RBC (RY) investor relations material

Executive summary

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

• Pre-provision, pre-tax earnings rose 15% year-over-year, with revenue growth of 11% and operating leverage over 3%.

• Return on equity was 17.2%, supported by a 13.5% CET1 ratio.

• Strong performance across all business segments, notably Capital Markets, Wealth Management, Personal and Commercial Banking.

• 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, driven by higher net interest income and fee-based revenues.

• Net interest income increased 6% year-over-year, with net interest margin at 1.58%, up 3 bps sequentially.

• Provision for credit losses (PCL) was $912 million, down $512 million year-over-year, with PCL on impaired loans at 34–35 bps.

• Non-interest expense rose 8% year-over-year, mainly due to higher compensation and staff-related costs.

• CET1 ratio stood at 13.5%, down 20 bps from last quarter, mainly due to share repurchases.

Outlook and guidance

• Management expects continued positive economic growth in Canada, the U.S., and other advanced economies, 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.

• Capital levels to be maintained at the higher end of the targeted CET1 range amid uncertainty.

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