Royal Bank of Canada Q1 earnings beat expectations, shares surge nearly 6%

Published 29/05/2025, 12:10
Royal Bank of Canada Q1 earnings beat expectations, shares surge nearly 6%

TORONTO - Royal Bank of Canada (NYSE:RY) reported first quarter 2025 earnings that beat analyst expectations on Thursday.

The bank’s shares soared over 5.86% in pre-market trading following the release.

The Canadian banking giant posted adjusted earnings per share of C$3.62, surpassing the analyst consensus estimate of C$3.16. Revenue came in at C$16.74 billion, also topping expectations of C$15.63 billion.

Net income rose 43% YoY to C$5.13 billion, driven by strong performance across all business segments. The bank’s pre-provision, pre-tax earnings jumped 45% to C$7.48 billion compared to the prior year.

"RBC’s first quarter exemplifies our commitment to staying ahead of our clients’ expectations in an increasingly complex world," said Dave McKay, President and CEO of Royal Bank of Canada. "In Q1, we delivered strong results and client-driven growth across our businesses, while prudently managing risk and making investments in technology and talent to position the bank for the future."

The bank’s Personal Banking segment saw net income increase 24% YoY to C$1.68 billion, while Commercial Banking net income rose 20% to C$777 million. Wealth Management posted a 48% jump in net income to C$980 million.

Royal Bank maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 13.2%. The bank returned C$2.4 billion to shareholders through dividends and share buybacks during the quarter.

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