Canadian Banks – Commercial / Corporate Lending Slowing, RESL Accelerating

Canadian Banks – Commercial / corporate lending slowing, RESL accelerating...

EQUITY RESEARCH | AUGUST 18, 2020 For Required Non-U.S. Analyst and Conflicts Disclosures, please see page 42.

Disseminated: August 18, 2020 21:20ET; Produced: August 18, 2020 21:20ET Canadian Banks – OSFI data update (June 2020)

Canadian Banks – Commercial / corporate lending slowing, RESL accelerating

RBC Dominion Securities Inc. RBC Elements predicts that Canada P&C loan growth could come in at 4.7% YoY in Q3/20 Darko Mihelic, CFA (vs. 5.0% YoY last quarter), modestly better than the 4.5% YoY growth currently assumed (Analyst) in our models. The largest variance between RBC Elements’ predictions and our forecasts is (416) 842-4128 at BMO and BNS. Elements predicts Canada P&C loan growth of 6.8% YoY for BMO (higher [email protected] than our forecast growth of 6.2% YoY) and 6.0% YoY for BNS (higher than our forecast growth of 5.5% YoY).E1 Sanly Li, CPA, CA (Senior Associate) In this note, we also provide updated trends on key loan and deposit figures using OSFI’s (416) 842-5638 balance sheet data for the month of June, which was released on August 18. In addition to [email protected] our tables of the latest figures and quarter-to-date trends, we provide graphs of longer- term trends by bank. A few interesting takeaways: All values in CAD, unless otherwise noted. 1. Business and government loan balances as of June declined compared to April. We Priced as of market close, August 18, 2020 ET. remind readers that this OSFI data effectively represents a month end balance sheet and specifically includes both commercial and corporate (wholesale) loans. Business and government loans for the large Canadian banks in aggregate declined -1.3% QTD in June compared to April, which could potentially reflect loan repayments and lower drawdowns in our view. Of the large Canadian banks, TD’s business and government loans declined the most by -6.6% QTD as of June. Only BMO and BNS had an increase in business and government loans of 3.0% QTD and 7.5% QTD as of June, respectively. On a YoY basis, business and government loan growth moderated to 7.0% YoY in June compared to 11.3% YoY in April. TD’s growth decelerated the most amongst the large banks to 4.1% YoY in June vs. 16.6% YoY in April. BMO and BNS were the only large banks that experienced higher YoY growth in June compared to April. BMO’s growth increased to 16.4% YoY in June vs. 15.3% YoY in April and BNS’ growth accelerated to 13.6% YoY in June vs. 7.9% YoY in April (Exhibit 27).

2. Unsecured personal loan balances continued to decline and real estate secured lending (RESL) growth modestly decelerated in June. Unsecured personal loans declined -8.9% YoY in June vs. -7.0% YoY in April for the large Canadian banks in aggregate, presumably in part driven by continued low consumer spending activity (Exhibit 19). Unsecured personal lending balances continued to decline the most at NA at -13.3% YoY in June vs. -13.1% YoY in April. BMO had the lowest decline amongst the large banks of -6.0% YoY in June vs. -4.2% YoY in April. RESL growth modestly declined to 5.6% YoY in June vs. 5.9% YoY in April for the large Canadian banks. Of the large Canadian banks, only CM had an uptick in RESL growth of 2.3% YoY in June vs. 1.6% YoY in April (Exhibit 11).

3. Demand and notice deposit growth remained strong for both consumers and businesses in June. Personal demand and notice deposits increased 17.3% YoY in June for the large Canadian banks compared to 15.2% YoY in April (Exhibit 43). BNS’ growth increased the most to 19.3% YoY in June vs. 14.4% YoY in April. NA had the smallest increase in growth, coming in at 21.5% YoY in June compared to 21.3% YoY in April. Business demand and notice deposit growth increased to 26.3% YoY in June for the large Canadian banks compared to 20.1% YoY in April (Exhibit 59). RY had the strongest acceleration in growth, coming in at 24.6% YoY in June vs. 15.7% YoY in April. BMO had the lowest uptick in growth, coming in at 30.2% YoY in June vs. 29.3% YoY in April.

E Learn more about RBC Elements on page 41.

August 18, 2020 2 Canadian Banks – OSFI data update (June 2020)

Table of contents RBC Elements’ predictive modeling of Canada P&C loans ...... 4 Q3/20E model outputs ...... 4 Q2/20 predictions and forecasts vs. actual results ...... 4 Domestic loan growth trends as of June 2020 ...... 5 Total domestic loans ...... 5 Real estate secured lending (RESL) ...... 9 Unsecured personal lending ...... 13 Business and Government (Commercial and Wholesale) lending ...... 17 Domestic deposit growth trends as of June 2020 ...... 21 Total domestic deposits ...... 21 Personal demand and notice deposits ...... 25 Personal fixed-term deposits ...... 29 Business demand and notice deposits ...... 33 Business fixed-term deposits ...... 37

In all jurisdictions where RBC conducts business we do not offer investment advice on Royal Bank. Certain regulations prohibit member firms from soliciting orders and offering investment advice or opinions on their own stock. References to Royal Bank are for informational purposes only and are not intended as a direct or implied recommendation for investing in Royal Bank and all related securities.

August 18, 2020 3 Canadian Banks – OSFI data update (June 2020)

RBC Elements’ predictive modeling of Canada P&C loans Q3/20E model outputs Based on OSFI balance sheet data as of June, RBC Elements’ predictive modeling suggests that Canada P&C loan growth decelerated to 4.7% YoY in Q3/20 (in aggregate, excl. RY) compared to 5.0% YoY last quarter. Their models suggest that loan growth ranges from 2.5% YoY at CM to 6.8% YoY at BMO. Overall this is modestly higher than our estimates as shown in Exhibit 1.

Exhibit 1: RBC Elements’ predictive models suggest Canada P&C loan growth could come in at 4.7% YoY in Q3/20, modestly higher than our forecast of 4.5% YoY

Canada P&C Avg. Loans: Q3/20E RBC Elements' Predictive Q2/20A Model Outputs RBCCM Estimates. Q3/20A YoY $BN Implied YoY % $BN Implied YoY % BMO 7.2% 255.3 6.8% 253.9 6.2% BNS 6.7% 359.5 6.0% 357.9 5.5% CM 2.3% 330.0 2.5% 329.1 2.2% NA 4.6% 117.9 4.6% 117.7 4.5% TD 4.6% 444.8 4.2% 445.4 4.3% Total 5.0% 1,507.5 4.7% 1,504.0 4.5%

Source: RBC Capital Markets estimates, Company reports

Q2/20 predictions and forecasts vs. actual results We summarize below our previously published RBC Elements predictions and RBCCM estimates vs. Q2/20 actual results. In aggregate, the large Canadian banks under our coverage generated loan growth of 5.0% YoY in Q2/20, modestly lower than RBC Elements’ prediction of 5.2% YoY and our 5.1% YoY forecast. The largest variance between RBC Elements’ predictions and actual results was at NA, where YoY loan growth came in ~-70 bps softer than predicted. The largest variance between our forecast figures and actual results was at BMO, where YoY loan growth came in ~70 bps stronger than our forecast (Exhibit 2).

For more on our loan balance predictive modeling methodology, see our note linked here.

Exhibit 2: Summary of RBC Elements’ predictions and RBCCM estimates vs. Q2/20 actual results

Canada P&C Avg. Loans: Q2/20E RBC Elements' Predictive Q1/20A Model Outputs RBCCM Estimates. Q2/20A YoY $BN Implied YoY % $BN Implied YoY % $BN YoY % BMO 7.2% 250.8 6.9% 249.9 6.5% 251.4 7.2% BNS 6.0% 356.0 6.9% 353.7 6.3% 355.2 6.7% CM 1.7% 328.0 2.5% 328.4 2.7% 327.3 2.3% NA 4.4% 117.3 5.3% 116.6 4.6% 116.5 4.6% TD 4.4% 441.2 4.9% 442.9 5.3% 439.9 4.6% Total 4.6% 1,493.3 5.2% 1,491.5 5.1% 1,490.3 5.0%

Source: RBC Capital Markets estimates, RBC Elements, Company reports

August 18, 2020 4 Canadian Banks – OSFI data update (June 2020)

Appendix: Charts and graphs of loans and deposits by bank Domestic loan growth trends as of June 2020 Total domestic loans Exhibit 3: Total domestic loan growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Total Loans BMO 260,891 18,220 7.5% 7.6% 6.9% No n/a 4.7% 5.3% 5.1% BNS 376,488 20,645 5.8% 5.8% 7.7% Yes, Below -0.6% 5.6% 5.3% 4.7% CM 318,547 6,097 2.0% 3.0% 2.5% No n/a 3.0% 5.9% 5.5% NA 130,001 5,052 4.0% 6.5% 5.4% Yes, Below -0.6% 4.8% 6.0% 6.2% RY 482,196 22,072 4.8% 5.7% 6.3% Yes, Below -0.8% 5.2% 4.8% 4.6% TD 452,937 15,492 3.5% 6.2% 5.7% Yes, Below -1.3% 4.8% 5.2% 5.1% Total Big 6 Banks 2,021,061 87,578 4.5% 5.7% 5.8% Yes, Below -0.6% 4.7% 5.3% 5.0% CWB 28,909 1,484 5.4% 6.0% 7.1% Yes, Below -0.4% 8.9% 9.1% 9.8% LB 30,082 (1,192) -3.8% -4.3% -4.5% Yes, Above 0.2% -3.7% 1.6% 1.7%

Total All Banks 2,295,440 98,292 4.5% 5.7% 6.0% Yes, Below -0.8% 5.1% 5.6% 5.4% Total Domestic Banks 2,180,273 91,899 4.4% 5.4% 6.0% Yes, Below -0.8% 5.1% 5.7% 5.4% Total Foreign Bank Subsidiaries 67,377 5,173 8.3% 9.4% 6.0% No n/a 5.0% 2.5% 2.5%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 27,601.1 2,811.4 11.3% 9.9% 13.7% No n/a 14.9% 15.9% n/a Bank with smallest YoY % growth in Jun-20:*

B2B Bank 8,845.4 (1,137.5) -11.4% -13.3% -13.6% Yes, Above 1.3% -8.6% 2.1% 3.5%

*Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 4: Total domestic loan market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Total Loans BMO 11.6% 11.5% 11.5% 11.4% -0.1% -0.2% -0.2% BNS 17.1% 16.6% 16.1% 16.4% 0.3% -0.2% -0.7% CM 13.8% 13.7% 14.7% 13.9% -0.8% 0.2% 0.1% NA 5.4% 5.6% 5.7% 5.7% 0.0% 0.1% 0.3% RY 22.2% 21.8% 21.0% 21.0% 0.0% -0.8% -1.2% TD 20.1% 20.1% 19.9% 19.7% -0.2% -0.4% -0.3% Total Big 6 Banks 90.1% 89.3% 88.9% 88.0% -0.9% -1.3% -2.0% CWB 0.9% 1.1% 1.1% 1.3% 0.1% 0.2% 0.3% LB 1.7% 1.6% 1.7% 1.3% -0.4% -0.3% -0.4%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 94.5% 94.5% 94.9% 95.0% 0.1% 0.5% 0.4% Total Foreign Bank Subsidiaries 3.6% 3.4% 2.9% 2.9% 0.0% -0.5% -0.6%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 0.0% 0.8% 0.9% 1.2% 0.3% 0.4% 1.2% Bank with smallest YoY % growth in Jun-20:* B2B Bank 0.4% 0.5% 0.6% 0.4% -0.2% -0.1% -0.1% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

August 18, 2020 5 Canadian Banks – OSFI data update (June 2020)

Exhibit 5: Total domestic loan growth - BMO

Total Loan Growth (YoY) - BMO 11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 6: Total domestic loan growth - BNS

Total Loan Growth (YoY) - BNS 11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 6 Canadian Banks – OSFI data update (June 2020)

Exhibit 7: Total domestic loan growth - CM

Total Loan Growth (YoY) - CM 14.0%

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 8: Total domestic loan growth - NA

Total Loan Growth (YoY) - NA 12.0%

11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 7 Canadian Banks – OSFI data update (June 2020)

Exhibit 9: Total domestic loan growth - RY

Total Loan Growth (YoY) - RY 9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 10: Total domestic loan growth - TD

Total Loan Growth (YoY) - TD 8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 8 Canadian Banks – OSFI data update (June 2020)

Real estate secured lending (RESL) Exhibit 11: RESL growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Total real estate secured lending (personal) BMO 150,264 7,733 5.4% 5.8% 5.0% No n/a 3.6% 4.2% 4.2% BNS 257,385 15,104 6.2% 6.9% 6.0% No n/a 5.4% 4.4% 3.2% CM 230,433 5,192 2.3% 1.6% 0.4% Yes, Above 0.8% 1.5% 4.9% 4.7% NA 79,225 4,951 6.7% 6.7% 5.4% Yes, Above 0.3% 4.7% 5.9% 6.6% RY 341,435 24,787 7.8% 8.0% 7.1% No n/a 5.6% 5.2% 4.9% TD 327,186 15,739 5.1% 5.9% 5.1% No n/a 4.9% 4.6% 4.4% Total Big 6 Banks 1,385,929 73,506 5.6% 5.9% 4.9% Yes, Above 0.0% 4.4% 4.8% 4.4% CWB 8,182 147 1.8% 2.0% 4.0% Yes, Below -0.7% 6.6% 11.1% 11.9% LB 18,170 (208) -1.1% -2.0% -3.5% Yes, Above 0.6% -3.4% 1.9% 2.1%

Total All Banks 1,522,887 80,196 5.6% 5.7% 5.2% Yes, Above 0.0% 4.9% 5.3% 4.9% Total Domestic Banks 1,486,542 77,682 5.5% 5.7% 5.1% No n/a 4.8% 5.3% 4.9% Total Foreign Bank Subsidiaries 35,732 2,601 7.9% 7.5% 6.0% Yes, Above 0.6% 7.1% 6.6% 6.0%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 24,939.1 2,653.7 11.9% 10.8% 14.2% No n/a 14.9% 16.0% n/a Bank with smallest YoY % growth in Jun-20:* B2B Bank 6,101.4 (810.3) -11.7% -13.2% -13.4% Yes, Above 1.0% -7.1% 9.1% 15.4% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 12: RESL market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Total real estate secured lending (personal) BMO 10.4% 10.4% 10.2% 9.9% -0.4% -0.5% -0.5% BNS 19.0% 17.6% 16.7% 16.9% 0.2% -0.7% -2.1% CM 15.4% 15.4% 16.7% 15.1% -1.6% -0.2% -0.2% NA 4.7% 5.0% 5.2% 5.2% 0.0% 0.2% 0.5% RY 22.5% 22.5% 22.0% 22.4% 0.4% -0.1% -0.1% TD 22.2% 22.1% 21.5% 21.5% 0.0% -0.7% -0.7% Total Big 6 Banks 94.0% 93.0% 92.3% 91.0% -1.3% -2.0% -3.0% CWB 0.3% 0.4% 0.5% 0.5% 0.0% 0.1% 0.2% LB 1.4% 1.4% 1.5% 1.2% -0.3% -0.2% -0.3%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 97.6% 97.5% 97.8% 97.6% -0.2% 0.1% 0.0% Total Foreign Bank Subsidiaries 2.2% 2.2% 2.2% 2.3% 0.1% 0.1% 0.2%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 0.0% 1.0% 1.2% 1.6% 0.4% 0.6% 1.6% Bank with smallest YoY % growth in Jun-20:* B2B Bank 0.2% 0.3% 0.6% 0.4% -0.2% 0.1% 0.2% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

August 18, 2020 9 Canadian Banks – OSFI data update (June 2020)

Exhibit 13: RESL growth - BMO

Domestic Real Estate Secured Lending Growth (YoY) - BMO 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

BMO Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 14: RESL growth - BNS

Domestic Real Estate Secured Lending Growth (YoY) - BNS 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5%

BNS Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 10 Canadian Banks – OSFI data update (June 2020)

Exhibit 15: RESL growth - CM

Domestic Real Estate Secured Lending Growth (YoY) - CM 14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

CM Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 16: RESL growth - NA

Domestic Real Estate Secured Lending Growth (YoY) - NA 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

NA Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 11 Canadian Banks – OSFI data update (June 2020)

Exhibit 17: RESL growth - RY

Domestic Real Estate Secured Lending Growth (YoY) - RY 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

RY Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 18: RESL growth - TD

Domestic Real Estate Secured Lending Growth (YoY) - TD 6.5%

6.0%

5.5%

5.0%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

TD Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 12 Canadian Banks – OSFI data update (June 2020)

Unsecured personal lending Exhibit 19: Unsecured personal loan growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Unsecured personal loans BMO 17,941 (1,151) -6.0% -4.2% 1.1% Yes, Below -3.1% -0.7% 0.9% 0.9% BNS 25,039 (1,807) -6.7% -3.8% 3.8% Yes, Below -4.2% 3.2% 5.8% 3.6% CM 23,585 (2,480) -9.5% -8.4% -1.3% Yes, Below -3.3% -2.4% -0.1% -0.9% NA 5,473 (842) -13.3% -13.1% -5.8% Yes, Below -2.9% -17.9% -8.2% -4.9% RY 36,684 (3,330) -8.3% -7.2% 0.8% Yes, Below -3.7% -2.2% -7.5% -5.6% TD 27,085 (3,596) -11.7% -8.9% -0.4% Yes, Below -5.0% -2.6% -1.4% 1.5% Total Big 6 Banks 135,808 (13,207) -8.9% -7.0% 0.5% Yes, Below -4.0% -2.1% -2.1% -1.3% CWB - (0) n/a n/a n/a n/a n/a -100.0% n/a n/a LB 661 (462) -41.1% -40.0% -18.5% Yes, Below -8.6% -22.2% -15.9% -15.5%

Total All Banks 153,850 (15,840) -9.3% -7.8% 0.2% Yes, Below -4.0% -2.6% -2.3% -1.4% Total Domestic Banks 146,078 (14,567) -9.1% -7.3% 1.0% Yes, Below -4.3% -1.9% -1.9% -1.1% Total Foreign Bank Subsidiaries 1,220 (299) -19.7% -17.2% -36.6% Yes, Above 5.6% -34.1% -23.4% -19.0%

Bank with largest YoY % growth in Jun-20:* Tangerine Bank 643.9 95.3 17.4% 20.8% 40.2% Yes, Below -6.1% 17.9% 18.7% 10.4% Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 661.0 (462.1) -41.1% -40.0% -18.5% Yes, Below -8.6% -22.2% -15.9% -15.5% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 20: Unsecured personal loan market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Unsecured personal loans BMO 9.9% 9.9% 11.0% 11.7% 0.6% 1.7% 1.7% BNS 11.6% 10.9% 13.7% 16.3% 2.6% 5.4% 4.7% CM 14.8% 13.7% 15.2% 15.3% 0.1% 1.6% 0.5% NA 4.6% 4.9% 5.9% 3.6% -2.4% -1.3% -1.1% RY 32.3% 31.4% 23.6% 23.8% 0.3% -7.6% -8.5% TD 14.4% 16.8% 17.6% 17.6% 0.0% 0.8% 3.2% Total Big 6 Banks 87.6% 87.7% 87.1% 88.3% 1.2% 0.6% 0.7% CWB 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% LB 1.3% 0.9% 0.8% 0.4% -0.4% -0.5% -0.8%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 92.9% 93.0% 93.1% 94.9% 1.9% 2.0% 2.0% Total Foreign Bank Subsidiaries 3.2% 2.7% 2.6% 0.8% -1.8% -1.9% -2.4%

Bank with largest YoY % growth in Jun-20:* Tangerine Bank 0.2% 0.2% 0.2% 0.4% 0.2% 0.3% 0.2% Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 1.3% 0.9% 0.8% 0.4% -0.4% -0.5% -0.8%

August 18, 2020 13 Canadian Banks – OSFI data update (June 2020)

Exhibit 21: Unsecured personal loan growth - BMO

Domestic Unsecured Personal Lending Growth (YoY) - BMO 10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

-8.0%

-10.0%

-12.0%

-14.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 22: Unsecured personal loan growth - BNS

Domestic Unsecured Personal Lending Growth (YoY) - BNS 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% -14.0% -16.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 14 Canadian Banks – OSFI data update (June 2020)

Exhibit 23: Unsecured personal loan growth - CM

Domestic Unsecured Personal Lending Growth (YoY) - CM 10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

-8.0%

-10.0%

-12.0%

-14.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 24: Unsecured personal loan growth - NA

Domestic Unsecured Personal Lending Growth (YoY) - NA 20.0%

10.0%

0.0%

-10.0%

-20.0%

-30.0%

-40.0%

-50.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 15 Canadian Banks – OSFI data update (June 2020)

Exhibit 25: Unsecured personal loan growth - RY

Domestic Unsecured Personal Lending Growth (YoY) - RY 20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

-25.0%

-30.0%

-35.0%

-40.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 26: Unsecured personal loan growth - TD

Domestic Unsecured Personal Lending Growth (YoY) - TD 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% -14.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 16 Canadian Banks – OSFI data update (June 2020)

Business and Government (Commercial and Wholesale) lending We remind readers that this dataset effectively represents a domestic balance sheet and this data specifically includes both commercial and corporate (wholesale) loans. Therefore, we cannot “cleanly” extrapolate expectations for Canada P&C commercial loan growth with a high level of conviction. Nonetheless, we find it interesting to analyze this data in terms of overall business lending activity in Canada.

Exhibit 27: Business & government loan growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Total business and government loans BMO 83,233 11,704 16.4% 15.3% 12.8% No n/a 9.3% 10.1% 9.6% BNS 62,084 7,432 13.6% 7.9% 23.0% Yes, Below -1.1% 12.5% 12.3% 11.8% CM 58,164 2,393 4.3% 12.9% 11.9% Yes, Below -3.8% 10.8% 12.9% 12.7% NA 37,848 985 2.7% 11.4% 9.1% Yes, Below -3.6% 8.1% 8.7% 7.7% RY 85,378 597 0.7% 4.8% 7.1% Yes, Below -2.6% 7.8% 7.6% 7.3% TD 70,251 2,796 4.1% 16.6% 12.7% Yes, Below -4.4% 7.7% 11.5% 9.9% Total Big 6 Banks 396,959 25,907 7.0% 11.3% 12.3% Yes, Below -2.6% 9.3% 10.3% 9.6% CWB 20,590 1,350 7.0% 7.7% 8.5% Yes, Below -0.2% 10.1% 8.6% 9.2% LB 8,290 (478) -5.4% -4.4% -2.1% Yes, Below -0.7% -0.2% 7.1% 8.6%

Total All Banks 507,818 32,722 6.9% 11.4% 11.8% Yes, Below -2.3% 9.0% 9.8% 9.3% Total Domestic Banks 437,728 27,255 6.6% 10.6% 12.1% Yes, Below -2.5% 9.5% 10.6% 9.9% Total Foreign Bank Subsidiaries 29,834 3,125 11.7% 14.3% 10.9% No n/a 7.9% 1.7% 2.0%

Bank with largest YoY % growth in Jun-20:* Manulife Bank of Canada 700.3 126.4 22.0% 31.2% 34.9% Yes, Below -6.0% 31.5% 19.9% 14.7% Bank with smallest YoY % growth in Jun-20:* Concentra Bank 958.7 (214.4) -18.3% -15.9% -14.7% No n/a -7.1% n/a n/a *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 28: Business & government loan market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Total business and government loans BMO 16.1% 16.2% 16.3% 16.4% 0.1% 0.2% 0.3% BNS 10.5% 10.9% 11.1% 12.2% 1.1% 1.3% 1.8% CM 9.2% 10.0% 10.9% 11.5% 0.5% 1.5% 2.2% NA 8.3% 7.8% 7.6% 7.5% -0.2% -0.4% -0.8% RY 19.1% 18.6% 17.4% 16.8% -0.6% -1.8% -2.3% TD 13.3% 12.8% 14.3% 13.8% -0.5% 1.0% 0.5% Total Big 6 Banks 76.5% 76.3% 77.7% 78.2% 0.5% 1.8% 1.7% CWB 4.1% 4.3% 3.9% 4.1% 0.1% -0.2% 0.0% LB 1.7% 1.9% 2.1% 1.6% -0.5% -0.2% -0.1%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 82.8% 83.3% 85.1% 86.2% 1.1% 2.9% 3.4% Total Foreign Bank Subsidiaries 9.5% 8.6% 6.1% 5.9% -0.2% -2.7% -3.7%

Bank with largest YoY % growth in Jun-20:* Manulife Bank of Canada 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% Bank with smallest YoY % growth in Jun-20:* Concentra Bank 0.0% 0.0% 0.3% 0.2% -0.1% 0.2% 0.2% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI August 18, 2020 17 Canadian Banks – OSFI data update (June 2020)

Exhibit 29: Business & government loan growth - BMO

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - BMO 22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

BMO Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 30: Business & government loan growth - BNS

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - BNS 38.0% 36.0% 34.0% 32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

BNS Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 18 Canadian Banks – OSFI data update (June 2020)

Exhibit 31: Business & government loan growth - CM

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - CM 32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

CM Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 32: Business & government loan growth - NA

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - NA 22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

-8.0%

NA Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 19 Canadian Banks – OSFI data update (June 2020)

Exhibit 33: Business & government loan growth - RY

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - RY 18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

RY Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 34: Business & government loan growth - TD

Domestic Business and Government (Commercial & Wholesale) Lending Growth (YoY) - TD 24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

TD Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 20 Canadian Banks – OSFI data update (June 2020)

Domestic deposit growth trends as of June 2020 Total domestic deposits Exhibit 35: Total domestic deposit growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Total Deposits BMO 300,603 59,527 24.7% 22.7% 14.5% Yes, Above 4.3% 11.7% 8.8% 7.7% BNS 375,241 50,988 15.7% 12.0% 7.6% Yes, Above 3.9% 8.4% 7.1% 6.1% CM 319,165 41,969 15.1% 10.7% 8.7% Yes, Above 3.6% 8.2% 7.9% 7.0% NA 133,516 16,246 13.9% 11.2% 9.3% Yes, Above 2.3% 8.0% 8.7% 7.8% RY 501,158 79,627 18.9% 14.5% 9.4% Yes, Above 5.1% 8.6% 7.7% 7.2% TD 436,763 64,014 17.2% 15.0% 9.3% Yes, Above 3.3% 7.8% 8.8% 8.6% Total Big 6 Banks 2,066,446 312,371 17.8% 14.4% 9.6% Yes, Above 4.1% 8.7% 8.1% 7.4% CWB 25,566 1,161 4.8% 4.7% 6.1% No n/a 6.8% 7.1% 8.3% LB 24,522 (2,273) -8.5% -7.2% -8.8% No n/a -4.5% -0.6% 0.6%

Total All Banks 2,336,506 337,953 16.9% 13.8% 9.5% Yes, Above 3.7% 8.9% 8.3% 7.6% Total Domestic Banks 2,201,009 318,452 16.9% 13.7% 9.5% Yes, Above 3.8% 8.9% 8.3% 7.6% Total Foreign Bank Subsidiaries 88,087 13,012 17.3% 17.6% 9.6% Yes, Above 1.6% 10.4% 6.6% 5.4%

Bank with largest YoY % growth in Jun-20:* Bank of Montreal 300,603.2 59,526.9 24.7% 22.7% 14.5% Yes, Above 4.3% 11.7% 8.8% 7.7% Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 24,522.2 (2,273.2) -8.5% -7.2% -8.8% No n/a -4.5% -0.6% 0.6% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 36: Total domestic deposit market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Total Deposits BMO 12.8% 12.6% 11.9% 12.9% 0.9% 0.3% 0.1% BNS 17.7% 17.0% 16.3% 16.1% -0.2% -1.0% -1.6% CM 14.2% 14.0% 13.9% 13.7% -0.3% -0.3% -0.5% NA 5.6% 5.6% 5.9% 5.7% -0.2% 0.1% 0.1% RY 22.0% 22.1% 21.6% 21.4% -0.1% -0.7% -0.6% TD 17.5% 18.3% 19.3% 18.7% -0.6% 0.4% 1.2% Total Big 6 Banks 89.8% 89.6% 88.9% 88.4% -0.4% -1.2% -1.3% CWB 1.0% 1.2% 1.2% 1.1% -0.1% -0.1% 0.1% LB 1.7% 1.6% 1.6% 1.0% -0.5% -0.6% -0.6%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 94.3% 94.5% 94.2% 94.2% 0.0% -0.3% -0.1% Total Foreign Bank Subsidiaries 4.3% 4.1% 3.6% 3.8% 0.1% -0.3% -0.6%

Bank with largest YoY % growth in Jun-20:* Bank of Montreal 12.8% 12.6% 11.9% 12.9% 0.9% 0.3% 0.1% Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 1.7% 1.6% 1.6% 1.0% -0.5% -0.6% -0.6%

August 18, 2020 21 Canadian Banks – OSFI data update (June 2020)

Exhibit 37: Total domestic deposit growth - BMO

Total Domestic Deposit Growth (YoY) - BMO 28.0%

26.0%

24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 38: Total domestic deposit growth - BNS

Total Domestic Deposit Growth (YoY) - BNS 20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 22 Canadian Banks – OSFI data update (June 2020)

Exhibit 39: Total domestic deposit growth - CM

Total Domestic Deposit Growth (YoY) - CM 20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 40: Total domestic deposit growth - NA

Total Domestic Deposit Growth (YoY) - NA 20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 23 Canadian Banks – OSFI data update (June 2020)

Exhibit 41: Total domestic deposit growth - RY

Total Domestic Deposit Growth (YoY) - RY 20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 42: Total domestic deposit growth - TD

Total Domestic Deposit Growth (YoY) - TD 20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 24 Canadian Banks – OSFI data update (June 2020)

Personal demand and notice deposits Exhibit 43: Personal demand and notice deposit growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Demand and notice deposits (Personal) BMO 83,998 12,641 17.7% 16.0% 8.7% Yes, Above 3.6% 7.2% 7.8% 7.2% BNS 130,568 21,082 19.3% 14.4% 6.5% Yes, Above 6.0% 6.6% 8.3% 8.0% CM 117,764 14,381 13.9% 12.8% 6.2% Yes, Above 3.2% 5.4% 6.6% 6.8% NA 31,353 5,555 21.5% 21.3% 10.8% Yes, Above 2.8% 6.3% 6.1% 4.6% RY 158,363 24,309 18.1% 16.3% 9.4% Yes, Above 3.6% 8.1% 7.3% 6.9% TD 190,819 27,284 16.7% 15.2% 9.0% Yes, Above 3.2% 7.7% 8.6% 8.5% Total Big 6 Banks 712,865 105,252 17.3% 15.2% 8.2% Yes, Above 3.9% 7.1% 7.7% 7.4% CWB 5,565 1,600 40.4% 40.7% 30.9% Yes, Above 0.2% 13.3% 11.7% 10.9% LB 5,405 1,247 30.0% 23.1% 7.7% Yes, Above 7.3% 1.4% -1.9% -0.2%

Total All Banks 762,689 110,459 16.9% 15.0% 8.6% Yes, Above 3.6% 7.2% 7.8% 7.4% Total Domestic Banks 745,164 109,270 17.2% 15.3% 8.6% Yes, Above 3.7% 7.3% 7.9% 7.5% Total Foreign Bank Subsidiaries 17,352 1,161 7.2% 3.3% 6.8% No n/a 3.2% 5.6% 7.0%

Bank with largest YoY % growth in Jun-20:* Home Bank 226.4 128.1 130.2% 139.2% 189.5% No n/a 91.2% 126.1% n/a Bank with smallest YoY % growth in Jun-20:* ICICI Bank Canada 511.9 6.2 1.2% 2.1% -2.8% No n/a -5.7% 2.4% -0.4% *Include all banks under our coverage (Big Six, CWB and LB) and the following banks not under our coverage (HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank) Note: Figures may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 44: Personal demand and notice deposit market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Demand and notice deposits (Personal) BMO 11.2% 11.0% 11.0% 11.0% 0.0% 0.0% -0.2% BNS 16.5% 16.7% 17.4% 17.1% -0.3% 0.4% 0.6% CM 16.2% 16.4% 16.2% 15.4% -0.8% -0.9% -0.7% NA 5.0% 4.5% 4.2% 4.1% -0.1% -0.4% -0.9% RY 21.5% 21.3% 20.2% 20.8% 0.5% -0.5% -0.7% TD 23.4% 24.1% 24.6% 25.0% 0.4% 0.9% 1.6% Total Big 6 Banks 93.7% 93.9% 93.7% 93.5% -0.2% -0.4% -0.3% CWB 0.6% 0.6% 0.6% 0.7% 0.1% 0.1% 0.1% LB 1.2% 1.1% 0.8% 0.7% -0.1% -0.4% -0.5%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 97.6% 97.4% 97.4% 97.7% 0.3% 0.3% 0.1% Total Foreign Bank Subsidiaries 2.3% 2.5% 2.5% 2.3% -0.3% -0.3% -0.1%

Bank with largest YoY % growth in Jun-20:* Home Bank 0.00% 0.00% 0.01% 0.03% 0.02% 0.03% 0.03% Bank with smallest YoY % growth in Jun-20:* ICICI Bank Canada 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%

August 18, 2020 25 Canadian Banks – OSFI data update (June 2020)

Exhibit 45: Personal demand and notice deposit growth - BMO

Personal Demand and Notice Deposit Growth (YoY) - BMO 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 46: Personal demand and notice deposit growth - BNS

Personal Demand and Notice Deposit Growth (YoY) - BNS 21.0% 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 26 Canadian Banks – OSFI data update (June 2020)

Exhibit 47: Personal demand and notice deposit growth - CM

Personal Demand and Notice Deposit Growth (YoY) - CM 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 48: Personal demand and notice deposit growth - NA

Personal Demand and Notice Deposit Growth (YoY) - NA 25.0% 24.0% 23.0% 22.0% 21.0% 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 27 Canadian Banks – OSFI data update (June 2020)

Exhibit 49: Personal demand and notice deposit growth - RY

Personal Demand and Notice Deposit Growth (YoY) - RY 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 50: Personal demand and notice deposit growth - TD

Personal Demand and Notice Deposit Growth (YoY) - TD 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 28 Canadian Banks – OSFI data update (June 2020)

Personal fixed-term deposits Exhibit 51: Personal fixed-term deposit growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Fixed-term deposit (Personal) BMO 56,558 3,833 7.3% 8.8% 15.0% Yes, Below -2.2% 10.0% 9.0% 8.7% BNS 66,213 (1,967) -2.9% -3.3% 5.0% Yes, Below -0.6% 7.2% 1.5% 0.1% CM 55,259 3,659 7.1% 3.8% 10.8% No n/a 10.6% 7.7% 5.5% NA 25,591 400 1.6% -1.8% 1.4% No n/a 3.3% 5.7% 3.6% RY 81,740 6,508 8.7% 5.8% 10.3% No n/a 11.1% 7.9% 5.5% TD 52,129 4,649 9.8% 10.2% 9.2% No n/a 6.2% 3.4% 0.2% Total Big 6 Banks 337,491 17,082 5.3% 4.0% 9.1% No n/a 8.6% 5.7% 3.6% CWB 10,087 (1,318) -11.6% -12.9% -5.8% No n/a 3.5% 6.2% 6.4% LB 14,102 (2,131) -13.1% -10.9% -9.6% Yes, Below -0.7% -2.8% 1.9% 0.4%

Total All Banks 423,909 17,754 4.4% 3.6% 8.0% No n/a 9.2% 6.7% 4.6% Total Domestic Banks 404,460 15,349 3.9% 3.1% 7.9% No n/a 8.9% 6.6% 4.7% Total Foreign Bank Subsidiaries 19,382 2,410 14.2% 14.9% 10.2% No n/a 15.5% 8.2% 3.9%

Bank with largest YoY % growth in Jun-20:* HSBC Bank Canada 15,311.5 2,463.1 19.2% 19.9% 13.6% No n/a 18.7% 9.0% 3.5% Bank with smallest YoY % growth in Jun-20:* B2B Bank 2,954.0 (736.2) -20.0% -16.6% -14.7% Yes, Below -1.6% -9.1% -0.1% -6.4% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 52: Personal fixed-term deposit market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Fixed-term deposit (Personal) BMO 10.3% 12.0% 13.1% 13.3% 0.3% 1.4% 3.1% BNS 21.3% 20.0% 16.5% 15.6% -0.9% -4.4% -5.7% CM 12.3% 12.4% 12.6% 13.0% 0.5% 0.6% 0.7% NA 6.5% 6.3% 7.1% 6.0% -1.1% -0.3% -0.4% RY 18.2% 18.2% 18.3% 19.3% 1.0% 1.1% 1.0% TD 16.6% 14.3% 13.4% 12.3% -1.1% -2.0% -4.3% Total Big 6 Banks 85.3% 83.2% 81.0% 79.6% -1.3% -3.6% -5.6% CWB 2.1% 2.4% 2.8% 2.4% -0.4% 0.0% 0.3% LB 4.4% 4.2% 4.7% 3.3% -1.4% -0.8% -1.1%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 95.2% 95.7% 96.1% 95.4% -0.7% -0.3% 0.2% Total Foreign Bank Subsidiaries 4.8% 4.3% 3.9% 4.6% 0.7% 0.3% -0.2%

Bank with largest YoY % growth in Jun-20:* HSBC Bank Canada 3.9% 3.2% 2.8% 3.6% 0.8% 0.4% -0.3% Bank with smallest YoY % growth in Jun-20:* B2B Bank 1.5% 1.0% 1.2% 0.7% -0.5% -0.3% -0.8%

August 18, 2020 29 Canadian Banks – OSFI data update (June 2020)

Exhibit 53: Personal fixed-term deposit growth - BMO

Personal Fixed-Term Deposit Growth (YoY) - BMO 25.0%

22.5%

20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

BMO Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 54: Personal fixed-term deposit growth - BNS

Personal Fixed-Term Deposit Growth (YoY) - BNS 25.0%

22.5%

20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

-7.5%

-10.0%

-12.5%

BNS Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 30 Canadian Banks – OSFI data update (June 2020)

Exhibit 55: Personal fixed-term deposit growth - CM

Personal Fixed-Term Deposit Growth (YoY) - CM 30.0%

27.5%

25.0%

22.5%

20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

-7.5%

-10.0%

CM Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 56: Personal fixed-term deposit growth - NA

Personal Fixed-Term Deposit Growth (YoY) - NA 20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

-7.5%

-10.0%

NA Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 31 Canadian Banks – OSFI data update (June 2020)

Exhibit 57: Personal fixed-term deposit growth - RY

Personal Fixed-Term Deposit Growth (YoY) - RY 20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

RY Total Big 6 Banks

Source: RBC Capital Markets, OSFI

Exhibit 58: Personal fixed-term deposit growth - TD

Personal Fixed-Term Deposit Growth (YoY) - TD 20.0%

17.5%

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0.0%

-2.5%

-5.0%

-7.5%

-10.0%

-12.5%

-15.0%

TD Total Big 6 Banks

Source: RBC Capital Markets, OSFI

August 18, 2020 32 Canadian Banks – OSFI data update (June 2020)

Business demand and notice deposits Exhibit 59: Business demand and notice deposit growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Demand and notice deposits (Commercial) BMO 93,280 21,650 30.2% 29.3% 18.5% Yes, Above 3.8% 13.9% 10.2% 8.5% BNS 107,761 20,519 23.5% 19.5% 15.6% Yes, Above 2.5% 11.4% 10.8% 9.4% CM 98,487 20,430 26.2% 22.6% 15.9% Yes, Above 4.0% 13.0% 12.8% 13.1% NA 62,100 12,730 25.8% 17.9% 15.1% Yes, Above 5.8% 15.2% 18.0% 15.5% RY 193,342 38,196 24.6% 15.7% 10.6% Yes, Above 7.7% 10.1% 10.1% 9.8% TD 138,043 30,770 28.7% 20.2% 12.7% Yes, Above 8.1% 10.8% 12.7% 12.0% Total Big 6 Banks 693,014 144,295 26.3% 20.1% 14.0% Yes, Above 6.1% 11.8% 11.7% 10.8% CWB 4,466 944 26.8% 19.1% 15.2% Yes, Above 3.9% 5.4% 7.3% 11.6% LB 1,626 (133) -7.6% -2.2% -14.3% No n/a -10.8% -8.2% -5.0%

Total All Banks 758,827 156,400 26.0% 19.8% 13.7% Yes, Above 5.9% 11.4% 11.5% 10.6% Total Domestic Banks 707,899 147,567 26.3% 20.1% 14.0% Yes, Above 6.1% 11.8% 11.7% 10.8% Total Foreign Bank Subsidiaries 26,746 4,765 21.7% 14.3% 5.3% Yes, Above 6.1% 4.3% 6.0% 4.6%

Bank with largest YoY % growth in Jun-20:* Home Bank 54.9 30.3 123.0% 142.8% 232.0% Yes, Below -8.6% 44.5% n/a n/a Bank with smallest YoY % growth in Jun-20:* Tangerine Bank 1,396.5 (381.2) -21.4% -18.8% -16.4% No n/a -15.0% -9.3% -7.1% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 60: Business demand and notice deposit market share

Market Share as of Nov 30 Market Share CHG. Since: Domestic Currency 2012 2014 2016 2019 3-YR 5-YR 7-YR Demand and notice deposits (Commercial) BMO 13.8% 13.1% 11.9% 12.3% 0.4% -0.9% -1.5% BNS 15.3% 14.7% 14.1% 14.4% 0.3% -0.3% -0.8% CM 11.9% 11.9% 12.7% 13.5% 0.7% 1.6% 1.6% NA 5.9% 6.7% 6.6% 8.1% 1.5% 1.4% 2.2% RY 25.9% 27.1% 26.5% 24.9% -1.6% -2.2% -1.0% TD 17.3% 17.1% 18.5% 17.7% -0.7% 0.7% 0.4% Total Big 6 Banks 90.0% 90.5% 90.3% 90.8% 0.6% 0.4% 0.8% CWB 0.6% 0.6% 0.7% 0.6% -0.1% 0.0% 0.0% LB 0.7% 0.5% 0.4% 0.2% -0.2% -0.3% -0.5%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 92.0% 92.3% 92.0% 92.7% 0.7% 0.4% 0.7% Total Foreign Bank Subsidiaries 5.3% 4.8% 4.7% 3.6% -1.1% -1.3% -1.8%

Bank with largest YoY % growth in Nov-19:* Home Bank 0.00% 0.00% 0.00% 0.01% 0.01% 0.01% 0.01% Bank with smallest YoY % growth in Nov-19:* B2B Bank 0.3% 0.2% 0.1% 0.1% -0.1% -0.2% -0.2% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

August 18, 2020 33 Canadian Banks – OSFI data update (June 2020)

Exhibit 61: Business demand and notice deposit growth - BMO

Business Demand and Notice Deposit Growth (YoY) - BMO 32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 62: Business demand and notice deposit growth - BNS

Business Demand and Notice Deposit Growth (YoY) - BNS 28.0%

26.0%

24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 34 Canadian Banks – OSFI data update (June 2020)

Exhibit 63: Business demand and notice deposit growth - CM

Business Demand and Notice Deposit Growth (YoY) - CM 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 64: Business demand and notice deposit growth - NA

Business Demand and Notice Deposit Growth (YoY) - NA 50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 35 Canadian Banks – OSFI data update (June 2020)

Exhibit 65: Business demand and notice deposit growth - RY

Business Demand and Notice Deposit Growth (YoY) - RY 28.0%

26.0%

24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 66: Business demand and notice deposit growth - TD

Business Demand and Notice Deposit Growth (YoY) - TD 32.0%

30.0%

28.0%

26.0%

24.0%

22.0%

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 36 Canadian Banks – OSFI data update (June 2020)

Business fixed-term deposits Exhibit 67: Business fixed-term deposit growth summary table

Last Qtr. 12M Beyond +/- 1 Std. Dev. Of 30-Jun-20 30-Apr-20 Moving Avg. 12M Moving Avg. CAGR Domestic Currency Balance ($MM) $ YoY ($MM) % YoY % YoY % YoY Yes/No % 3-YR 5-YR 7-YR Fixed-term notice deposit (Commercial) BMO 66,767 21,403 47.2% 37.8% 17.5% Yes, Above 13.6% 16.7% 8.1% 6.5% BNS 70,698 11,355 19.1% 14.0% 2.4% Yes, Above 6.8% 8.8% 5.9% 5.7% CM 47,654 3,498 7.9% -5.2% 0.1% Yes, Above 3.1% 4.1% 3.2% 1.1% NA 14,472 (2,440) -14.4% -4.1% 2.5% Yes, Below -6.7% -3.8% -4.3% 1.3% RY 67,713 10,614 18.6% 18.4% 5.9% Yes, Above 6.0% 3.6% 2.5% 3.7% TD 55,771 1,311 2.4% 7.6% 3.8% No n/a 2.8% 7.0% 13.4% Total Big 6 Banks 323,076 45,741 16.5% 13.5% 5.4% Yes, Above 5.1% 6.5% 4.7% 5.4% CWB 5,448 (65) -1.2% 6.6% 7.8% Yes, Below -4.4% 8.7% 4.5% 7.5% LB 3,389 (1,256) -27.0% -23.9% -18.8% No n/a -13.9% -3.3% 7.4%

Total All Banks 391,082 53,340 15.8% 13.3% 6.0% Yes, Above 4.4% 7.4% 5.9% 6.3% Total Domestic Banks 343,485 46,266 15.6% 12.5% 5.7% Yes, Above 4.6% 6.8% 5.1% 5.8% Total Foreign Bank Subsidiaries 24,606 4,676 23.5% 35.5% 17.7% No n/a 22.0% 6.9% 6.7%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 354.8 204.2 135.6% 136.3% 111.5% No n/a 32.7% 8.1% n/a Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 3,389.5 (1,256.4) -27.0% -23.9% -18.8% No n/a -13.9% -3.3% 7.4% *Includes the Big 6 Canadian Banks, CWB and LB and the following banks not under our coverage: HSBC, Equitable Bank, Manulife Bank, Coast Capital Savings Federal Credit Union, B2B Bank, Concentra Bank, Tangerine Bank, ICICI Bank Canada and Home Bank. Note: Total All Banks data includes data for Foreign Bank Branches which was not explicitly available at the time writing. Certain figures also may not add due to rounding. Source: RBC Capital Markets, OSFI

Exhibit 68: Business fixed-term deposit market share

Market Share as of Jun 30 Market Share CHG. Since: Domestic Currency 2013 2015 2017 2020 3-YR 5-YR 7-YR Fixed-term notice deposit (Commercial) BMO 16.8% 15.4% 13.3% 17.1% 3.8% 1.6% 0.3% BNS 18.8% 18.1% 17.4% 18.1% 0.7% 0.0% -0.7% CM 17.3% 13.9% 13.4% 12.2% -1.2% -1.7% -5.1% NA 5.2% 6.1% 5.1% 3.7% -1.4% -2.4% -1.5% RY 20.5% 20.4% 19.3% 17.3% -2.0% -3.1% -3.2% TD 9.0% 13.6% 16.3% 14.3% -2.0% 0.7% 5.2% Total Big 6 Banks 87.6% 87.5% 84.8% 82.6% -2.2% -4.9% -5.0% CWB 1.3% 1.5% 1.3% 1.4% 0.1% -0.1% 0.1% LB 0.8% 1.4% 1.7% 0.9% -0.8% -0.5% 0.1%

Total All Banks 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% Total Domestic Banks 90.5% 91.4% 89.2% 87.8% -1.4% -3.6% -2.7% Total Foreign Bank Subsidiaries 6.1% 6.0% 4.3% 6.3% 2.0% 0.3% 0.2%

Bank with largest YoY % growth in Jun-20:* Equitable Bank 0.0% 0.1% 0.0% 0.1% 0.0% 0.0% 0.1% Bank with smallest YoY % growth in Jun-20:* Laurentian Bank of Canada 0.8% 1.4% 1.7% 0.9% -0.8% -0.5% 0.1%

August 18, 2020 37 Canadian Banks – OSFI data update (June 2020)

Exhibit 69: Business fixed-term deposit growth - BMO

Business Fixed-Term Deposit Growth (YoY) - BMO 60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

-30.0%

-40.0%

Total Big 6 Banks BMO

Source: RBC Capital Markets, OSFI

Exhibit 70: Business fixed-term deposit growth - BNS

Business Fixed-Term Deposit Growth (YoY) - BNS 30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

Total Big 6 Banks BNS

Source: RBC Capital Markets, OSFI

August 18, 2020 38 Canadian Banks – OSFI data update (June 2020)

Exhibit 71: Business fixed-term deposit growth - CM

Business Fixed-Term Deposit Growth (YoY) - CM 30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

Total Big 6 Banks CM

Source: RBC Capital Markets, OSFI

Exhibit 72: Business fixed-term deposit growth - NA

Business Fixed-Term Deposit Growth (YoY) - NA 40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

-30.0%

Total Big 6 Banks NA

Source: RBC Capital Markets, OSFI

August 18, 2020 39 Canadian Banks – OSFI data update (June 2020)

Exhibit 73: Business fixed-term deposit growth - RY

Business Fixed-Term Deposit Growth (YoY) - RY 25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

-15.0%

Total Big 6 Banks RY

Source: RBC Capital Markets, OSFI

Exhibit 74: Business fixed-term deposit growth - TD

Business Fixed-Term Deposit Growth (YoY) - TD 60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

Total Big 6 Banks TD

Source: RBC Capital Markets, OSFI

August 18, 2020 40 Canadian Banks – OSFI data update (June 2020)

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August 18, 2020 41 Canadian Banks – OSFI data update (June 2020)

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August 18, 2020 42 Canadian Banks – OSFI data update (June 2020)

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For a list of all recommendations on the company that were disseminated during the prior 12-month period, please click on the following link: https://rbcnew.bluematrix.com/sellside/MAR.action

The 12 month history of SPARCs can be viewed at https://www.rbcinsightresearch.com/. Analyst certification All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report. Third-party-disclaimers The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”) and is licensed for use by RBC. Neither MSCI, S&P, nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

RBC Capital Markets disclaims all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any statements made to the media or via social media that are in turn quoted in this report, or otherwise reproduced graphically for informational purposes.

References herein to “LIBOR”, “LIBO Rate”, “L” or other LIBOR abbreviations means the London interbank offered rate as administered by ICE Benchmark Administration (or any other person that takes over the administration of such rate).

August 18, 2020 43 Canadian Banks – OSFI data update (June 2020)

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To Japanese Residents: Unless otherwise exempted by Japanese law, this publication is distributed in Japan by or through RBC Capital Markets (Japan) Ltd. which is a Financial Instruments Firm registered with the Kanto Local Financial Bureau (Registered number 203) and a member of the Japan Securities Dealers Association (“JSDA”) and the Financial Futures Association of Japan (“FFAJ”). ® Registered trademark of Royal Bank of Canada. RBC Capital Markets is a trademark of Royal Bank of Canada. Used under license. Copyright © RBC Capital Markets, LLC 2020 - Member SIPC Copyright © RBC Dominion Securities Inc. 2020 - Member Canadian Investor Protection Fund Copyright © RBC Europe Limited 2020 Copyright © Royal Bank of Canada 2020 All rights reserved August 18, 2020 44