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/RY
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Royal Bank of Canada

Royal Bank of Canada

RY
$215.43USD↓-0.30%-0.64 today

MARKET CAP

346.1B

P/E (TTM)

13.5x

FWD P/E

12.6x

DAY RANGE

$214 – $218

52W RANGE

$127
$219

AI Summary

Stalk
StalkMedium

International Banks remains in a clear advancing regime with both long-term and medium-term trends bullish, underpinned by rising EMAs and a continuation pattern. In the short term, price is extended and overbought, suggesting patience is warranted before engaging. We will stalk for pullbacks into support to align with the prevailing uptrend.

  • ↑Adjusted earnings CAD5.6 bn (+25% YoY) with 17.2% ROE underscores strong profitability.
  • ↑CET1 ratio at 13.5% signals robust capital adequacy for growth.
  • ↓Gross impaired loans climbed to CAD9.8 bn, raising credit risk.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Royal Bank of Canada (NYSE: RY) is the largest financial institution in Canada, offering a diverse range of services including personal and commercial banking, wealth management, insurance, and capital markets. With a significant market presence both in Canada and the U.S., RBC is positioned to leverage its diversified business model to capitalize on emerging opportunities in sectors such as digital banking, artificial intelligence (AI), and sustainable investments amidst ongoing macroeconomic shifts and regulatory pressures.

Bull says

  • ↑Adjusted earnings CAD5.6 bn (+25% YoY) with 17.2% ROE underscores strong profitability.
  • ↑CET1 ratio at 13.5% signals robust capital adequacy for growth.
  • ↑Dividend up 14% YoY and 45 mn shares bought back enhance returns.
  • ↑Investing CAD700 mn–1 bn in AI drives future revenue growth.
  • ↑High earnings yield and positive earnings revisions support valuation.
  • ↑Canadian GDP growth of 1.5–1.6% underpins banking demand.

Bear says

  • ↓Gross impaired loans climbed to CAD9.8 bn, raising credit risk.
  • ↓Provisions for credit losses likely to remain elevated amid downturn.
  • ↓Intense deposit competition pressures net interest margins.
  • ↓Negative liquidity factors indicate potential cash or financing strain.
  • ↓Geopolitical risks (KUSMA talks) cloud loan growth outlook.
  • ↓Weak credit quality factors and negative earnings revisions imply downside risk.

Investment themes with RY

International Banks↑ +0.29%

Banks operating across multiple countries

HSBC · RY · SAN

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 06-15-2026neutral

Transcript signals

Bull points

  • This quarter, we reported diluted earnings per share of $3.02. Adjusted Deleted Earnings Per Share of $3.12 was up 7% from last year, driven by strong revenue momentum across our businesses and prudent cost management.
  • A key part of our capital deployment strategy is returning capital to our shareholders. This quarter, we repurchased 3 million shares for $488 million, an increase from the 2.3 million shares repurchased over the last two quarters.
  • Going forward, we continue to expect all bank core expense growth, which is off a base of reported 2024 expenses, to be at the upper end of our mid-single-digit guidance range for 2025.

Bear points

  • Next quarter, we expect a modest negative impact to our CET1 ratio as a result of changes to our retail capital parameters.
  • a favorable product mix in personal banking.
  • as a reminder, benefits from the purchase accounting accretion of fair value adjustments from the HSBC Canada transaction are expected to largely run off by Q2 2026.
Read full transcript analysis ›