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Oct 31, 2025
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RBC Q4 2025 Earnings Report
RBC reported strong Q4 results with record net income and adjusted EPS driven by growth across multiple segments.
Key Takeaways
Royal Bank of Canada delivered record Q4 results, with strong performances in Capital Markets, Wealth Management, and Personal Banking, supported by higher interest income and client activity.
Net income reached CAD 5.43 billion in Q4, a 29% increase from the prior year.
Adjusted diluted EPS came in at CAD 3.85, up 25% YoY.
Revenue rose to CAD 17.21 billion, driven by growth in Capital Markets and Wealth Management.
Credit provisions increased slightly, with a PCL on loans ratio of 0.39%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
RBC revised its FY2026 ROE target upward and emphasized ongoing investments in growth and efficiency despite macro uncertainty.
Positive Outlook
- ROE objective for FY2026 raised to 17%+.
- Strong capital position with CET1 at 13.5%.
- Positive impact from HSBC Canada acquisition.
- Wealth Management momentum supported by market conditions.
- Continued volume growth in Personal and Commercial Banking.
Challenges Ahead
- Higher provisions for credit losses in several segments.
- Macroeconomic uncertainties affecting credit outlook.
- Insurance results impacted by actuarial updates.
- Expense growth driven by higher compensation.
- Slight decline in Liquidity Coverage Ratio (LCR) to 127%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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