Q2 2026 Royal Bank of Canada Earnings Call Transcript
Key Points
- Royal Bank of Canada (RY) reported earnings of $5.5 billion and adjusted earnings of $5.6 billion, marking their second highest quarterly performance on record.
- The bank achieved a 17.2% return on equity, supported by a robust 13.5% common equity Tier 1 ratio.
- Capital markets reported record net income, reflecting strong performance in both global markets and investment banking.
- Wealth management continued to report strong results, with assets under administration surpassing $1 trillion in Canada and nearly $800 billion in the U.S.
- The bank increased its dividend by $0.12 from last quarter, a 14% increase year-over-year, and announced plans to repurchase up to 45 million common shares.
- Mortgage growth was impacted by macro uncertainty and moderating house prices, with funded volumes largely driven by an increase in switch activity.
- Commercial banking growth faced headwinds due to tariff-driven uncertainty and moderating demand in commercial real estate, particularly in condo development.
- The CET1 ratio decreased by 20 basis points from last quarter, partly due to share repurchases.
- Gross impaired loans increased by $623 million, primarily driven by capital markets and wealth management sectors.
- The bank's net interest margin was affected by lower lending spreads in capital markets and increased competitive pricing pressures for term deposits.
Good morning, ladies and gentlemen. Welcome to the RBC's 2026 Second Quarter Results Conference Call. Please be advised that this call is being recorded.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad.
If you would like to withdraw your question, press star one again.
Thank you. I would now like to turn the meeting over to Assam Imran. Please go ahead.
Thank you, and good morning, everyone. Speaking today will be Dave McKay, President and Chief Executive Officer, Catherine Gibson, Chief Financial Officer, and Graham Hepworth, Chief Risk Officer. Also joining us today for your questions, Erik Nielsen, Group Head, Personal Banking Shana Matagouji, Group Head, Commercial Banking and Neil McLaughlin, Group Head, Wealth Management and Derek
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