Royal Bank Of Canada (TSE:RY)
TSX:RY
Top Page
Royal Bank Of Canada
(TSX:RY)
Select Model
Select Model
Rating:66Neutral
Price Target:
C$242.00
â–²(10.08% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid financial performance (strong profitability and ROE) and a positive earnings-call backdrop (record results, strong capital, and buybacks). These are tempered by weaker cash-flow trend and high leverage sensitivity, while technicals are neutral-to-soft and valuation is supportive but not a major catalyst.
Positive Factors
High profitability & ROE
Sustained high ROE (17.6%) and record earnings signal efficient use of capital and strong franchise economics. Robust profitability supports internal capital generation, funds dividends/buybacks and investments, and provides a durable buffer versus cyclical revenue swings over the next several quarters.
Negative Factors
High leverage
A debt-to-equity ratio near 6x, typical for large diversified banks, amplifies sensitivity to credit and interest-rate shocks. High leverage reduces loss-absorbing capacity and can constrain capital actions or require faster capital rebuilds if credit stress increases over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & ROE
Sustained high ROE (17.6%) and record earnings signal efficient use of capital and strong franchise economics. Robust profitability supports internal capital generation, funds dividends/buybacks and investments, and provides a durable buffer versus cyclical revenue swings over the next several quarters.
Read all positive factors
Royal Bank Of Canada (RY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$307.04B
Dividend Yield2.58%
Average Volume (3M)3.14M
Price to Earnings (P/E)13.7
Beta (1Y)0.65
Revenue Growth2.13%
EPS Growth25.16%
CountryCA
Employees94,624
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)4.08
Shares Outstanding1,396,609,900
10 Day Avg. Volume3,542,932
30 Day Avg. Volume3,136,227
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.08
Price to Sales (P/S)2.11
P/FCF Ratio5.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$251.64Price Target Upside14.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)15.88
Revenue Forecast (FY)C$71.05B
Royal Bank Of Canada Business Overview & Revenue Model
Company Description
Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lendin...
How the Company Makes Money
RBC makes money primarily by earning net interest income and generating fee-based revenue across its major business lines.
1) Net interest income (banking spread): A core earnings driver is the spread between interest earned on loans and other in...
Royal Bank Of Canada Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call presented a strong set of financial results with multiple record outcomes—earnings, revenue, Wealth and Capital Markets performance—robust profitability (ROE ~17.6%), solid capital (CET1 13.7%) and active share buybacks. Growth in fee-based businesses and AUA/AUM expansion underpin durable revenue streams. Offsetting these positives were higher provisions in pockets of the wholesale and retail portfolios, a rise in gross impaired loans, a one-time-related drop in insurance income, modest margin headwinds from PPA roll-off, and continued regional housing and trade-related loan growth pressures. Management reiterated disciplined capital allocation, mid-single-digit NII guidance (ex-trading), mid-single-digit expense growth, and confidence in AI and other investments to drive future productivity. Overall, the positives (record results, strong capital and profitability, wealth and markets momentum, and buybacks) materially outweigh the contained credit and margin headwinds.Positive Updates
Record earnings and revenue
Reported record earnings of $5.8 billion and adjusted earnings of $5.9 billion; pre-provision pretax earnings nearly $8.5 billion (up 14% year-over-year) and record revenue of nearly $18 billion. Diluted EPS $4.03 and adjusted diluted EPS $4.08 (up 13% year-over-year).
Negative Updates
Increased credit provisions in parts of the portfolio
PCL on impaired loans was 40 basis points, up 2 basis points (approximately $84 million) quarter-over-quarter. Performing-loan provisions were $28 million (1 basis point) this quarter. Capital Markets provisions on impaired loans increased by $130 million QoQ driven by specific large borrowers.
Read all updates
Q1-2026 Updates
Positive
Negative
Record earnings and revenue
Reported record earnings of $5.8 billion and adjusted earnings of $5.9 billion; pre-provision pretax earnings nearly $8.5 billion (up 14% year-over-year) and record revenue of nearly $18 billion. Diluted EPS $4.03 and adjusted diluted EPS $4.08 (up 13% year-over-year).
Read all positive updates
Company Guidance
Management's 2026 guidance highlighted mid‑single‑digit growth in all‑bank net interest income (ex‑trading), with the bulk of the remaining $80m PPA accretion rolling off next quarter (≈ a 4‑bp headwind to Canadian banking NIM); all‑bank NIM was down 7 bps QoQ (ex‑trading NIM +1 bp QoQ) and Canadian banking NIM would have been ~+2 bps excluding the PPA effect. They reiterated low‑ to mid‑single‑digit mortgage growth and commercial loan growth nearer the lower end of mid‑ to high‑single‑digits, expect all‑bank expense growth in the mid‑single‑digit range while still delivering positive all‑bank operating leverage (1–2% for Canadian Banking), see the adjusted non‑TEB effective tax rate moving toward the higher end of the 21–23% band over the next 12 months, expect corporate support losses to trend to the lower end of $100–150m/quarter, foresee a modest ~10‑bp negative CET1 impact next quarter from retail capital parameter changes, and reiterated that full‑year 2026 provisions on impaired loans should remain within prior guidance; they also noted roughly $1bn annual technology/safety spend and continued capital returns (Q1 buybacks ≈4.2m shares / ~$1bn).Royal Bank Of Canada Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.64B | 137.36B | 54.11B | 49.00B | 48.50B | 50.45B |
| Gross Profit | 63.37B | 62.17B | 54.11B | 49.00B | 48.50B | 50.45B |
| EBITDA | 7.66B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 21.02B | 20.36B | 16.23B | 14.61B | 15.79B | 16.04B |
Balance Sheet | ||||||
| Total Assets | 2.34T | 2.33T | 2.17T | 2.01T | 1.92T | 1.71T |
| Cash, Cash Equivalents and Short-Term Investments | 46.23B | 165.28B | 167.13B | 212.00B | 240.60B | 231.03B |
| Total Debt | 362.42B | 834.96B | 779.52B | 774.59B | 699.12B | 567.25B |
| Total Liabilities | 2.20T | 2.19T | 2.04T | 1.89T | 1.81T | 1.61T |
| Stockholders Equity | 139.80B | 139.09B | 127.09B | 117.66B | 108.06B | 98.67B |
Cash Flow | ||||||
| Free Cash Flow | 28.36B | 52.98B | 20.86B | 23.35B | 19.44B | 58.86B |
| Operating Cash Flow | 30.52B | 55.22B | 23.14B | 26.08B | 21.94B | 61.04B |
| Investing Cash Flow | -72.85B | -68.57B | -20.89B | -28.27B | -57.05B | -57.35B |
| Financing Cash Flow | 18.34B | -6.71B | -8.15B | -9.83B | -2.19B | -5.93B |
Royal Bank Of Canada Technical Analysis
Negative
219.85
Price Trends
228.54
Negative
224.62
Negative
206.51
Positive
Market Momentum
-2.19
Negative
40.02
Neutral
54.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RY, the sentiment is Negative. The current price of 219.85 is below the 20-day moving average (MA) of 223.39, below the 50-day MA of 228.54, and above the 200-day MA of 206.51, indicating a neutral trend. The MACD of -2.19 indicates Negative momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RY.
Royal Bank Of Canada Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$119.44B | 9.41 | 14.75% | 3.07% | -3.13% | 18.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$307.04B | 13.71 | 15.37% | 2.58% | 2.13% | 25.16% | |
66 Neutral | C$68.73B | 12.62 | 12.83% | 2.64% | 7.50% | -5.28% | |
64 Neutral | C$214.35B | 13.22 | 17.26% | 3.34% | 3.07% | 144.41% | |
62 Neutral | C$115.97B | 14.70 | 10.41% | 4.32% | -3.65% | -1.73% | |
60 Neutral | C$129.26B | 13.18 | 10.47% | 3.61% | -1.30% | 20.41% |
* Financial Sector Average
TSE:RY
Royal Bank Of Canada
219.85
62.87
40.05%
TSE:BMO
Bank Of Montreal
183.03
51.09
38.72%
TSE:BNS
Bank Of Nova Scotia
94.09
29.40
45.45%
TSE:CM
Canadian Bank of Commerce
128.90
50.77
64.99%
TSE:TD
Toronto Dominion Bank
126.87
44.11
53.30%
TSE:NA
National Bank of Canada
177.49
61.47
52.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.