideline.

¹⁸ The LCR is calculated in accordance with OSFI's LAR guideline. For further details, refer to the Liquidity and funding risk section of our 2024 Annual Report.

¹⁹ The Net Stable Funding Ratio (NSFR) is calculated in accordance with OSFI's LAR guideline. For further details, refer to the Liquidity and funding risk section of our 2024 Annual Report.

Selected financial and other highlights
		As at or for the three months ended						As at or for the year ended
		October 31		July 31		October 31		October 31		October 31
(Millions of Canadian dollars, except per share, number of and percentage amounts)			2024 (1)		2024 (1)		2023 (2)		2024 (1)		2023 (2)
	Total revenue	$	15,074	$	14,631	$	12,685	$	57,344	$	51,464
	PCL		840		659		720		3,232		2,468
	Non-interest expense		9,019		8,599		8,059		34,250		30,813
	Income before income taxes		5,215		5,373		3,906		19,862		18,183
Net income		$	4,222	$	4,486	$	3,939	$	16,240	$	14,612
Net income - adjusted (3), (4)		$	4,439	$	4,727	$	3,773	$	17,430	$	15,829
Segments - net income
	Personal Banking (5)	$	1,579	$	1,586	$	1,366	$	5,921	$	5,418
	Commercial Banking (5)		774		817		668		2,818		2,582
	Wealth Management (5)		969		949		272		3,422		2,693
	Insurance		162		170		97		729		549
	Capital Markets		985		1,172		987		4,573		4,139
	Corporate Support		(247)		(208)		549		(1,223)		(769)
Net income		$	4,222	$	4,486	$	3,939	$	16,240	$	14,612
Selected information
	EPS - basic	$	2.92	$	3.09	$	2.77	$	11.27	$	10.33
	EPS - diluted		2.91		3.09		2.76		11.25		10.32
	EPS - basic adjusted (3), (4)		3.07		3.26		2.65		12.11		11.21
	EPS - diluted adjusted (3), (4)		3.07		3.26		2.65		12.09		11.19
	Return on common equity (ROE) (4)		14.3 %		15.5 %		14.9 %		14.4 %		14.3 %
	Return on common equity (ROE) adjusted (3), (4)		15.1 %		16.4 %		14.2 %		15.5 %		15.5 %
	Average common equity (6)	$	114,750	$	112,100	$	103,250	$	110,650	$	100,400
	Net interest margin (NIM) - on average earning assets, net (4)		1.68 %		1.58 %		1.51 %		1.54 %		1.50 %
	PCL on loans as a % of average net loans and acceptances		0.35 %		0.27 %		0.34 %		0.35 %		0.29 %
	PCL on performing loans as a % of average net loans and acceptances		0.09 %		0.01 %		0.09 %		0.07 %		0.08 %
	PCL on impaired loans as a % of average net loans and acceptances		0.26 %		0.26 %		0.25 %		0.28 %		0.21 %
	Gross impaired loans (GIL) as a % of loans and acceptances		0.59 %		0.58 %		0.42 %		0.59 %		0.42 %
	LCR (4), (7)		128 %		126 %		131 %		128 %		131 %
	NSFR (4), (7)		114 %		114 %		113 %		114 %		113 %
Capital, Leverage and Total loss absorbing capacity (TLAC) ratios (4), (8), (9)
	CET1 ratio		13.2 %		13.0 %		14.5 %		13.2 %		14.5 %
	Tier 1 capital ratio		14.6 %		14.5 %		15.7 %		14.6 %		15.7 %
	Total capital ratio		16.4 %		16.3 %		17.6 %		16.4 %		17.6 %
	Leverage ratio		4.2 %		4.2 %		4.3 %		4.2 %		4.3 %
	TLAC ratio		29.3 %		28.4 %		31.0 %		29.3 %		31.0 %
	TLAC leverage ratio		8.4 %		8.3 %		8.5 %		8.4 %		8.5 %
Selected balance sheet and other information (10)
	Total assets	$	2,171,582	$	2,076,107	$	2,006,531	$	2,171,582	$	2,006,531
	Securities, net of applicable allowance		439,918		431,185		409,730		439,918		409,730
	Loans, net of allowance for loan losses		981,380		971,797		852,773		981,380		852,773
	Derivative related assets		150,612		115,659		142,450		150,612		142,450
	Deposits		1,409,531		1,361,265		1,231,687		1,409,531		1,231,687
	Common equity		118,058		114,899		107,734		118,058		107,734
	Total RWA (4), (8), (9)		672,282		661,177		596,223		672,282		596,223
	Assets under management (AUM) (4)		1,342,300		1,300,100		1,067,500		1,342,300		1,067,500
	Assets under administration (AUA) (4), (11)		4,965,500		4,716,100		4,338,000		4,965,500		4,338,000
Common share information
	Shares outstanding (000s) - average basic		1,414,460		1,414,194		1,399,337		1,411,903		1,391,020
	- average diluted		1,416,829		1,416,149		1,400,465		1,413,755		1,392,529
	- end of period		1,414,504		1,413,666		1,400,511		1,414,504		1,400,511
	Dividends declared per common share	$	1.42	$	1.42	$	1.35	$	5.60	$	5.34
	Dividend yield (4)		3.5 %		3.9 %		4.5 %		3.9 %		4.3 %
	Dividend payout ratio (4)		49 %		46 %		49 %		50 %		52 %
	Common share price (RY on TSX) (12)	$	168.39	$	154.28	$	110.76	$	168.39	$	110.76
	Market capitalization (TSX) (12)		238,188		218,100		155,121		238,188		155,121
Business information (number of)
	Employees (full-time equivalent) (FTE)		94,838		96,165		91,398		94,838		91,398
	Bank branches		1,292		1,344		1,247		1,292		1,247
	Automated teller machines (ATMs)		4,367		4,426		4,341		4,367		4,341
Period average US$ equivalent of C$1.00 (13)		$	0.733	$	0.730	$	0.732	$	0.736	$	0.741
Period-end US$ equivalent of C$1.00		$	0.718	$	0.724	$	0.721	$	0.718	$	0.721


(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, and are included in our Personal Banking, Commercial Banking, Wealth Management and Capital Markets segments. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. For further details on the impacts of the adoption of IFRS 17 including the description of accounting policies selected, refer to Note 2 of our 2024 Annual Consolidated Financial Statements.
(3)	These are non-GAAP measures. For further details, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.
(4)	See the Glossary section of our annual Management's Discussion and Analysis dated December 3, 2024, for the fiscal year ended October 31, 2024, available at www.sedarplus.com, for an explanation of the composition of this measure. Such explanation is incorporated by reference hereto.
(5)	Effective the fourth quarter of 2024, the Personal & Commercial Banking segment became two standalone business segments: Personal Banking and Commercial Banking. With this change, RBC Direct Investing® moved from the previous Personal & Commercial Banking segment to the Wealth Management segment. Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section of our 2024 Annual Report.
(6)	Average amounts are calculated using methods intended to approximate the average of the daily balances for the period.
(7)	The LCR and NSFR are calculated in accordance with OSFI's LAR guideline. LCR is the average for the three months ended for each respective period. For further details, refer to the Liquidity and funding risk section of our 2024 Annual Report.
(8)	Capital ratios and RWA are calculated using OSFI's CAR guideline, the Leverage ratio is calculated using OSFI's Leverage Requirements (LR) guideline, and both the TLAC and TLAC leverage ratios are calculated using OSFI's TLAC guideline. The results for the three months and year ended October 31, 2023 reflect our adoption of the revised CAR and LR guidelines that came into effect in Q2 2023, as further updated on October 20, 2023 as part of OSFI's implementation of the Basel III reforms. The results for the three months ended July 31, 2024 and October 31, 2024 and year ended October 31, 2024 also reflect our adoption of the revised market risk and credit valuation adjustment (CVA) frameworks that came into effect on November 1, 2023. For further details, refer to the Capital management section of our 2024 Annual Report.
(9)	As prior period restatements are not required by OSFI, there was no impact from the adoption of IFRS 17 on regulatory capital, RWA, capital ratios, leverage ratio, TLAC available and TLAC ratios for periods prior to November 1, 2023.
(10)	Represents period-end spot balances.
(11)	AUA includes $15 billion and $6 billion (July 31, 2024 – $15 billion and $6 billion, October 31, 2023 – $13 billion and $7 billion) of securitized residential mortgages and credit card loans, respectively.
(12)	Based on TSX closing market price at period-end.
(13)	Average amounts are calculated using month-end spot rates for the period.

Personal Banking
		As at or for the three months ended
			October 31	July 31			October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)		2024 (1)		2024 (1), (2)		2023 (2)
	Net interest income	$	3,346	$	3,253	$	2,867
	Non-interest income		1,312		1,237		1,142
Total revenue			4,658		4,490		4,009
	PCL on performing assets		124		30		87
	PCL on impaired assets		359		361		287
PCL			483		391		374
Non-interest expense			2,033		1,941		1,781
Income before income taxes			2,142		2,158		1,854
Net income		$	1,579	$	1,586	$	1,366
Revenue by business
	Personal Banking - Canada	$	4,366	$	4,210	$	3,725
	Caribbean & U.S. Banking		292		280		284
Key ratios
	ROE (3)		23.8 %		23.7 %		27.9 %
	NIM		2.49 %		2.45 %		2.35 %
	Efficiency ratio (4)		43.6 %		43.2 %		44.4 %
	Operating leverage (4)		2.1 %		2.5 %		3.4 %
Selected balance sheet information
	Average total assets	$	552,400	$	547,100	$	496,800
	Average total earning assets, net		534,500		528,900		484,200
	Average loans and acceptances, net		525,000		519,400		474,100
	Average deposits		431,000		426,200		363,200
Other information
	AUA (5), (6)	$	255,400	$	250,000	$	205,200
	Average AUA		252,400		244,900		206,800
	AUM (6)		6,400		6,300		5,900
	Number of employees (FTE) (7)		38,642		39,472		37,017
Credit information
	PCL on impaired loans as a % of average net loans and acceptances		0.27 %		0.28 %		0.25 %
Other selected information - Personal Banking - Canada
	Net income	$	1,485	$	1,495	$	1,273
	NIM		2.41 %		2.37 %		2.25 %
	Efficiency ratio		41.8 %		41.8 %		42.7 %
	Operating leverage		2.5 %		2.4 %		2.7 %


(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for the periods ended October 31, 2024 and July 31, 2024. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	Effective the fourth quarter of 2024, the Personal & Commercial Banking segment became two standalone business segments: Personal Banking and Commercial Banking. With this change, RBC Direct Investing moved from Personal & Commercial Banking to the Wealth Management segment. Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section of our 2024 Annual Report.
(3)	Effective November 1, 2023, our attributed capital methodology incorporates leverage requirements to allocate capital to our business segments. For further details on changes to our attributed capital methodology, refer to the How we measure and report our business segments section of our 2024 Annual Report.
(4)	See the Glossary section of our annual Management's Discussion and Analysis dated December 3, 2024, for the fiscal year ended October 31, 2024, available at www.sedarplus.com, for an explanation of the composition of this measure. Such explanation is incorporated by reference hereto.
(5)	AUA includes securitized residential mortgages and credit card loans as at October 31, 2024 of $15 billion and $6 billion, respectively (July 31, 2024 – $15 billion and $6 billion, October 31, 2023 – $13 billion and $7 billion).
(6)	Represents period-end spot balances.
(7)	Includes FTE for all shared services across Personal Banking and Commercial Banking, for which the Non-interest expenses are allocated to both Personal Banking and Commercial Banking.

Q4 2024 vs. Q4 2023

Net income increased $213 million or 16% from a year ago. The inclusion of HSBC Canada results increased net income by $86 million. Excluding HSBC Canada results, net income increased $127 million or 9%, primarily driven by higher net interest income reflecting higher spreads and average volume growth of 6% in Personal Banking - Canada. Higher non-interest income also contributed to the increase. These factors were partially offset by higher PCL and higher non-interest expenses.

Total revenue increased $649 million or 16%, of which $274 million reflects the inclusion of HSBC Canada revenue. The remaining increase of $375 million or 9% was primarily due to higher net interest income, reflecting higher spreads and average volume growth of 9% in deposits and 4% in loans in Personal Banking - Canada. Higher average mutual fund balances driving higher distribution fees also contributed to the increase.

NIM was up 14 bps, mainly due to changes in product mix and the impact of the higher interest rate environment. The inclusion of HSBC Canada also contributed to the increase reflecting the accretion of fair value adjustments. These factors were partially offset by competitive pricing pressures.

PCL increased $109 million or 29%, mainly due to higher provisions on impaired loans largely in our Canadian personal and credit cards portfolios, resulting in an increase of 2 bps in the PCL on impaired loans ratio. Higher provisions on performing loans, mainly driven by unfavourable changes to our macroeconomic forecast, also contributed to the increase.

Non-interest expense increased $252 million or 14%, of which $154 million reflects the inclusion of HSBC Canada non-interest expense. The remaining increase of $98 million or 6% was primarily due to ongoing technology investments, increased operating expenses and staff-related costs, lease exit costs in the current quarter and higher marketing costs, largely associated with new client acquisition campaigns, and higher professional fees.

Q4 2024 vs. Q3 2024

Net income decreased $7 million from last quarter, as higher net interest income reflecting higher spreads and average volume growth of 1% in Personal Banking – Canada was more than offset by higher PCL reflecting higher provisions on performing loans, largely driven by unfavourable changes in credit quality and higher non-interest expenses, reflecting increased operating expenses.

NIM was up 4 bps, mainly due to changes in product mix and the impact of the higher long-term interest rate environment.

Commercial Banking
		As at or for the three months ended
			October 31	July 31			October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)		2024 (1)		2024 (1), (2)		2023 (2)
	Net interest income	$	1,763	$	1,687	$	1,236
	Non-interest income		314		349		329
Total revenue			2,077		2,036		1,565
	PCL on performing assets		66		38		17
	PCL on impaired assets		233		178		61
PCL			299		216		78
Non-interest expense			713		691		562
Income before income taxes			1,065		1,129		925
Net income		$	774	$	817	$	668
Key ratios
	ROE (3)		16.7 %		18.2 %		23.0 %
	NIM		3.89 %		4.06 %		4.31 %
	Efficiency ratio		34.3 %		33.9 %		35.9 %
	Operating leverage		5.8 %		5.1 %		(9.1) %
Selected balance sheet information
	Average total assets	$	186,100	$	182,900	$	133,100
	Average total earning assets, net		180,200		165,300		113,700
	Average loans and acceptances, net		180,600		177,500		131,600
	Average deposits		301,900		299,600		253,100
Other information
	Number of employees (FTE) (4)		1,290		1,299		928
Credit information
	PCL on impaired loans as a % of average net loans and acceptances		0.52 %		0.40 %		0.19 %


(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for the periods ended October 31, 2024 and July 31, 2024. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	Effective the fourth quarter of 2024, the Personal & Commercial Banking segment became two standalone business segments: Personal Banking and Commercial Banking. With this change, RBC Direct Investing moved from Personal & Commercial Banking to the Wealth Management segment. Amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section of our 2024 Annual Report.
(3)	Effective November 1, 2023, our attributed capital methodology incorporates leverage requirements to allocate capital to our business segments. For further details on changes to our attributed capital methodology, refer to the How we measure and report our business segments section of our 2024 Annual Report.
(4)	Excludes FTE for all shared services across Personal Banking and Commercial Banking, for which the Non-interest expenses are allocated to both Personal Banking and Commercial Banking.

Q4 2024 vs. Q4 2023

Net income increased $106 million or 16% from a year ago. The inclusion of HSBC Canada results increased net income by $139 million. Excluding HSBC Canada results, net income decreased $33 million or 5%, as growth in total revenue was more than offset by higher PCL and higher non-interest expenses.

Total revenue increased $512 million or 33%, of which $381 million reflects the inclusion of HSBC Canada revenue. The remaining increase of $131 million or 8% was primarily due to higher net interest income reflecting average volume growth of 8% in deposits and 12% in loans and acceptances, including the impact of the cessation of Bankers' Acceptance-based lending, which was largely offset in non-interest income, and higher spreads. These factors were partially offset by lower non-interest income, primarily in credit fees reflecting the impact of the cessation of Bankers' Acceptance-based lending, which was largely offset in net interest income as noted above.

PCL increased $221 million, mainly due to higher provisions on impaired loans in a few sectors, including the automotive and industrial products sectors, resulting in an increase of 33 bps in the PCL on impaired loans ratio. Higher provisions on performing loans, mainly driven by unfavourable changes in credit quality, also contributed to the increase.

Non-interest expense increased $151 million or 27%, of which $118 million reflects the inclusion of HSBC Canada non-interest expense. The remaining increase of $33 million or 6% was primarily attributable to higher staff-related costs.

Q4 2024 vs. Q3 2024

Net income decreased $43 million or 5% from last quarter, as growth in total revenue was more than offset by higher PCL. Total revenue included higher net interest income, reflecting the impact of the cessation of Bankers' Acceptance-based lending and continued volume growth across all client segments, partially offset by lower non-interest income, primarily in credit fees as noted above. Higher PCL reflected higher provisions on impaired loans in a few sectors, including the automotive and industrial products sectors, partially offset by lower provisions in the real estate and related sector.

Wealth Management
		As at or for the three months ended
				October 31				July 31				October 31
(Millions of Canadian dollars, except number of, percentage amounts and as otherwise noted)			2024 (1)			2024 (1), (2)						2023 (2)
	Net interest income		$	1,282		$		1,245		$		1,228
	Non-interest income			3,904				3,719				3,104
Total revenue				5,186				4,964				4,332
	PCL on performing assets			(57)				(16)				62
	PCL on impaired assets			32				32				69
PCL				(25)				16				131
Non-interest expense				3,981				3,762				3,816
Income before income taxes				1,230				1,186				385
Net income			$	969		$		949		$		272
Revenue by business
	Canadian Wealth Management (2)		$	1,554		$		1,503		$		1,271
	U.S. Wealth Management (including City National)			2,331				2,206				1,867
	U.S. Wealth Management (including City National) (US$ millions)			1,709				1,610				1,369
	Global Asset Management			768				750				674
	International Wealth Management			350				328				338
	Investor Services (3)			183				177				182
Key ratios
	ROE (4)			16.0 %				15.5 %				4.3 %
	NIM			3.31 %				3.24 %				3.09 %
	Pre-tax margin (5)			23.7 %				23.9 %				8.9 %
Selected balance sheet information
	Average total assets		$	177,800		$		177,400		$		179,200
	Average total earning assets, net			153,900				153,100				157,500
	Average loans and acceptances, net			115,100				115,900				115,700
	Average deposits (3)			167,600				164,500				161,300
Other information
	AUA (3), (6)		$	4,685,900		$		4,442,600		$		4,110,200
	U.S. Wealth Management (including City National) (6)			930,000				894,200				752,700
	U.S. Wealth Management (including City National) (US$ millions) (6)			668,100				647,800				542,800
	Investor Services (6)			2,681,400				2,499,600				2,488,600
	AUM (6)			1,332,500				1,290,600				1,058,900
	Average AUA (3)			4,621,700				4,396,700				4,188,200
	Average AUM			1,289,500				1,263,500				1,070,100
	PCL on impaired loans as a % of average net loans and acceptances			0.11 %				0.11 %				0.24 %
	Number of employees (FTE)			25,672				25,540				25,278
	Number of advisors (7)			6,116				6,092				6,169
Adjusted results (8)
	Total revenue - adjusted		$	5,186		$		4,964		$		4,574
	Income before income taxes - adjusted			1,230				1,186				627
	Net income - adjusted			969				949				449
	U.S. Wealth Management (including City National) revenue - adjusted			2,331				2,206				2,109
	U.S. Wealth Management (including City National) revenue (US$ millions) - adjusted			1,709				1,610				1,544
Key ratios - adjusted (8)
	ROE - adjusted			16.0 %				15.5 %				7.2 %
	Pre-tax margin - adjusted (5)			23.7 %				23.9 %				13.7 %
					For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items					Q4 2024 vs				Q4 2024 vs
(Millions of Canadian dollars, except percentage amounts)					Q4 2023				Q3 2024
Increase (decrease):
	Total revenue				$		26		$		-
	PCL						-				(1)
	Non-interest expense						22				2
	Net income						5				-
Percentage change in average US$ equivalent of C$1.00							0 %				0 %
Percentage change in average British pound equivalent of C$1.00							(6) %				(2) %
Percentage change in average Euro equivalent of C$1.00							(3) %				(2) %


(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for the periods ended October 31 2024, and July 31, 2024. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	Effective the fourth quarter of 2024, RBC Direct Investing moved from Personal & Commercial Banking to the Wealth Management segment. Comparative amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section of our 2024 Annual Report.
(3)	We completed the sale of RBC Investor Services® operations in Europe, Jersey and the U.K to CACEIS on July 3, 2023, December 1, 2023 and March 25, 2024, respectively (the sale of RBC Investor Services operations). For further details, refer to Note 6 of our 2024 Annual Consolidated Financial Statements.
(4)	Effective November 1, 2023, our attributed capital methodology incorporates leverage requirements to allocate capital to our business segments. For further details on changes to our attributed capital methodology, refer to How we measure and report our business segments section of our 2024 Annual Report.
(5)	Pre-tax margin is defined as Income before income taxes divided by Total revenue. Adjusted pre-tax margin is calculated in the same manner, using adjusted income before income taxes and adjusted total revenue.
(6)	Represents period-end spot balances.
(7)	Represents client-facing advisors across all our Wealth Management businesses.
(8)	These are non-GAAP measures and non-GAAP ratios. During the three months ended October 31, 2023, we recognized impairment losses of $177 million (pre-tax $242 million) on our interest in an associated company. For further details on this specified item, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

Q4 2024 vs. Q4 2023

Net income increased $697 million from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. The prior year reflected the impact of the specified item relating to impairment losses on our interest in an associated company, as well as legal provisions. Lower PCL also contributed to the increase. Adjusted net income²⁰ increased $520 million.

Total revenue increased $854 million or 20%, mainly due to higher fee-based client assets reflecting market appreciation and net sales. Higher transactional revenue, mainly driven by client activity, also contributed to the increase. The prior year reflected the impact of the specified item relating to impairment losses on our interest in an associated company. Adjusted total revenue²⁰ increased $612 million or 13%.

PCL was $(25) million compared to $131 million last year, mainly attributable to releases of provisions on performing loans in the current quarter in U.S. Wealth Management (including City National), largely driven by favourable changes to our macroeconomic forecast.

Non-interest expense increased $165 million or 4%, primarily driven by higher variable compensation commensurate with increased commissionable revenue. This factor was partially offset by the impact of legal provisions in the prior year.

Q4 2024 vs. Q3 2024

Insurance
		As at or for the three months ended
		October 31			July 31			October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)		2024			2024			2023 (1), (2)
Non-interest income
	Insurance service result		$	173	$	214	$	137
	Insurance investment result			66		28		64
	Other income			39		43		47
Total revenue				278		285		248
PCL				-		1		-
Non-interest expense				75		70		89
Income before income taxes				203		214		159
Net income			$	162	$	170	$	97
Key ratios
	ROE			31.7 %		33.6 %		17.1 %
Selected balance sheet information
	Average total assets		$	28,300	$	27,200	$	24,800
Other information
	Premiums and deposits (3)		$	1,502	$	1,546	$	1,297
	Net insurance contract liabilities (4)			21,643		20,396		18,345
	Contractual service margin (CSM) (5)			2,137		2,155		1,956
	Number of employees (FTE)			2,788		2,820		2,781


(1)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.
(2)	The 2023 restated results may not be fully comparable to the current period as we were not managing our asset and liability portfolios under IFRS 17.
(3)	Premiums and deposits include premiums on risk-based individual and group insurance and annuity products as well as segregated fund deposits, consistent with insurance industry practices.
(4)	Includes insurance contract liabilities net of insurance contract assets.
(5)	Represents the CSM of insurance contract assets and liabilities net of reinsurance contract held assets and liabilities. For insurance contracts, the CSM represents the unearned profit (net inflows) for providing insurance coverage. For reinsurance contracts held, the CSM represents the net cost or net gain of purchasing reinsurance. The CSM is not applicable to contracts measured using the premium allocation approach.

Q4 2024 vs. Q4 2023

Net income increased $65 million or 67% from last year, mainly due to higher insurance service result, primarily driven by business growth across the majority of our products, partially offset by less favourable claims experience primarily in disability products. The results in the prior period are not fully comparable as we were not managing our asset and liability portfolios under IFRS 17.

Total revenue increased $30 million or 12%, primarily due to higher insurance service result, as noted above.

Non-interest expense decreased $14 million or 16%, largely reflecting higher investments in technology in the prior period and lower staff-related costs, including severance.

Q4 2024 vs. Q3 2024

Net income decreased $8 million or 5% from last quarter, primarily due to lower insurance service result reflecting the impact of adjustments relating to deferred acquisition expenses and unfavourable annual actuarial assumption updates in the current quarter. These factors were partially offset by higher insurance investment result, primarily attributable to favourable investment-related experience.

________________________________________________

²⁰ These are non-GAAP measures. For further information, including a reconciliation, refer to the Key performance and non-GAAP measures section on pages 12 to 15 of this Earnings Release.

Capital Markets
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)			2024 (1)		2024 (1)		2023
	Net interest income (2)	$	941	$	817	$	729
	Non-interest income (2)		1,962		2,187		1,835
Total revenue (2)			2,903		3,004		2,564
	PCL on performing assets		68		(12)		25
	PCL on impaired assets		14		50		112
PCL			82		38		137
Non-interest expense			1,897		1,755		1,678
Income before income taxes			924		1,211		749
Net income		$	985	$	1,172	$	987
Revenue by business
	Corporate & Investment Banking (3)	$	1,589	$	1,645	$	1,461
	Global Markets (3)		1,349		1,414		1,204
	Other		(35)		(55)		(101)
Key ratios
	ROE (4)		11.8 %		14.1 %		14.1 %
Selected balance sheet information
	Average total assets	$	1,099,000	$	1,089,600	$	1,140,600
	Average trading securities		173,700		176,400		187,400
	Average loans and acceptances, net		148,700		152,200		143,100
	Average deposits		301,100		298,000		277,900
Other information
	Number of employees (FTE)		7,424		7,914		7,253
Credit information
	PCL on impaired loans as a % of average net loans and acceptances		0.04 %		0.13 %		0.31 %

		For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items		Q4 2024 vs		Q4 2024 vs
(Millions of Canadian dollars, except percentage amounts)		Q4 2023		Q3 2024
Increase (decrease):
	Total revenue	$	25	$	2
	PCL		5		1
	Non-interest expense		25		8
	Net income		(4)		(6)
Percentage change in average US$ equivalent of C$1.00			0 %		0 %
Percentage change in average British pound equivalent of C$1.00			(6) %		(2) %
Percentage change in average Euro equivalent of C$1.00			(3) %		(2) %


(1)	On March 28, 2024, we completed the HSBC Canada transaction. HSBC Canada results have been consolidated from the closing date, which impacted results, balances and ratios for the periods ended October 31 2024 and July 31, 2024. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(2)	The taxable equivalent basis (teb) adjustment for the three months ended October 31, 2024 was $13 million (July 31, 2024 – $231 million, October 31, 2023 – $117 million). For further discussion, refer to the How we measure and report our business segments section of our 2024 Annual Report.
(3)	Effective the third quarter of 2024, we moved the majority of our debt origination business from Global Markets to Corporate & Investment Banking. Comparative amounts have been revised from those previously presented.
(4)	Effective November 1, 2023, our attributed capital methodology incorporates leverage requirements to allocate capital to our business segments. For further details on changes to our attributed capital methodology, refer to the How we measure and report our business segments section of our 2024 Annual Report.

Q4 2024 vs. Q4 2023

Net income remained relatively flat from a year ago, as higher revenue in Global Markets and Corporate & Investment Banking was more than offset by higher taxes reflecting favourable tax adjustments in the prior year and the impact of legal provisions in the current period.

Total revenue increased $339 million or 13%, mainly due to higher debt origination across all regions, higher foreign exchange trading revenue in North America and lower residual funding and capital costs. These factors were partially offset by lower fixed income trading revenue primarily in North America.

PCL decreased $55 million or 40%, mainly due to lower provisions on impaired loans in a few sectors, including the telecommunication and media and transportation sectors, resulting in a decrease of 27 bps in the PCL on impaired loans ratio. This was partially offset by higher provisions on performing loans mainly driven by unfavourable changes in credit quality, largely offset by favourable changes to our macroeconomic forecast.

Non-interest expense increased $219 million or 13%, reflecting higher legal provisions, ongoing technology investments and the impact of foreign exchange translation.

Q4 2024 vs. Q3 2024

Net income decreased $187 million or 16% from last quarter, mainly due to the impact of legal provisions in the current period, lower fixed income trading in Europe and Canada, as well as the impact of elevated municipal banking activity in the prior quarter. These factors were partially offset by lower taxes reflecting changes in earnings mix.

Corporate Support
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars)			2024		2024		2023
	Net interest income (loss) (1)	$	339	$	325	$	482
	Non-interest income (loss) (1), (2)		(367)		(473)		(515)
Total revenue (1), (2)			(28)		(148)		(33)
PCL			1		(3)		-
Non-interest expense (2)			320		380		133
Income (loss) before income taxes (1)			(349)		(525)		(166)
Income taxes (recoveries) (1)			(102)		(317)		(715)
Net income (loss)		$	(247)	$	(208)	$	549


(1)	Teb adjusted.
(2)	Revenue for the three months ended October 31, 2024 included gains of $47 million (July 31, 2024 – gains of $166 million, October 31, 2023 – losses of $150 million) on economic hedges of our U.S. Wealth Management (including City National) share-based compensation plans, and non-interest expense included $50 million (July 31, 2024 – $157 million, October 31, 2023 – $(128) million) of share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. Wealth Management (including City National) share-based compensation plans.

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

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

The teb amount for the three months ended October 31, 2024 was $13 million, compared to $231 million in the prior quarter and $117 million in the same quarter last year. For further discussion, refer to the How we measure and report our business segments section of our 2024 Annual Report.

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

Q4 2024

Net loss was $247 million, primarily due to the after-tax impact of the HSBC Canada transaction and integration costs of $134 million, which is treated as a specified item. Residual and unallocated costs also contributed to the net loss.

Q3 2024

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

Q4 2023

Net income was $549 million, primarily due to a specified item relating to certain deferred tax adjustments of $578 million, and a favourable impact from tax-related items. These factors were partially offset by the after-tax impact of the HSBC Canada transaction and integration costs of $167 million, which is treated as a specified item.

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

Key performance and non-GAAP measures

Performance measures

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

Return on common equity

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

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

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

The following table provides a summary of our ROE calculations:

Calculation of ROE

For the three months ended

For the year ended

October 31, 2024

(Millions of Canadian dollars, except

percentage amounts)

Personal

Commercial

Wealth

Capital

Corporate

Support

Banking (1)

Management (1)

Insurance

Markets (1)

Total

Net income available to common

shareholders

1,554

761

950

160

961

(258)

4,128

15,908

Total average common equity (2), (3)

26,000

18,100

23,550

2,000

32,500

12,600

114,750

110,650

ROE

23.8 %

16.7 %

16.0 %

31.7 %

11.8 %

n.m.

14.3 %

14.4 %


(1)	Effective November 1, 2023, our attributed capital methodology incorporates leverage requirements to allocate capital to our business segments. For further details on changes to our attributed capital methodology, refer to the How we measure and report our business segments section of our 2024 Annual Report.
(2)	Total average common equity represents rounded figures.
(3)	The amounts for the segments are referred to as attributed capital.
n.m.	not meaningful

Non-GAAP measures

We believe that certain non-GAAP measures (including non-GAAP ratios) 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 months and year ended October 31, 2024 with the corresponding periods in the prior year and the three months ended July 31, 2024. 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.

Pre-provision, pre-tax earnings

We use pre-provision, pre-tax earnings to assess our ability to generate sustained earnings growth outside of credit losses, which are impacted by the cyclical nature of the credit cycle. The following table provides a reconciliation of our reported results to pre-provision, pre-tax earnings and illustrates the calculation of pre-provision, pre-tax earnings presented:

		For the three months ended							For the year ended
				October 31		July 31		October 31			October 31		October 31
(Millions of Canadian dollars)				2024		2024		2023 (1)			2024		2023 (1)
	Net income		$	4,222	$	4,486	$	3,939		$	16,240	$	14,612
	Add: Income taxes			993		887		(33)			3,622		3,571
	Add: PCL			840		659		720			3,232		2,468
Pre-provision, pre-tax earnings (2)			$	6,055	$	6,032	$	4,626		$	23,094	$	20,651


(1)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.
(2)	For the three months ended October 31, 2024, pre-provision, pre-tax earnings excluding HSBC Canada results of $5,618 million is calculated as pre-provision, pre-tax earnings of $6,055 million less net income of $265 million, income taxes of $101 million, and PCL of $71 million. For the year ended October 31, 2024, pre-provision, pre-tax earnings excluding HSBC Canada results of $22,099 million is calculated as pre-provision, pre-tax earnings of $23,094 million less net income of $453 million, income taxes of $171 million, and PCL of $371 million.

Adjusted results

We believe that providing adjusted results as well as certain measures and ratios excluding the impact of the specified items discussed below and amortization of acquisition-related intangibles enhances comparability with prior periods and enables readers to better assess trends in the underlying businesses.

Our results for all reported periods were adjusted for the following specified item:

HSBC Canada transaction and integration costs.

Our results for the year ended October 31, 2024 were adjusted for the following specified item:

Management of closing capital volatility related to the HSBC Canada transaction. For further details, refer to the Key corporate events section of our 2024 Annual Report.

Our results for the three months and year ended October 31, 2023 were adjusted for the following specified items:

Impairment losses on our interest in an associated company.
Certain deferred tax adjustments: reflects the recognition of deferred tax assets relating to realized losses in City National associated with the intercompany sale of certain debt securities.

Our results for the year ended October 31, 2023 were adjusted for the following specified item:

Canada Recovery Dividend (CRD) and other tax related adjustments: reflects the impact of the CRD and the 1.5% increase in the Canadian corporate tax rate applicable to fiscal 2022, net of deferred tax adjustments, which were announced in the Government of Canada's 2022 budget and enacted in the first quarter of 2023.

Additional information about ROE and other key performance and non-GAAP measures can be found under the Key performance and non-GAAP measures section of our 2024 Annual Report.

Consolidated results, reported and adjusted

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

		As at or for the three months ended						For the year ended
			October 31		July 31		October 31	October 31		October 31
(Millions of Canadian dollars, except per share, number of and percentage amounts)		2024		2024			2023 (1)		2024		2023 (1)
	Total revenue	$	15,074	$	14,631	$	12,685	$	57,344	$	51,464
	PCL		840		659		720		3,232		2,468
	Non-interest expense		9,019		8,599		8,059		34,250		30,813
	Income before income taxes		5,215		5,373		3,906		19,862		18,183
	Income taxes		993		887		(33)		3,622		3,571
Net income		$	4,222	$	4,486	$	3,939	$	16,240	$	14,612
Net income available to common shareholders		$	4,128	$	4,377	$	3,870	$	15,908	$	14,369
Average number of common shares (thousands)			1,414,460		1,414,194		1,399,337		1,411,903		1,391,020
Basic earnings per share (in dollars)		$	2.92	$	3.09	$	2.77	$	11.27	$	10.33
Average number of diluted common shares (thousands)			1,416,829		1,416,149		1,400,465		1,413,755		1,392,529
Diluted earnings per share (in dollars)		$	2.91	$	3.09	$	2.76	$	11.25	$	10.32
ROE			14.3 %		15.5 %		14.9 %		14.4 %		14.3 %
Effective income tax rate			19.0 %		16.5 %		(0.8) %		18.2 %		19.6 %
Total adjusting items impacting net income (before-tax)		$	298	$	314	$	537	$	1,552	$	963
	Specified item: HSBC Canada transaction and integration costs (2), (3)		177		160		203		960		380
	Specified item: Management of closing capital volatility related to the HSBC Canada transaction (2), (4)		-		-		-		131		-
	Specified item: Impairment losses on our interest in an associated company (5)		-		-		242		-		242
	Amortization of acquisition-related intangibles (6)		121		154		92		461		341
Total income taxes for adjusting items impacting net income		$	81	$	73	$	703	$	362	$	(254)
	Specified item: HSBC Canada transaction and integration costs (2)		43		35		36		201		78
	Specified item: Management of closing capital volatility related to the HSBC Canada transaction (2), (4)		-		-		-		36		-
	Specified item: Certain deferred tax adjustments (2)		-		-		578		-		578
	Specified item: Impairment losses on our interest in an associated company (5)		-		-		65		-		65
	Specified item: CRD and other tax related adjustments (2), (7)		-		-		-		-		(1,050)
	Amortization of acquisition-related intangibles (6)		38		38		24		125		75
Adjusted results
	Income before income taxes - adjusted	$	5,513	$	5,687	$	4,443	$	21,414	$	19,146
	Income taxes - adjusted		1,074		960		670		3,984		3,317
	Net income - adjusted		4,439		4,727		3,773		17,430		15,829
	Net income available to common shareholders - adjusted (8)		4,345		4,618		3,704		17,098		15,586
Average number of common shares (thousands)			1,414,460		1,414,194		1,399,337		1,411,903		1,391,020
Basic earnings per share (in dollars) - adjusted		$	3.07	$	3.26	$	2.65	$	12.11	$	11.21
Average number of diluted common shares (thousands)			1,416,829		1,416,149		1,400,465		1,413,755		1,392,529
Diluted earnings per share (in dollars) - adjusted		$	3.07	$	3.26	$	2.65	$	12.09	$	11.19
ROE - adjusted			15.1 %		16.4 %		14.2 %		15.5 %		15.5 %
Effective income tax rate - adjusted			19.5 %		16.9 %		15.1 %		18.6 %		17.3 %


(1)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.
(2)	These amounts have been recognized in Corporate Support.
(3)	As at October 31, 2024, the cumulative HSBC Canada transaction and integration costs (before-tax) incurred were $1.3 billion and it is currently estimated that an additional $0.2 billion will be incurred, for a total of approximately $1.5 billion.
(4)	For the year ended October 31, 2024, we included management of closing capital volatility related to the acquisition of HSBC Canada as a specified item for non-GAAP measures and non-GAAP ratios. For further details, refer to the Key corporate events section of our 2024 Annual Report.
(5)	During the fourth quarter of 2023, we recognized impairment losses on our interest in an associated company. This amount was recognized in Wealth Management.
(6)	Represents the impact of amortization of acquisition-related intangibles (excluding amortization of software), and any goodwill impairment.
(7)	The impact of the CRD and other tax related adjustments does not include $0.2 billion recognized in other comprehensive income.
(8)	See the Glossary section of our annual Management's Discussion and Analysis dated December 3, 2024, for the fiscal year ended October 31, 2024, available at www.sedarplus.com, for an explanation of the composition of this measure. Such explanation is incorporated by reference hereto.

Segment results, reported and adjusted

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

Wealth Management

			For the three months ended							For the year ended
			October 31, 2023 (1), (2)							October 31, 2023 (1), (2)
				Item excluded							Item excluded
					Specified							Specified
(Millions of Canadian dollars, except percentage amounts and as otherwise noted)		As reported			item (3)		Adjusted		As reported			item (3)		Adjusted
Total revenue		$	4,332		$	242	$	4,574	$	18,161		$	242	$	18,403
PCL			131			-		131		328			-		328
Non-interest expense			3,816			-		3,816		14,387			-		14,387
Income before income taxes			385			242		627		3,446			242		3,688
Net income		$	272		$	177	$	449	$	2,693		$	177	$	2,870
Net income available to common shareholders		$	256		$	177	$	433	$	2,637		$	177	$	2,814
Total average common equity (4), (5)			23,750					23,750		24,200					24,200
Revenue by business
	U.S. Wealth Management (including City National)	$	1,867		$	242	$	2,109	$	7,969		$	242	$	8,211
	U.S. Wealth Management (including City National) (US$ millions)		1,369			175		1,544		5,908			175		6,083
Key ratios
	ROE		4.3 %					7.2 %		10.9 %					11.6 %
	Pre-tax margin (6)		8.9 %					13.7 %		19.0 %					20.0 %


(1)	There were no specified items for the three months and year ended October 31, 2024.
(2)	Certain amounts have been revised from those previously presented to conform to our new basis of segment presentation. For further details, refer to the About Royal Bank of Canada section of our 2024 Annual Report.
(3)	Impairment losses on our interest in an associated company.
(4)	Total average common equity represents rounded figures.
(5)	The amounts for the segments are referred to as attributed capital.
(6)	Pre-tax margin is defined as Income before income taxes divided by Total revenue. Adjusted pre-tax margin is calculated in the same manner, using adjusted income before income taxes and adjusted total revenue.

Consolidated Balance Sheets
		As at
		October 31			July 31	October 31
(Millions of Canadian dollars)		2024 (1)		2024 (2)		2023 (1), (3)

Assets
Cash and due from banks		$	56,723	$	55,230	$	61,989

Interest-bearing deposits with banks			66,020		57,409		71,086

Securities
	Trading		183,300		180,441		190,151
	Investment, net of applicable allowance		256,618		250,744		219,579
			439,918		431,185		409,730

Assets purchased under reverse repurchase agreements and securities borrowed			350,803		325,401		340,191

Loans
	Retail		626,978		619,452		569,951
	Wholesale		360,439		358,143		287,826
			987,417		977,595		857,777
	Allowance for loan losses		(6,037)		(5,798)		(5,004)
			981,380		971,797		852,773
Other
	Customers' liability under acceptances		35		677		21,695
	Derivatives		150,612		115,659		142,450
	Premises and equipment		6,852		6,943		6,749
	Goodwill		19,286		19,125		12,594
	Other intangibles		7,798		8,032		5,903
	Other assets		92,155		84,649		81,371
			276,738		235,085		270,762
Total assets		$	2,171,582	$	2,076,107	$	2,006,531

Liabilities and equity
Deposits
	Personal	$	522,139	$	510,542	$	441,946
	Business and government		839,670		809,380		745,075
	Bank		47,722		41,343		44,666
			1,409,531		1,361,265		1,231,687
Other
	Acceptances		35		708		21,745
	Obligations related to securities sold short		35,286		33,972		33,651
	Obligations related to assets sold under repurchase agreements and securities loaned		305,321		304,373		335,238
	Derivatives		163,763		126,884		142,629
	Insurance contract liabilities		22,231		21,153		19,026
	Other liabilities		94,677		89,823		96,022
			621,313		576,913		648,311

Subordinated debentures			13,546		13,437		11,386
Total liabilities			2,044,390		1,951,615		1,891,384
Equity attributable to shareholders
	Preferred shares and other equity instruments		9,031		9,492		7,314
	Common shares		20,952		20,786		19,167
	Retained earnings		88,608		86,065		81,715
	Other components of equity		8,498		8,048		6,852
			127,089		124,391		115,048
Non-controlling interests			103		101		99
Total equity			127,192		124,492		115,147
Total liabilities and equity		$	2,171,582	$	2,076,107	$	2,006,531


(1)	Derived from audited financial statements.
(2)	Derived from unaudited financial statements.
(3)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.

Consolidated Statements of Income
			For the three months ended					For the year ended
		October 31		July 31		October 31		October 31		October 31
(Millions of Canadian dollars, except per share amounts)		2024 (1)		2024 (1)		2023 (1), (2)		2024 (3)		2023 (2), (3)

Interest and dividend income
	Loans	$	14,405	$	14,433	$	11,863	$	54,040	$	43,463
	Securities		4,438		4,482		4,580		17,668		14,512
	Assets purchased under reverse repurchase agreements and securities borrowed		6,257		6,632		6,428		27,121		22,164
	Deposits and other		1,398		1,543		1,631		6,122		6,852
			26,498		27,090		24,502		104,951		86,991

Interest expense
	Deposits and other		12,031		12,432		10,476		47,256		36,679
	Other liabilities		6,603		7,124		7,299		28,967		24,517
	Subordinated debentures		193		207		185		775		666
			18,827		19,763		17,960		76,998		61,862
Net interest income			7,671		7,327		6,542		27,953		25,129

Non-interest income
	Insurance service result		173		214		137		777		703
	Insurance investment result		66		28		64		294		156
	Trading revenue		383		507		408		2,327		2,392
	Investment management and custodial fees		2,501		2,382		2,106		9,325		8,344
	Mutual fund revenue		1,189		1,151		1,014		4,437		4,063
	Securities brokerage commissions		428		413		363		1,660		1,463
	Service charges		596		587		548		2,294		2,099
	Underwriting and other advisory fees		656		676		563		2,672		2,005
	Foreign exchange revenue, other than trading		301		292		248		1,142		1,292
	Card service revenue		332		324		302		1,273		1,240
	Credit fees		358		405		411		1,592		1,489
	Net gains on investment securities		13		28		2		170		193
	Income (loss) from joint ventures and associates		11		(57)		(223)		(16)		(219)
	Other		396		354		200		1,444		1,115
			7,403		7,304		6,143		29,391		26,335
Total revenue			15,074		14,631		12,685		57,344		51,464
Provision for credit losses			840		659		720		3,232		2,468

Non-interest expense
	Human resources		5,423		5,406		4,666		21,083		18,853
	Equipment		674		629		612		2,537		2,381
	Occupancy		514		443		401		1,805		1,619
	Communications		348		342		344		1,369		1,261
	Professional fees		657		547		692		2,525		2,171
	Amortization of other intangibles		398		426		357		1,549		1,471
	Other		1,005		806		987		3,382		3,057
			9,019		8,599		8,059		34,250		30,813
Income before income taxes			5,215		5,373		3,906		19,862		18,183
Income taxes			993		887		(33)		3,622		3,571
Net income		$	4,222	$	4,486	$	3,939	$	16,240	$	14,612
Net income attributable to:
	Shareholders	$	4,219	$	4,483	$	3,937	$	16,230	$	14,605
	Non-controlling interests		3		3		2		10		7
		$	4,222	$	4,486	$	3,939	$	16,240	$	14,612
Basic earnings per share (in dollars)		$	2.92	$	3.09	$	2.77	$	11.27	$	10.33
Diluted earnings per share (in dollars)			2.91		3.09		2.76		11.25		10.32
Dividends per common share (in dollars)			1.42		1.42		1.35		5.60		5.34


(1)	Derived from unaudited financial statements.
(2)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.
(3)	Derived from audited financial statements.

Consolidated Statements of Comprehensive Income
			For the three months ended						For the year ended
			October 31		July 31		October 31		October 31		October 31
(Millions of Canadian dollars)			2024 (1)			2024 (1)	2023 (1), (2)		2024 (3)		2023 (2), (3)

Net income			$	4,222	$	4,486	$	3,939	$	16,240	$	14,612

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		(9)		243		(541)		1,104		(14)
		Provision for credit losses recognized in income		(1)		-		(11)		(1)		(14)
		Reclassification of net losses (gains) on debt securities and loans at fair value through other
		comprehensive income to income		(26)		(22)		3		(140)		(131)
				(36)		221		(549)		963		(159)
	Foreign currency translation adjustments
		Unrealized foreign currency translation gains (losses)		801		548		3,444		1,029		2,148
		Net foreign currency translation gains (losses) from hedging activities		(356)		(253)		(1,383)		(514)		(1,208)
		Reclassification of losses (gains) on foreign currency translation to income		-		-		-		-		(160)
		Reclassification of losses (gains) on net investment hedging activities to income		-		-		-		1		146
				445		295		2,061		516		926
	Net change in cash flow hedges
		Net gains (losses) on derivatives designated as cash flow hedges		288		359		797		338		216
		Reclassification of losses (gains) on derivatives designated as cash flow hedges to income		(247)		(271)		67		(827)		146
				41		88		864		(489)		362
Items that will not be reclassified subsequently to income:
	Remeasurement gains(losses) on employee benefit plans			348		37		(132)		531		(344)
	Net gains(losses) from fair value changes due to credit risk on financial liabilities designated at fair
		value through profit or loss		20		(47)		299		(1,041)		(576)
	Net gains (losses) on equity securities designated at fair value through other comprehensive
		income		41		2		26		117		44
				409		(8)		193		(393)		(876)
Total other comprehensive income (loss), net of taxes				859		596		2,569		597		253
Total comprehensive income (loss)			$	5,081	$	5,082	$	6,508	$	16,837	$	14,865
Total comprehensive income attributable to:
	Shareholders		$	5,078	$	5,079	$	6,501	$	16,827	$	14,856
	Non-controlling interests			3		3		7		10		9
			$	5,081	$	5,082	$	6,508	$	16,837	$	14,865


(1)	Derived from unaudited financial statements.
(2)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.
(3)	Derived from audited financial statements.

Consolidated Statements of Changes in Equity

			For the three months ended October 31, 2024 (1)
							Treasury - preferred shares and other equity instruments						Other components of equity
			Preferred shares and other equity instruments						Treasury - common shares				FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non-controlling interests
					Common shares						Retained earnings														Total equity
(Millions of Canadian dollars)					Common shares						Retained earnings														Total equity
Balance at beginning of period			$	9,520	$	20,977	$	(28)	$	(191)	$	86,065	$	(861)	$	6,683	$	2,226	$	8,048	$	124,391	$	101	$	124,492
Changes in equity
	Issues of share capital and other equity instruments			-		42		-		-		-		-		-		-		-		42		-		42
	Common shares purchased for cancellation			-		(6)		-		-		(61)		-		-		-		-		(67)		-		(67)
	Redemption of preferred shares and other equity
		instruments		(500)		-		-		-		-		-		-		-		-		(500)		-		(500)
	Sales of treasury shares and other equity instruments			-		-		178		1,524		-		-		-		-		-		1,702		-		1,702
	Purchases of treasury shares and other equity
		instruments		-		-		(139)		(1,394)		-		-		-		-		-		(1,533)		-		(1,533)
	Share-based compensation awards			-		-		-		-		63		-		-		-		-		63		-		63
	Dividends on common shares			-		-		-		-		(2,010)		-		-		-		-		(2,010)		-		(2,010)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(91)		-		-		-		-		(91)		(1)		(92)
	Other			-		-		-		-		14		-		-		-		-		14		-		14
	Net income			-		-		-		-		4,219		-		-		-		-		4,219		3		4,222
	Total other comprehensive income (loss), net of taxes			-		-		-		-		409		(36)		445		41		450		859		-		859
Balance at end of period			$	9,020	$	21,013	$	11	$	(61)	$	88,608	$	(897)	$	7,128	$	2,267	$	8,498	$	127,089	$	103	$	127,192

			For the three months ended October 31, 2023 (1), (2)
a							Treasury - preferred shares and other equity instruments						Other components of equity
			Preferred shares and other equity instruments						Treasury - common shares				FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non-controlling interests
					Common shares						Retained earnings														Total equity
(Millions of Canadian dollars)					Common shares						Retained earnings														Total equity
Balance at beginning of period			$	7,323	$	18,670	$	7	$	(158)	$	79,590	$	(1,967)	$	4,556	$	1,892	$	4,481	$	109,913	$	95	$	110,008
Changes in equity
	Issues of share capital and other equity instruments			-		728		-		-		-		-		-		-		-		728		-		728
	Common shares purchased for cancellation			-		-		-		-		-		-		-		-		-		-		-		-
	Redemption of preferred shares and other equity
		instruments		-		-		-		-		-		-		-		-		-		-		-		-
	Sales of treasury shares and other equity instruments			-		-		54		699		-		-		-		-		-		753		-		753
	Purchases of treasury shares and other equity
		instruments		-		-		(70)		(772)		-		-		-		-		-		(842)		-		(842)
	Share-based compensation awards			-		-		-		-		-		-		-		-		-		-		-		-
	Dividends on common shares			-		-		-		-		(1,893)		-		-		-		-		(1,893)		-		(1,893)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(67)		-		-		-		-		(67)		(3)		(70)
	Other			-		-		-		-		(45)		-		-		-		-		(45)		-		(45)
	Net income			-		-		-		-		3,937		-		-		-		-		3,937		2		3,939
	Total other comprehensive income (loss), net of taxes			-		-		-		-		193		(549)		2,056		864		2,371		2,564		5		2,569
Restated balance at end of period			$	7,323	$	19,398	$	(9)	$	(231)	$	81,715	$	(2,516)	$	6,612	$	2,756	$	6,852	$	115,048	$	99	$	115,147


(1)	Derived from unaudited financial statements.
(2)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.

			For the year ended October 31, 2024 (1)
							Treasury - preferred shares and other equity instruments						Other components of equity
			Preferred shares and other equity instruments						Treasury - common shares				FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non-controlling interests
					Common shares						Retained earnings														Total equity
(Millions of Canadian dollars)					Common shares						Retained earnings														Total equity
Balance at beginning of period			$	7,323	$	19,398	$	(9)	$	(231)	$	81,715	$	(2,516)	$	6,612	$	2,756	$	6,852	$	115,048	$	99	$	115,147
Transition adjustment				-		-		-		-		(656)		656		-		-		656		-		-		-
Restated balance at beginning of period			$	7,323	$	19,398	$	(9)	$	(231)	$	81,059	$	(1,860)	$	6,612	$	2,756	$	7,508	$	115,048	$	99	$	115,147
Changes in equity
	Issues of share capital and other equity instruments			2,720		1,628		-		-		(18)		-		-		-		-		4,330		-		4,330
	Common shares purchased for cancellation			-		(13)		-		-		(127)		-		-		-		-		(140)		-		(140)
	Redemption of preferred shares and other equity
		instruments		(1,023)		-		-		-		2		-		-		-		-		(1,021)		-		(1,021)
	Sales of treasury shares and other equity instruments			-		-		1,245		5,472		-		-		-		-		-		6,717		-		6,717
	Purchases of treasury shares and other equity
		instruments		-		-		(1,225)		(5,302)		-		-		-		-		-		(6,527)		-		(6,527)
	Share-based compensation awards			-		-		-		-		69		-		-		-		-		69		-		69
	Dividends on common shares			-		-		-		-		(7,916)		-		-		-		-		(7,916)		-		(7,916)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(322)		-		-		-		-		(322)		(6)		(328)
	Other			-		-		-		-		24		-		-		-		-		24		-		24
	Net income			-		-		-		-		16,230		-		-		-		-		16,230		10		16,240
	Total other comprehensive income (loss), net of taxes			-		-		-		-		(393)		963		516		(489)		990		597		-		597
Balance at end of period			$	9,020	$	21,013	$	11	$	(61)	$	88,608	$	(897)	$	7,128	$	2,267	$	8,498	$	127,089	$	103	$	127,192

			For the year ended October 31, 2023 (1), (2)
							Treasury - preferred shares and other equity instruments						Other components of equity
			Preferred shares and other equity instruments						Treasury - common shares				FVOCI securities and loans		Foreign currency translation		Cash flow hedges		Total other components of equity		Equity attributable to shareholders		Non- controlling interests
					Common shares						Retained earnings														Total equity
(Millions of Canadian dollars)					Common shares						Retained earnings														Total equity
Balance at beginning of period			$	7,323	$	17,318	$	(5)	$	(334)	$	78,037	$	(2,357)	$	5,688	$	2,394	$	5,725	$	108,064	$	111	$	108,175
Transition adjustment				-		-		-		-		(2,359)		-		-		-		-		(2,359)		-		(2,359)
Restated balance at beginning of period			$	7,323	$	17,318	$	(5)	$	(334)	$	75,678	$	(2,357)	$	5,688	$	2,394	$	5,725	$	105,705	$	111	$	105,816
Changes in equity
	Issues of share capital and other equity instruments			-		2,080		-		-		1		-		-		-		-		2,081		-		2,081
	Common shares purchased for cancellation			-		-		-		-		-		-		-		-		-		-		-		-
	Redemption of preferred shares and other equity
		instruments		-		-		-		-		-		-		-		-		-		-		-		-
	Sales of treasury shares and other equity instruments			-		-		515		3,659		-		-		-		-		-		4,174		-		4,174
	Purchases of treasury shares and other equity
		instruments		-		-		(519)		(3,556)		-		-		-		-		-		(4,075)		-		(4,075)
	Share-based compensation awards			-		-		-		-		4		-		-		-		-		4		-		4
	Dividends on common shares			-		-		-		-		(7,443)		-		-		-		-		(7,443)		-		(7,443)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(236)		-		-		-		-		(236)		(21)		(257)
	Other			-		-		-		-		(18)		-		-		-		-		(18)		-		(18)
	Net income			-		-		-		-		14,605		-		-		-		-		14,605		7		14,612
	Total other comprehensive income (loss), net of taxes			-		-		-		-		(876)		(159)		924		362		1,127		251		2		253
Restated balance at end of period			$	7,323	$	19,398	$	(9)	$	(231)	$	81,715	$	(2,516)	$	6,612	$	2,756	$	6,852	$	115,048	$	99	$	115,147


(1)	Derived from audited financial statements.
(2)	Amounts have been restated from those previously presented as part of the adoption of IFRS 17, effective November 1, 2023. Refer to Note 2 of our 2024 Annual Consolidated Financial Statements for further details on these changes.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. We may make forward-looking statements in this document, in other filings with Canadian regulators or the SEC, in reports to shareholders, and in other communications. In addition, our representatives may communicate forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements in this document include, but are not limited to, statements relating to the expected impacts of the HSBC Canada transaction, including transaction and integration costs. The forward-looking statements contained in this document represent the views of management and are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision, strategic goals and priorities and anticipated financial performance, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "suggest", "seek", "foresee", "forecast", "schedule", "anticipate", "intend", "estimate", "goal", "commit", "target", "objective", "plan", "outlook", "timeline" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could", "can", "would" or negative or grammatical variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, that our financial performance, environmental & social or other objectives, vision and strategic goals will not be achieved, and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions.

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

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events, as well as the inherent uncertainty of forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings, as such sections may be updated by subsequent quarterly reports. Assumptions about costs related to post-close consolidation and integration activities were considered in the estimation of transaction and integration costs. Any forward-looking statements contained in this document represent the views of management only as of the date hereof, and except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

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

ACCESS TO QUARTERLY RESULTS MATERIALS

Interested investors, the media and others may review this quarterly Earnings Release, quarterly results slides, supplementary financial information and our 2024 Annual Report at rbc.com/investorrelations.

Quarterly conference call and webcast presentation

Our quarterly conference call is scheduled for December 4, 2024 at 8:00 a.m. (EST) and will feature a presentation about our fourth quarter and 2024 results by RBC executives. It will be followed by a question and answer period with analysts. Interested parties can access the call live on a listen-only basis at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (416-340-2217 or 866-696-5910, passcode: 3725409#). Please call between 7:50 a.m. and 7:55 a.m. (EST).

Management's comments on results will be posted on our website shortly following the call. A recording will be available by 5:00 p.m. (EST) from December 4, 2024 until February 26, 2025 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (905-694-9451 or 800-408-3053, passcode: 3344559#).

Media Relations Contacts
Gillian McArdle, Vice President, Corporate Communications, [email protected], 416-842-4231
Fiona McLean, Director, Financial Communications, [email protected], 437-778-3506

Investor Relations Contacts
Asim Imran, Senior Vice President, Head of Investor Relations, [email protected], 416-955-7804
Marco Giurleo, Senior Director, Investor Relations, [email protected], 437-239-5374

ABOUT RBC

Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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

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SOURCE Royal Bank of Canada

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