RBC Posts Record Earnings, Cites AI as Key Strategic Priority

Royal Bank of Canada (RY) reported strong earnings momentum at Scotiabank's 27th Annual Financials Summit, with its return on equity topping 18% in the latest quarter. The bank attributed this success to rising efficiency and steady capital generation, despite ongoing trade uncertainty and geopolitical risks.

The bank's common equity tier 1 ratio remained at 13.5%, while it pointed to more than CAD 80 billion in lending growth and strong deposit gains. City National, its U.S. unit, contributed positively with an earnings of CAD 230 million and 8% growth on both sides of its balance sheet.

Management emphasized the importance of artificial intelligence (AI) as a key strategic priority, expecting about CAD 1 billion in AI-related cost benefits after implementation costs. The bank also maintained share repurchases at about 2% of shares outstanding, with buybacks continuing while shares remain attractive relative to internal opportunities.