Royal Bank Of Canada

Strong Earnings Performance: RBC reported Q2 2025 earnings of $4.4 billion, with adjusted earnings at $4.5 billion. The adjusted diluted earnings per share increased by 7% year-over-year to $3.12, driven by solid revenue growth across segments and prudent cost management. Notably, revenue grew by 11% YOY, fueled by higher spreads in Personal and Commercial Banking, and robust fee-based revenue in Wealth Management.

Dividend and Share Buyback: The bank announced a 4% increase in its quarterly dividend, now at $0.06. Additionally, RBC plans to initiate a normal course issuer bid to repurchase up to 35 million common shares, signaling strong capital management and a commitment to returning value to shareholders.

Macroeconomic Uncertainty and PCL Build: The bank has prudently increased its allowance for credit loss (ACL) ratio to 74 basis points amid rising economic uncertainty, contributing to a total of $568 million in provisions for performing loans this quarter. The bank's risk management strategy remains cautious, reflecting concerns over global trade dynamics and potential recessionary pressures.