Royal Bank of Canada (TSX: RY) reported record Q3 2025 net income of $5.41 billion, up 21% year over year from $4.49 billion, translating to $3.75 earnings per diluted share.
On adjusted basis, net income reached $5.53 billion and diluted EPS came in at $3.84, up 17% and 18% YoY, respectively.
Total revenue rose to $16.99 billion, up 16% from $14.63 billion. Meanwhile, non-interest expense increased 7% to $9.23 billion while provisions for credit losses also jumped 34% to $881 million, but down 38% from the previous quarter. Income before income taxes was $6.87 billion, up 28%, and the effective tax rate rose to 21.2% from 16.5% last year.
Pre-provision, pre-tax earnings climbed 29% to $7.75 billion. Adjusted ROE improved to 17.7% from 16.4%. Effective this quarter, HSBC Canada integration costs are no longer treated as a specified item.
Personal Banking net income rose 22% to $1.94 billion on higher spreads and 3% average volume growth in Canada, with HSBC Canada synergies helping flat expenses. Commercial Banking gained 2% to $836 million as PCL fell from last quarter’s tariff-related build. Wealth Management rose 15% to $1.10 billion on higher fee-based assets and releases in US Wealth, including City National Bank. Insurance rose 45% to $247 million on better life claims experience. Capital Markets increased 13% to $1.33 billion on stronger US fixed-income trading and origination, partly offset by higher PCL, compensation, and a higher tax rate.
CET1 was 13.2%, up 20 bps from last year. PCL on performing loans was at a negative $28 million versus positive $42 million a year ago, while PCL on impaired loans was $913 million, up 47% from a year ago.
The bank also announced it has declared a quarterly common share dividend of $1.54 per share, payable on or after November 24, 2025.
Royal Bank of Canada last traded at $190.39 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
