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POLE RBC ROYAL BANK OF CANADA REPORTS THIRD 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 Q3 2021 Report to Shareholders and Supplementary Financial Information are available at : http://www.rbc.com/investorrelations . PCL² $ ( 540 ) Million PCL on loans ratio down 23 bps³ QoQ Net Income $ 4.3 Billion Up 34 % YoY TORONTO , August 25 , 2021 - Royal Bank of Canada ( RY on TSX and NYSE ) today reported net income of $ 4.3 billion for the quarter ended July 31 , 2021 , up $ 1.1 billion or 34 % from the prior year . Diluted EPS was $ 2.97 , up 35 % over the same period . Our results this quarter included releases of provisions on performing loans of $ 638 million mainly driven by improvements in our credit quality and macroeconomic outlook as compared to provisions of $ 280 million taken in the prior year due to the evolving impact of the COVID - 19 pandemic . Earnings in Personal & Commercial Banking , Capital Markets and Wealth Management were up from last year , largely due to the favourable impact of lower provisions . Higher results in Insurance and Investor & Treasury Services also contributed to the increase . Pre - provision , pre - tax earnings5 of $ 5.0 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 well - controlled discretionary expenses , partially offset by the impact of low interest rates , lower trading revenue and higher variable compensation on improved results . Compared to last quarter , net income was up $ 281 million with higher results in Personal & Commercial Banking , Capital Markets , Wealth Management , and Insurance . These results were partially offset by lower earnings in Investor & Treasury Services . Q3 2021 Compared to Q3 2020 The PCL on loans ratio of ( 28 ) bps was down 23 bps from last quarter primarily due to lower provisions in Personal & Commercial Banking and Capital Markets . The PCL on impaired loans ratio of 8 bps decreased 3 bps from last quarter . Q3 2021 Compared to Q2 2021 Our capital position remained robust , with a Common Equity Tier 1 ( CET1 ) ratio of 13.6 % supporting strong client - driven volume growth and $ 1.5 billion in common share dividends paid . YTD 2021 Compared to YTD 2020 " Guided by our Purpose , RBC continued to deliver on our commitment of providing long - term , sustainable value to our clients , communities and shareholders . Our diversified businesses and disciplined approach to risk and cost management underpinned our results , supported by the significant investments we've made in technology and talent to fuel our momentum and deliver differentiated value to those we serve . We remain cautiously optimistic about the macroeconomic outlook and focused on supporting clients and communities through the ongoing recovery . " ● ● Diluted EPS¹ $ 2.97 Up 35 % YoY ● ● ● ● ● 1 Earnings per share ( EPS ) . 2 Provision for credit losses ( PCL ) . 3 Basis points ( bps ) . THIRD QUARTER 2021 EARNINGS RELEASE Net income of $ 4,296 million Diluted EPS of $ 2.97 ROE4 19.6 % Up from 15.7 % last year ROE of 19.6 % CET1 ratio of 13.6 % Net income of $ 4,296 million Diluted EPS of $ 2.97 ROE of 19.6 % CET1 ratio of 13.6 % Net income of $ 12,158 million Diluted EPS of $ 8.39 ROE of 19.2 % - 1 CET1 Ratio 13.6 % Well above regulatory requirements Dave McKay , RBC President and Chief Executive Officer ↑ 34 % ↑ 35 % 390 bps ↑ 160 bps ↑ 7 % ↑ 8 % 20 bps 80 bps ↑ 48 % ↑ 50 % 560 bps 4 Return on equity ( ROE ) . This measure does not have a standardized meaning under generally accepted accounting principles ( 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 ( Q3 2021 : $ 4,296 million ; Q3 2020 : $ 3,201 million ) before income taxes ( Q3 2021 : $ 1,276 million ; Q3 2020 : $ 879 million ) and PCL ( Q3 2021 : - $ 540 million ; Q3 2020 : $ 675 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 .