Company Reports

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come. RBC has raised its medium-term return on equity target to 17%-plus from 16%-plus, in line with our normalized ROE forecast of 18.1%.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come. RBC has increased its medium-term return on equity target to 17%-plus from 16%-plus, which is in line with our normalized ROE forecast of 18.1% for the bank.

Royal Bank of Canada reported solid fiscal third-quarter results. Adjusted earnings per share of CAD 4.28 grew 11% from the prior-year quarter. The results translate into an adjusted return on equity of 17.9%, above the bank's medium-term target of 17.0%-plus.

Royal Bank of Canada and BMO Financial Group announced on Aug. 10 that they have agreed to sell jointly owned payment processing business Moneris Solutions to Francisco Partners, a private equity firm, for cash consideration of approximately CAD 2 billion.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come. RBC has increased its medium-term return on equity target to 17%-plus from 16%-plus, which is in line with our normalized ROE forecast of 17.1% for the bank.

Royal Bank of Canada reported strong second-quarter fiscal results. Adjusted earnings per share of CAD 3.90 grew 25% from the prior-year quarter. This quarter’s results translate into an adjusted return on equity of 17.4%, above its medium-term target of 17.0%-plus.

Royal Bank of Canada reported strong fiscal first-quarter results. Adjusted earnings per share of CAD 4.08 grew 13% from the prior-year quarter. This quarter's results translate into an adjusted return on equity of 17.8%, above the bank's medium-term target of 17.0%-plus.

Royal Bank of Canada's capital markets segment had a strong performance in fiscal 2025, mostly driven by impressive results from its trading business.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come. RBC has increased its medium-term return on equity target to 17%-plus from 16%-plus, which is slightly above our forecast of 16%-17% over the next two to three years.

Royal Bank of Canada reported strong fiscal fourth-quarter results. Adjusted earnings per share of CAD 3.85 grew 25% from the prior-year quarter. Fiscal 2025 results translate into an adjusted return on equity of 16.7%.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come, even as a more difficult macro backdrop pressures earnings growth in the medium term.

Royal Bank of Canada reported strong fiscal third-quarter results, with provisioning costs decreasing 38% from a quarter ago. Adjusted earnings per share of CAD 3.84 were up 18% year over year. The results translated into an adjusted ROE of 17.7%, well above the bank's medium-term target of 16%.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come, even as a more difficult macro backdrop pressures earnings growth in the medium term.

Royal Bank of Canada reported slightly disappointing second-quarter results, with provisioning costs increasing 36% from a quarter ago. Adjusted earnings per share of CAD 3.12 fell 14% sequentially. This was due in large part to increased tariff-induced uncertainty in the Canadian and US economies.

On April 2, US President Donald Trump announced sweeping tariffs on goods imported from the rest of the world. Canada and Mexico were spared from these new tariffs; however, the previously announced tariffs on Canada are still in place, and the 25% global auto tariff has taken effect.

Wide-moat-rated Royal Bank of Canada reported slightly disappointing fiscal first-quarter results as credit costs were a headwind. Net revenue increased 24% from a year ago to CAD 16.7 billion, driven by strong growth in net interest income, trading income, and asset-based fees. Adjusted net income increased 29% from a year ago to CAD 5.3 billion.

On Feb. 1, the Trump administration announced a 25% tariff on Canadian goods and a 10% tariff on Canadian oil and gas goods. The Canadian government announced a retaliatory tariff later on Feb. 1, starting with 25% tariffs on CAD 30 billion of US products like beverages, cosmetics, and paper products (effective on Feb. 4) and on an additional CAD 125 billion of US goods including cars and trucks (effective in three weeks).

After taking a fresh look at Royal Bank of Canada, we are increasing our fair value estimate to CAD 157/USD 110 from CAD143/USD 99. We maintain our wide-moat rating, Exemplary Morningstar Capital Allocation Rating. We are increasing the bank’s Morningstar Uncertainty Rating to Medium from Low, given its exposure to the Canadian housing market and uncertainty related to US-Canada tariffs. We view shares as slightly overvalued.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives more than 60% of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding and cross-selling its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come, even as a more difficult macro backdrop pressures earnings growth in the medium term.

Royal Bank of Canada is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives two thirds of its revenue from Canada, with the rest primarily coming from the United States. It has done an admirable job of expanding its nonbank lines of business, running efficient banking operations, and generating some of the best returns for shareholders in the industry. We believe RBC should remain one of the dominant Canadian banks for years to come, even as a more difficult macro backdrop pressures earnings growth in the medium term.