Royal Bank of Canada Q2 EPS Beats, Revenue $12.84B and ROE 17.2%
RY•Royal Bank of Canada delivered Q2 EPS of $2.87, surpassing estimates by $0.06 and rising from $2.20 a year earlier. Revenue hit $12.84 billion versus $12.74 billion forecast, marking four straight beats, while ROE reached 17.2% and CET1 ratio was 13.5%.
1. Q2 Earnings Performance
Royal Bank of Canada posted Q2 EPS of $2.87, beating the $2.81 estimate by $0.06 and improving from $2.20 a year earlier. Management highlighted this as the bank’s second-highest quarterly earnings on record.
2. Revenue Growth and Trends
The bank generated revenue of $12.84 billion, surpassing the $12.74 billion forecast and up from $11.03 billion in the prior-year quarter, marking the fourth consecutive quarter of revenue beats.
3. Diversified Business Drivers
Strong performance in capital markets, wealth management and Canadian banking divisions supported the results, with capital markets leading the growth in pre-provision, pre-tax earnings.
4. Capital and Profitability Metrics
Return on equity reached 17.2%, reflecting efficient capital use, while the Common Equity Tier 1 ratio stood at 13.5%, underscoring robust capital buffers to absorb potential losses.
