Royal Bank of Canada (RY) shares advanced 1.4% in pre-market trading after the bank reported fiscal third-quarter results that exceeded analyst expectations.
The Toronto-based lender posted adjusted net income of $6.1 billion, a 10% increase from the prior-year period. Adjusted diluted earnings per share (EPS) reached $4.28, surpassing the consensus estimate of approximately CAD $4.04. Reported net income totaled $6.0 billion, up 11% year-over-year, while reported diluted EPS rose 13% to $4.23.
Growth was broad-based, with Wealth Management, Capital Markets, and Commercial Banking all contributing. Wealth Management net income surged 32% to $1.44 billion, reflecting strong client activity and asset growth. The bank’s CET1 capital ratio remained stable at 13.5%, unchanged from the previous quarter.
Analysts responded positively to the results. Barclays raised its price target on RY to CAD $300 from CAD $260 ahead of the report, citing the earnings beat and outlook. National Bank maintained its Buy rating on August 24.
The broader market showed modest gains, with the S&P 500 up 0.5% and the NASDAQ advancing 1.1%. Canada’s largest banks, including the "Big Six," are reporting third-quarter results between August 25 and 28, with Royal Bank’s performance setting a positive tone for the sector.
