Royal Bank of Canada beats Q2 revenue, EPS estimates, raises dividend

Royal Bank of Canada

28/05/2026 11:09

((This story was generated using AI and automation, please see
disclaimer https://bit.ly/rtrsnai))
    
    Overview
  
    * Canada banking company's Q2 revenue and adjusted EPS beat analyst expectations
    * Q2 net income rose 25% yr/yr, driven by growth across all business segments
    * Company raised quarterly dividend 7% and plans to buy back up to 45 mln shares

    
    Outlook
  
    * Company did not provide specific financial guidance for the current qtr or full yr in its press release

    
    Result Drivers
  
    * CAPITAL MARKETS & WEALTH MANAGEMENT - Higher revenue in Capital Markets, driven by Global Markets and Corporate & Investment Banking, and higher fee-based revenue in Wealth Management, reflecting market appreciation and net sales, boosted results
    * NET INTEREST INCOME - Higher net interest income in Personal and Commercial Banking, reflecting average volume growth and higher spreads, contributed to the increase
    * LOWER CREDIT PROVISIONS - Lower provisions for credit losses, mainly in Commercial and Personal Banking, supported year-on-year profit growth as last year reflected higher provisions due to trade disruptions

    
Company press release:  ID:nCNWjMtPGa 
    
    Key Details
  
                               
                               
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
                               
                               
 Q2        Beat      C$17.45   C$17.22
 Revenue             bln       bln (8
                               Analysts
                               )
 Q2        Beat      C$3.90    C$3.78
 Adjusted                      (10
 EPS                           Analysts
                               )
 Q2 Net              C$5.51     
 Income              bln       
 Q2 CET1             13.50%     
 Capital                       
 Ratio                         
 Q2 ROE              17.20%     
    
    Analyst Coverage
  
    * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "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$259.00, about 1% below its May 27 closing price of C$261.64
    * The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

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

(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.)