Royal Bank of Canada (TSX:RY) (RBC) reported strong financial results for the fiscal fourth quarter, with record net income of C$5.4 billion for the quarter ended October 31, up 29% from the same period last year.
Adjusted net income rose 25% to C$5.6 billion. Diluted earnings per share came in at C$3.76, surpassing the consensus estimate of C$3.42, while adjusted diluted EPS reached C$3.85, above analyst expectations of C$3.55.
Revenue for the quarter totaled C$17.2 billion, exceeding the estimated C$16.7 billion and up from C$15.1 billion in Q4 2024.
Provisions for credit losses increased to C$1 billion from C$840 million a year earlier, reflecting ongoing economic pressures such as higher unemployment. Despite this, pre-tax earnings for the quarter rose to C$6.8 billion.
RBC also announced a 6% increase in its quarterly dividend to C$1.64 per share.
For the full year, the bank reported net income of C$20.4 billion, a 25% increase from 2024, with diluted EPS of C$14.07. Adjusted net income and adjusted EPS rose 20% and 19%, respectively.
“In 2025, we advanced our position as one of the world’s most trusted and successful financial institutions,” RBC CEO Dave McKay said in a statement.
“Looking to 2026, our financial strength remains one of our greatest advantages, underpinning our strong credit ratings and giving us the capacity to fund future growth and pursue our client-centric ambitions.”
Jefferies analysts noted the strong quarter from the bank, “with both capital markets and wealth management coming in well ahead of expectations,” they wrote.
They added that the strong earnings beat, dividend increase, and the lift to ROE guidance “should be more than sufficient to garner market support.”
The analysts also highlighted that RBC’s adjusted EPS of C$3.85 surpassed consensus expectations of C$3.55 and their own estimate of C$3.49, with only amortization deducted to arrive at core earnings.
Segment performance was mixed, the firm added. Domestic Retail and Commercial Banking saw higher revenues, though earnings were down sequentially due to increased provisions and expenses.
Wealth Management benefited from a 7.5% increase in assets under administration and a 7.1% rise in assets under management, while Capital Markets delivered strong earnings despite a moderation in revenues and a sequential decline in trading and advisory fees. Insurance earnings were materially lower, affected by updates to actuarial assumptions.
Shares of RBC added 1.5% at C$219 following the release of its earnings report.