Royal Bank Of Canada (RY)

Price$210.96Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced, with strong earnings offset by a demanding valuation.

At the latest verified market level, RBC trades at about 18 times recent earnings. Using the supplied financial history plus second-quarter 2026 results gives roughly C$15.4 of trailing diluted earnings per share. The market value also approaches three times recent common equity. Those levels are reasonable for a bank earning returns on equity near 17%, but they leave limited room for disappointment. Continued earnings growth and controlled credit losses are therefore required; without them, a value investor would have little margin of safety.

Big pictureProfit growth is strong, but bank cash flows naturally swing with lending and deposits.

Net income climbed from C$14.6 billion in fiscal 2023 to C$16.2 billion in 2024 and C$20.4 billion in 2025, while diluted earnings per share reached C$14.07. Second-quarter 2026 net income then rose 25% from a year earlier. Reported operating cash flow varies sharply because changes in deposits, loans and securities move enormous amounts of cash through a bank, so it is less useful than earnings and capital strength for judging durability. Dividends rose steadily to C$8.5 billion in 2025.

Business strengthRBC combines high profitability, solid capital buffers, and growing shareholder returns.

RBC reported a 17.2% return on equity in second-quarter 2026, meaning it generated about seventeen cents of annualized profit for each dollar of shareholder capital. Its core common-equity capital ratio was 13.5%, above regulatory requirements, while its liquidity coverage ratio was 126%. Shareholder equity grew from C$86.7 billion in 2020 to C$139.1 billion in 2025. Management also returned C$4.0 billion during the latest quarter through dividends and buybacks, while authorizing repurchases of up to 45 million shares, about 3% of shares outstanding.

What could change the storyCredit losses, slower growth, or weaker capital returns could quickly challenge today’s optimistic expectations.

The strongest bull case is continued mid-to-high-teens profitability, supported by diversified banking, wealth and capital-markets earnings plus buybacks. The bear case is that current valuation assumes unusually good conditions persist. RBC recorded C$0.9 billion of provisions for credit losses in second-quarter 2026, while Canadian consumer insolvencies had risen 26% from December through March. A sustained rise in bad loans, materially lower returns on equity, or reduced buybacks would weaken the valuation case. Conversely, continued double-digit earnings growth with stable credit costs would justify the present multiple.

AI: News

Strong second-quarter earningsRBC beat profit expectations as Canadian banking and capital markets delivered broad earnings growth.

On May 28, RBC reported second-quarter net income of C$5.5 billion, up 25% from the prior year, while adjusted earnings of C$3.90 per share exceeded the C$3.78 analyst consensus reported by Reuters. Personal banking profit increased 17% and commercial banking profit 43%. The results strengthened evidence that RBC could grow despite trade and consumer uncertainty, although its shares were lower that day alongside another major Canadian bank, making precise price attribution uncertain.

Larger capital returnsRBC raised its dividend and authorized substantial buybacks, increasing cash returned to shareholders.

On May 28, RBC raised its quarterly common dividend by C$0.12 to C$1.76 per share and announced plans to repurchase up to 45 million shares, roughly 3.2% of shares then outstanding. The authorization followed C$1.7 billion of buybacks and C$2.3 billion of common dividends returned during the second quarter. Repurchases can lift each remaining share's claim on future earnings when executed at sensible prices, although the authorization does not guarantee all shares will actually be purchased.

Moneris sale agreedRBC agreed to sell its Moneris stake, releasing capital while keeping a commercial relationship.

On August 10, RBC and BMO agreed to sell jointly owned payments company Moneris to Francisco Partners for approximately C$2.0 billion in cash. RBC will receive half and expects an after-tax gain of about C$475 million when the transaction closes, expected in fiscal 2027. RBC also retains an exclusive long-term customer referral arrangement with Moneris. The transaction monetizes a non-core holding, although Reuters reported RBC's U.S.-listed shares were little changed in extended trading after the announcement.

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Financial statements

	2025	2025	2025	2025	2024	2023	2022	2021	2020	2019	2018	2017
Revenue	$66.61B	—	—	—	$57.34B	$51.46B	$48.98B	$49.69B	$47.18B	$46.00B	$42.58B	$40.67B
Net income	$20.37B	—	—	—	$16.24B	$14.61B	$15.81B	$16.05B	$11.44B	$12.87B	$12.43B	$11.47B
Net profit margin	30.58%	—	—	—	28.32%	28.39%	32.27%	32.30%	24.24%	27.98%	29.20%	28.20%
Basic EPSper basic share	CA$14.10	CA$13.25	CA$12.59	CA$12.31	CA$11.27	CA$10.33	CA$11.08	CA$11.08	CA$7.84	CA$8.78	CA$8.39	CA$7.59
Diluted EPSper diluted share	CA$14.07	CA$13.22	CA$12.56	CA$12.29	CA$11.25	CA$10.32	CA$11.06	CA$11.06	CA$7.82	CA$8.75	CA$8.36	CA$7.56

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of RY
Holder	Shares held
ROYAL BANK OF CANADA	70.22M
BANK OF MONTREAL /CAN/	60.57M
VANGUARD CAPITAL MANAGEMENT LLC	42.68M
FIL Ltd	23.49M
TD Asset Management Inc	22.97M
NORGES BANK	19.91M
MACKENZIE FINANCIAL CORP	18.64M
CIBC WORLD MARKET INC.	18.3M
FMR LLC	17.8M
1832 Asset Management L.P.	17.04M
NATIONAL BANK OF CANADA /FI/	16.36M
GEODE CAPITAL MANAGEMENT, LLC	16.05M
Federation des caisses Desjardins du Quebec	13.07M
VANGUARD FIDUCIARY TRUST CO	12.4M
BANK OF NOVA SCOTIA	12.31M
TD Waterhouse Canada Inc.	11.64M
MANUFACTURERS LIFE INSURANCE COMPANY, THE	11.11M
CANADA PENSION PLAN INVESTMENT BOARD	11M
Connor, Clark & Lunn Investment Management Ltd.	10.93M
Vanguard Global Advisers, LLC	10.74M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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Royal Bank Of Canada (RY)

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