Royal Bank Of Canada (NYSE:RY) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Royal Bank Of Canada (NYSE:RY) (TSE:RY) posted its earnings results on Thursday. The financial services provider reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.81 by $0.03, Zacks reports. The firm had revenue of $12.84 billion during the quarter, compared to analyst estimates of $12.74 billion. Royal Bank Of Canada had a return on equity of 17.83% and a net margin of 15.92%.The company’s revenue for the quarter was up 11.4% on a year-over-year basis. During the same period in the previous year, the company earned $3.12 EPS.

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

• RBC reported CAD 5.5 billion in earnings and CAD 5.6 billion adjusted, its second-highest quarterly performance on record, with 17.2% ROE and a strong 13.5% CET1 ratio.
• Capital Markets delivered record net income, driven by strong investment banking, record equities revenue, and solid FICC results, while the pipeline remained healthy across M&A, debt, equity, and lending activity.
• Wealth Management continued to perform well, with strong client inflows, including CAD 10 billion in net new assets in Canadian Wealth and US$5 billion in U.S. net new assets, supported by market appreciation and advisor recruitment.
• Management remained cautious on credit, citing elevated uncertainty from tariffs, geopolitical tensions, and trade negotiations. Gross impaired loans increased, but provisions on performing loans were modest and the bank said full-year impaired loan provisions remain within prior guidance.
• RBC raised its quarterly dividend by CAD 0.12 and announced a new normal course issuer bid for up to 45 million shares, signaling confidence in capital generation and willingness to return more capital to shareholders.

Royal Bank Of Canada Stock Up 0.5%

RY opened at $189.92 on Friday. Royal Bank Of Canada has a 1-year low of $124.19 and a 1-year high of $191.51. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $265.45 billion, a price-to-earnings ratio of 17.06, a P/E/G ratio of 1.48 and a beta of 0.80. The business has a 50 day moving average of $175.27 and a 200-day moving average of $168.46.

Royal Bank Of Canada Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 24th. Stockholders of record on Monday, July 27th will be given a $1.76 dividend. This is a positive change from Royal Bank Of Canada’s previous quarterly dividend of $1.64. This represents a $7.04 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Monday, July 27th. Royal Bank Of Canada’s dividend payout ratio (DPR) is currently 46.54%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Zacks Research cut Royal Bank Of Canada from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 3rd. TD Securities reaffirmed a “buy” rating on shares of Royal Bank Of Canada in a research report on Friday. Scotiabank reaffirmed an “outperform” rating on shares of Royal Bank Of Canada in a research report on Monday, May 4th. Canadian Imperial Bank of Commerce reaffirmed a “neutral” rating on shares of Royal Bank Of Canada in a research report on Friday. Finally, Barclays reaffirmed an “overweight” rating on shares of Royal Bank Of Canada in a research report on Thursday, February 19th. Ten analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $162.00.

Institutional Investors Weigh In On Royal Bank Of Canada

Several hedge funds have recently modified their holdings of RY. BCV Asset Management Inc. bought a new stake in shares of Royal Bank Of Canada in the fourth quarter valued at approximately $136,790,000. Zurich Insurance Group Ltd FI bought a new stake in shares of Royal Bank Of Canada in the fourth quarter valued at approximately $121,792,000. AQR Capital Management LLC boosted its position in shares of Royal Bank Of Canada by 780.7% in the fourth quarter. AQR Capital Management LLC now owns 698,900 shares of the financial services provider’s stock valued at $119,151,000 after acquiring an additional 619,547 shares during the period. Amundi boosted its position in shares of Royal Bank Of Canada by 30.6% in the fourth quarter. Amundi now owns 2,283,367 shares of the financial services provider’s stock valued at $389,291,000 after acquiring an additional 535,437 shares during the period. Finally, Two Sigma Investments LP boosted its position in shares of Royal Bank Of Canada by 342.7% in the third quarter. Two Sigma Investments LP now owns 543,320 shares of the financial services provider’s stock valued at $80,042,000 after acquiring an additional 420,595 shares during the period. 45.31% of the stock is owned by institutional investors.

Trending Headlines about Royal Bank Of Canada

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

• Positive Sentiment: Royal Bank of Canada reported quarterly earnings and revenue above analyst expectations, helped by stronger-than-forecast results across most business segments and lower loan-loss provisions. RBC Beats Estimates on Strong Results Across Its Business Lines
• Positive Sentiment: The company increased its quarterly dividend to $1.76 per share from $1.64, signaling management confidence in earnings power and capital strength. Royal Bank Of Canada Price Performance
• Positive Sentiment: Management sounded upbeat on the Canadian economy and said it is not worried about fintech competition, reinforcing the view that RBC can defend its market position. RBC CEO not afraid of competition, dismisses possibility of fintech disruption
• Neutral Sentiment: Insider buying was reported in a separate RIAEX filing tied to Global Asset Management (U.S.) Inc. RBC, but it does not appear directly related to Royal Bank of Canada’s public shares. Insider Purchase: 10% owner at $RIAEX Buys 1,956,000 Shares

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.