NYSE$RY

Royal Bank of Canada · Q4 2025 earnings

Q4 2025 earnings · · Investor relations

Briefing

Royal Bank of Canada reported Q4 2025 record net income of C$5.4B on C$17.2B revenue, with diluted EPS of C$3.76.

For the quarter ended October 31, 2025, RBC earned record net income of C$5.4 billion (up 29% year over year) on total revenue of C$17.2 billion (up 14%). Diluted EPS was C$3.76 versus C$2.91 a year ago; adjusted diluted EPS was C$3.85. Record pre-provision, pre-tax earnings reached C$7.8 billion, up 29%. The bank returned C$11.3 billion to shareholders for fiscal 2025 through dividends and buybacks, declared a C$1.64 quarterly dividend (up C$0.10), and revised its ROE financial objective to 17%+ for fiscal 2026. CET1 was 13.5% with a PCL on loans ratio of 39 bps (up 4 bps YoY).

  • Record Q4 net income of C$5.4B (+29% YoY) on C$17.2B revenue (+14% YoY); adjusted diluted EPS C$3.85 (+25% YoY).
  • Capital Markets net income C$1.4B (+45% YoY) and Wealth Management C$1.3B (+33% YoY) led segment growth; Insurance fell to C$98M on unfavourable actuarial updates.
  • Record PPPT of C$7.8B (+29% YoY) on higher trading and NII; PCL on loans ratio 39 bps (+4 bps YoY).
  • Fiscal 2025 net income C$20.4B (+25% YoY); quarterly dividend raised to C$1.64; ROE target lifted to 17%+ for fiscal 2026.

Headline financials

Total Revenue

C$17.2B

Previous: C$15.1B+14.2%
EPS (adj)

C$3.85

Previous: C$3.07+25.4%
ROE

16.8%

Previous: 14.3%+17.5%
CET1 ratio

13.5%

Previous: 13.2%+2.3%
PCL on loans ratio

0.4%

Previous: 0.3%+11.4%
Net Income

C$5.43B

Previous: C$4.22B+28.7%
Operating Income

C$6.83B

Previous: C$5.22B+30.9%

Revenue & EPS history

RBC · Revenue · Quarterly

C$17.2B

Q4 2025+14.2%vs Q4 2024
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

RBC · C$5.51B total across 5 segments · Q4 2025

  • Personal Banking
    C$1.89B+19.5%
  • Capital Markets
    C$1.43B+45.3%
  • Wealth Management
    C$1.28B+32.5%
  • Commercial Banking
    C$810M+4.7%
  • Insurance
    C$98M-39.5%

Forward guidance

Management did not issue quantitative revenue or EPS targets for upcoming quarters. For fiscal 2026 the bank revised its ROE financial objective to 17%+ to reflect improving revenue productivity and cost efficiencies. The board declared a C$1.64 quarterly dividend (up 7%) and highlighted capacity to fund growth from a 13.5% CET1 ratio after returning C$11.3 billion in fiscal 2025.

Tailwinds

  • Quarterly dividend increased to C$1.64 per share (+C$0.10).
  • Fiscal 2026 ROE objective raised to 17%+ on strategic execution.
  • CET1 ratio of 13.5% supports volume growth and capital returns.
  • Record fiscal 2025 earnings with diversified segment momentum.

Headwinds

  • PCL on loans ratio rose to 39 bps with higher impaired provisions in key segments.
  • Insurance net income down sharply quarter over quarter on actuarial updates.
  • Net income relatively flat sequentially despite record headline results.
  • Macro outlook cites trade disruption and unemployment risks in credit provisioning.

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 Q4 2025

Historical avgQ4 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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