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Apr 30, 2025
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RBC Q2 2025 Earnings Report
RBC reported solid earnings growth in Q2 2025 driven by Personal Banking, Wealth Management, and the HSBC Canada acquisition.
Key Takeaways
Royal Bank of Canada delivered strong financial results for Q2 2025, with net income rising to C$4.4 billion and adjusted EPS reaching C$3.12. The integration of HSBC Canada contributed significantly, despite a notable increase in provisions for credit losses driven by macroeconomic uncertainty.
Net income reached C$4.4 billion, up C$400 million YoY.
Adjusted EPS was C$3.12, up from C$2.92 last year.
HSBC Canada integration added C$258 million to net income.
Provisions for credit losses rose sharply due to economic outlook concerns.
Forward Guidance
RBC expects continued growth through diversification, technology investment, and cross-border expansion, while managing risks from economic uncertainty.
Positive Outlook
- HSBC Canada integration delivering synergies.
- Strong capital base enables shareholder returns.
- Continued investment in AI and data analytics.
- Growth in Canadian and U.S. banking franchises.
- Improved liquidity metrics and funding position.
Challenges Ahead
- Macroeconomic uncertainty impacting forecasts.
- Higher provisions for performing loans.
- Weak trading and M&A activity in Capital Markets.
- Higher expenses from severance and compensation.
- Impact of fewer business days in the quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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