Mr. Damon Williams reports

ROYAL BANK OF CANADA ANNOUNCES AGREEMENT TO ACQUIRE YARRA CAPITAL MANAGEMENT

Royal Bank of Canada has entered into an agreement to acquire Yarra Capital Management Ltd., an award-winning active asset manager that specializes in Australian fixed income, Australian equities and alternative investment solutions.

Yarra, founded in 2017, with offices in Melbourne and Sydney, had approximately $18-billion (Australian) in assets under management as at Sept. 30, 2026, and approximately 75 employees.

RBC Global Asset Management is focused on expanding its capabilities and diversifying its market share, including outside of North America. This announcement demonstrates RBC's commitment to growing in Australia and the Asia-Pacific region, and the proposed transaction, once closed, is expected to further strengthen the bank's position as a leading global asset manager.

"The investment and distribution capabilities of Yarra are complementary to our asset management business. Yarra's reputation within Australian fixed income and equities is a testament to its strong track record in investment performance and culture of putting clients first," said Damon Williams, chief executive officer, RBC Global Asset Management. "We know Australian institutional investors and intermediaries take a globally oriented approach to asset allocation. We believe the strength of our investment capabilities that go beyond domestic borders within fixed income, equities and alternatives are well positioned to support this investor appetite."

"After a long and deliberate search to find the right business partner for the future, we are thrilled about our agreement to join RBC," said Dion Hershan, executive chairman of Yarra Capital Management. "The strong cultural alignment between Yarra and RBC is very clear, and we share the same fundamental beliefs of serving our clients with compelling products and services, delivering investment excellence and developing and retaining the best talent. Senior management, including management shareholders, at Yarra are excited about the future of the business and the opportunity to continue growing over the long term as a part of RBC GAM."

Under the terms of the agreement, RBC will acquire full ownership of Yarra subject to the satisfaction of certain closing conditions, including regulatory approval. RBC anticipates completion of this transaction in the first quarter of 2027. The transaction is not expected to have a significant impact to RBC's common equity Tier 1 (CET1) ratio or future run rate earnings.

About Royal Bank of Canada

RBC is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Its success comes from the 105,000-plus employees who leverage their imaginations and insights to bring the bank's vision, values and strategy to life so RBC can help its clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, RBC has a diversified business model with a focus on innovation and providing exceptional experiences to its more than 19 million clients in Canada, the United States and 27 other countries.

About RBC Global Asset Management

RBC GAM is the asset management division of RBC. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. RBC funds, BlueBay funds, PH&N funds and RBC ETFs (exchange-traded funds) are offered by RBC Global Asset Management Inc. (RBC GAM Inc.) and distributed through authorized dealers in Canada. The RBC GAM group of companies, which includes RBC GAM Inc. (including PH&N Institutional), manage approximately $834-billion in assets and have approximately 1,600 employees located across Canada, the U.S., Europe and Asia.

About Yarra Capital Management Ltd.

Yarra is a leading independent, active Australian fund manager, with approximately $18-billion (Australian) of assets under management. Founded in 2017, the firm's offering includes its fundamental Australian equities product set, consisting of long-only, concentrated strategies that span the full breadth of the domestic market, and fixed income capabilities that provide clients with access to core fixed income, credit and multiasset solutions. Yarra also provides access to a range of international equity products through its partnerships with other managers. Yarra serves the Australian institutional and retail markets, and its Australian investment products are accessed from various international markets, including Japan and New Zealand.