The strong beat on earnings and capital return signals robust underlying business momentum, particularly in Wealth Management and Capital Markets. Traders should watch for the Moneris sale closing in early 2027, which will provide a further ~$475M after-tax gain, and monitor any credit deterioration in Capital Markets given the $119M YoY increase in PCL.
Price Chart
Executive Summary
Royal Bank of Canada reported record Q3 2026 net income of $6.0 billion, up 11% YoY and 9% QoQ, driven by strong results in Wealth Management, Capital Markets, and Commercial Banking. Diluted EPS of $4.23 beat the prior year by 13%, and the CET1 ratio remained robust at 13.5%. The bank also announced the sale of its 50% stake in Moneris Solutions for ~$1 billion, expected to close by Q1 2027 with an estimated after-tax gain of ~$475 million.
Key Facts
- Record net income of $6.0 billion, up 11% YoY and 9% QoQ.
- Diluted EPS of $4.23, up 13% YoY and 10% QoQ.
- ROE of 17.9%, up 60 bps YoY and 70 bps QoQ.
- CET1 ratio of 13.5%, flat QoQ and up 30 bps YoY.
- Total PCL of $1.0 billion, up $119 million or 14% YoY.
- Announced sale of 50% stake in Moneris Solutions for ~$1 billion, with expected after-tax gain of ~$475 million.
- Returned $4.0 billion to shareholders via $1.6 billion in buybacks and $2.4 billion in dividends.
Financial Impact
Record net income of $6.0 billion, up $610 million YoY; diluted EPS $4.23, up $0.48 YoY; pre-provision pre-tax earnings of $8.7 billion, up $1.0 billion YoY.
Risk Factors
- Higher PCL of $1.0 billion, up 14% YoY, driven by Capital Markets and Personal Banking.
- Geopolitical uncertainty and trade tensions could impact economic growth and credit quality.
- Execution risk on the Moneris sale and integration of new customer referral arrangements.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-369461 |
| Document: 0001193125-26-369461-index.html | 0001193125-26-369461 |
| Document: 0001193125-26-369461.txt | 0001193125-26-369461 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | 6-K | $204.54 $212.07 | ▲ +3.68% | ▲ +3.41% | $195.48 (−4.43%) |
Aug 14, 2026 6w ago | 13F-HR | $216.56 $205.23 | ▼ −5.23% | ▼ −3.86% | $195.48 (−9.73%) |
Jun 10, 2026 16w ago | 6-K | $197.61 $201.13 | ▲ +1.78% | ▼ −1.65% | $195.48 (−1.08%) |
US Market Status
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