Overview
Royal Bank of Canada Q4 revenue beats estimates, driven by strong segment performance
Adjusted EPS for Q4 exceeds analyst expectations
Company reports Q4 net income of C$5.4 bln, up 29% year-over-year
Outlook
RBC revises 2026 ROE financial objective to 17%+
Result Drivers
PERSONAL BANKING - Higher net interest income driven by increased spreads and volume growth in Personal Banking
COMMERCIAL BANKING - Higher average loans and deposits drove revenue growth, offset by increased provisions for credit losses
WEALTH MANAGEMENT - Growth in fee-based client assets and transactional revenue contributed to increased net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | C$17.21 bln | C$16.41 bln (6 Analysts) |
Q4 Adjusted EPS | Beat | C$3.85 | C$3.45 (7 Analysts) |
Q4 EPS | C$3.76 | ||
Q4 Net Income | C$5.43 bln | ||
Q4 CET1 Capital Ratio | 13.50% | ||
Q4 Provision for credit losses | C$1.007 bln | ||
Q4 ROE | 16.80% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Royal Bank of Canada is C$222.50, about 2.8% above its December 2 closing price of C$216.21
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nCNWfJynqa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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