| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 12.6x | 17.8x | Around median | |
Growth | 51 | 67.1% | 7.1% | Around median | |
Quality | 86 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 83 | — | 2.12% | Top tier | |
Momentum | 96 | 45.8% | 2.9% | Top tier | |
Sentiment | 79 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, 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 is a diversified bank that generates income from personal and commercial banking, wealth management and insurance, and capital markets. Its revenue mix is distributed relatively evenly between net interest income and non-interest income, combining returns from lending and deposits with fees generated from asset management, advisory, investment, and trading activities. In fiscal Q3 2026, personal banking recorded earnings of $1.9 billion, commercial banking $936 million, wealth management $1.4 billion, capital markets $1.5 billion, and insurance $197 million.
In fiscal Q3 2026, the bank generated record earnings of $6 billion, up 11% year over year, while revenue grew 9%. Diluted earnings per share were $4.23, and adjusted diluted earnings per share were $4.28, up 11%. Return on equity was 17.9%, the adjusted efficiency ratio reached 52%, and the bank achieved adjusted operating leverage of 2.4% and bank-wide operating leverage of 3%. The bank maintained a Common Equity Tier 1 capital ratio of 13.5%, while book value per share grew 10% year over year.
EDGAR data shows that fiscal Q1 2026 revenue was $18.0 billion, net income was $5.8 billion, and earnings per share were $4.03. Fiscal 2025 revenue was approximately $66.6 billion, with net income of $20.4 billion and earnings per share of $14.07, while trailing twelve-month revenue ending in fiscal 2026 reached $67.8 billion. The provided data does not include a gross profit figure, so efficiency ratios, operating leverage, and segment margins are the available metrics for assessing earnings quality.
The analyst consensus for RY stock is Neutral, with an average price target of $225. The highest and lowest targets are identical at the same level, meaning the provided data does not show an actual range of differing estimates. The target is only approximately 2.9% above the 52-week range high of $218.57, while the full range extends from $143.13 to $218.57. Therefore, the valuation anchor reflects limited expected upside above the previous annual high, with credit, margin, and trade risks balancing strong growth. The data does not include a valid price-to-earnings multiple that can be used as an additional valuation anchor.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The bank generated record earnings of $6 billion, up 11% year over year, with revenue growth of 9%. Diluted earnings per share were $4.23, and adjusted diluted earnings per share were $4.28, up 11%. Return on equity was also 17.9%, while the adjusted efficiency ratio reached 52% and the Common Equity Tier 1 capital ratio reached 13.5%.
Wealth management was one of the strongest drivers, with net income rising 32% to $1.4 billion and its pre-tax margin reaching 29.3%. Capital markets recorded record net income of $1.5 billion, up 16%, supported by 23% growth in investment banking revenue and 11% growth in Global Markets. Commercial banking also generated record net income of $936 million, up 12%, while personal banking recorded earnings of $1.9 billion.
Management believes that the development of data centers, energy, infrastructure, and critical minerals creates demand for financing, and the bank can use its AA-rated balance sheet to support clients through lending. The bank then seeks to connect these relationships with cash management, deposits, investment, trading, and wealth management instead of relying solely on loan returns. Internally, it is targeting $700 million to $1 billion in enterprise value generation from artificial intelligence initiatives by the end of fiscal 2027, benefiting from nearly a decade of investment in Borealis Research Institute.
Automated analysis for informational purposes only — not investment advice.
The bank maintained a Common Equity Tier 1 capital ratio of 13.5% in fiscal Q3 2026 and generated 80 basis points of capital during the quarter. It used 85 basis points to support business growth, pay dividends, and repurchase shares, including 5.6 million shares for approximately $1.6 billion. Management expects the ratio to move over time toward the midpoint of its 12.5% to 13.5% range as it funds organic growth, increases dividends, and continues repurchases.
Total impaired loans increased by $353 million in fiscal Q3 2026, led by a $466 million increase in capital markets, particularly in real estate and related sectors. Provisions for impaired loans were 35 basis points, up one basis point, or $80 million, from the previous quarter, and included an additional $120 million related to a borrower in the utilities sector. Delinquencies in unsecured products, particularly credit cards, also remained elevated, although they stabilized compared with the previous quarter.
The consensus data rates the stock Neutral, with an average target of $225. The highest and lowest targets are both $225, indicating that the context provides a single estimate rather than a broad range of analyst views. This target is only approximately 2.9% above the 52-week range high of $218.57, while the range low is $143.13, and the data does not provide a valid price-to-earnings multiple for comparison.
