- Company name
- Royal Bank of Canada
- Sector
- Banking
- About
- Royal Bank of Canada (RBC) is the largest bank in Canada. It has five business segments: Personal Banking, Commercial Banking, Wealth Management, Insurance and Capital Markets. Personal Banking and Commercial Banking serve households and businesses, mainly in Canada. Wealth Management serves clients in Canada, the United States and other countries, and it includes City National Bank in the United States. Capital Markets gives advisory, lending and trading services to companies, governments and investors. RBC bought HSBC Bank Canada in 2024. Total assets were $2.50 trillion and deposits were $1.64 trillion at July 31, 2026. All amounts are in Canadian dollars unless the text says otherwise. The fiscal year ends on October 31.
- Thesis
- RBC trades at a premium because investors pay for its high and steady returns and its leading position in Canada. Return on equity was 17.9% in Q3 fiscal 2026, and diluted EPS was a record $4.23. Wealth Management net income grew 32%, and Capital Markets also grew. Canada has few large banks, and RBC is the largest of them. Investors also expect it to keep returning capital through dividends and buybacks. The price assumes that returns stay near or above the fiscal 2026 objective of 17% or more through a full credit cycle. For the premium to be earned, three things must be true. Wealth Management and Capital Markets must keep their profit when markets are less strong, because they gave most of the profit growth in 2026. Credit losses must stay near the 36 basis points of loans of Q3 fiscal 2026, even with trade tension between Canada and the United States. Personal Banking must grow again, because its net income fell 1% in Q3 fiscal 2026. The Q4 fiscal 2026 report on December 3, 2026 gives the first test, with the objectives for fiscal 2027. If returns fall toward 14% in a weaker economy, the premium can shrink within one to two years.
- Risks
- Credit losses can rise if the economy in Canada weakens. Trade tension and tariffs between Canada and the United States can hurt business clients and households. Provisions were 36 basis points of loans in Q3 fiscal 2026.
Recent profit growth came mostly from Wealth Management and Capital Markets, which depend on markets. Wealth Management net income grew 32% in Q3 fiscal 2026. If markets fall, this growth can stop.
Personal Banking net income fell 1% in Q3 fiscal 2026, partly because accretion from the HSBC Bank Canada purchase got smaller. Competition for deposits and mortgages in Canada is strong.
Capital rules can change in Canada and in the United States. Higher requirements can limit buybacks and lower returns.
- Balance sheet
- RBC funds itself mainly with deposits, which were $1.64 trillion at July 31, 2026, and total assets were $2.50 trillion. The CET1 capital ratio was 13.5% and the liquidity coverage ratio was 125%. Common equity was $133.9 billion, or about $96.73 per share on 1,384.6 million shares, and it included goodwill of $19.5 billion and other intangibles of $7.3 billion. Total provisions for credit losses were $1.0 billion in Q3 fiscal 2026, and the provision on loans was 36 basis points. RBC pays a quarterly dividend of $1.76 per share and can buy back up to 45 million shares until June 11, 2027. In November 2026, it sold US$2 billion of senior notes. For a bank, net debt is not a useful measure, so this profile does not show debt figures.
As of 2026-07-31.
- Checkpoints
- Dec 3, 2026: Q4 fiscal 2026 results and fiscal 2027 objectives. Pending. Watch: Return on equity near 17% or more, provisions near 36 basis points of loans and fiscal 2027 objectives at a similar level pass; a large rise in provisions or lower objectives fail.
Jun 11, 2027: End of the share buyback program. Pending. Watch: Buybacks of most of the 45 million shares with a CET1 ratio near 13% pass; a stopped buyback because of higher credit losses fails.
- Recent events
- 2026-08-27: RBC reported Q3 fiscal 2026 results. Net income was a record $6.0 billion, up 11%, and diluted EPS was $4.23, up 13%. Return on equity was 17.9%. Wealth Management net income grew 32% to $1.4 billion, and Capital Markets net income was $1.5 billion. Personal Banking net income fell 1%. Total provisions for credit losses were $1.0 billion. The CET1 ratio was 13.5%.
2026-06-12: RBC began a normal course issuer bid to buy back up to 45 million common shares until June 11, 2027.
2026-05-28: RBC reported Q2 fiscal 2026 results with diluted EPS of $3.85. It raised the quarterly dividend by 7% to $1.76 per share.
2026-02-26: RBC reported Q1 fiscal 2026 results with record diluted EPS of $4.03.
2025-12-03: RBC reported fiscal 2025 results. Net income was $20.4 billion and diluted EPS was $14.07. It raised the quarterly dividend by 6% to $1.64 per share and set a fiscal 2026 objective of a return on equity of 17% or more.