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POLE RBC ROYAL BANK OF CANADA REPORTS SECOND 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 Q2 2021 Report to Shareholders and Supplementary Financial Information are available at : http://www.rbc.com/investorrelations . PCL² $ ( 96 ) Million PCL on loans ratio down 12 bps³ QoQ Net Income $ 4.0 Billion Up $ 2.5 Billion YoY TORONTO , May 27 , 2021 - Royal Bank of Canada ( RY on TSX and NYSE ) today reported net income of $ 4.0 billion for the quarter ended April 30 , 2021 , up $ 2.5 billion from the prior year . Diluted EPS was $ 2.76 , up significantly over the same period . Our results this quarter included releases of provisions on performing loans of $ 260 million compared to elevated provisions on performing loans of $ 2.1 billion in the prior year . Pre - provision , pre - tax earnings5 of $ 5.1 billion were up 11 % from a year ago , mainly reflecting constructive markets and strong volume growth , partially offset by the impact of low interest rates , and higher expenses largely due to higher variable compensation on improved results and higher stock - based compensation . Personal & Commercial Banking and Capital Markets generated solid earnings growth , with Capital Markets reporting record earnings this quarter . Higher results in Wealth Management and Insurance also contributed to the increase . These factors were partially offset by lower results in Investor & Treasury Services . Compared to last quarter , net income was up $ 168 million with higher results in Personal & Commercial Banking , Wealth Management and Capital Markets . These results were partially offset by lower earnings in Insurance and Investor & Treasury Services . Q2 2021 Compared to Q2 2020 The PCL on loans ratio of ( 5 ) bps was down 12 bps from last quarter primarily due to lower provisions in Personal & Commercial Banking and Capital Markets , partially offset by higher recoveries in Wealth Management in the prior quarter . The PCL on impaired loans ratio of 11 bps decreased 2 bps from last quarter . Q2 2021 Compared to Q1 2021 Diluted EPS¹ $ 2.76 Up from $ 1.00 in Q2 2020 Our capital position remained robust , with a Common Equity Tier 1 ( CET1 ) ratio of 12.8 % supporting strong client - driven volume growth and $ 1.5 billion in common share dividends paid . We also had a strong average Liquidity Coverage Ratio ( LCR ) of 133 % . YTD 2021 Compared to YTD 2020 " I'm tremendously proud of how our employees continue to demonstrate resilience , and bring our Purpose to life to deliver for our clients , communities and shareholders . The strong momentum we've achieved in the first half of 2021 reflects our focused strategy to deliver exceptional experiences and create more value for clients . RBC brings this to life through the combination of our powerful scale , strong market share growth , prudent risk management , and significant multi - year investments in talent and technology . While there is reason for optimism as recovery continues to take hold , we know the pandemic's path forward still poses challenges . We remain firmly committed to helping our clients thrive and communities prosper , and to being an enabler of a more inclusive and sustainable future . " Dave McKay , RBC President and Chief Executive Officer ● ● ● ● ● SECOND QUARTER 2021 EARNINGS RELEASE Net income of $ 4,015 million Diluted EPS of $ 2.76 ROE4 19.4 % Up from 7.3 % last year ROE of 19.4 % CET1 ratio of 12.8 % Net income of $ 4,015 million Diluted EPS of $ 2.76 ● ROE of 19.4 % ● CET1 ratio of 12.8 % Net income of $ 7,862 million Diluted EPS of $ 5.42 ROE of 19.0 % 1 CET1 Ratio 12.8 % Well above regulatory requirements ↑ 171 % ↑ 176 % 1,210 bps 110 bps ↑ 4 % ↑ 4 % 80 bps 30 bps ↑ 58 % ↑ 59 % 650 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 . 5 Pre - provision , pre - tax earnings is calculated as income before income taxes ( Q2 2021 : $ 5,186 million ; Q2 2020 : $ 1,738 million ) plus PCL ( Q2 2021 : - $ 96 million ; Q2 2020 : $ 2,830 million ) . This is a non - GAAP measure . For further information , refer to the Key Performance and non - GAAP measures section on page 3 of this Earnings Release .