RBC Surpasses Q3 Earnings Expectations with CAD 6 Billion in Revenue Growth

Royal Bank of Canada (RY) reported record third-quarter earnings of CAD 6 billion, up 11% from a year earlier. This growth was driven by broad-based revenue expansion across its banking, wealth management, and capital-markets businesses.

The bank's CEO Dave McKay attributed the increase to client activity, a diversified business mix, and a favorable market backdrop. Revenue rose 9%, while adjusted operating leverage reached 2.4%. The bank's return on equity was 17.9%, and its Common Equity Tier 1 capital ratio remained at 13.5%.

RBC generated 80 basis points of capital internally during the quarter, deploying it through business growth, dividends, and share repurchases. During this period, the bank repurchased 5.6 million shares for approximately CAD 1.6 billion.