Canada’s largest bank topped analysts’ expectations after posting higher profits in each of its business segments, except insurance, when it released its fourth-quarter earnings results on Wednesday.
Royal Bank of Canada
’s net income for the three months ending Oct. 31 was $5.4 billion, up 29 per cent from the same period a year ago, resulting in net earnings per share of $3.76.
Its adjusted net income — which removes the impact of non-recurring items — was $5.5 billion, up 25 per cent year over year, resulting in adjusted earnings per share of $3.85, which topped analysts’ expectations of about $3.55 per share.
For its fiscal year ending Oct. 31, RBC had net income of $20.4 billion, up 25 per cent compared to fiscal year 2024. Its adjusted net income was $20.9 billion, up 20 per cent year over year.
As a result of the positive performance, the bank has increased its return-on-equity target to more than 17 per cent, as opposed to more than 16 per cent. It also raised its quarterly dividend by 10 cents to $1.64 per share.
“In 2025, we advanced our position as one of the world’s most trusted and successful financial institutions,” chief executive Dave McKay said in a statement on Wednesday. “Our relentless client focus is shaping everything we do.”
RBC is the second of Canada’s Big Six banks to release its fourth-quarter earnings, after the Bank of Nova Scotia did so on Tuesday, and the results help provide key insights into how the economy is doing.
For example, analysts closely monitor the provisions for credit losses (PCLs), the money lenders set aside to address potentially problematic loans, which is a key metric for measuring the health of a bank’s loan book as well as the ability of households and businesses to pay their debts.
RBC’s total PCLs were about $1 billion, which is 20 per cent higher than a year ago and 14 per cent higher than in the third quarter, due to higher provisions in its commercial banking, capital markets and personal banking segments.
The bank reported fourth-quarter net income of $1.88 billion in its personal banking segment, up 20 per cent from a year ago. Its net income in the wealth management and capital markets segments increased by 33 per cent and 45 per cent, respectively, year over year, but its net income in insurance — $98 million — decreased by $64 million, or 40 per cent.
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RBC hikes dividend as $5.5 billion profit beats expectations
2025-12-03 12:00:58
