Royal Bank Of Canada (NYSE:RY) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Royal Bank Of Canada (NYSE:RY) (TSE:RY) announced its quarterly earnings data on Thursday. The financial services provider reported $2.94 EPS for the quarter, beating the consensus estimate of $2.81 by $0.13, Zacks reports. The firm had revenue of $13.18 billion during the quarter, compared to analyst estimates of $12.60 billion. Royal Bank Of Canada had a net margin of 14.83% and a return on equity of 16.83%. Royal Bank Of Canada’s revenue was up 4.4% on a year-over-year basis. During the same period last year, the firm posted $3.62 EPS.

Here are the key takeaways from Royal Bank Of Canada’s conference call:

• Record earnings — adjusted Q1 earnings of CAD 5.9B (diluted EPS CAD 4.08), ROE 17.6% and CET1 ratio 13.7%; management repurchased ~4.2M shares (~CAD 1B) this quarter.
• Wealth Management and Capital Markets delivered record revenue and pre-provision earnings (Canadian Wealth AUA surpassed CAD 1T; CapMarkets revenue CAD 4B), with City National showing strong, improving profitability.
• Credit trends weakened in places — provisions on impaired loans rose (notably in Capital Markets), performing-loan provisions were CAD 28M, and gross impaired loans increased to CAD 9.2B, with commercial real estate and regional mortgage stress (Ontario/GTA) highlighted.
• Forward guidance is mixed — management expects mid-single-digit NII growth (ex-trading) and mid-single-digit expense growth with continued positive operating leverage, but flagged a ~4 bps near-term NIM headwind from PPA roll-off and a modest ~10 bps CET1 impact from retail capital parameter changes.

Royal Bank Of Canada Stock Performance

Shares of RY traded down $2.57 during trading hours on Friday, hitting $167.26. The stock had a trading volume of 2,485,387 shares, compared to its average volume of 1,464,220. The firm has a 50-day moving average price of $170.06 and a 200 day moving average price of $155.55. Royal Bank Of Canada has a fifty-two week low of $106.10 and a fifty-two week high of $176.19. The firm has a market capitalization of $233.78 billion, a price-to-earnings ratio of 16.68, a PEG ratio of 1.29 and a beta of 0.79. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.81 and a current ratio of 0.81.

Royal Bank Of Canada Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Thursday, April 23rd will be paid a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Thursday, April 23rd. Royal Bank Of Canada’s payout ratio is currently 47.66%.

Royal Bank Of Canada News Roundup

Here are the key news stories impacting Royal Bank Of Canada this week:

• Positive Sentiment: Q1 results beat expectations — RBC reported EPS of $2.94 vs. the $2.81 consensus and revenue of $13.18B (vs. $12.6B est.), driven by growth in personal banking, wealth management and capital markets; this supports the bank’s earnings outlook and valuation. Zacks: RY beats Q1 earnings
• Positive Sentiment: Net income and revenue momentum — reporting showed ~13% net income growth and broad-based revenue strength across retail and capital markets, echoing peer-beating results for Canadian banks this quarter. Financial Post: RBC tops earnings estimates
• Positive Sentiment: Dividend maintained and investor-friendly payout — RBC declared a quarterly dividend of $1.64 (annualized yield ~3.9%, ex-dividend April 23), which supports yield-seeking investors and long-term total-return expectations.
• Neutral Sentiment: Earnings materials released — the company posted its Q1 earnings presentation and call materials (useful for assessing segment-level trends and management commentary). Seeking Alpha: Q1 presentation
• Neutral Sentiment: RBC’s capital markets research remains active — the bank’s equity research is initiating and updating coverage (e.g., Eli Lilly, AbbVie), which speaks to the franchise’s research reach but has limited direct impact on RY’s near-term stock moves. InsiderMonkey: RBC initiates LLY coverage
• Negative Sentiment: Talent attrition and trading losses in high‑yield desk — reports say at least five high‑yield analysts/traders have left after losses tied to the First Brands Group collapse, raising concerns about risk controls, P&L volatility in the corporate credit franchise and potential reputational/human‑capital costs. Financial Post: High-yield desk attrition

Analysts Set New Price Targets

RY has been the subject of a number of research analyst reports. UBS Group reaffirmed a “buy” rating on shares of Royal Bank Of Canada in a report on Tuesday, November 25th. Raymond James Financial restated an “outperform” rating on shares of Royal Bank Of Canada in a research note on Friday, February 13th. TD Securities upgraded Royal Bank Of Canada from a “hold” rating to a “buy” rating in a research note on Thursday, December 4th. Zacks Research lowered Royal Bank Of Canada from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 3rd. Finally, National Bank Financial reaffirmed an “outperform” rating on shares of Royal Bank Of Canada in a report on Thursday, December 4th. Eleven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $162.00.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RY. Johnson Financial Group Inc. purchased a new position in shares of Royal Bank Of Canada in the 3rd quarter valued at about $27,000. Smartleaf Asset Management LLC grew its holdings in Royal Bank Of Canada by 86.5% in the second quarter. Smartleaf Asset Management LLC now owns 388 shares of the financial services provider’s stock valued at $50,000 after purchasing an additional 180 shares during the period. Swiss RE Ltd. acquired a new stake in Royal Bank Of Canada in the fourth quarter valued at approximately $58,000. Strive Financial Group LLC purchased a new stake in shares of Royal Bank Of Canada in the fourth quarter valued at approximately $61,000. Finally, Triumph Capital Management acquired a new position in shares of Royal Bank Of Canada during the 3rd quarter worth approximately $78,000. Institutional investors and hedge funds own 45.31% of the company’s stock.

About Royal Bank Of Canada

Royal Bank of Canada (NYSE: RY) is a diversified financial services company and one of Canada’s largest banks. Founded in 1864 in Halifax, Nova Scotia, the firm is now headquartered in Toronto, Ontario. It provides a broad range of banking and financial services to individuals, businesses, and institutional clients through a network of branches, digital platforms and international offices.

RBC operates across several principal business segments including personal and commercial banking, wealth management, insurance, investor and treasury services, capital markets, and global asset management.