| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 63 | 12.4x | 17.3x | Around median | |
Growth | 51 | 67.1% | 7.1% | Around median | |
Quality | 86 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 95 | 2.37% | 0.06% | Top tier | |
Momentum | 91 | 35.9% | -1.6% | Top tier | |
Sentiment | 79 | 8 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Royal Bank of Canada combines personal and commercial banking in Canada, wealth management, capital markets, and insurance, with a U.S. presence that includes City National Bank. It earns income from net interest on lending and financing, and from fees for investment, asset management, transactions, investment banking, and trading. On the 2026-08-27 call, management described a business mix with roughly equal weightings between net interest income and non-interest income, linking RY's performance to both credit demand and client and market activity.
In quarter 3 of fiscal year 2026, ended 2026-07-31, net revenue reached 20.8 billion Canadian dollars, up 22.5% from the same quarter of the previous fiscal year, while net income reached 6.0 billion Canadian dollars and diluted earnings per share were 4.23 Canadian dollars. The operating margin calculated by EL7 was 37.3%. These results reflect an expanding business base, but net revenue growth did not prevent the operating margin from declining compared with 40.8% in quarter 2 of fiscal year 2026.
Earnings in quarter 3 of fiscal year 2026 were distributed across personal banking, with net income of 1.9 billion Canadian dollars; commercial banking, with net income of 936 million Canadian dollars; wealth management, with net income of 1.4 billion Canadian dollars; capital markets, with net income of 1.5 billion Canadian dollars; and insurance, with net income of 197 million Canadian dollars. Wealth management and capital markets were prominent drivers, with net income growing 32% and 16%, respectively, compared with the same quarter of the previous fiscal year, while insurance net income declined 20% on the same basis.
Q3 FY2026
When: 2026-12-03
Net revenue in the expected earnings announcement and the threshold of 20.8 billion Canadian dollars
Operating margin in the expected earnings announcement and the threshold of 37.3%
The median analyst target is 225 dollars in the 2026-10-19 snapshot, a low-confidence indicative estimate because it relies on two analysts, reflecting their expectations for growth and future performance with a neutral consensus. The industry-multiple value is 160 dollars, within a range of 138 dollars to 181 dollars, valuing the bank's book value at a median multiple of 1.5 across 16 peers. Both methods rely on a comparative perspective or external expectations, but the analyst target is above the range of the industry method: the former prices expected growth, while the latter values the bank on its book value in line with its peers. Analyst targets tend to be optimistic by nature, while the valuation factor, which compares multiples within the industry, scored 32 out of 100 using data as of 2026-07-31.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
The bank earns income from net interest on loans and financing, and from wealth management, investment, transaction, trading, and insurance fees. In quarter 3 of fiscal year 2026, ended 2026-07-31, net revenue reached 20.8 billion Canadian dollars and net income reached 6.0 billion Canadian dollars. Wealth management net income was 1.4 billion Canadian dollars and capital markets net income was 1.5 billion Canadian dollars in the same period, illustrating the importance of investment and market-related businesses alongside traditional banking.
Net revenue grew 22.5% compared with the same quarter of the previous fiscal year in quarter 3 of fiscal year 2026, ended 2026-07-31, but this was accompanied by an operating margin of 37.3% versus 40.8% in quarter 2 of fiscal year 2026. In Canadian personal banking, expenses rose 9% and net revenue rose 4% compared with the same quarter of the previous fiscal year, while net income declined 1% on the same basis. In contrast, wealth management net income rose 32% on the same basis and its pretax margin reached 29.3%, so the strength of performance varies across segments.
Automated analysis for informational purposes only — not investment advice.
Provisions for credit losses on impaired loans in the expected earnings announcement and the threshold of 35 basis points
Provisions for credit losses on impaired loans were 35 basis points in quarter 3 of fiscal year 2026, ended 2026-07-31, an increase of one basis point compared with the previous quarter. Impaired loans in capital markets rose by 466 million Canadian dollars compared with the previous quarter, mainly in real estate and related sectors, and an additional provision of 120 million Canadian dollars was recorded for a utilities borrower. On the 2026-08-27 call, management also pointed to stability in some personal credit indicators and improving commercial loss trends, but impairments in corporate portfolios can occur sporadically and be difficult to predict.
The global transaction banking initiative aims to connect RBC Clear and Edge capabilities and lending relationships with cash management, treasury, and cross-border trade services. In quarter 3 of fiscal year 2026, ended 2026-07-31, commercial deposits grew 9% compared with the same quarter of the previous fiscal year, providing an existing business base for expanding these services. On the 2026-08-27 call, management announced an ambition to generate between 700 million and one billion Canadian dollars in value for the bank from artificial intelligence by the end of fiscal year 2027, a future target tied to implementing applications and capitalizing on Borealis capabilities.
In quarter 3 of fiscal year 2026, ended 2026-07-31, the bank repurchased 5.6 million shares for approximately 1.6 billion Canadian dollars, and the total payout ratio reached 69%. It maintained a common equity tier 1 capital ratio of 13.5%, with a return on equity of 17.9% in the same period. On the 2026-08-27 call, management said it expects the capital ratio to trend over time toward the midpoint of its 12.5% to 13.5% range, while directing capital toward growth, dividends, and repurchases.