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

Royal Bank Of Canada (NYSE:RY) (TSE:RY) issued its earnings results on Thursday. The financial services provider reported $2.94 EPS for the quarter, topping the consensus estimate of $2.81 by $0.13, Zacks reports. Royal Bank Of Canada had a return on equity of 16.83% and a net margin of 14.83%.The business had revenue of $13.18 billion during the quarter, compared to the consensus estimate of $12.60 billion. During the same quarter last year, the company earned $3.62 EPS. The firm’s revenue was up 4.4% compared to the same quarter last year.

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 Trading Down 1.5%

Shares of RY traded down $2.57 during mid-day trading on Friday, reaching $167.26. The company’s stock had a trading volume of 2,485,387 shares, compared to its average volume of 1,464,220. Royal Bank Of Canada has a 52 week low of $106.10 and a 52 week high of $176.19. The stock has a market cap of $233.78 billion, a PE ratio of 16.68, a P/E/G ratio of 1.29 and a beta of 0.79. The company’s fifty day moving average price is $170.06 and its two-hundred day moving average price is $155.55. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 0.11.

Royal Bank Of Canada Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Thursday, April 23rd will be paid a dividend of $1.64 per share. The ex-dividend date of this dividend is Thursday, April 23rd. This represents a $6.56 annualized dividend and a dividend yield of 3.9%. Royal Bank Of Canada’s dividend payout ratio (DPR) is 47.66%.

Key Headlines Impacting Royal Bank Of Canada

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Sivia Capital Partners LLC increased its stake in Royal Bank Of Canada by 57.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 5,284 shares of the financial services provider’s stock worth $695,000 after purchasing an additional 1,934 shares during the period. Brighton Jones LLC grew its holdings in shares of Royal Bank Of Canada by 33.1% in the fourth quarter. Brighton Jones LLC now owns 2,313 shares of the financial services provider’s stock worth $279,000 after purchasing an additional 575 shares during the last quarter. Wealthspire Advisors LLC increased its stake in shares of Royal Bank Of Canada by 820.8% in the fourth quarter. Wealthspire Advisors LLC now owns 1,326 shares of the financial services provider’s stock worth $226,000 after buying an additional 1,182 shares during the period. Bradley Foster & Sargent Inc. CT bought a new stake in Royal Bank Of Canada during the 4th quarter valued at $221,000. Finally, San Luis Wealth Advisors LLC bought a new stake in Royal Bank Of Canada in the 3rd quarter worth $217,000. 45.31% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RY. Jefferies Financial Group cut shares of Royal Bank Of Canada from a “buy” rating to a “hold” rating in a research note on Tuesday, November 25th. National Bank Financial restated an “outperform” rating on shares of Royal Bank Of Canada in a research report on Thursday, December 4th. BMO Capital Markets reiterated an “outperform” rating on shares of Royal Bank Of Canada in a research report on Wednesday, December 17th. TD Cowen raised Royal Bank Of Canada from a “hold” rating to a “buy” rating in a research note on Thursday, December 4th. Finally, Scotiabank restated an “outperform” rating on shares of Royal Bank Of Canada in a research note on Friday, January 9th. Eleven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Royal Bank Of Canada currently has a consensus rating of “Moderate Buy” and an average target price of $162.00.

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.