NYSE$RY

Royal Bank of Canada · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Royal Bank of Canada reported Q2 2024 net income of C$4.0B on C$14.2B revenue, with diluted EPS of C$2.74.

For the quarter ended April 30, 2024, RBC earned net income of C$4.0 billion (up 7% year over year) on total revenue of C$14.2 billion (up 14%). Diluted EPS was C$2.74 versus C$2.61 a year ago; adjusted diluted EPS was C$2.92. Pre-provision, pre-tax earnings were C$5.8 billion, up 16%. The HSBC Canada acquisition closed March 28, 2024; initial performing-loan PCL reduced reported net income by C$51 million. The PCL on loans ratio was 41 bps. CET1 fell to 12.8% on closing the transaction. The bank declared a C$1.42 quarterly dividend (up C$0.04).

  • Net income C$4.0B (+7% YoY) on C$14.2B revenue (+14% YoY); record Capital Markets earnings C$1.3B (+31% YoY).
  • HSBC Canada closed in quarter; C$145M after-tax initial PCL on purchased performing assets.
  • Personal & Commercial Banking C$2.1B (+7% YoY); Wealth Management C$769M (+7% YoY).
  • PCL on loans ratio 41 bps (+11 bps YoY); CET1 12.8% (-210 bps QoQ post-acquisition).

Headline financials

Total Revenue

C$14.2B

Previous: C$9.99B+41.8%
EPS (adj)

C$2.92

Previous: C$1.96+49.0%
ROE

14.5%

No prior period
CET1 ratio

12.8%

No prior period
PCL on loans ratio

0.4%

No prior period
Net Income

C$3.95B

No prior period
Operating Income

C$4.93B

No prior period

Revenue & EPS history

RBC · Revenue · Quarterly

C$14.2B

Q2 2024+41.8%vs Q2 2023
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

RBC · C$4.26B total across 4 segments · Q2 2024

  • Personal & Commercial Banking
    C$2.05B
  • Capital Markets
    C$1.26B
  • Wealth Management
    C$769M
  • Insurance
    C$177M

Forward guidance

Management did not issue quantitative EPS guidance. The bank declared a C$1.42 quarterly dividend (up 3%) and highlighted completion of the HSBC Canada acquisition as a pivotal growth milestone. CET1 of 12.8% reflected acquisition funding; integration and transaction costs were treated as specified items in adjusted results.

Tailwinds

  • Record Capital Markets net income on M&A, lending, and trading strength.
  • HSBC Canada acquisition expands client base and Canadian banking scale.
  • Adjusted net income C$4.2B (+11% YoY) excluding specified items.
  • PPPT up 16% year over year on revenue growth across franchises.

Headwinds

  • CET1 ratio down 210 bps sequentially to 12.8% from HSBC closing.
  • Initial C$200M pre-tax PCL on HSBC purchased performing loans.
  • PCL on loans ratio up 11 bps year over year on higher impaired provisions.
  • Insurance down 20% sequentially on IFRS 17 investment result normalization.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+5.5%

Q3 2025

Best reaction

-7.4%

Q4 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.1%+1.1%
Q1 2026-2.2%-4.5%-8.9%
Q4 2025+1.5%+5.8%+10.6%
Q3 2025+5.5%+5.6%+6.1%
Q2 2025-3.1%-1.1%+0.6%
Q1 2025-3.6%-5.8%-6.1%
Q4 2024+0.5%+1.0%-3.5%
Q3 2024+2.1%+3.8%+6.8%
Q2 2024+5.4%+4.5%+3.4%
Q1 2024+0.2%+0.3%+4.1%
Q4 2023+4.3%+4.5%+15.8%
Q3 2023+0.1%+1.8%+0.3%
Q2 2023-0.8%-0.6%+1.8%
Q1 2023-1.2%-0.7%-5.8%
Q4 2022+1.9%-0.2%-4.5%
Q3 2022-0.2%-1.4%-6.9%
Q2 2022+2.7%+4.1%-3.9%
Q1 2022+0.5%-1.9%+3.1%
Q4 2021+1.1%+2.2%+7.2%
Q3 2021-0.3%-0.7%-3.5%
Q2 2021+1.3%+1.6%-0.1%
Q1 2021-1.5%-2.4%+4.7%
Q4 2020-0.5%-0.1%-0.7%
Q3 2020+2.1%+0.2%-7.1%
Q2 2020+3.9%+5.6%+4.5%
Q1 2020+0.0%-4.1%-33.0%
Q4 2019-1.5%-2.2%-1.6%
Q3 2019+0.3%-0.8%+9.2%
Q2 2019-1.4%-2.0%+1.4%
Q1 2019+0.4%+1.5%-1.6%
Q4 2018+2.5%+2.7%-5.1%
Q3 2018+1.1%+2.2%+2.7%
Q2 2018-3.6%-5.6%-3.2%
Q1 2018+0.5%-2.0%-4.3%
Q4 2017-0.1%+1.8%+4.2%
Q3 2017+1.4%+1.7%+4.5%
Q2 2017+0.8%+0.3%+2.6%
Q4 2016-2.4%-1.1%+1.0%
Q3 2016-1.0%-1.3%-2.9%
Q2 2016+1.6%-1.1%-2.5%
Q1 2016-1.1%
Q4 2015-0.7%
Q3 2015+3.5%
Q2 2015-0.8%
Q1 2015+2.6%
Q4 2014-0.8%
Q3 2014-1.8%
Q2 2014+0.1%
Q1 2014-1.2%
Q4 2013+0.9%
Q3 2013-2.0%
Q2 2013+0.3%
Q1 2013+0.4%
Q4 2012+1.4%
Q3 2012-1.5%
Q2 2012-0.8%
Q1 2012+1.9%
Q4 2011-7.4%
Q3 2011+0.5%
Q2 2011-0.2%
Q1 2011+2.8%
Q4 2010+0.1%
Q3 2010+1.9%
Q2 2010-0.4%
Q1 2010+1.3%
Q4 2009
Q3 2009
Q2 2009
Q1 2009
Q4 2008
Q3 2008
Q2 2008
Q1 2008
Q4 2007
Q3 2007
Q2 2007
Q1 2007
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Q4 2004
Q3 2004
Q2 2004
Q1 2004
Q4 2003

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro