Research Alert: Royal Bank Of Canada: Healthy Jan-q Results Led By Broad-based Revenue Growth

BY MT Newswires | ECONOMIC | 02/26/26 09:30 AM EST

09:30 AM EST, 02/26/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Royal Bank of Canada (RY) beat Q1 FY 26 (Oct.) earnings with operating EPS of CAD4.08 vs. CAD3.62 in the prior year, CAD0.24 above consensus. Total revenue reached CAD18.0B (+7% Y/Y), reflecting broad-based growth across Personal Banking, Wealth Management, and Capital Markets. RY's superior execution was evident as adjusted ROE reached 17.8% (+60 bps Y/Y), significantly outpacing peers struggling to surpass 15% ROE. Credit quality declined modestly with gross impaired loans rising 8 bps Y/Y to 86 bps, while provisions increased CAD40M to CAD1.09B. Business segment performance was strong with Personal Banking delivering CAD1,962M net income (+17% Y/Y), Wealth Management contributing CAD1,295M (+32% Y/Y), and Capital Markets generating CAD1,478M (+3% Y/Y). RY's capital position strengthened with a CET1 ratio of 13.7% (+20 bps Q/Q), contrasting with peers that reduced capital through share repurchases, supporting future shareholder returns and growth investments.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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