Royal Bank of Canada (RY) investor relations material

Acquisition and synergy realization

• Acquisition of HSBC's Personal Banking brought a strong client franchise with high-quality credit and entrenched relationships, exceeding cost and revenue synergy targets, including CAD 300 million in revenue synergies.

• New capabilities such as foreign currency accounts and enhanced money movement were developed to meet HSBC customer needs and are now being cross-sold to the broader customer base.

• Cross-sell and deepening relationships with acquired customers are ongoing, with retention and growth meeting expectations.

Deposit and margin dynamics

• Deposit growth has shifted, with outflows from term deposits (GICs) moving into wealth management products, reflecting healthy client transitions aligned with long-term needs.

• Account-based deposit growth remains strong, with underlying product strength considered healthy despite headline stagnation.

• Net interest margin (NIM) performance has been near the top of the market, with some drag from purchase price accounting (PPA) expected to be managed through growth.

Mortgage and lending trends

• Mortgage book margins are expected to expand in the second half of 2026 as low-spread mortgages mature, though intense price competition and retention efforts are key factors.

• HELOC growth is flat, reflecting consumer preference for certainty in uncertain times, with strict loan-to-value caps ensuring prudent risk management.