RBC Earnings to Test Canada's Largest Lender

Royal Bank of Canada (RBC) is set to report its third-quarter earnings on Thursday, with analysts expecting the bank's profit to rise 5.2% year-over-year.

The country's largest lender has seen a nearly 50% rally in its stock price over the past year, with shares trading at 18.44 times trailing earnings.

Despite this high valuation, RBC has consistently delivered strong results, posting 22.5% diluted EPS growth over the trailing twelve months.

However, investors will be watching closely for signs of stress in the bank's consumer lending portfolio, as well as its performance in capital markets and cash-management business.