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

Royal Bank of Canada

28/05/2026 11:09

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/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$17.45 bln
C$17.22 bln (8 Analysts)
Q2 Adjusted EPS
Beat
C$3.90
C$3.78 (10 Analysts)
Q2 Net Income
 
C$5.51 bln
 
Q2 CET1 Capital Ratio
 
13.50%
 
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 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.)