RBC Surpasses Q3 Earnings Expectations with Record Net Income

Royal Bank of Canada (RBC) released its Q3 2026 earnings report, surpassing Wall Street expectations. The bank reported an adjusted EPS of $4.28 on revenue of $18.54 billion, beating forecasts of $4.04 a share and $18.07 billion in sales.

The company's net income rose 11% from the same period last year to a record CAD 6 billion, while revenue increased 9%. RBC attributed this growth to both net interest income and non-interest income.

Management highlighted new areas of growth, including AI, global transaction banking, and U.S. expansion. The bank's CEO, Dave McKay, emphasized the importance of building a larger cross-border business and creating enterprise value through AI investments.

RBC's capital position remains strong, with a CET1 ratio of 13.5%. The company continued to return capital to shareholders, repurchasing 5.6 million shares for about CAD 1.6 billion during the quarter.