Royal Bank Of Canada Q3 results beat on wealth management, markets strength

Royal Bank of Canada

27/08/2026 11:10

Overview
Canada banking giant's Q3 revenue rose 9% yr/yr, beating analyst expectations
Adjusted EPS for Q3 grew about 11% and beat analyst expectations
Net income rose 11% yr/yr, driven by Wealth Management and Capital Markets growth

Outlook
Company did not provide specific guidance for the current quarter or full year

Result Drivers
WEALTH MANAGEMENT GAINS - Higher fee-based client assets reflecting market appreciation and net sales drove Wealth Management results, also leading to increased variable compensation
CAPITAL MARKETS STRENGTH - Higher revenue in Corporate & Investment Banking and Global Markets, mainly due to increased equity and debt origination and M&A activity, contributed to Capital Markets growth
NET INTEREST INCOME GROWTH - Increased net interest income from average volume growth in Personal Banking, Commercial Banking and Wealth Management supported overall results

Company press release: ID:nCNWTh6nka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$18.54 bln
C$18.14 bln (7 Analysts)
Q3 Adjusted EPS
Beat
C$4.28
C$4.08 (12 Analysts)
Q3 EPS
 
C$4.23
 
Q3 Net Income
 
C$6.02 bln
 
Q3 CET1 Capital Ratio
 
13.5%
 
Q3 Provision for credit losses
 
C$1 bln
 
Q3 ROE
 
17.9%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Royal Bank of Canada is C$308.50, about 7.1% above its August 26 closing price of C$288.11
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 26 - National Bank of Canada beats profit estimates on capital markets, wealth management strength
Aug 27 - Canada's CIBC quarterly profit rises on strength in capital markets unit
Aug 25 - Canadian lenders BMO, Scotiabank beat profit estimates, brush aside tariff worries

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)