Zacks Investment Research·Jun 26, 2026
Royal Bank (RY) Could Be a Great ChoiceDividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Royal Bank (RY) have what it takes?
Royal Bank of Canada(RY)Earnings, Financials & Key Ratios
RY•NYSE•Banking & Credit
$209.07
21.1× P/E·Price updated Jul 7, 2026
AboutRoyal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital, mobile, and social platforms; independent brokers; and travel partners. Its Investor & Treasury Services segment provides asset servicing, custody, payments, and treasury services to financial and other investors; and fund and investment administration, shareholder, private capital, performance measurement and compliance monitoring, distribution, transaction banking, cash and liquidity management, foreign exchange, and global securities finance services. The company's Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, advisory services, sale, and trading services for corporations, institutional investors, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.Show more
- Net Interest Income$33B+18.1%
- Total Revenue$137.36B+2.1%
- Net Income$20.36B+25.5%
- Return on Equity15.29%+14.2%
- Net Interest Margin1.42%+10.3%
- Efficiency Ratio26.59%+4.0%
- ROA0.91%+16.6%
- Equity / Assets5.98%+2.2%
- Book Value per Share98.71+9.7%
RY Price & Volume
Royal Bank of Canada (RY) stock price & volume — 10-year historical chart
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Strategic Integration Drives Sustained Revenue Growth Trajectory
Investment Thesis • Updated 2026Q2
VerdictPositive
Growth:Stable
Profitability:Strong
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Canadian housing market exposure
Key Thesis Takeaways
- Royal Bank of Canada demonstrates a resilient growth profile underpinned by the successful integration of HSBC Canada, which has helped scale total assets to $2.4 trillion as of 2026Q2.
- While the bank maintains strong capital buffers and consistent fee income contributions, investors should monitor the volatility in credit loss provisions, which peaked at $1.4 billion in 2025Q2, as a proxy for potential domestic housing market headwinds.
- The firm's ability to balance aggressive capital returns, including $5.6 billion in quarterly buybacks, against ongoing macroeconomic uncertainty remains a critical factor for long-term valuation.
Verdict Logic
the bank's forward P/E of 13.15 appears attractive given the sustained revenue growth and the successful integration of large-scale acquisitions that have bolstered the firm's market position.
RY Growth Metrics
Royal Bank of Canada (RY) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years12.3%
5 Years17.57%
3 Years27.14%
TTM-
Profit CAGR
10 Years7.45%
5 Years12.24%
3 Years8.84%
TTM21.51%
EPS CAGR
10 Years7.67%
5 Years12.5%
3 Years8.41%
TTM22.45%
Return on Capital
10 Years3.54%
5 Years3.43%
3 Years3.04%
Last Year3.47%
RY Recent Earnings
Royal Bank of Canada (RY) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 11/12 qtrs (92%)
Q2 2026Latest
May 28, 2026Metric
Actual
Est
EPS
$2.84+1.1%
$2.81
Rev
$12.8B+0.8%
$12.7B
Q1 2026
Feb 26, 2026Metric
Actual
Est
EPS
$2.94+4.6%
$2.81
Rev
$13.2B+2.5%
$12.9B
Q4 2025
Dec 3, 2025Metric
Actual
Est
EPS
$2.76+10.0%
$2.51
Rev
$17.2B+37.3%
$12.5B
Q3 2025
Aug 27, 2025Metric
Actual
Est
EPS
$2.79+18.2%
$2.36
Rev
$17.0B+40.1%
$12.1B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 28, 2026 | $2.84vs $2.81+1.1% | $12.8Bvs $12.7B+0.8% |
| Q1 2026 | Feb 26, 2026 | $2.94vs $2.81+4.6% | $13.2Bvs $12.9B+2.5% |
| Q4 2025 | Dec 3, 2025 | $2.76vs $2.51+10.0% | $17.2Bvs $12.5B+37.3% |
| Q3 2025 | Aug 27, 2025 | $2.79vs $2.36+18.2% | $17.0Bvs $12.1B+40.1% |
Based on last 12 quarters of dataView full earnings history →
Latest RY News
Recent stock market news and headlines for Royal Bank of Canada (RY)
Seeking Alpha·Jun 18, 2026
We Have A Valuation Problem - May Dividend Income ReportI don't love valuation models because they rely on assumptions, and assumptions can be dangerous. But we still need to pay attention. I sold my position in BIPC not because I don't like the stock or that I'm spooked by recent movement, but rather in the optic of portfolio simplification. Since I started this portfolio in September 2017, I have received a total of $36,444.54 CAD in dividends.
Peers Comparison
Key metrics vs top competitors for Royal Bank of Canada (RY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $209.07 | $291.99B | 21.09 | 2.13% | 14.82% | 15.29% | 2.1% | |
| $122.25 | $206.54B | 15.03 | -2.8% | 13.24% | 11.85% | — | |
| $178.25 | $124.85B | 22.14 | -0.52% | 12.63% | 11.24% | — | |
| $86.20 | $105.69B | 21.53 | 148.2% | 13.45% | 10.86% | — | |
| $115.91 | $107.4B | 19.22 | -3.14% | 15.88% | 15.17% | — | |
| $339.22 | $908.94B | 16.92 | 3.31% | 20.66% | 16.32% | — |
Compare RY vs Peers
Royal Bank of Canada (RY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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RY Frequently Asked Questions
Royal Bank of Canada (RY) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
How fast is Royal Bank of Canada growing?
Royal Bank of Canada (RY) grew revenue by 2.1% over the past year. Growth has been modest.
Is RY profitable?
Yes, Royal Bank of Canada (RY) is profitable, generating $22.14B in net income for fiscal year 2025 (14.8% net margin).
Dividend & Returns
Does RY pay dividends?
Yes, Royal Bank of Canada (RY) pays a dividend with a yield of 2.10%. This makes it attractive for income-focused investors.
What is RY's return on equity?
Royal Bank of Canada (RY) has a return on equity (ROE) of 15.3%. This is reasonable for most industries.
Industry Metrics
What is Royal Bank of Canada's net interest margin?
Royal Bank of Canada (RY) has a net interest margin (NIM) of 1.4%. NIM has been under pressure due to interest rate environment.
What is Royal Bank of Canada's efficiency ratio?
Royal Bank of Canada (RY) has an efficiency ratio of 26.6%. This is excellent, indicating strong cost control.