RY Earnings Prediction
The chart below shows how RY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RY sees a +0.45% change in stock price 10 days leading up to the earnings, and a -0.27% change 10 days following the report. On the earnings day itself, the stock moves by +0.52%. This data can give you a slight idea of what to expect for the next quarter's release.
RY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
15.87B
23.26%
13.25%
Gross Margin
--
--
--
Operating Margin
40.42%
20.01%
8.83%
Net Margin
32.34%
16.21%
7.30%
EPS
3.54
41.60%
21.65%
No Data Available
RY Earnings Analysis
Royal Bank of Canada Corporation (RY.N) Earnings Conference Call
Positive
Record First Quarter Earnings: RBC reported record first quarter earnings of $5.1 billion, reflecting financial and strategic strength.
Adjusted Earnings Growth: Adjusted earnings increased by 29% year-over-year, highlighting strong performance excluding the HSBC Canada acquisition impact.
Return on Equity Analysis: Return on equity stood at 16.8%, supported by a strong common equity tier 1 ratio of 13.2%.
Net Interest Income Increase: Net interest income rose by 26%, driven by strong deposit growth and higher spreads in Personal and Commercial Banking.
Operating Leverage Achievement: Operating leverage of 13% was achieved, showcasing the benefits of scale and cost synergies from the HSBC acquisition.
Cost Synergies Achievement: The bank is on track to achieve full cost synergies of $740 million from the HSBC acquisition by early 2026, with over $500 million already realized.
Digital Client Experience Enhancement: RBC's digital capabilities have improved client experiences, such as a streamlined mortgage renewal process in the RBC mobile app.
Wealth Management Revenue Milestone: Wealth Management revenue surpassed $5.5 billion for the first time, with strong growth in net new assets and advisor productivity.
Record Pre-Tax Earnings: Capital Markets reported record pre-provision pre-tax earnings of $1.7 billion, driven by strong client activity and market conditions.
Loan Growth Increase: Commercial Banking loans and acceptances increased by 35% year-over-year, reflecting strong client relationships and market position.
Negative
Trade Policy Impact on Confidence: Rising uncertainty around trade policy and geopolitics is moderating client activity in certain parts of the Canadian economy, leading to lower business confidence among Commercial Banking clients who are delaying investment decisions.
Housing Market Weaknesses: Despite strong revenue growth, the Canadian housing activity remains modest, indicating potential weaknesses in the housing market despite favorable interest rates and mortgage rule changes.
Credit Loss Provisions Increase: Provisions for credit losses (PCL) and impaired loans increased this quarter, reflecting challenges in the current credit environment, particularly in Capital Markets and Commercial Banking.
Impaired Loans Increase: The bank's gross impaired loans rose by $2 billion or 19 basis points this quarter, primarily driven by issues in Capital Markets and Commercial Banking, indicating potential credit quality concerns.
Rising Non-Interest Expenses: Higher variable compensation and staff-related costs contributed to an 11% increase in reported non-interest expenses, which may impact profitability moving forward.
Tax Rate Increase: The adjusted effective tax rate increased to 20.4%, up from 19.5% last quarter, reflecting changes in earnings mix and new tax legislation, which could affect net income.
Tariff Uncertainty Impact: The uncertainty surrounding tariffs and their potential impact on the economy has led to elevated downside risk weights in the bank's provisions, indicating a cautious outlook amid economic volatility.
RY FAQs
How does RY typically perform around its earnings report dates?
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RY Earning Call Sentiment
Royal Bank of Canada (RY) Q1 2025 Earnings Call Transcript
RY.N
-2.22%Positive
The earnings call highlighted strong financial performance, with significant growth in net interest income, net income across segments, and successful cost synergies from the HSBC Canada acquisition. The dividend increase and optimistic guidance further support a positive outlook. However, concerns about impaired loans and management's evasiveness on certain questions slightly temper the sentiment. Overall, the positive financial metrics and strategic achievements outweigh the negatives, suggesting a positive stock price movement.
