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, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS). Our 2021 Annual Report (which includes our audited Annual Consolidated Financial Statements and accompanying Management's Discussion & Analysis), our 2021 Annual Information Form and our Supplementary Financial Information are available on our website at: http://www.rbc.com/investorrelations.

2021 Net Income

$16.1 Billion

Up 40% YoY

2021 Diluted EPS¹

$11.06

Up 41% YoY

2021 PCL²

$(753) Million

PCL on loans ratio down

73 bps³ YoY

2021 ROE⁴

18.6%

Up from 14.2% last year

CET1 Ratio⁵

13.7 %

Robust capital levels, up

120 bps YoY

TORONTO, Dec. 1, 2021 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $16.1 billion for the year ended October 31, 2021, up $4.6 billion or 40% from the prior year. Our results this year included releases of provisions on performing loans of $1.4 billion, primarily driven by improvements in our macroeconomic and credit quality outlook. In comparison, the prior year reflected elevated provisions on performing loans of $2.6 billion due to the impact of the COVID-19 pandemic. Diluted EPS[6]was $11.06, up 41% from the prior year.

Earnings in Personal & Commercial Banking and Capital Markets were up from last year, largely due to the favourable impact of lower PCL. Higher results in Wealth Management and Insurance also contributed to the increase in net income. These factors were partially offset by lower earnings in Investor & Treasury Services.

Pre-provision, pre-tax earnings⁶ of $19.9 billion were up 6% from a year ago, mainly reflecting strong client-driven growth in volumes and fee-based assets, constructive markets, record investment banking revenue, and prudent management of discretionary spend. These factors were partially offset by lower spreads largely reflecting the impact of low interest rates, higher expenses driven by higher variable compensation and continued investments in our franchises, and lower trading revenue.

The PCL on loans ratio of (10) bps decreased by 73 bps from the prior year, due to lower provisions in Personal & Commercial Banking, Capital Markets and Wealth Management. The PCL on impaired loans ratio was 10 bps, down 14 bps from the prior year.

Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 13.7%, up 120 bps from the prior year. In addition, this year we returned $6.2 billion to our shareholders through common dividends. And today, we declared a quarterly dividend of $1.20 per share reflecting an increase of $0.12 or 11%. Also, we announced our intention, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the TSX, to commence a normal course issuer bid and to repurchase for cancellation up to 45 million common shares.

"In a year defined by the continued effects of the pandemic, RBC employees around the world demonstrated incredible resilience, and a commitment to helping our clients thrive and communities prosper. Across our businesses, we saw elevated growth in client activity and our teams responded with differentiated ideas and offerings to meet our clients' needs and create long-term value. As a result, our overall performance in 2021 reflected strong earnings, premium shareholder performance, and highlighted our ability to successfully navigate a complex operating environment while continuing to invest in talent and innovations to support future growth. We are pleased to increase our quarterly dividend by 11% and announced today our intention to repurchase up to 45 million common shares, in line with our commitment to driving long-term value for our shareholders."

– Dave McKay, RBC President and Chief Executive Officer

2021 Full-Year Business Segment Performance

54% earnings growth in Personal & Commercial Banking, primarily attributable to lower PCL. Earnings growth also reflected strong average volume growth of 10% (+7% in loans and +13% in deposits) in Canadian Banking, including record levels of mortgage originations. Higher non-interest income including strong growth in mutual fund balances and significant client activity in our Direct Investing business, also contributed to the increase. These factors were partially offset by lower spreads, mainly due to lower interest rates and changes in product mix. We continued to invest in digital solutions to further enhance the client experience and deliver differentiated advice, products and services.
22% earnings growth in Wealth Management, mainly due to higher average fee-based client assets reflecting market appreciation from a strong rebound in equity markets, as well as net sales driven by the quality of our advice, the breadth of our investment and holistic wealth planning solutions and clients' trust in our brand. Strong average volume growth of 10% in loans and 17% in deposits, largely in U.S. Wealth Management (including City National), also contributed to the increase. These factors were partially offset by higher variable compensation and the impact of lower spreads, mainly due to lower interest rates and changes in average earning assets mix.
7% earnings growth in Insurance, largely due to favourable annual actuarial assumption updates and lower claims costs. These factors were partially offset by lower favourable investment-related experience, including the impact of realized investment gains in the prior year, as well as a lower impact from reinsurance contract renegotiations.
18% lower earnings in Investor & Treasury Services, primarily due to lower client deposit revenue largely driven by lower interest rates. Lower funding and liquidity revenue also contributed to the decrease, mainly reflecting net favourable impacts from market volatility and interest rate movements in the prior year, as well as the impact of lower interest rates and lower gains from the disposition of securities, partially offset by a greater impact in the prior year from elevated enterprise liquidity.
51% earnings growth in Capital Markets, primarily driven by lower PCL. Record revenue in Corporate and Investment Banking also contributed to the increase as strong deal flow was underpinned by M&A, loan syndication and Equity Capital Markets fee pools reaching all-time highs during the fiscal year. These factors were partially offset by higher taxes reflecting an increase in the proportion of earnings from higher tax rate jurisdictions, as well as lower revenue in Global Markets largely due to spread compression in repo and secured financing products and reduced client activity in our Fixed income, currencies and commodities business.

___________________________
1	Earnings per share (EPS).
²	Provision for credit losses (PCL).
³	Basis points (bps).
⁴	Return on equity (ROE). For further information, refer to the Key performance and non-GAAP measures section on page 11 of this Earnings Release.
⁵	This ratio is calculated by dividing Common Equity Tier 1 (CET1) by risk-weighted assets, in accordance with OSFI's Basel III Capital Adequacy Requirements guideline.
⁶	Pre-provision, pre-tax earnings is calculated as income (2021: $16,050 million; 2020: $11,437 million) before income taxes (2021: $4,581 million; 2020: $2,952 million) and PCL (2021: -$753 million; 2020: $4,351 million). This is a non-GAAP measure. For further information, refer to the Key performance and non-GAAP measures section on page 11 of this Earnings Release.

Q4 2021 Performance

Earnings of $3.9 billion were up $646 million or 20% from a year ago, largely due to lower PCL. Higher earnings in Personal & Commercial Banking reflected robust volume growth, and in Capital Markets were driven by strong M&A activity. Solid earnings growth in Investor & Treasury Services, Insurance and Wealth Management also contributed to the increase. Pre-provision, pre-tax earnings⁷ of $4.8 billion were up 4% from a year ago.

Earnings were down $404 million or 9% from last quarter due to lower earnings in Capital Markets, Wealth Management and Personal & Commercial Banking. These results were partially offset by higher earnings in Insurance and Investor & Treasury Services.


Q4 2021 Compared to Q4 2020	•	Net income of $3,892 million	↑	20%
	•	Diluted EPS of $2.68	↑	20%
	•	ROE of 16.9%	↑	90 bps
	•	CET1 ratio of 13.7%	↑	120 bps
Q4 2021 Compared to Q3 2021	•	Net income of $3,892 million	↓	9%
	•	Diluted EPS of $2.68	↓	10%
	•	ROE of 16.9%	↓	270 bps
	•	CET1 ratio of 13.7%	↑	10 bps

___________________________
7	Pre-provision, pre-tax earnings is calculated as income (Q4 2021: $3,892 million; Q4 2020: $3,246 million) before income taxes (Q4 2021: $1,096 million; Q4 2020: $900 million) and PCL (Q4 2021: -$227 million; Q4 2020: $427 million). This is a Non-GAAP measure. For further information, refer to the Key Performance and Non-GAAP measures section on page 11 of this Earnings Release.

Q4 2021 Business Segment Performance

Personal & Commercial Banking

Net income of $2,033 million increased $531 million or 35% from a year ago, primarily attributable to lower PCL. Earnings growth also reflected strong average volume growth in Canadian Banking of 9% in loans and 9% in deposits, including strong mortgage growth. Higher non-interest income, including higher mutual fund distribution fees and card service revenue, also contributed to the increase. These factors were partially offset by lower spreads, mainly due to the ongoing impact of the low interest rate environment, changes in product mix and competitive pricing pressures.

Compared to last quarter, net income decreased $80 million or 4%, primarily due to lower spreads. Lower card service revenue, the timing of professional fees as well as higher marketing and technology-related costs also contributed to the decrease. These factors were partially offset by average volume growth of 3% in Canadian Banking, lower PCL and higher average mutual fund balances driving higher distribution fees.

Wealth Management

Net income of $558 million increased $12 million or 2% from a year ago driven by higher average fee-based client assets reflecting market appreciation and net sales and average volume growth, largely in U.S. Wealth Management (including City National). These factors were largely offset by higher variable compensation commensurate with increased revenue, a legal provision in U.S. Wealth Management (including City National) and lower spreads.

Compared to last quarter, net income decreased $186 million or 25%, mainly due to a legal provision in U.S. Wealth Management (including City National). Revenue growth from higher average fee-based client assets reflecting market appreciation and net sales was more than offset by higher variable compensation, lower spreads, lower transactional revenue, mainly driven by decreased client activity, and higher staff-related costs.

Insurance

Net income of $267 million increased $13 million or 5% from a year ago, primarily due to favourable annual actuarial assumption updates, partially offset by lower favourable investment-related experience, including the impact of realized investment gains in the prior year.

Compared to last quarter, net income increased $33 million or 14%, largely due to favourable annual actuarial assumption updates, partially offset by lower favourable investment-related experience.

Investor & Treasury Services

Net income of $109 million increased $18 million or 20% from a year ago, primarily driven by higher revenue from our asset services business.

Compared to last quarter, net income increased $21 million or 24%, mainly driven by lower taxes due to favourable tax adjustments, and higher funding and liquidity revenue primarily reflecting the impact of interest rate movements.

Capital Markets

Net income of $920 million increased $80 million or 10% from a year ago, largely driven by higher revenue in Corporate and Investment Banking as a result of increased M&A activity across all regions and higher loan syndication activity in North America. Higher Other revenue and lower PCL also contributed to the increase. These factors were partially offset by lower revenue in Global Markets, including lower fixed income trading revenue across all regions and lower equity trading revenue in North America, and the impact of foreign exchange translation.

Compared to last quarter, net income decreased $209 million or 19%, mainly driven by lower releases of PCL on performing assets. Lower fixed income trading revenue across all regions due to reduced client activity and lower loan syndication activity across most regions also contributed to the decrease. These factors were partially offset by lower compensation.

Capital, Liquidity and Credit Quality

Capital – As at October 31, 2021, our CET1 ratio was 13.7%, up 10 bps from last quarter reflecting internal capital generation partially offset by strong risk-weighted assets growth supporting client-driven business activities.

Liquidity – For the quarter ended October 31, 2021, the average LCR was 123%, which translates into a surplus of approximately $67 billion, compared to 125% and a surplus of approximately $69 billion in the prior quarter. LCR has remained relatively stable compared to the previous quarter as growth in retail and wholesale loans was offset by the issuance of term funding and increases in client deposits.

The Net Stable Funding Ratio (NSFR) as at October 31, 2021 was 116%, which translates into a surplus of approximately $114 billion, compared to 116% and a surplus of approximately $110 billion in the prior quarter. NSFR has remained stable compared to the previous quarter as growth in retail and wholesale loans was offset by the issuance of term funding and increases in client deposits.

Credit Quality

Q4 2021 vs. Q4 2020

Total PCL was $(227) million. PCL on loans of $(218) million decreased $616 million from a year ago, due to lower provisions in Personal & Commercial Banking, Capital Markets and Wealth Management. The PCL on loans ratio of (12) bps decreased 35 bps, and the PCL on impaired loans ratio of 7 bps decreased 8 bps.

PCL on loans in Personal & Commercial Banking decreased $523 million, primarily due to releases of provisions on performing loans in the majority of our Canadian Banking portfolios in the current quarter, driven by improvements in our macroeconomic and credit quality outlook, as compared to provisions taken in the prior year due to the impact of the COVID-19 pandemic. Lower provisions on impaired loans in the majority of our Canadian Banking retail portfolios and our Caribbean Banking portfolios also contributed to the decrease.

PCL on loans in Wealth Management decreased $46 million or 90%, due to lower provisions in U.S. Wealth Management (including City National). The decrease was largely due to releases of provisions on performing loans in the current quarter driven by improvements in our macroeconomic and credit quality outlook, as compared to provisions taken in the prior year due to the impact of the COVID-19 pandemic. This was partially offset by higher provisions on impaired loans.

PCL on loans in Capital Markets decreased $48 million, mainly due to recoveries on impaired loans in the current year as compared to provisions taken in the prior year, largely in the oil and gas sector. This was partially offset by lower releases of provisions on performing loans in the current quarter as the prior year reflected the impact of higher repayments.

Q4 2021 vs. Q3 2021

Total PCL was $(227) million, compared to $(540) million in the prior quarter, increasing $313 million or 58%. PCL on loans was $(218) million, compared to $(492) million in the prior quarter, increasing $274 million or 56%, due to lower releases of provisions in Capital Markets and higher provisions in Wealth Management partially offset by lower provisions in Personal & Commercial Banking. The PCL on loans ratio increased 16 bps, and the PCL on impaired loans ratio decreased 1 bp from last quarter.

PCL on loans in Personal & Commercial Banking decreased $33 million or 19%, primarily reflecting lower provisions on impaired loans in the majority of our Canadian Banking portfolios due to the economic recovery underway and the continued impact of the COVID-19 related government support programs, and recoveries in our Caribbean Banking portfolios in the current quarter. Higher releases of provisions on performing loans in our Canadian Banking commercial portfolios, partially offset by lower releases on performing loans in the majority of our Canadian Banking retail portfolios and our Caribbean Banking portfolios, also contributed to the decrease.

PCL on loans in Wealth Management increased $26 million, primarily in U.S. Wealth Management (including City National), largely reflecting provisions on impaired loans in the current quarter as compared to recoveries in the prior quarter. Lower releases of provisions on performing loans also contributed to the increase as the prior quarter reflected a higher impact from the continued improvements in our macroeconomic and credit quality outlook.

PCL on loans in Capital Markets increased $282 million or 94%, primarily due to lower releases of provisions on performing loans in the current quarter as the prior quarter reflected a higher impact from the continued improvements in our macroeconomic and credit quality outlook.


Selected financial and other highlights
		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)			2021		2021		2020		2021		2020
	Total revenue	$	12,376	$	12,756	$	11,092	$	49,693	$	47,181
	Provision for credit losses (PCL)		(227)		(540)		427		(753)		4,351
	Insurance policyholder benefits, claims and acquisition expense (PBCAE)		1,032		1,304		461		3,891		3,683
	Non-interest expense		6,583		6,420		6,058		25,924		24,758
	Income before income taxes		4,988		5,572		4,146		20,631		14,389
Net income		$	3,892	$	4,296	$	3,246	$	16,050	$	11,437
Segments - net income
	Personal & Commercial Banking	$	2,033	$	2,113	$	1,502	$	7,847	$	5,087
	Wealth Management (1)		558		744		546		2,626		2,154
	Insurance		267		234		254		889		831
	Investor & Treasury Services		109		88		91		440		536
	Capital Markets		920		1,129		840		4,187		2,776
	Corporate Support (1)		5		(12)		13		61		53
Net income		$	3,892	$	4,296	$	3,246	$	16,050	$	11,437
Selected information
	Earnings per share (EPS) - basic	$	2.68	$	2.97	$	2.23	$	11.08	$	7.84
	- diluted		2.68		2.97		2.23		11.06		7.82
	Return on common equity (ROE) (2)		16.9%		19.6%		16%		18.6%		14.2%
	Average common equity (2)	$	89,500	$	85,800	$	78,800	$	84,850	$	78,800
	Net interest margin (NIM) - on average earning assets, net (3)		1.43%		1.51%		1.52%		1.48%		1.55%
	PCL on loans as a % of average net loans and acceptances		(0.12)%		(0.28)%		0.23%		(0.10)%		0.63%
	PCL on performing loans as a % of average net loans and acceptances		(0.19)%		(0.36)%		0.08%		(0.20)%		0.39%
	PCL on impaired loans as a % of average net loans and acceptances		0.07%		0.08%		0.15%		0.10%		0.24%
	Gross impaired loans (GIL) as a % of loans and acceptances		0.31%		0.35%		0.47%		0.31%		0.47%
	Liquidity coverage ratio (LCR) (4)		123%		125%		145%		123%		145%
	Net stable funding ratio (5)		116%		116%		n.a.		116%		n.a.
Capital ratios and Leverage ratio (6)
	Common Equity Tier 1 (CET1) ratio		13.7%		13.6%		12.5%		13.7%		12.5%
	Tier 1 capital ratio		14.9%		15.0%		13.5%		14.9%		13.5%
	Total capital ratio		16.7%		16.7%		15.5%		16.7%		15.5%
	Leverage ratio		4.9%		5.0%		4.8%		4.9%		4.8%
Selected balance sheet and other information (7)
	Total assets	$	1,706,323	$	1,693,540	$	1,624,548	$	1,706,323	$	1,624,548
	Securities, net of applicable allowance		284,724		271,950		275,814		284,724		275,814
	Loans, net of allowance for loan losses		717,575		698,041		660,992		717,575		660,992
	Derivative related assets		95,541		102,033		113,488		95,541		113,488
	Deposits		1,100,831		1,084,878		1,011,885		1,100,831		1,011,885
	Common equity		91,983		88,803		80,719		91,983		80,719
	Total risk-weighted assets		552,541		543,047		546,242		552,541		546,242
	Assets under management (AUM) (3)		1,008,700		983,500		843,600		1,008,700		843,600
	Assets under administration (AUA) (3), (8)		6,347,300		6,369,400		5,891,200		6,347,300		5,891,200
Common share information
	Shares outstanding (000s) - average basic		1,424,534		1,424,614		1,422,578		1,424,343		1,423,915
	- average diluted		1,427,225		1,427,198		1,426,466		1,426,735		1,428,770
	- end of period		1,424,525		1,424,463		1,422,473		1,424,525		1,422,473
	Dividends declared per common share	$	1.08	$	1.08	$	1.08	$	4.32	$	4.29
	Dividend yield (9)		3.3%		3.5%		4.4%		3.8%		4.7%
	Dividend payout ratio (3)		40%		36%		48%		39%		55%
	Common share price (RY on TSX) (10)	$	128.82	$	126.18	$	93.16	$	128.82	$	93.16
	Market capitalization (TSX) (10)		183,507		179,739		132,518		183,507		132,518
Business information (number of)
	Employees (full-time equivalent) (FTE)		85,301		85,887		83,842		85,301		83,842
	Bank branches		1,295		1,303		1,329		1,295		1,329
	Automated teller machines (ATMs)		4,378		4,374		4,557		4,378		4,557
Period average US$ equivalent of C$1.00 (11)		$	0.796	$	0.812	$	0.756	$	0.796	$	0.744
Period-end US$ equivalent of C$1.00		$	0.808	$	0.801	$	0.751	$	0.808	$	0.751

(1)	Effective Q4 2021, gains (losses) on economic hedges of our U.S. share-based compensation plans, which are reflected in revenue, and related variability in share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. share-based compensation plans have been reclassified from our Wealth Management segment to Corporate Support. Comparative amounts have been reclassified to conform with this presentation.
(2)	Average amounts are calculated using methods intended to approximate the average of the daily balances for the period. This includes average common equity used in the calculation of ROE. For further details, refer to the Key performance and non-GAAP measures section of this Earnings Release.
(3)	See the Glossary section of our 2021 Annual Report for composition of this measure.
(4)	LCR is the average for the three months ended for each respective period and is calculated in accordance with the Office of the Superintendent of Financial Institutions' (OSFI) Liquidity Adequacy Requirements (LAR) guidance. For further details, refer to the Liquidity and funding risk section of our 2021 Annual Report.
(5)	Beginning in Q1 2021, OSFI requires Canadian Domestic Systemically Important Banks (D-SIBs) to disclose the NSFR on a prospective basis. The NSFR is calculated in accordance with OSFI's Liquidity Adequacy Requirements (LAR) guideline. For further details, refer to the Liquidity and funding risk section of our 2021 Annual Report.
(6)	Capital ratios are calculated using OSFI's Capital Adequacy Requirements (CAR) guideline and the Leverage ratio is calculated using OSFI's Leverage Requirements (LR) guideline.
(7)	Represents period-end spot balances.
(8)	AUA includes $15 billion and $3 billion (July 31, 2021 – $15 billion and $3 billion, October 31, 2020 – $16 billion and $7 billion) of securitized residential mortgages and credit card loans, respectively.
(9)	Defined as dividends per common share divided by the average of the high and low share price in the relevant period.
(10)	Based on TSX closing market price at period-end.
(11)	Average amounts are calculated using month-end spot rates for the period.
n.a.	not applicable


Personal & 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)		2021		2021		2020
	Net interest income	$	3,169	$	3,206	$	3,114
	Non-interest income		1,436		1,445		1,259
Total revenue			4,605		4,651		4,373
	PCL on performing assets		(342)		(341)		135
	PCL on impaired assets		134		162		181
PCL			(208)		(179)		316
	Non-interest expense		2,087		1,998		2,030
Income before income taxes			2,726		2,832		2,027
Net income		$	2,033	$	2,113	$	1,502
Revenue by business
	Canadian Banking	$	4,414	$	4,463	$	4,165
	Caribbean & U.S. Banking		191		188		208
Selected balances and other information
	ROE		32.5%		33.6%		26.0%
	NIM		2.42%		2.52%		2.59%
	Efficiency ratio (1)		45.3%		43.0%		46.4%
	Operating leverage(2)		2.5 %		6.3 %		(5.4)%
	Average total assets	$	543,900	$	530,400	$	503,200
	Average total earning assets, net		518,900		505,600		478,500
	Average loans and acceptances, net		522,200		509,300		482,000
	Average deposits		524,300		507,600		481,300
	AUA (3), (4)		367,700		356,100		292,800
	Average AUA		363,500		349,100		297,600
	AUM (4)		5,400		5,400		5,300
	PCL on impaired loans as a % of average net loans and acceptances		0.10%		0.13%		0.15%
Other selected information - Canadian Banking
	Net income	$	1,970	$	2,024	$	1,474
	NIM		2.42%		2.51%		2.56%
	Efficiency ratio		43.8%		41.4%		44.9%
	Operating leverage		2.7 %		6.1 %		(6.8)%

(1)	Calculated as non-interest expense divided by total revenue.
(2)	Defined as the difference between our revenue growth rate and non-interest expense growth rate.
(3)	AUA includes securitized residential mortgages and credit card loans as at October 31, 2021 of $15 billion and $3 billion, respectively (July 31, 2021 – $15 billion and $3 billion, October 31, 2020 – $16 billion and $7 billion).
(4)	Represents period-end spot balances.

Q4 2021 vs. Q4 2020

Net income increased $531 million or 35% from a year ago, primarily attributable to lower PCL. Average volume growth in Canadian Banking and higher non-interest income also contributed to the increase. These factors were partially offset by lower spreads.

Total revenue increased $232 million or 5%, mainly due to average volume growth in Canadian Banking of 9% in loans and 9% in deposits, higher average mutual fund balances driving higher distribution fees, and higher card service revenue reflecting increased client activity. These factors were partially offset by lower spreads.

Net interest margin was down 17 bps compared to the same quarter last year, mainly due to the ongoing impact of the low interest rate environment, changes in product mix and competitive pricing pressures.

PCL decreased $524 million, primarily reflecting releases of provisions on performing loans in the current quarter as compared to provisions taken in the prior year. Lower provisions on impaired loans also contributed to the decrease, resulting in a decrease of 5 bps in the PCL on impaired loans ratio. For further details on PCL, refer to Capital, Liquidity and Credit Quality in the Q4 2021 Business Segment Performance section of this Earnings Release.

Non-interest expense increased $57 million or 3%, mainly attributable to higher staff-related costs.

Q4 2021 vs. Q3 2021

Net income decreased $80 million or 4% from last quarter, primarily due to lower spreads. Lower card service revenue, the timing of professional fees as well as higher marketing and technology-related costs also contributed to the decrease. These factors were partially offset by average volume growth of 3% in Canadian Banking, lower PCL and higher average mutual fund balances driving higher distribution fees.


Wealth Management
		As at or for the three months ended
				October 31				July 31				October 31
(Millions of Canadian dollars, except number of and percentage amounts and as otherwise noted)			2021			2021						2020
	Net interest income		$	675		$		682		$		686
	Non-interest income (1)			2,769				2,691				2,375
Total revenue (1)				3,444				3,373				3,061
	PCL on performing assets			(7)				(19)				51
	PCL on impaired assets			12				(2)				-
PCL				5				(21)				51
	Non-interest expense (1)			2,718				2,434				2,304
Income before income taxes (1)				721				960				706
Net income (1)			$	558		$		744		$		546
Revenue by business
	Canadian Wealth Management		$	1,032		$		1,012		$		835
	U.S. Wealth Management (including City National) (1)			1,628				1,592				1,532
	U.S. Wealth Management (including City National) (US$ millions) (1)			1,296				1,293				1,158
	Global Asset Management			711				692				608
	International Wealth Management			73				77				86
Selected balances and other information
	ROE			13.1%				18.3%				13.0%
	NIM			2.06%				2.25%				2.50%
	Pre-tax margin (1), (2)			20.9%				28.5%				23.1%
Selected average balance sheet information
	Average total assets		$	146,600		$		136,300		$		126,300
	Average total earning assets, net			130,000				120,200				109,300
	Average loans and acceptances, net			87,000				83,800				81,000
	Average deposits			151,500				142,800				132,100
Other information
	AUA - total (3)			1,322,300				1,292,800				1,100,000
	- U.S. Wealth Management (including City National) (3)			704,200				690,400				583,800
	- U.S. Wealth Management (including City National) (US$ millions) (3)			568,800				553,300				438,200
	AUM (3)			1,000,600				975,600				836,400
	Average AUA			1,314,100				1,265,200				1,107,700
	Average AUM			997,400				956,300				839,600
	PCL on impaired loans as a % of average net loans and acceptances			0.05%				(0.01)%				0.00%
	Number of advisors (4)			5,548				5,522				5,428
					For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items					Q4 2021 vs				Q4 2021 vs
(Millions of Canadian dollars, except percentage amounts)					Q4 2020				Q3 2021
Increase (decrease):
	Total revenue				$		(95)		$		31
	Non-interest expense						(91)				27
	Net income						(4)				3
Percentage change in average US$ equivalent of C$1.00							5%				(2)%
Percentage change in average British pound equivalent of C$1.00							1%				1%
Percentage change in average Euro equivalent of C$1.00							7%				1%

(1)	Effective Q4 2021, gains (losses) on economic hedges of our U.S. share-based compensation plans, which are reflected in revenue, and related variability in share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. share-based compensation plans have been reclassified from our Wealth Management segment to Corporate Support. Comparative amounts have been reclassified to conform with this presentation.
(2)	Pre-tax margin is defined as Income before income taxes divided by Total revenue.
(3)	Represents period-end spot balances.
(4)	Represents client-facing advisors across all our wealth management businesses.

Q4 2021 vs. Q4 2020

Net income increased $12 million or 2% from a year ago, as higher average fee-based client assets and average volume growth were largely offset by higher variable compensation, a legal provision, and lower spreads.

Total revenue increased $383 million or 13%, primarily due to higher average fee-based client assets reflecting market appreciation and net sales, and average volume growth of 7% in loans and 15% in deposits. These factors were partially offset by lower spreads and the impact of foreign exchange translation.

PCL decreased $46 million or 90% in U.S. Wealth Management (including City National), largely due to releases of provisions on performing loans in the current quarter as compared to provisions taken in the prior year. This was partially offset by higher provisions on impaired loans, resulting in an increase of 5 bps in the PCL on impaired loans ratio. For further details on PCL, refer to Capital, Liquidity and Credit Quality in the Q4 2021 Business Segment Performance section of this Earnings Release.

Non-interest expense increased $414 million or 18%, largely due to higher variable compensation commensurate with increased revenue. A legal provision in U.S. Wealth Management (including City National) and higher staff-related costs also contributed to the increase. These factors were partially offset by the impact of foreign exchange translation.

Q4 2021 vs. Q3 2021

Net income decreased $186 million or 25% from last quarter, mainly due to a legal provision in U.S. Wealth Management (including City National). Revenue growth from higher average fee-based client assets reflecting market appreciation and net sales was more than offset by higher variable compensation, lower spreads, lower transactional revenue, mainly driven by decreased client activity, and higher staff-related costs.


Insurance
			As at or for the three months ended
			October 31			July 31			October 31
(Millions of Canadian dollars, except percentage amounts)			2021			2021			2020
	Non-interest income
		Net earned premiums		$	1,569	$	1,094	$	986
		Investment income, gains/(losses) on assets supporting insurance policyholder liabilities (1)			(128)		613		(71)
		Fee income			60		47		43
Total revenue					1,501		1,754		958
	PCL				(1)		-		(1)
	Insurance policyholder benefits and claims (1)				939		1,218		391
	Insurance policyholder acquisition expense				93		86		70
	Non-interest expense				152		155		151
Income before income taxes					318		295		347
Net income				$	267	$	234	$	254
Revenue by business
	Canadian Insurance			$	796	$	1,136	$	299
	International Insurance				705		618		659
Selected balances and other information
	ROE				42.8%		39.5%		42.5%
	Premiums and deposits (2)			$	1,795	$	1,321	$	1,129
	Fair value changes on investments backing policyholder liabilities (1)				(266)		475		(235)

(1)

Includes unrealized gains and losses on investments backing policyholder liabilities attributable to fluctuation of assets designated as fair value through profit or loss (FVTPL). The investments which support actuarial liabilities are predominantly fixed income assets designated as FVTPL. Consequently, changes in the fair values of these assets are recorded in Insurance premiums, investment and fee income in the Consolidated Statements of Income and are largely offset by changes in the fair value of the actuarial liabilities, the impact of which is reflected in Insurance policyholder benefits, claims and acquisition expense (PBCAE).

(2)

Premiums and deposits include premiums on risk-based insurance and annuity products, and individual and group segregated fund deposits, consistent with insurance industry practices.

Q4 2021 vs. Q4 2020

Net income increased $13 million or 5% from a year ago, primarily due to favourable annual actuarial assumption updates, partially offset by lower favourable investment-related experience, including the impact of realized investment gains in the prior year.

Total revenue increased $543 million or 57%, primarily due to higher group annuity sales, which is largely offset in PBCAE as indicated below. Business growth also contributed to the increase. These factors were partially offset by the impact of realized investment gains in the prior year.

PBCAE increased $571 million, primarily due to higher group annuity sales, which is largely offset in revenue. Lower favourable investment-related experience and business growth, primarily in longevity reinsurance, also contributed to the increase. These factors were partially offset by favourable annual actuarial assumption updates in the current year largely related to mortality and economic assumptions.

Non-interest expense remained relatively flat.

Q4 2021 vs. Q3 2021

Net income increased $33 million or 14% from last quarter, largely due to favourable annual actuarial assumption updates, partially offset by lower favourable investment-related experience.


Investor & Treasury Services
			As at or for the three months ended
			October 31		July 31			October 31
(Millions of Canadian dollars, except percentage amounts)			2021		2021			2020
	Net interest income		$	155	$	127	$	108
	Non-interest income			393		390		413
Total revenue				548		517		521
	PCL on performing assets			(1)		(3)		(4)
	PCL on impaired assets			-		-		-
PCL				(1)		(3)		(4)
	Non-interest expense			412		401		407
Income before income taxes				137		119		118
Net income			$	109	$	88	$	91
Selected balances and other information
	ROE			15.2%		11.1%		10.1%
	Average deposits		$	233,300	$	221,100	$	187,000
		Average client deposits		65,700		64,600		63,300
		Average wholesale funding deposits		167,600		156,500		123,700
	AUA (1)			4,640,900		4,704,400		4,483,500
	Average AUA			4,745,400		4,584,300		4,588,400

(1)	Represents period-end spot balances.

Q4 2021 vs. Q4 2020

Net income increased $18 million or 20% from a year ago, primarily driven by higher revenue from our asset services business.

Total revenue increased $27 million or 5%, mainly due to higher revenue from increased client activity in our asset services business.

Non-interest expense remained relatively flat.

Q4 2021 vs. Q3 2021

Net income increased $21 million or 24% from last quarter, mainly driven by lower taxes due to favourable tax adjustments, and higher funding and liquidity revenue primarily reflecting the impact of interest rate movements.


Capital Markets
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars, except percentage amounts)			2021		2021		2020
	Net interest income (1)	$	1,111	$	1,122	$	1,183
	Non-interest income (1)		1,187		1,341		1,092
Total revenue (1)			2,298		2,463		2,275
	PCL on performing assets		(11)		(326)		(3)
	PCL on impaired assets		(11)		(11)		68
PCL			(22)		(337)		65
	Non-interest expense		1,155		1,363		1,165
Income before income taxes			1,165		1,437		1,045
Net income		$	920	$	1,129	$	840
Revenue by business
	Corporate and Investment Banking	$	1,225	$	1,289	$	1,088
	Global Markets		1,122		1,232		1,333
	Other		(49)		(58)		(146)
Selected balances and other information
	ROE		16.1%		19.7%		14.4%
	Average total assets	$	717,000	$	685,600	$	709,000
	Average trading securities		125,300		120,100		106,700
	Average loans and acceptances, net		106,100		98,200		101,500
	Average deposits		73,700		74,100		74,400
	PCL on impaired loans as a % of average net loans and acceptances		(0.04)%		(0.07)%		0.27%

		For the three months ended
Estimated impact of U.S. dollar, British pound and Euro translation on key income statement items		Q4 2021 vs		Q4 2021 vs
(Millions of Canadian dollars, except percentage amounts)		Q4 2020		Q3 2021
Increase (decrease):
	Total revenue	$	(81)	$	24
	Non-interest expense		(38)		10
	Net income		(36)		10
Percentage change in average US$ equivalent of C$1.00			5%		(2)%
Percentage change in average British pound equivalent of C$1.00			1%		1%
Percentage change in average Euro equivalent of C$1.00			7%		1%


(1)	The taxable equivalent basis (teb) adjustment for the three months ended October 31, 2021 was $125 million (July 31, 2021 – $130 million, October 31, 2020 - $127 million).

Q4 2021 vs. Q4 2020

Net income increased $80 million or 10% from a year ago, largely driven by higher revenue in Corporate and Investment Banking. Higher Other revenue and lower PCL also contributed to the increase. These factors were partially offset by lower revenue in Global Markets and the impact of foreign exchange translation.

Total revenue increased $23 million or 1%, mainly due to higher M&A activity across all regions and higher revenue associated with certain non-trading portfolios. Lower residual funding costs and higher loan syndication activity in North America also contributed to the increase. These factors were partially offset by lower fixed income trading revenue across all regions as the prior year benefitted from increased client activity amidst elevated market volatility, lower equity trading revenue in North America due to reduced client activity, and the impact of foreign exchange translation.

PCL decreased $87 million, primarily due to recoveries on impaired loans in the current year as compared to provisions taken in the prior year, resulting in a decrease of 31 bps in the PCL on impaired loans ratio. For further details on PCL, refer to Capital, Liquidity and Credit Quality in the Q4 2021 Business Segment Performance section of this Earnings Release.

Non-interest expense decreased $10 million or 1%, mainly due to the impact of foreign exchange translation, partially offset by higher compensation on improved results.

Q4 2021 vs. Q3 2021

Net income decreased $209 million or 19% from last quarter, mainly driven by lower releases of PCL on performing assets. Lower fixed income trading revenue across all regions due to reduced client activity and lower loan syndication activity across most regions also contributed to the decrease. These factors were partially offset by lower compensation.


Corporate Support
		As at or for the three months ended
			October 31		July 31		October 31
(Millions of Canadian dollars)			2021		2021		2020
	Net interest income (loss) (1)	$	(49)	$	(85)	$	(81)
	Non-interest income (loss) (1), (2)		29		83		(15)
Total revenue (1), (2)			(20)		(2)		(96)
	PCL		-		-		-
	Non-interest expense (2)		59		69		1
Income (loss) before income taxes (1), (2)			(79)		(71)		(97)
	Income taxes (recoveries) (1), (2)		(84)		(59)		(110)
Net income (loss) (2)		$	5	$	(12)	$	13

(1)

Teb adjusted.

(2)

Effective Q4 2021, gains (losses) on economic hedges of our U.S. share-based compensation plans, which are reflected in revenue, and related variability in share-based compensation expense driven by changes in the fair value of liabilities relating to our U.S. share-based compensation plans have been reclassified from our Wealth Management segment to Corporate Support. Comparative amounts have been reclassified to conform with this presentation.

Due to the nature of activities and consolidation adjustments reported in this segment, we believe that a comparative period analysis is not relevant. The following identifies material items affecting the reported results in each period.

Total revenue and Income taxes (recoveries) in each period in Corporate Support include the deduction of the teb adjustments related to the gross-up of income from Canadian taxable corporate dividends and the U.S. tax credit investment business recorded in Capital Markets. The amount deducted from revenue was offset by an equivalent increase in Income taxes (recoveries).

The teb amount for the three months ended October 31, 2021 was $125 million, compared to $130 million in the prior quarter and $127 million in the same quarter last year. For the three months ended October 31, 2021, revenue included gains of $41 million (gains of $51 million in the prior quarter and gains of $7 million in the same quarter last year) on economic hedges of our U.S. Wealth Management (including City National) share-based compensation plans, and non-interest expense included $42 million ($59 million in the prior quarter and $8 million in the same quarter last year) 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. For further discussion, refer to the How we measure and report our business segments section of our 2021 Annual Report.

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

Q4 2021

Net income was $5 million.

Q3 2021

Net loss was $12 million, primarily due to net unfavourable tax adjustments, largely offset by asset/liability management activities and residual unallocated items.

Q4 2020

Net income was $13 million, mainly due to asset/liability management activities, partially offset by net unfavourable tax adjustments.

Key performance and non-GAAP 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, ROE and non-GAAP measures, including pre-provision, pre-tax earnings. Certain financial metrics, including ROE and pre-provision, pre-tax earnings do not have any standardized meanings under GAAP and may not be comparable to similar measures disclosed by other financial institutions. We use ROE, at both the consolidated and business segment levels, as a measure of return on total capital invested in our business. 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 a credit cycle. We believe that certain non-GAAP measures are more reflective of our ongoing operating results and provide readers with a better understanding of management's perspective on our performance.

Calculation of ROE

For the three months ended

For the year ended

October 31, 2021

(Millions of Canadian dollars, except

percentage amounts)

Personal &

Commercial

Banking

Wealth

Management

Insurance

Investor &

Treasury

Services

Capital

Markets

Corporate

Support

Total

Net income available to common

shareholders

2,009

546

265

107

904

(12)

3,819

15,781

Total average common equity (1), (2)

24,550

16,550

2,450

2,750

22,300

20,900

89,500

84,850

ROE (3)

32.5%

13.1%

42.8%

15.2%

16.1%

n.m.

16.9%

18.6%

(1)	Total average common equity represents rounded figures.
(2)	The amounts for the segments are referred to as attributed capital.
(3)	ROE is based on actual balances of average common equity before rounding.
n.m. not meaningful

Additional information about key performance and non-GAAP measures can be found under the Key performance and non-GAAP measures section of our 2021 Annual Report.


Consolidated Balance Sheets
		As at
		October 31			July 31	October 31
(Millions of Canadian dollars)			2021 (1)		2021 (2)		2020 (1)

Assets
Cash and due from banks		$	113,846	$	115,407	$	118,888

Interest-bearing deposits with banks			79,638		80,389		39,013

Securities
	Trading		139,240		133,894		136,071
	Investment, net of applicable allowance		145,484		138,056		139,743
			284,724		271,950		275,814

Assets purchased under reverse repurchase agreements and securities borrowed			307,903		319,896		313,015

Loans
	Retail		503,598		491,890		457,976
	Wholesale		218,066		210,739		208,655
			721,664		702,629		666,631
	Allowance for loan losses		(4,089)		(4,588)		(5,639)
			717,575		698,041		660,992

Segregated fund net assets			2,666		2,526		1,922
Other
	Customers' liability under acceptances		19,798		19,325		18,507
	Derivatives		95,541		102,033		113,488
	Premises and equipment		7,424		7,576		7,934
	Goodwill		10,854		10,925		11,302
	Other intangibles		4,471		4,490		4,752
	Other assets		61,883		60,982		58,921
			199,971		205,331		214,904
Total assets		$	1,706,323	$	1,693,540	$	1,624,548

Liabilities and equity
Deposits
	Personal	$	362,488	$	358,500	$	343,052
	Business and government		696,353		680,413		624,311
	Bank		41,990		45,965		44,522
			1,100,831		1,084,878		1,011,885

Segregated fund net liabilities			2,666		2,526		1,922
Other
	Acceptances		19,873		19,392		18,618
	Obligations related to securities sold short		37,841		34,760		29,285
	Obligations related to assets sold under repurchase agreements and securities loaned		262,201		271,165		274,231
	Derivatives		91,439		97,150		109,927
	Insurance claims and policy benefit liabilities		12,816		12,496		12,215
	Other liabilities		70,301		65,813		69,831
			494,471		500,776		514,107

Subordinated debentures			9,593		9,050		9,867
Total liabilities			1,607,561		1,597,230		1,537,781
Equity attributable to shareholders
	Preferred shares and other equity instruments		6,684		7,416		5,945
	Common shares		17,655		17,656		17,499
	Retained earnings		71,795		68,951		59,806
	Other components of equity		2,533		2,196		3,414
			98,667		96,219		86,664
Non-controlling interests			95		91		103
Total equity			98,762		96,310		86,767
Total liabilities and equity		$	1,706,323	$	1,693,540	$	1,624,548

(1)	Derived from audited financial statements.
(2)	Derived from unaudited financial statements.


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)		2021 (1)		2021 (1)		2020 (1)		2021 (2)		2020 (2)

Interest and dividend income
	Loans	$	5,412	$	5,439	$	5,522	$	21,654	$	23,420
	Securities		1,200		1,184		1,335		4,877		6,488
	Assets purchased under reverse repurchase agreements and securities borrowed		307		291		550		1,309		4,668
	Deposits and other		95		83		56		305		307
			7,014		6,997		7,463		28,145		34,883

Interest expense
	Deposits and other		1,270		1,278		1,588		5,448		8,783
	Other liabilities		641		625		811		2,516		4,985
	Subordinated debentures		42		42		54		179		280
			1,953		1,945		2,453		8,143		14,048
Net interest income			5,061		5,052		5,010		20,002		20,835

Non-interest income
	Insurance premiums, investment and fee income		1,501		1,754		958		5,600		5,361
	Trading revenue		103		179		224		1,183		1,239
	Investment management and custodial fees		1,888		1,830		1,577		7,132		6,101
	Mutual fund revenue		1,142		1,095		961		4,251		3,712
	Securities brokerage commissions		350		356		320		1,538		1,439
	Service charges		475		465		456		1,858		1,842
	Underwriting and other advisory fees		655		700		578		2,692		2,319
	Foreign exchange revenue, other than trading		239		246		233		1,066		1,012
	Card service revenue		247		278		211		1,078		969
	Credit fees		418		412		361		1,530		1,321
	Net gains on investment securities		20		8		23		145		90
	Share of profit in joint ventures and associates		34		47		20		130		77
	Other		243		334		160		1,488		864
			7,315		7,704		6,082		29,691		26,346
Total revenue			12,376		12,756		11,092		49,693		47,181
Provision for credit losses			(227)		(540)		427		(753)		4,351
Insurance policyholder benefits, claims and acquisition expense			1,032		1,304		461		3,891		3,683

Non-interest expense
	Human resources		3,988		4,111		3,587		16,539		15,252
	Equipment		514		492		508		1,986		1,907
	Occupancy		393		387		431		1,584		1,660
	Communications		279		227		254		931		989
	Professional fees		417		329		385		1,351		1,330
	Amortization of other intangibles		330		320		330		1,287		1,273
	Other		662		554		563		2,246		2,347
			6,583		6,420		6,058		25,924		24,758
Income before income taxes			4,988		5,572		4,146		20,631		14,389
Income taxes			1,096		1,276		900		4,581		2,952
Net income		$	3,892	$	4,296	$	3,246	$	16,050	$	11,437
Net income attributable to:
	Shareholders	$	3,887	$	4,292	$	3,247	$	16,038	$	11,432
	Non-controlling interests		5		4		(1)		12		5
		$	3,892	$	4,296	$	3,246	$	16,050	$	11,437
Basic earnings per share (in dollars)		$	2.68	$	2.97	$	2.23	$	11.08	$	7.84
Diluted earnings per share (in dollars)			2.68		2.97		2.23		11.06		7.82
Dividends per common share (in dollars)			1.08		1.08		1.08		4.32		4.29

(1)	Derived from unaudited financial statements.
(2)	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)				2021 (1)		2021 (1)		2020 (1)		2021 (2)		2020 (2)

Net income			$	3,892	$	4,296	$	3,246	$	16,050	$	11,437

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		(183)		70		33		177		(24)
		Provision for credit losses recognized in income		(1)		(21)		(9)		(9)		13
		Reclassification of net losses (gains) on debt securities and loans at fair value through other
		comprehensive income to income		(11)		(4)		(40)		(117)		(161)
				(195)		45		(16)		51		(172)
	Foreign currency translation adjustments
		Unrealized foreign currency translation gains (losses)		(613)		931		(426)		(4,316)		810
		Net foreign currency translation gains (losses) from hedging activities		280		(367)		191		1,740		(397)
		Reclassification of losses (gains) on foreign currency translation to income		(2)		2		-		(7)		(21)
		Reclassification of losses (gains) on net investment hedging activities to income		-		(1)		-		(1)		21
				(335)		565		(235)		(2,584)		413
	Net change in cash flow hedges
		Net gains (losses) on derivatives designated as cash flow hedges		767		(190)		44		1,373		(1,145)
		Reclassification of losses (gains) on derivatives designated as cash flow hedges to income		99		95		85		272		72
				866		(95)		129		1,645		(1,073)
Items that will not be reclassified subsequently to income:
	Remeasurements of employee benefit plans			456		76		498		2,251		(68)
	Net fair value change due to credit risk on financial liabilities designated as at fair value
		through profit or loss		67		24		(152)		55		(263)
	Net gains (losses) on equity securities designated at fair value through other comprehensive
		income		40		(1)		4		38		28
				563		99		350		2,344		(303)
Total other comprehensive income (loss), net of taxes				899		614		228		1,456		(1,135)
Total comprehensive income (loss)			$	4,791	$	4,910	$	3,474	$	17,506	$	10,302
Total comprehensive income attributable to:
	Shareholders		$	4,787	$	4,904	$	3,476	$	17,501	$	10,295
	Non-controlling interests			4		6		(2)		5		7
			$	4,791	$	4,910	$	3,474	$	17,506	$	10,302

(1)	Derived from unaudited financial statements.
(2)	Derived from audited financial statements.

Consolidated Statements of Changes in Equity
			For the three months ended October 31, 2021 (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			$	7,473	$	17,713	$	(57)	$	(57)	$	68,951	$	107	$	2,389	$	(300)	$	2,196	$	96,219	$	91	$	96,310
Changes in equity
	Issues of share capital and other equity instruments			-		15		-		-		-		-		-		-		-		15		-		15
	Common shares purchased for cancellation			-		-		-		-		-		-		-		-		-		-		-		-
	Redemption of preferred shares and other equity
		instruments		(750)		-		-		-		-		-		-		-		-		(750)		-		(750)
	Sales of treasury shares and other equity instruments			-		-		205		994		-		-		-		-		-		1,199		-		1,199
	Purchases of treasury shares and other equity
		instruments		-		-		(187)		(1,010)		-		-		-		-		-		(1,197)		-		(1,197)
	Share-based compensation awards			-		-		-		-		(2)		-		-		-		-		(2)		-		(2)
	Dividends on common shares			-		-		-		-		(1,540)		-		-		-		-		(1,540)		-		(1,540)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(68)		-		-		-		-		(68)		-		(68)
	Other			-		-		-		-		4		-		-		-		-		4		-		4
	Net income			-		-		-		-		3,887		-		-		-		-		3,887		5		3,892
	Total other comprehensive income (loss), net of taxes			-		-		-		-		563		(195)		(334)		866		337		900		(1)		899
Balance at end of period			$	6,723	$	17,728	$	(39)	$	(73)	$	71,795	$	(88)	$	2,055	$	566	$	2,533	$	98,667	$	95	$	98,762

			For the three months ended October 31, 2020 (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			$	7,448	$	17,610	$	(1)	$	(129)	$	57,805	$	(123)	$	4,866	$	(1,208)	$	3,535	$	86,268	$	106	$	86,374
Changes in equity
	Issues of share capital and other equity instruments			-		18		-		-		(1)		-		-		-		-		17		-		17
	Common shares purchased for cancellation			-		-		-		-		-		-		-		-		-		-		-		-
	Redemption of preferred shares and other equity
		instruments		(1,500)		-		-		-		-		-		-		-		-		(1,500)		-		(1,500)
	Sales of treasury shares and other equity instruments			-		-		22		658		-		-		-		-		-		680		-		680
	Purchases of treasury shares and other equity instruments
		instruments		-		-		(24)		(658)		-		-		-		-		-		(682)		-		(682)
	Share-based compensation awards			-		-		-		-		(2)		-		-		-		-		(2)		-		(2)
	Dividends on common shares			-		-		-		-		(1,539)		-		-		-		-		(1,539)		-		(1,539)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(74)		-		-		-		-		(74)		(2)		(76)
	Other			-		-		-		-		20		-		-		-		-		20		1		21
	Net income			-		-		-		-		3,247		-		-		-		-		3,247		(1)		3,246
	Total other comprehensive income (loss), net of taxes			-		-		-		-		350		(16)		(234)		129		(121)		229		(1)		228
Balance at end of period			$	5,948	$	17,628	$	(3)	$	(129)	$	59,806	$	(139)	$	4,632	$	(1,079)	$	3,414	$	86,664	$	103	$	86,767

(1)	Derived from unaudited financial statements.

			For the year ended October 31, 2021 (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			$	5,948	$	17,628	$	(3)	$	(129)	$	59,806	$	(139)	$	4,632	$	(1,079)	$	3,414	$	86,664	$	103	$	86,767
Changes in equity
	Issues of share capital and other equity instruments			2,250		100		-		-		(5)		-		-		-		-		2,345		-		2,345
	Common shares purchased for cancellation			-		-		-		-		-		-		-		-		-		-		-		-
	Redemption of preferred shares and other equity
		instruments		(1,475)		-		-		-		-		-		-		-		-		(1,475)		-		(1,475)
	Sales of treasury shares and other equity instruments			-		-		647		4,116		-		-		-		-		-		4,763		-		4,763
	Purchases of treasury shares and other equity
		instruments		-		-		(683)		(4,060)		-		-		-		-		-		(4,743)		-		(4,743)
	Share-based compensation awards			-		-		-		-		(6)		-		-		-		-		(6)		-		(6)
	Dividends on common shares			-		-		-		-		(6,158)		-		-		-		-		(6,158)		-		(6,158)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(257)		-		-		-		-		(257)		(3)		(260)
	Other			-		-		-		-		33		-		-		-		-		33		(10)		23
	Net income			-		-		-		-		16,038		-		-		-		-		16,038		12		16,050
	Total other comprehensive income (loss), net of taxes			-		-		-		-		2,344		51		(2,577)		1,645		(881)		1,463		(7)		1,456
Balance at end of period			$	6,723	$	17,728	$	(39)	$	(73)	$	71,795	$	(88)	$	2,055	$	566	$	2,533	$	98,667	$	95	$	98,762

			For the year ended October 31, 2020 (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			$	5,706	$	17,645	$	1	$	(58)	$	55,874	$	33	$	4,221	$	(6)	$	4,248	$	83,416	$	102	$	83,518
Changes in equity
	Issues of share capital and other equity instruments			1,750		80		-		-		(5)		-		-		-		-		1,825		-		1,825
	Common shares purchased for cancellation			-		(97)		-		-		(717)		-		-		-		-		(814)		-		(814)
	Redemption of preferred shares and other equity
		instruments		(1,508)		-		-		-		-		-		-		-		-		(1,508)		-		(1,508)
	Sales of treasury shares and other equity instruments			-		-		110		4,668		-		-		-		-		-		4,778		-		4,778
	Purchases of treasury shares and other equity
		instruments		-		-		(114)		(4,739)		-		-		-		-		-		(4,853)		-		(4,853)
	Share-based compensation awards			-		-		-		-		(3)		-		-		-		-		(3)		-		(3)
	Dividends on common shares			-		-		-		-		(6,111)		-		-		-		-		(6,111)		-		(6,111)
	Dividends on preferred shares and distributions on
		other equity instruments		-		-		-		-		(268)		-		-		-		-		(268)		(6)		(274)
	Other			-		-		-		-		(93)		-		-		-		-		(93)		-		(93)
	Net income			-		-		-		-		11,432		-		-		-		-		11,432		5		11,437
	Total other comprehensive income (loss), net of taxes			-		-		-		-		(303)		(172)		411		(1,073)		(834)		(1,137)		2		(1,135)
Balance at end of period			$	5,948	$	17,628	$	(3)	$	(129)	$	59,806	$	(139)	$	4,632	$	(1,079)	$	3,414	$	86,664	$	103	$	86,767

(1)	Derived from audited financial statements

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 Earnings Release, in other filings with Canadian regulators or the SEC, in other reports to shareholders, and in other communications, including statements by our President and Chief Executive Officer. Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, and climate related goals. The forward-looking information contained in this Earnings Release is presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "goal", "plan" and "project" and similar expressions of future or conditional verbs such as "will", "may", "should", "could" or "would".

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include: credit, market, liquidity and funding, insurance, operational, regulatory compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines), strategic, reputation, competitive, legal and regulatory environment, and systemic risks and other risks discussed in the risk sections and Impact of COVID-19 pandemic section of our annual report for the fiscal year ended October 31, 2021 (the 2021 Annual Report); including business and economic conditions, information technology and cyber risks, environmental and social risk (including climate change), digital disruption and innovation, Canadian housing and household indebtedness, geopolitical uncertainty, privacy, data and third party related risks, regulatory changes, culture and conduct, the business and economic conditions in the geographic regions in which we operate, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and the emergence of widespread health emergencies or public health crises such as pandemics and epidemics, including the COVID-19 pandemic and its impact on the global economy, financial market conditions and our business operations, and financial results, condition and objectives. In addition, as we work to advance our climate goals, external factors outside of RBC's reasonable control may act as constraints on their achievement, including varying decarbonization efforts across economies, the need for thoughtful climate policies around the world, more and better data, reasonably supported methodologies, and technological advancements, the evolution of consumer behavior, the challenges of balancing interim emissions goals with an orderly and just transition, and other significant considerations such as legal and regulatory obligations.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Material economic assumptions underlying the forward-looking statements contained in this Earnings Release are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2021 Annual Report. Except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.

Additional information about these and other factors can be found in the risk sections and Impact of COVID-19 pandemic section of our 2021 Annual Report. Information contained in or otherwise accessible through the websites mentioned does not form part of this Earnings Release. All references in this Earnings Release 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 2021 Annual Report at rbc.com/investorrelations.

Quarterly conference call and webcast presentation

Our quarterly conference call is scheduled for December 1, 2021 at 8:00 a.m. (EST) and will feature a presentation about our fourth quarter and 2021 results by RBC executives. It will be followed by a question and answer period with analysts. Interested parties can access the call live on a listen-only basis at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (416-340-2217, 866-696-5910, passcode 9281609#). 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 1, 2021 until February 23, 2022 at rbc.com/investorrelations/quarterly-financial-statements.html or by telephone (905-694-9451 or 800-408-3053, passcode 8026879#).

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 87,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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.

Trademarks used in this earnings release include the LION & GLOBE Symbol, ROYAL BANK OF CANADA and RBC which are trademarks of Royal Bank of Canada used by

Royal Bank of Canada and/or by its subsidiaries under license. All other trademarks mentioned in this earnings release, which are not the property of Royal Bank of Canada, are owned by their respective holders.

SOURCE Royal Bank of Canada

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