All amounts are in Canadian dollars and are based on financial statements presented in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Our Q2 2023 Report to Shareholders and Supplementary Financial Information are available at: http://www.rbc.com/investorrelations.

Net Income $3.6 Billion Down 14% YoY	Diluted EPS¹ $2.58 Down 13% YoY	Total PCL² $600 Million PCL on loans ratio³ up 5 bps⁴ QoQ	ROE⁵ 14.4% Down from 18.4% last year	CET1 Ratio⁶ 13.7% Well above regulatory requirements
Adjusted Net Income⁷ $3.8 Billion Down 13% YoY	Adjusted Diluted EPS⁷ $2.65 Down 11% YoY	Total ACL⁸ $4.8 Billion ACL on loans ratio⁹ up 3 bps QoQ	Adjusted ROE⁷ 14.9% Down from 18.6% last year	LCR¹⁰ 135% Up from 130% last quarter

TORONTO, May 25, 2023 /CNW/ - Royal Bank of Canada¹¹ (TSX:RY) (NYSE:RY)) today reported net income of $3.6 billion for the quarter ended April 30, 2023, down $604 million or 14% from the prior year. Diluted EPS was $2.58, down 13% over the same period. Adjusted net income⁷ and adjusted EPS⁷of $3.8 billion and $2.65 were down 13% and 11% from the prior year, respectively.

Results this quarter reflected higher provisions for credit losses, with a PCL on loans ratio of 30 bps, mainly attributable to provisions taken on performing loans in the current quarter, largely driven by unfavourable changes in our credit quality and macroeconomic outlook, as compared to releases in the prior year which reflected reduced uncertainty from the COVID-19 pandemic. The current quarter also reflected higher provisions on impaired loans.

Pre-provision, pre-tax earnings⁷ of $5 billion were up $54 million or 1% from a year ago, mainly reflecting higher net interest income driven by higher interest rates and strong loan growth in Canadian Banking and Wealth Management. Higher Corporate & Investment Banking revenue in Capital Markets also contributed to the increase. These factors were partially offset by higher expenses, mainly due to higher staff-related costs, including from headcount growth, as well as stock-based compensation. Higher professional fees (including technology investments) and higher discretionary costs to support strong client-driven growth also contributed to higher expenses.

Today we declared a quarterly dividend of $1.35 per share reflecting an increase of $0.03 or 2%.

Our balance sheet strength coupled with a robust capital position, with a CET1 ratio of 13.7%, supported solid volume growth and $1.8 billion in common share dividends. We have a strong average LCR of 135%. We also continue to operate with a prudent ACL ratio, which included $173 million of provisions taken on performing loans in the current quarter.

Compared to last quarter, net income was up 14% reflecting the impact of the Canada Recovery Dividend (CRD) and other tax related adjustments in the prior quarter. Adjusted net income⁷ was down 13% with lower results in Capital Markets, Personal & Commercial Banking, Wealth Management and Insurance.

"As our second quarter results demonstrate, RBC will never compromise on doing right by our clients and delivering sustainable, long-term value to them, our communities and shareholders. Our focused growth strategy, prudent risk and capital management, and diversified business mix exemplify our strength and stability amidst a complex macro environment. As we continue to realize the benefits of our strategic investments in technology and our incredible talent, we are confident in our ability to slow expense growth and drive greater efficiencies while supporting our clients' needs."

– Dave McKay, RBC President and Chief Executive Officer


	Reported:	Adjusted⁷:
Q2 2023 Compared to Q2 2022	• Net income of $3,649 million

ROYAL BANK OF CANADA REPORTS SECOND QUARTER 2023 RESULTS