Royal Bank of Canada (TSX: RY) posted record Q3 2026 net income of $6.02 billion, up from $5.41 billion a year earlier, even as earnings from its Personal Banking business slipped year over year.
On an adjusted basis, net income reached $6.10 billion, compared with $5.53 billion a year earlier. This translates to adjusted diluted EPS of $4.28, up from $3.84, and beating the $4.07 analyst consensus.
The biggest earnings increase came from Wealth Management, where net income jumped to $1.44 billion from $1.10 billion last year. Capital Markets earned $1.54 billion, up from $1.33 billion, while Commercial Banking rose to $936.0 million from $836.0 million.
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Personal Banking moved in the opposite direction year over year. Net income slipped to $1.92 billion from $1.94 billion last year. RBC attributed the annual decline to higher expenses, higher credit provisions, and lower service charges, which more than offset volume growth and wider spreads.
Provision for credit losses increased to $1.00 billion from $881.0 million a year earlier. Impaired-loan provisions reached $979.0 million from $913.0 million last year while performing-loan provisions were $21.0 million, compared with a $28.0 million recovery last year.
Revenue increased to $18.54 billion from $16.99 billion last year. Breaking it down, pre-provision, pre-tax earnings rose to $8.75 billion from $7.75 billion a year earlier while non-interest expenses increased to $9.79 billion from $9.23 billion.
Operating activities generated $35.10 billion of cash during Q3, compared with $29.00 billion a year earlier.
The reported efficiency ratio improved to 52.8% from 54.4% last year.Adjusted return on equity rose to 18.1% from 17.7% a year ago.
The CET1 ratio was 13.5%, up from 13.2% a year earlier.
RBC also disclosed that its pending sale of its 50% interest in Moneris to Francisco Partners is expected to generate an approximately $475.0 million after-tax gain, or $560.0 million pre-tax, when the transaction closes. The $2.00 billion sale is expected to close by the end of fiscal Q1 2027, subject to approvals and other closing conditions.
RBC last traded at $207.27 on the TSX.
