Royal Bank of Canada (TSX: RY) opened fiscal 2026 with a record first quarter, posting total revenue of $18.0 billion from $16.7 billion a year earlier.
Against that topline, provisions for credit losses relatively came flat at $1.1 billion from a year earlier, while non-interest expense rose to $9.5 billion from $9.3 billion. PCL on impaired loans increased to $1.1 billion from $985.0 million, while PCL on performing loans fell to $28.0 million from $68.0 million.
On taxes and returns, income taxes rose to $1.6 billion from $1.3 billion a year earlier. Even with that higher tax drag, reported ROE improved to 17.6% from 16.8% in both comparison periods, while adjusted ROE rose to 17.8% from 17.2%.
Net income increased to $5.8 billion from $5.1 billion last year, pushing up diluted EPS to $4.03. On adjusted basis, net income was $5.9 billion versus $5.3 billion, translating to $4.08 earnings per diluted share.
By segment, Personal Banking remained a major earnings engine. Net income rose to $2.0 billion from $1.7 billion a year earlier. Commercial Banking also strengthened, with net income up to $863.0 million from $777.0 million a year earlier.
Wealth Management delivered the fastest year-over-year growth, with net income rising to $1.3 billion from $980.0 million a year earlier. The gain was said to be driven by higher fee-based client assets, market appreciation, net sales, and stronger fee-related revenue.
Capital Markets stayed solid but less explosive with net income rising to $1.5 billion from $1.4 billion. Insurance saw its net income falling to $213.0 million from $272.0 million.
CET1 ended the quarter at 13.7%, up 50 bps from a year earlier. The bank also returned $3.3 billion to shareholders in the quarter, including $1.0 billion in share buybacks and $2.3 billion in common share dividends.
The board declared a dividend of $1.64 per share, payable on or after May 22, 2026, unchanged from the previous quarter.
Royal Bank of Canada last traded at $237.21 on the TSX.
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