RBC Bank Earnings Reports

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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 $191.5 billion to $2.242 trillion by April 2025, growing almost 12 times.

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 19-fold over the same period to $2.064 trillion as of April 2025. However, TD's growth has been chiefly in the US, where recently it has received significant reputational and financial blows, while RBC has grown in the much safer Canadian market.

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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.

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Main asset categories of each bank include loans, securities, and cash and cash equivalents. RBC's total loans have grown steadily since 1996, while its securities accelerated growth was mostly 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.

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This chart provides a proportional breakdown of RBC's total assets into its four key categories over time. Loans make up 50-63% 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.

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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 Q4 2024, dipping again in Q1 2025. PCL saw 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 Q1 2025 corresponds with net write-offs and notably rising PCLs, highlighting increasing credit risk as RBC fortifies its reserves.

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Loans in Canada formed the bulk of RBC's loan portfolio, increasing from $397.1 billion in Q2 2015 to $765.6 billion in Q2 2025. 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 $190 billion in Q1 2025. Loans in other countries represented a small portion of RBC's portfolio but grew from $2.1 billion to $66.3 billion over the past decade.

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Total residential mortgages have grown from $222.5 billion in Q2 2015 to $481.8 billion in Q2 2025, growing 2.2 times over a decade, 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. During the past decade, they rose from $130.9 billion to $395.5 billion in Q2 2025, growing threefold.

Home Equity Lines of Credit (HELOC) declined by 12% over the past decade, beginning at $45.9 billion in Q2 2015 and reaching $40.3 billion in Q2 2025. Regulatory changes like the introduction of the stress test, which applies to the borrowers' HELOC limit, likely have limited demand for HELOC loans. Further introduction of Basel III and an increase in the capital requirement for HELOC loans have likely reduced RBCs' eagerness for extending home equity lines of credit. It's fascinating that TD, BMO and Scotiabank grew their HELOC balances over the same period. So, the main factor in RBC’s declining HELOC loans must be a strategic decision made by management.

Credit cards saw steady growth over the years, increasing from $15.3 billion in Q2 2015 to $26.0 billion in Q2 2025. This rise suggests increased consumer spending and borrowing, particularly post-2021, as price levels and population rose. Meanwhile, other personal loans increased from $48.4 billion in Q2 2015 to $70.9 billion in Q2 2025.

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Deposits in Canada make up the largest share of RBC's deposit portfolio, growing from $759.9 billion in Q3 2020 to over $1.13 trillion by Q1 2025. 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 $1.44 trillion in Q1 2025.

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