RBC tops estimates on strong results in capital markets, wealth

By Christine Dobby

(Bloomberg) — Royal Bank of Canada beat estimates on better-than-expected results from its capital-markets and wealth-management divisions, continuing a trend seen across the country’s large banks this quarter.  

Canada’s biggest lender earned $4.28 a share on an adjusted basis in its fiscal third quarter, according to a statement Thursday, more than the $4.07 average analyst estimate in a Bloomberg survey.

Net income at the company’s capital-markets business totalled $1.54 billion in the three months through July, better than the $1.45 billion average forecast. At the company’s wealth-management unit, earnings totalled $1.44 billion, topping the $1.26 billion analysts expected.

“Our third-quarter earnings showcase the strength of our diversified business,” Chief Executive Officer Dave McKay said in the statement.

Bank of Montreal, Bank of Nova Scotia, National Bank of Canada and Canadian Imperial Bank of Commerce have all beat earnings estimates this quarter, with continued momentum coming from trading and deals. Royal Bank, which has the largest capital-markets business by far, said it was helped by an increase in equity and debt origination along with mergers across most regions.

The results extend a period of notable growth for the firm’s capital-markets franchise, which now earns about 70% of its revenue outside of Canada, including about half from the U.S. The bank has been adding senior bankers as it seeks greater market share across geographies. It’s also pushing to win more corporate-banking work, launching a new business line this week that combines its U.S. and Canadian cash-management platforms, and aims to expand them globally. 

Royal Bank recently combined its insurance and wealth-management operations under one leader, Neil McLaughlin, who’s led the wealth division since 2024. The lender acquired HSBC Holdings Plc’s Canadian assets in 2024, and the deal expanded its domestic retail and commercial deposit and lending base. Integration is now largely complete, and investors have been anticipating increased earnings from the larger franchise. 

On credit, RBC reported provisions for potentially bad loans totalling $1 billion, slightly below the $1.05 billion analysts had forecast. Overall net income was $6.02 billion, topping the $5.67 billion analysts forecast.

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Last modified: August 27, 2026