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

Royal Bank Of Canada (NYSE:RY) (TSE:RY) released its quarterly earnings results on Thursday. The financial services provider reported $2.94 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.13, Zacks reports. The business had revenue of $13.18 billion during the quarter, compared to analyst estimates of $12.60 billion. Royal Bank Of Canada had a return on equity of 16.83% and a net margin of 14.83%.Royal Bank Of Canada’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter last year, the company 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 Down 1.5%

RY traded down $2.57 during midday trading on Friday, hitting $167.26. 2,485,387 shares of the company’s stock traded hands, compared to its average volume of 1,464,220. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.81 and a quick ratio of 0.81. The company has a market cap of $233.78 billion, a PE ratio of 16.68, a price-to-earnings-growth ratio of 1.29 and a beta of 0.79. The stock’s fifty day simple moving average is $170.06 and its 200-day simple moving average is $155.55. Royal Bank Of Canada has a one year low of $106.10 and a one year high of $176.19.

Royal Bank Of Canada Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Thursday, April 23rd will be issued a $1.64 dividend. The ex-dividend date is Thursday, April 23rd. This represents a $6.56 dividend on an annualized basis and a yield of 3.9%. Royal Bank Of Canada’s dividend payout ratio is currently 45.74%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Brighton Jones LLC boosted its stake in Royal Bank Of Canada by 33.1% during the 4th quarter. Brighton Jones LLC now owns 2,313 shares of the financial services provider’s stock valued at $279,000 after purchasing an additional 575 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Royal Bank Of Canada by 60.9% during the first quarter. AQR Capital Management LLC now owns 11,779 shares of the financial services provider’s stock worth $1,321,000 after buying an additional 4,460 shares during the last quarter. Sivia Capital Partners LLC boosted its position in shares of Royal Bank Of Canada by 57.7% in the second quarter. Sivia Capital Partners LLC now owns 5,284 shares of the financial services provider’s stock valued at $695,000 after acquiring an additional 1,934 shares during the period. Baird Financial Group Inc. boosted its position in shares of Royal Bank Of Canada by 39.1% in the second quarter. Baird Financial Group Inc. now owns 13,555 shares of the financial services provider’s stock valued at $1,783,000 after acquiring an additional 3,811 shares during the period. Finally, Cerity Partners LLC grew its stake in shares of Royal Bank Of Canada by 9.0% in the second quarter. Cerity Partners LLC now owns 47,721 shares of the financial services provider’s stock worth $6,279,000 after acquiring an additional 3,928 shares during the last quarter. Institutional investors and hedge funds own 45.31% of the company’s stock.

More Royal Bank Of Canada News

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

Wall Street Analysts Forecast Growth

RY has been the topic of a number of recent analyst reports. BMO Capital Markets restated an “outperform” rating on shares of Royal Bank Of Canada in a report on Wednesday, December 17th. TD Cowen upgraded Royal Bank Of Canada from a “hold” rating to a “buy” rating in a report on Thursday, December 4th. Raymond James Financial reiterated an “outperform” rating on shares of Royal Bank Of Canada in a report on Friday, February 13th. UBS Group reissued a “buy” rating on shares of Royal Bank Of Canada in a research note on Tuesday, November 25th. Finally, Scotiabank reaffirmed an “outperform” rating on shares of Royal Bank Of Canada in a research note on Friday, January 9th. Eleven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $162.00.

Royal Bank Of Canada Company Profile

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.