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POLE RBC ROYAL BANK OF CANADA REPORTS FIRST QUARTER 2021 RESULTS All amounts are in Canadian dollars and are based on financial statements presented in compliance with International Accounting Standard 34 Interim Financial Reporting , unless otherwise noted . Our Q1 2021 Report to Shareholders and Supplementary Financial Information are available at : http://www.rbc.com/investorrelations . PCL² $ 110 Million PCL on loans ratio down 16 bps³ QoQ Net Income $ 3.8 Billion Up 10 % YoY TORONTO , February 24 , 2021 - Royal Bank of Canada ( RY on TSX and NYSE ) today reported net income of $ 3,847 million for the quarter ended January 31 , 2021 , up $ 338 million or 10 % from the prior year , with strong diluted EPS growth of 11 % over the same period . Results across our businesses benefited from strong volume growth , increased client activity and constructive markets , partially offset by the impact of low interest rates and higher expenses largely due to variable and stock - based compensation commensurate with strong results . Record earnings in Capital Markets as well as positive earnings growth in Personal & Commercial Banking , Wealth Management and Insurance were partly offset by lower results in Investor & Treasury Services . Results this quarter also reflected lower provisions for credit losses , with a PCL on loans ratio of 7 bps , largely resulting from releases of provisions on performing loans . Lower provisions on impaired loans also contributed to the decrease . Our reserves continue to be prudent and reflective of the uncertainty related to the COVID - 19 pandemic , as demonstrated by our allowance for credit losses ( ACL ) ratio of 85 bps . Q1 2021 Compared to Q1 2020 Diluted EPS¹ $ 2.66 Up 11 % YoY Compared to last quarter , net income was up $ 601 million with higher results in Personal & Commercial Banking , Capital Markets , Wealth Management , and Investor & Treasury Services . These factors were partially offset by lower results in Insurance . Q1 2021 Compared to Q4 2020 Our capital position remained robust , with a Common Equity Tier 1 ( CET1 ) ratio of 12.5 % supporting strong volume growth and $ 1.5 billion in common share dividends paid . We also had a strong average Liquidity Coverage Ratio ( LCR ) of 141 % . ● " Against the uncertain macroeconomic backdrop due to the COVID - 19 pandemic , we entered 2021 with strong momentum across our businesses . This is a reflection of the resiliency of our diversified business model , prudent approach to risk management , significant technology investments , and our colleagues ' dedication to our clients and communities . As global economies pivot to recovery , our scale , robust capital and liquidity position , and data and technology capabilities provide us with the foundation to continue prudently investing for long - term growth and delivering sustainable value for our clients , shareholders and communities . " Dave McKay , RBC President and Chief Executive Officer ● ● FIRST QUARTER 2021 EARNINGS RELEASE ● Net income of $ 3,847 million Diluted EPS of $ 2.66 ROE of 18.6 % CET1 ratio of 12.5 % Net income of $ 3,847 million ● Diluted EPS of $ 2.66 ROE4 18.6 % Up 100 bps YoY ROE of 18.6 % CET1 ratio of 12.5 % CET1 Ratio 12.5 % Well above regulatory requirements ↑ 10 % ↑ 11 % 1 100 bps 50 bps ↑ 19 % ↑ 19 % 260 bps ➜0 bps 1 Earnings per share ( EPS ) . 2 Provision for credit losses ( PCL ) . 3 Basis points ( bps ) . 4 Return on equity ( ROE ) . This measure does not have a standardized meaning under GAAP . For further information , refer to the Key Performance and non - GAAP measures section on page 3 of this Earnings Release . Personal & Commercial Banking Net income of $ 1,793 million increased $ 107 million or 6 % from a year ago , primarily attributable to continued strong average volume growth of 12 % ( + 19 % in deposits and + 6 % in loans ) in Canadian Banking and lower PCL . These factors were partially offset by lower spreads . Compared to last quarter , net income increased $ 291 million or 19 % , primarily due to lower PCL , average volume growth of 2 % in Canadian Banking , as well as higher card service and foreign exchange revenue . The timing of professional fees also contributed to the increase . These factors were partially offset by higher staff - related costs .