Royal Bank Of Canada (NYSE:RY) Issues Earnings Results, Beats Expectations By $0.13 EPS

Royal Bank Of Canada (NYSE:RY) (TSE:RY) announced its quarterly earnings data on Thursday. The financial services provider reported $2.94 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.13, Zacks reports. The company had revenue of $13.18 billion during the quarter, compared to analyst estimates of $12.60 billion. Royal Bank Of Canada had a net margin of 14.83% and a return on equity of 16.83%. The firm’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter last year, the business posted $3.62 EPS.

Here are the key takeaways from Royal Bank Of Canada’s conference call:

• Record earnings — adjusted Q1 earnings of CAD 5.9B (diluted EPS CAD 4.08), ROE 17.6% and CET1 ratio 13.7%; management repurchased ~4.2M shares (~CAD 1B) this quarter.
• Wealth Management and Capital Markets delivered record revenue and pre-provision earnings (Canadian Wealth AUA surpassed CAD 1T; CapMarkets revenue CAD 4B), with City National showing strong, improving profitability.
• Credit trends weakened in places — provisions on impaired loans rose (notably in Capital Markets), performing-loan provisions were CAD 28M, and gross impaired loans increased to CAD 9.2B, with commercial real estate and regional mortgage stress (Ontario/GTA) highlighted.
• Forward guidance is mixed — management expects mid-single-digit NII growth (ex-trading) and mid-single-digit expense growth with continued positive operating leverage, but flagged a ~4 bps near-term NIM headwind from PPA roll-off and a modest ~10 bps CET1 impact from retail capital parameter changes.

Royal Bank Of Canada Stock Down 1.5%

Royal Bank Of Canada stock traded down $2.57 during trading hours on Friday, reaching $167.26. The stock had a trading volume of 2,485,387 shares, compared to its average volume of 1,464,220. The company has a market cap of $233.78 billion, a price-to-earnings ratio of 16.68, a PEG ratio of 1.29 and a beta of 0.79. The business’s 50 day moving average price is $170.06 and its 200-day moving average price is $155.55. Royal Bank Of Canada has a 52 week low of $106.10 and a 52 week high of $176.19. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.81 and a quick ratio of 0.81.

Royal Bank Of Canada Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Thursday, April 23rd will be issued a $1.64 dividend. The ex-dividend date is Thursday, April 23rd. This represents a $6.56 dividend on an annualized basis and a yield of 3.9%. Royal Bank Of Canada’s payout ratio is currently 47.66%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on RY. TD Securities upgraded Royal Bank Of Canada from a “hold” rating to a “buy” rating in a report on Thursday, December 4th. Jefferies Financial Group lowered Royal Bank Of Canada from a “buy” rating to a “hold” rating in a research report on Tuesday, November 25th. BMO Capital Markets reissued an “outperform” rating on shares of Royal Bank Of Canada in a research report on Wednesday, December 17th. Barclays restated an “overweight” rating on shares of Royal Bank Of Canada in a research note on Thursday, February 19th. Finally, TD Cowen raised shares of Royal Bank Of Canada from a “hold” rating to a “buy” rating in a research note on Thursday, December 4th. Eleven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Royal Bank Of Canada presently has an average rating of “Moderate Buy” and a consensus target price of $162.00.

Institutional Investors Weigh In On Royal Bank Of Canada

A number of hedge funds and other institutional investors have recently bought and sold shares of RY. FIL Ltd grew its holdings in Royal Bank Of Canada by 1.1% in the fourth quarter. FIL Ltd now owns 23,258,871 shares of the financial services provider’s stock worth $3,965,133,000 after purchasing an additional 255,465 shares during the last quarter. Bank of Nova Scotia boosted its position in shares of Royal Bank Of Canada by 1.6% in the 4th quarter. Bank of Nova Scotia now owns 15,233,532 shares of the financial services provider’s stock worth $2,596,904,000 after purchasing an additional 238,589 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in Royal Bank Of Canada by 2.1% during the 4th quarter. The Manufacturers Life Insurance Company now owns 11,879,653 shares of the financial services provider’s stock worth $2,029,469,000 after buying an additional 245,116 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in Royal Bank Of Canada by 1.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,756,444 shares of the financial services provider’s stock worth $641,233,000 after buying an additional 53,329 shares during the last quarter. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in Royal Bank Of Canada by 2.4% during the 3rd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 2,892,999 shares of the financial services provider’s stock valued at $426,299,000 after buying an additional 67,151 shares in the last quarter. Hedge funds and other institutional investors own 45.31% of the company’s stock.

Royal Bank Of Canada News Summary

Here are the key news stories impacting Royal Bank Of Canada this week:

• Positive Sentiment: Q1 results beat expectations — RBC reported EPS of $2.94 vs. the $2.81 consensus and revenue of $13.18B (vs. $12.6B est.), driven by growth in personal banking, wealth management and capital markets; this supports the bank’s earnings outlook and valuation. Zacks: RY beats Q1 earnings
• Positive Sentiment: Net income and revenue momentum — reporting showed ~13% net income growth and broad-based revenue strength across retail and capital markets, echoing peer-beating results for Canadian banks this quarter. Financial Post: RBC tops earnings estimates
• Positive Sentiment: Dividend maintained and investor-friendly payout — RBC declared a quarterly dividend of $1.64 (annualized yield ~3.9%, ex-dividend April 23), which supports yield-seeking investors and long-term total-return expectations.
• Neutral Sentiment: Earnings materials released — the company posted its Q1 earnings presentation and call materials (useful for assessing segment-level trends and management commentary). Seeking Alpha: Q1 presentation
• Neutral Sentiment: RBC’s capital markets research remains active — the bank’s equity research is initiating and updating coverage (e.g., Eli Lilly, AbbVie), which speaks to the franchise’s research reach but has limited direct impact on RY’s near-term stock moves. InsiderMonkey: RBC initiates LLY coverage
• Negative Sentiment: Talent attrition and trading losses in high‑yield desk — reports say at least five high‑yield analysts/traders have left after losses tied to the First Brands Group collapse, raising concerns about risk controls, P&L volatility in the corporate credit franchise and potential reputational/human‑capital costs. Financial Post: High-yield desk attrition

Royal Bank Of Canada Company Profile

Royal Bank of Canada (NYSE: RY) is a diversified financial services company and one of Canada’s largest banks. Founded in 1864 in Halifax, Nova Scotia, the firm is now headquartered in Toronto, Ontario. It provides a broad range of banking and financial services to individuals, businesses, and institutional clients through a network of branches, digital platforms and international offices.

RBC operates across several principal business segments including personal and commercial banking, wealth management, insurance, investor and treasury services, capital markets, and global asset management.