NYSE$RY

Royal Bank of Canada · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Royal Bank of Canada reported Q2 2025 net income of C$4.4B on C$15.7B revenue, with diluted EPS of C$3.02.

For the quarter ended April 30, 2025, RBC earned net income of C$4.4 billion (up 11% year over year) on total revenue of C$15.7 billion (up 11%). Diluted EPS was C$3.02 versus C$2.74 a year ago; adjusted diluted EPS was C$3.12. Pre-provision, pre-tax earnings were C$6.9 billion, up 19% (including C$264 million from HSBC Canada). The PCL on loans ratio was 58 bps, up 17 bps year over year on trade-disruption macro weights. CET1 was 13.2%. The bank declared a C$1.54 dividend (up C$0.06) and announced intent to repurchase up to 35 million shares via NCIB.

  • Net income C$4.4B (+11% YoY) on C$15.7B revenue (+11% YoY); HSBC Canada added C$258M to net income.
  • Personal Banking C$1.6B (+14% YoY) and Wealth Management C$929M (+11% YoY); Capital Markets C$1.2B (-5% YoY).
  • PCL on loans ratio 58 bps (+17 bps YoY) on tariff-related performing provisions; total PCL C$1.4B.
  • CET1 13.2%; C$2.6B returned to shareholders; NCIB for up to 35M shares announced.

Headline financials

Total Revenue

C$15.7B

Previous: C$14.2B+10.7%
EPS (adj)

C$3.12

Previous: C$2.92+6.8%
ROE

14.2%

Previous: 14.5%-2.1%
CET1 ratio

13.2%

Previous: 12.8%+3.1%
PCL on loans ratio

0.6%

Previous: 0.4%+41.5%
Net Income

C$4.39B

Previous: C$3.95B+11.1%
Operating Income

C$5.52B

Previous: C$4.93B+12.0%

Revenue & EPS history

RBC · Revenue · Quarterly

C$15.7B

Q2 2025+10.7%vs Q2 2024
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

RBC · C$4.54B total across 5 segments · Q2 2025

  • Personal Banking
    C$1.6B
  • Capital Markets
    C$1.2B-4.8%
  • Wealth Management
    C$929M+20.8%
  • Commercial Banking
    C$597M
  • Insurance
    C$211M+19.2%

Forward guidance

Management did not issue quantitative EPS guidance. The bank declared a C$1.54 quarterly dividend and announced an NCIB to repurchase up to 35 million common shares, subject to TSX and OSFI approval. Investor Day outlined medium-term objectives to extend Canadian leadership, grow U.S. and global fee pools, and deploy AI at scale.

Tailwinds

  • Quarterly dividend increased 4% to C$1.54 per share.
  • Proposed NCIB for up to 35 million shares (~2.5% of float).
  • CET1 ratio of 13.2% supports growth and capital returns.
  • Diversified model resilient through macro volatility per management commentary.

Headwinds

  • PCL on loans ratio elevated at 58 bps on tariff and macro scenario weights.
  • Net income down 14% sequentially on seasonality and higher credit provisions.
  • Capital Markets earnings down year over year on compensation and taxes.
  • Commercial Banking ex-HSBC net income down 19% on performing-loan PCL.

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 2025

Historical avgQ2 2025

+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

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