RBC Bank Earnings Reports

RBC, Canada’s largest bank by total assets, has seen its total assets increase significantly over the past few decades. Since 1996, RBC’s total assets have grown from $191 billion to $2.15 trillion, an increase of over 1,000%.

Although RBC has had an early lead, TD has been closing the gap in recent years with particularly accelerated growth post-2010, increasing its total assets by over 1,800% over the same time span to $2.05 trillion. However, TD’s growth has been mostly in the US, where recently it has received significant reputational and financial blows, while RBC has grown in the much safer Canadian market.

Note: RBC adopted IFRS 17 effective November 1, 2023, with restated numbers shown up to Q1 2023. Results prior to Q1 2023 are based on IFRS 4.

Total assets can be divided into four key components: total loans, total securities, total cash and cash equivalents, and total other assets. RBC’s total loans have grown steadily since 1996, while its total securities saw a more measurable spike in 2023.

Cash and cash equivalents spiked in 2020, showing a need for liquidity during the uncertainty surrounding the pandemic, although it has steadily declined since then. The significant loan growth throughout these periods shows that lending remains a primary focus of RBC, contributing the majority of its total assets.

This chart provides a proportional breakdown of RBC's total assets into its four key categories over time. Loans make up 50-60% of RBC’s total assets. There was a large growth in RBC’s other assets in 2011, eroding the share of loans and securities, while cash saw a spike during the pandemic. Overall, the breakdown of RBC’s assets remains relatively consistent over time, with loans dominating.

RBC is seeing some interesting trends in its credit risk, shown through its Net Write-Offs, Provision for Credit Losses (PCL), and Allowance for Credit Losses (ACL). Net write-offs initially decreased after Q3 2020 but reversed course as they gradually rose through Q3 2024. PCL saw significant negative values in Q3 2021 and Q2 2022, indicating recovery of provisions, although it has since been followed by an upward trend starting in Q3 2022. The increase in ACL from Q3 2022 to Q3 2024 corresponds with rising PCL and net write-offs, highlighting increasing credit risk as RBC fortifies its reserves.

RBC’s total gross loans and acceptances grew from $679.8 billion in Q3 2020 to $978.3 billion in Q3 2024. Loans in Canada formed the bulk of RBC’s loan portfolio, increasing from $517 billion in Q3 2020 to $751.2 billion in Q3 2024. This steady rise highlights RBC’s significant presence in Canada, with especially strong growth in 2024, stemming from RBC’s acquisition of HSBC Bank Canada.

Loans in the U.S. peaked at $176.1 billion in Q2 2024 before slightly decreasing to $169.2 billion in Q3 2024. Loans in other countries represented the smallest portion of RBC’s portfolio but grew from $45 billion in Q3 2020 to $57.9 billion in Q3 2024.

Total mortgages have grown from $330.3 billion in Q3 2020 to $473.6 billion in Q3 2024, with a spike in Q2 2024 after the completion of RBC’s acquisition of HSBC Bank Canada. Business and government loans fluctuated but grew overall, from $241.6 billion in Q3 2020 to a peak of $377.5 billion in Q2 2024, before a slight dip to $374.1 billion in Q3 2024.

Home Equity Lines of Credit (HELOC) remained relatively stable, beginning at $38.7 billion in Q3 2020 and ending at $39 billion in Q3 2024. While fluctuating slightly, HELOC volumes remained within a close range, showing consistent demand for home equity products but not experiencing the same growth as mortgages.

Credit cards saw steady growth over the years, increasing from $17.7 billion in Q3 2020 to $25 billion in Q3 2024. This rise suggests increased consumer spending and borrowing, particularly post-2021, as price levels rose. The steady climb in credit card loans reflects increased consumer confidence and demand for credit-based spending. Meanwhile, other personal loans increased from $51.4 billion in Q3 2020 to $66.6 billion in Q3 2024.

Deposits in Canada make up the largest share of RBC’s deposit portfolio, growing from $759.9 billion in Q3 2020 to over $1.08 trillion by Q3 2024. However, U.S. deposits have shrunk since Q2 2022, as well as deposits in all other countries after Q4 2022. Total deposits at RBC have still grown from $1.02 trillion in Q3 2020 to $1.36 trillion in Q3 2024.