RBC (RY) investor relations material

Executive summary

• Net income rose 25% year-over-year to $5.5 billion (CAD 5.5 billion), with adjusted net income at $5.6 billion, and diluted EPS up 27% to $3.85; adjusted EPS was $3.90, up 25% year-over-year.

• Revenue increased 11% year-over-year, driven by strong growth in Capital Markets, Wealth Management, Personal and Commercial Banking.

• Return on equity reached 17.2% (adjusted 17.4%), with a CET1 ratio of 13.5%, supported by diversified business performance and capital returns.

• Operating leverage was 3.3% reported (2.2% adjusted), reflecting disciplined expense management.

• Quarterly dividend increased by 7% to $1.76 per share, with plans to repurchase up to 45 million common shares.

Financial highlights

• Total revenue for Q2 2026 was $17.5 billion, up 11% year-over-year, with net interest income up 6% and non-interest income up 17%.

• Diluted EPS was $3.85; adjusted diluted EPS was $3.90, both up over 25% year-over-year.

• Provision for credit losses (PCL) was $912 million, with PCL on impaired loans at 34–35 bps, down 6 bps quarter-over-quarter.

• Non-interest expense increased 8% year-over-year, mainly due to higher compensation.

• Dividend payout ratio was 42%; total payout ratio was 74%.

Outlook and guidance

• Management expects continued positive economic growth but highlights risks from trade policy, energy prices, and geopolitical tensions.

• Annual all-bank net interest income growth (excluding trading) expected in the mid-single-digit range.

• Full-year all-bank expense growth guided to mid-single digits; positive operating leverage expected.

• CET1 ratio to be maintained at the higher end of the targeted range, with ongoing dividends and share buybacks.

• Focus remains on organic growth, cost efficiencies, and capital return to shareholders.