NYSE$RY

Royal Bank of Canada · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Royal Bank of Canada reported Q3 2025 record net income of C$5.4B on C$17.0B revenue, with diluted EPS of C$3.75.

For the quarter ended July 31, 2025, RBC earned record net income of C$5.4 billion (up 21% year over year) on total revenue of C$17.0 billion (up 16%). Diluted EPS was C$3.75 versus C$3.09 a year ago; adjusted diluted EPS was C$3.84. Pre-provision, pre-tax earnings reached C$7.8 billion, up 29%. The bank returned C$3.1 billion of capital through dividends and buybacks. CET1 was 13.2% with a PCL on loans ratio of 35 bps (down 23 bps quarter over quarter). Results reflected growth across every business segment versus both the prior year and prior quarter.

  • Record Q3 net income of C$5.4B (+21% YoY) on C$17.0B revenue (+16% YoY); diluted EPS C$3.75 (+21% YoY).
  • Personal Banking net income C$1.9B (+22% YoY) on higher NII and spreads; Commercial Banking C$836M (+2% YoY) with lower PCL QoQ.
  • Wealth Management C$1.1B (+15% YoY) and Capital Markets C$1.3B (+13% YoY) on fee-based assets and trading.
  • PCL on loans ratio 35 bps (down 23 bps QoQ after tariff-related performing provisions in Q2); CET1 13.2%.

Headline financials

Total Revenue

C$17B

Previous: C$14.6B+16.1%
EPS (adj)

C$3.84

Previous: C$3.26+17.8%
ROE

17.3%

Previous: 15.5%+11.6%
CET1 ratio

13.2%

Previous: 13.0%+1.5%
PCL on loans ratio

0.3%

Previous: 0.3%+29.6%
Net Income

C$5.41B

Previous: C$4.49B+20.7%
Operating Income

C$6.87B

Previous: C$5.37B+27.9%

Revenue & EPS history

RBC · Revenue · Quarterly

C$17B

Q3 2025+16.1%vs Q3 2024
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

RBC · C$5.45B total across 5 segments · Q3 2025

  • Personal Banking
    C$1.94B
  • Capital Markets
    C$1.33B+13.3%
  • Wealth Management
    C$1.1B+27.1%
  • Commercial Banking
    C$836M
  • Insurance
    C$247M+45.3%

Forward guidance

Management did not issue quantitative revenue or EPS targets. The bank emphasized record results, a 13.2% CET1 ratio, and C$3.1 billion returned to shareholders in the quarter. Investor Day ambitions include extending Canadian leadership and growing global fee pools, with continued NCIB activity subject to regulatory approval.

Tailwinds

  • Record net income and PPPT with growth across all five operating segments.
  • PCL on loans ratio improved 23 bps sequentially as performing-loan tariff provisions eased.
  • C$3.1 billion returned via dividends and share repurchases.
  • Wealth Management releases on performing loans in U.S. wealth helped credit costs.

Headwinds

  • PCL on loans ratio still up 8 bps year over year on higher impaired provisions.
  • Capital Markets effective tax rate pressured by Pillar Two and earnings mix.
  • Average LCR declined to 129% from 131% last quarter.
  • Macro uncertainty and trade disruption remain called out in credit outlook.

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 Q3 2025

Historical avgQ3 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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