Royal Bank of Canada (TSX: RY) delivered a sharply stronger second quarter from last year, reporting Q2 2026 net income of $5.5 billion, up from $4.4 billion last year. This translates to $3.85 earnings per diluted share.
On adjusted basis, net income was $5.6 billion, up from $4.5 billion last year, translating to $3.90 earnings per diluted share. Adjusted ROE was 17.4%, up from 14.7% last year.
Personal Banking net income rose to $1.9 billion, up 17% from last year, while Commercial Banking net income increased to $854.0 million, up 43% from last year, helped by lower PCL.
Wealth Management net income reached $1.2 billion, up 28% from last year, and Capital Markets net income was $1.5 billion, up 23% from last year on stronger Global Markets and Corporate & Investment Banking revenue.
Insurance net income was $218.0 million, up 3% from last year, and Corporate Support posted a $102.0 million loss, narrower than the $151.0 million loss a year ago.
Total revenue rose to $17.5 billion, up from $15.7 billion a year ago. Pre-provision, pre-tax earnings reached $8.0 billion, up from $6.9 billion last year. The annual increase was tied to higher Capital Markets revenue, stronger Wealth Management fee-based revenue, and higher net interest income in Personal Banking and Commercial Banking.
Total PCL was $912.0 million, down $512.0 million from last year. PCL on performing loans dropped to $18.0 million from $568.0 million last year, while PCL on impaired loans rose to $899.0 million from $852.0 million last year.
RBC’s CET1 ratio was 13.5%, down 20 basis points from last quarter as share repurchases, business-driven risk-weighted asset growth, model updates, and other items exceeded internal capital generation.
Capital returned to shareholders totaled $4.0 billion, split between $1.7 billion of share buybacks and $2.3 billion of common share dividends. RBC also declared a quarterly dividend of $1.76 per share, up $0.12, and said it intends to seek approval to repurchase up to 45.0 million common shares, representing about 3% of shares outstanding as of May 15, 2026.
Royal Bank of Canada last traded at $189.12 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
