Canadian financial services provider Royal Bank of Canada (RY,RY.TO) reported Thursday a profit for the second quarter that grew 28 percent from last year, reflecting solid earnings growth across all business segments, and lower provisions. Royal Bank of Canada is the last of the five big Canadian banks to report its financial results for the second quarter.
"We grew earnings this quarter in each of our segments compared to last year, driven by the strength and diversification of our businesses." President and CEO Gordon Nixon said.
The Toronto, Canada-based company reported net income available to common shareholders of C$1.85 billion or C$1.27 per share for the second quarter, higher than C$1.44 billion or C$0.99 per share in the prior-year quarter. Net income was C$1.94 billion, up 26 percent from last year's C$1.53 billion.
Excluding certain items, adjusted net income for the quarter was C$1.97 billion or C$1.29 per share, compared to C$1.74 billion or C$1.13 per share in the year-ago quarter.
The results were driven by solid earnings growth across all business segments, with particular strength in Canadian banking, corporate and investment banking and asset management businesses.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of C$1.31 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew to C$7.77 billion from C$6.92 billion in the same quarter last year, and topped six Wall Street analysts' consensus estimate of C$7.63 billion. Net interest income for the latest quarter was C$3.22 billion, and non-interest income was C$4.55 billion.
Segment-wise, Canadian banking net income was $1.06 billion, up 12 percent from last year, and wealth management net income grew 6 percent from the prior-year quarter to C$225 million.
Insurance net income increased 10 percent to C$166 million from last year, and investor & treasury services net income was C$67 million, up 4 percent from last year. Capital markets reported net income grew 4 percent to C$386 million from the year-ago quarter.
Total provision for credit losses for the second quarter declined to C$288 million from C$348 million in the prior-year quarter.
Non-interest expense for the quarter was C$4.01 billion, marginally higher than C$3.86 billion in the prior-year quarter.
Separately, Royal Bank of Canada declared a quarterly common share dividend of C$0.63 per share, payable on August 23 to common shareholders of record on July 25, 2013.
In Thursday's regular trading session, RY is currently trading at $60.54, down $1.22 or 1.97% on a volume of 0.10 million shares. In the past 52-week period, the stock has been trading in a range of $46.80 to $64.08.
RY.TO is trading on the Toronto Stock Exchange at C$63.19, down C$0.79 or 1.23% on a volume of 0.17 million shares. In the 52-week period, the stock has been trading in a range of C$48.70 to C$64.92.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.