Royal Bank of Canada profit rallies 25% on broad business growth

Royal Bank of Canada (NYSE:RY) delivered a powerful second-quarter performance, reporting a 25% surge in net income as growth accelerated across all primary business divisions.

Net income for the three months ended April 30, 2026, climbed to $5.5 billion, an increase of $1,119 million from the prior year.

Diluted earnings per share reached $3.85, up 27% over the same period.

On an adjusted basis, the lender generated net income of $5.6 billion and adjusted diluted EPS of $3.90, representing year-over-year gains of 23% and 25%, respectively.

The strong quarter highlights the structural resiliency of the bank's diversified operational model.

Pre-provision, pre-tax earnings advanced 15% to $8 billion, underpinned by significant revenue generation in both the wholesale and retail segments.

A substantial drop in credit risk provisions provided an additional tailwind to the quarterly bottom line.

Total provisions for credit losses (PCL) fell 36% year-over-year to $912 million, reflecting a stabilizing macroeconomic profile and lower required provisions across both commercial and personal lending portfolios.

RBC concluded the second quarter with a Common Equity Tier 1 (CET1) ratio of 13.5%.

While the capital buffer dipped 20 basis points sequentially due to strategic share repurchases and risk-weighted asset growth, the position remains well above regulatory minimums.