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

Royal Bank of Canada

27/08/2026 11:10

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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/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q3        Beat      C$18.54   C$18.14
 Revenue             bln       bln (7
                               Analysts
                               )
 Q3        Beat      C$4.28    C$4.08
 Adjusted                      (12
 EPS                           Analysts
                               )
 Q3 EPS              C$4.23     
 Q3 Net              C$6.02     
 Income              bln       
 Q3 CET1             13.5%      
 Capital                       
 Ratio                         
 Q3                  C$1 bln    
 Provisio                      
 n for                         
 credit                        
 losses                        
 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 .

(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.)