RBC delivered a strong beat on both revenue and EPS with broad-based segment growth. The 7% dividend increase and new NCIB signal management confidence. Monitor the impact of trade policy and Middle East conflict on PCL trends, and watch for further capital returns given CET1 ratio remains well above regulatory minimums.
Price Chart
Executive Summary
Royal Bank of Canada reported strong Q2 2026 results with net income of C$5,509M (+25% YoY, -5% QoQ), diluted EPS of C$3.85 (+27% YoY, -4% QoQ), and ROE of 17.2%. Results were driven by broad segment growth, lower credit provisions (PCL decreased 36% YoY to C$912M), and increased shareholder returns including a 7% dividend hike and a new NCIB for up to 45M shares. Capital remains robust with CET1 ratio of 13.5%.
Key Facts
- Net income C$5,509M, up 25% YoY, down 5% QoQ
- Diluted EPS C$3.85, up 27% YoY, down 4% QoQ
- ROE 17.2%, up 300 bps YoY, down 40 bps QoQ
- Total PCL C$912M, down 36% YoY (C$1,424M Q2 2025)
- PCL on loans ratio 35 bps, down 23 bps YoY
- CET1 ratio 13.5%, down 20 bps QoQ, above regulatory requirements
- Dividend increased to C$1.76/share (up 7% or C$0.12)
- New NCIB announced for up to 45M shares (~3% of outstanding)
- Capital Markets net income C$1,484M, up 23% YoY
- Wealth Management net income C$1,185M, up 28% YoY
- Personal Banking net income C$1,870M, up 17% YoY
- Commercial Banking net income C$854M, up 43% YoY
- Revenue C$17,453M, up 11% YoY
- Non-interest expense C$9,437M, up 8% YoY
- Average LCR 126% vs 124% prior quarter
- Q2 2026 had three fewer days compared to Q1 2026
Financial Impact
Q2 2026 net income C$5,509M vs C$4,390M in Q2 2025 (+C$1,119M / +25%). Diluted EPS C$3.85 vs C$3.02 (+C$0.83 / +27%). Dividend increased by C$0.12/share to C$1.76. Share buybacks totaled C$1.7B in Q2, with new NCIB for up to 45M shares.
Risk Factors
- Geopolitical uncertainty (Middle East conflict) and trade tensions/tariffs impacting credit conditions
- QoQ revenue declined 3% and net income declined 5%, partly due to three fewer days
- NIM compression (1.58% vs 1.64% YoY)
- GIL increased 7% QoQ to C$9,790M
- Legal provisions in Corporate Support
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 9 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-242928 |
| Document: d20518d6k.htm | 0001193125-26-242928 |
| Document: d20518dex991.htm | 0001193125-26-242928 |
| Document: d20518dex312.htm | 0001193125-26-242928 |
| Document: d20518dex311.htm | 0001193125-26-242928 |
| Document: d20518dex993.htm | 0001193125-26-242928 |
| Document: 0001193125-26-242928-index-headers.html | 0001193125-26-242928 |
| Document: 0001193125-26-242928-index.html | 0001193125-26-242928 |
| Document: 0001193125-26-242928.txt | 0001193125-26-242928 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 28, 2026 21w ago | 6-K | $19.50 $19.50 | · 0.00% | ▼ −1.74% | $19.50 (−0.00%) |
May 28, 2026 21w ago | 6-K | $19.50 $19.50 | · 0.00% | ▼ −1.74% | $19.50 (−0.00%) |
May 28, 2026 21w ago | 6-K | $19.50 $19.50 | · 0.00% | ▼ −1.74% | $19.50 (−0.00%) |
May 19, 2026 23w ago | 6-K | $19.50 $19.50 | · 0.00% | ▼ −5.00% | $19.50 (−0.00%) |
Apr 17, 2026 27w ago | 6-K | $19.13 $19.50 | ▲ +1.91% | ▼ −4.87% | $19.50 (+1.91%) |
US Market Status
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