RBC Stock Tumbles as Bank Announces $1.1 Billion Capital Note Issue

Royal Bank of Canada's stock price slipped on September 22, 2026, as the bank announced a planned issue of capital notes worth $1.1 billion. The notes, known as NVCC Additional Tier 1 limited recourse capital notes, will have an annual interest rate of 6.275 percent. The expected closing date for the transaction is September 29, 2026.

The bank's quarterly earnings report on August 27, 2026, showed that it beat estimates with $3.07 earnings per share and revenue of $13.22 billion. However, the capital note issue adds long-dated regulatory capital rather than operating revenue, which may impact investors' views on the stock.

The bank's stock price closed at CAD 287.17 on September 22, 2026, down 0.85 percent from the previous day. The market capitalization of Royal Bank of Canada is approximately CAD 397.57 billion, and its consensus target is CAD 292.86.