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Research Alert: Royal Bank Of Canada: Q2 Earnings Beat And A 7% Dividend Increase

BY MT Newswires | ECONOMIC | 07:15 AM EDT

07:15 AM EDT, 05/28/2026 (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:

RY beat Q2 FY 26 (Oct.) earnings with operating EPS of CAD3.90 vs. CAD3.12 the prior year and CAD0.11 above consensus, while revenue grew 11% Y/Y to CAD17.4B due to Capital Markets strength and net interest income momentum. Credit quality improved as provisions for credit losses fell 36% Y/Y to CAD912M, though gross impaired loans hit a cyclical high of 90 bps. RY continues executing at an elevated level with adjusted ROE of 17.4%, marking the fourth consecutive quarter above 17%. Management declared a 7% dividend increase to CAD1.76 per share and announced a new share buyback program for up to 45M shares (~3% of outstanding). The Business segment's performance was mixed with Personal Banking (+17% Y/Y) and Commercial Banking (+43% Y/Y) showing strength, while Wealth Management declined sequentially despite strong annual growth. We view RY's consistent execution and capital generation capacity as supportive of continued outperformance, with the CET1 ratio of 13.5% providing adequate regulatory buffers.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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