Net interest income has expanded consistently from $6.3 billion in 2024Q1 to $8.5 billion in 2026Q2, supported by an efficiency ratio that remains well-contained between 24.6% and 27.8%.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Net Interest Income | 34.08B | 33B | 27.95B | 25.13B | 22.72B | 20B | 20.84B | 19.75B | 17.95B | 17.14B | 16.53B | 14.77B | 14.12B | 13.25B | 12.44B | 11.36B | 10.34B | 10.71B | 9.36B | 7.7B | 6.8B | 6.79B | 6.4B | 6.34B | 6.93B | 6.31B | 5.28B | 5.12B | 5.06B | 5B | 4.64B |
| NII Growth % | 40.24% | 18.06% | 11.24% | 10.62% | 13.57% | -4% | 5.5% | 10.01% | 4.74% | 3.68% | 11.92% | 4.64% | 6.54% | 6.51% | 9.53% | 9.86% | -3.43% | 14.37% | 21.53% | 13.33% | 0.04% | 6.17% | 0.97% | -8.62% | 9.87% | 19.57% | 3.16% | 1.04% | 1.28% | 7.64% | -0.47% |
| Net Interest Margin % | 1.42% | 1.42% | 1.29% | 1.25% | 1.18% | 1.17% | 1.28% | 1.38% | 1.34% | 1.41% | 1.4% | 1.38% | 1.5% | 1.54% | 1.51% | 1.43% | 1.42% | 1.63% | 1.29% | 1.28% | 1.27% | 1.45% | 1.5% | 1.57% | 1.84% | 1.76% | 1.82% | 1.87% | 1.8% | 2.05% | 2.13% |
| Interest Income | 103.52B | 103.83B | 104.95B | 86.99B | 40.77B | 28.14B | 34.88B | 41.33B | 33.02B | 26.9B | 24.45B | 22.73B | 22.02B | 21.15B | 20.77B | 20.81B | 17.75B | 19.27B | 25.34B | 26.55B | 22.2B | 16.98B | 13.87B | 13.9B | 14.45B | 17.1B | 16.11B | 14.2B | 14.31B | 13.07B | 13.21B |
| Interest Expense | 69.43B | 70.83B | 77B | 61.86B | 18.05B | 8.14B | 14.05B | 21.58B | 15.07B | 9.76B | 7.92B | 7.96B | 7.9B | 7.9B | 8.33B | 9.46B | 7.41B | 8.57B | 15.98B | 18.84B | 15.41B | 10.19B | 7.47B | 7.56B | 7.51B | 10.79B | 10.83B | 9.09B | 9.24B | 8.07B | 8.56B |
| Loan Loss Provision | 3.89B | 4.36B | 3.23B | 2.47B | 484M | -753M | 4.35B | 1.86B | 1.31B | 1.15B | 1.55B | 1.1B | 1.16B | 1.24B | 1.3B | 1.13B | 1.24B | 2.17B | 1.59B | 791M | 429M | 455M | 346M | 721.35M | 1.07B | 1.12B | 691.44M | 760.63M | 574.93M | 379.95M | 440M |
| Non-Interest Income | 35.42B | 33.53B | 29.54B | 26.46B | 26.06B | 29.54B | 26.27B | 26.02B | 24.56B | 22.98B | 21.53B | 20.32B | 19.83B | 17.26B | 16.55B | 16.29B | 15.74B | 15.74B | 12.22B | 14.43B | 13.84B | 12.39B | 11.4B | 10.65B | 10.32B | 9.77B | 6.73B | 5.49B | 5B | 4.29B | 3.27B |
| Non-Interest Income % | 25.49% | 24.41% | 21.96% | 23.32% | 38.99% | 51.2% | 42.96% | 38.63% | 42.66% | 46.07% | 46.83% | 47.21% | 47.38% | 44.93% | 44.34% | 43.9% | 47.01% | 44.95% | 32.54% | 35.22% | 38.4% | 42.19% | 45.13% | 43.39% | 41.66% | 36.35% | 29.47% | 27.89% | 25.89% | 24.7% | 19.82% |
| Total Revenue | 138.94B | 137.36B | 134.49B | 113.45B | 66.83B | 57.68B | 61.15B | 67.35B | 57.58B | 49.89B | 45.98B | 43.05B | 41.85B | 38.41B | 37.31B | 37.1B | 33.49B | 35.01B | 37.57B | 40.98B | 36.05B | 29.37B | 25.27B | 24.55B | 24.77B | 26.87B | 22.84B | 19.7B | 19.3B | 17.36B | 16.47B |
| Revenue Growth % | 8.38% | 2.13% | 18.54% | 69.77% | 15.86% | -5.68% | -9.21% | 16.96% | 15.43% | 8.48% | 6.81% | 2.88% | 8.97% | 2.92% | 0.57% | 10.78% | -4.34% | -6.81% | -8.33% | 13.69% | 22.72% | 16.23% | 2.93% | -0.88% | -7.81% | 17.63% | 15.97% | 2.03% | 11.21% | 5.37% | 4.49% |
| Non-Interest Expense | 37.43B | 36.52B | 34.4B | 30.94B | 28.18B | 29.66B | 28.36B | 27.99B | 25.45B | 24.3B | 23.22B | 21.38B | 21.07B | 18.82B | 18.1B | 17.53B | 17.02B | 16.48B | 14.06B | 14.32B | 14B | 14.03B | 13.13B | 11.87B | 12.06B | 11.21B | 7.6B | 7.15B | 6.59B | 6.15B | 5.16B |
| Efficiency Ratio | 26.94% | 26.59% | 25.58% | 27.27% | 42.17% | 51.42% | 46.38% | 41.56% | 44.19% | 48.71% | 50.49% | 49.65% | 50.35% | 49.01% | 48.5% | 47.25% | 50.81% | 47.07% | 37.44% | 34.94% | 38.85% | 47.76% | 51.97% | 48.36% | 48.7% | 41.72% | 33.27% | 36.3% | 34.12% | 35.42% | 31.33% |
| Operating Income | 28.21B | 25.65B | 19.86B | 18.18B | 20.11B | 20.63B | 14.39B | 15.91B | 15.76B | 14.67B | 13.3B | 12.62B | 11.71B | 10.45B | 9.59B | 8.98B | 7.83B | 7.8B | 5.92B | 7.03B | 6.2B | 4.7B | 4.32B | 4.39B | 4.13B | 3.75B | 3.72B | 2.7B | 2.9B | 2.76B | 2.31B |
| Operating Margin % | 20.3% | 18.67% | 14.77% | 16.03% | 30.09% | 35.77% | 23.53% | 23.63% | 27.37% | 29.41% | 28.92% | 29.32% | 27.98% | 27.2% | 25.69% | 24.2% | 23.37% | 22.27% | 15.77% | 17.14% | 17.21% | 16.01% | 17.1% | 17.9% | 16.66% | 13.96% | 16.28% | 13.71% | 15.02% | 15.9% | 14.02% |
| Operating Income Growth % | - | 29.15% | 9.23% | -9.58% | -2.53% | 43.38% | -9.58% | 0.98% | 7.42% | 10.32% | 5.36% | 7.8% | 12.09% | 8.98% | 6.75% | 14.73% | 0.4% | 31.61% | -15.68% | 13.23% | 31.94% | 8.79% | -1.64% | 6.49% | 10.03% | 0.83% | 37.76% | -6.91% | 5.07% | 19.48% | 14.52% |
| Pretax Income | 28.18B | 25.65B | 19.86B | 18.18B | 20.11B | 20.63B | 14.39B | 15.91B | 15.76B | 14.67B | 13.3B | 12.62B | 11.71B | 10.45B | 9.59B | 8.98B | 7.83B | 7.8B | 5.92B | 7.03B | 6.2B | 4.7B | 4.32B | 4.39B | 4.13B | 3.75B | 3.72B | 2.7B | 2.9B | 2.76B | 2.31B |
| Pretax Margin % | 20.29% | 18.67% | 14.77% | 16.03% | 30.09% | 35.77% | 23.53% | 23.63% | 27.37% | 29.41% | 28.92% | 29.32% | 27.98% | 27.2% | 25.69% | 24.2% | 23.37% | 22.27% | 15.77% | 17.14% | 17.21% | 16.01% | 17.1% | 17.9% | 16.66% | 13.96% | 16.28% | 13.71% | 15.02% | 15.9% | 14.02% |
| Income Tax | 6.07B | 5.28B | 3.62B | 3.57B | 4.3B | 4.58B | 2.95B | 3.04B | 3.33B | 3.2B | 2.84B | 2.6B | 2.71B | 2.1B | 2.03B | 2.01B | 2B | 2.02B | 1.37B | 1.39B | 1.4B | 1.28B | 1.29B | 1.44B | 1.36B | 1.34B | 1.45B | 973.96M | 1.13B | 1.11B | 880M |
| Effective Tax Rate % | 21.53% | 20.59% | 18.24% | 19.64% | 21.39% | 22.2% | 20.52% | 19.12% | 21.12% | 21.83% | 21.36% | 20.57% | 23.11% | 20.15% | 21.16% | 22.38% | 25.5% | 25.85% | 23.1% | 19.81% | 22.61% | 27.18% | 29.78% | 32.74% | 33.07% | 35.72% | 38.86% | 36.08% | 38.9% | 40.07% | 38.1% |
| Net Income | 22.14B | 20.36B | 16.23B | 14.61B | 15.79B | 16.04B | 11.43B | 12.86B | 12.4B | 11.43B | 10.4B | 9.93B | 8.91B | 8.24B | 7.41B | 6.34B | 5.22B | 3.86B | 4.56B | 5.49B | 4.73B | 3.39B | 2.8B | 2.97B | 2.76B | 2.41B | 2.27B | 1.73B | 1.77B | 1.65B | 1.43B |
| Net Margin % | 15.93% | 14.82% | 12.07% | 12.87% | 23.63% | 27.81% | 18.69% | 19.09% | 21.53% | 22.91% | 22.63% | 23.05% | 21.29% | 21.47% | 19.86% | 17.1% | 15.6% | 11.02% | 12.13% | 13.4% | 13.12% | 11.53% | 11.09% | 12.09% | 11.15% | 8.97% | 9.96% | 8.76% | 9.18% | 9.53% | 8.68% |
| Net Income Growth % | 21.51% | 25.46% | 11.13% | -7.53% | -1.52% | 40.29% | -11.1% | 3.71% | 8.51% | 9.83% | 4.84% | 11.39% | 8.08% | 11.26% | 16.82% | 21.44% | 35.38% | -15.3% | -17.06% | 16.16% | 39.59% | 20.83% | -5.57% | 7.49% | 14.56% | 6.02% | 31.76% | -2.61% | 7.14% | 15.67% | 13.31% |
| Net Income (Continuing) | 22.12B | 20.37B | 16.24B | 14.61B | 15.81B | 16.05B | 11.44B | 12.87B | 12.43B | 11.47B | 10.46B | 10.03B | 9B | 8.34B | 7.56B | 6.97B | 5.83B | 5.78B | 4.56B | 5.63B | 4.8B | 3.42B | 3.04B | 2.96B | 2.76B | 2.41B | 2.27B | 1.73B | 1.77B | 1.65B | 1.43B |
| EPS (Diluted) | 21.55 | 14.09 | 11.23 | 10.32 | 11.06 | 11.06 | 7.82 | 8.75 | 8.36 | 7.56 | 6.78 | 6.73 | 6.00 | 5.49 | 4.91 | 4.19 | 3.46 | 2.57 | 3.38 | 4.19 | 3.59 | 2.57 | 2.11 | 2.19 | 2.06 | 1.78 | 1.70 | 1.24 | 1.30 | 1.21 | 1.03 |
| EPS Growth % | 22.45% | 25.47% | 8.82% | -6.69% | 0% | 41.43% | -10.63% | 4.67% | 10.58% | 11.5% | 0.74% | 12.17% | 9.29% | 11.81% | 17.18% | 21.1% | 34.63% | -23.96% | -19.33% | 16.71% | 39.69% | 21.8% | -3.65% | 6.31% | 15.73% | 4.71% | 37.1% | -4.62% | 7.44% | 17.48% | 17.05% |
| EPS (Basic) | - | 14.12 | 11.27 | 10.33 | 11.08 | 11.08 | 7.84 | 8.78 | 8.39 | 7.59 | 6.80 | 6.75 | 6.03 | 5.53 | 4.96 | 4.25 | 3.49 | 2.59 | 3.41 | 4.24 | 3.65 | 2.61 | 2.14 | 2.22 | 2.08 | 1.79 | 1.71 | 1.25 | 1.32 | 1.23 | 1.03 |
| Diluted Shares Outstanding | 1.03B | 1.41B | 1.41B | 1.39B | 1.41B | 1.43B | 1.43B | 1.44B | 1.45B | 1.47B | 1.49B | 1.45B | 1.45B | 1.47B | 1.47B | 1.47B | 1.43B | 1.41B | 1.32B | 1.29B | 1.3B | 1.3B | 1.31B | 1.32B | 1.36B | 1.29B | 1.22B | 1.26B | 1.25B | 1.26B | 1.25B |
Canadian housing market exposure
According to the provided quarterly data, Royal Bank of Canada has successfully grown its net interest income from $6.3 billion in 2024Q1 to $8.5 billion by 2026Q2, reflecting a consistent upward trajectory that appears to be driven by both volume growth and favorable interest rate dynamics.
The steady expansion in NII suggests that the bank is effectively managing its deposit betas while capturing higher yields on its loan portfolio. This trend warrants further investigation into whether the recent acquisition of HSBC Canada is providing the anticipated scale benefits to sustain this momentum in a potentially stabilizing rate environment.
As reported in financial statements, the bank maintained an efficiency ratio between 24.6% and 27.8% over the last ten quarters, indicating that management has successfully contained non-interest expenses despite the significant operational complexities associated with integrating large-scale acquisitions like HSBC Canada into the existing domestic infrastructure.
The ability to keep the efficiency ratio within this tight band suggests disciplined cost control, even as the bank invests in digital transformation and specialized labor. Investors should monitor whether this efficiency can be maintained if revenue growth begins to decelerate or if inflationary pressures on compensation continue to mount.
Based on the bank's reported figures, provision for credit losses fluctuated significantly, peaking at $1.4 billion in 2025Q2 before moderating to $911.7 million in 2026Q2, which suggests a proactive approach to managing credit risk in response to shifting macroeconomic forecasts and potential borrower stress.
The volatility in provision expense appears to be a function of IFRS 9 forward-looking modeling rather than a sudden deterioration in actual loan performance. This pattern implies that the bank is maintaining a conservative posture, which may protect the balance sheet against potential downturns in the Canadian residential real estate sector.
Data from the last ten quarters shows that non-interest fee income has remained a substantial component of total revenue, consistently contributing between 21.4% and 26.3% of the total, which highlights the bank's successful reliance on wealth management and capital markets to supplement interest-based earnings.
The stability of this fee-based revenue stream suggests that the bank's integrated ecosystem is effectively insulating it from pure interest rate sensitivity. This diversification appears to be a key differentiator, providing a buffer that allows the bank to maintain profitability even when net interest margins face compression.
Quick answers to the most common questions about buying RY stock.
Royal Bank of Canada (RY) is profitable, generating $20.36B in net income for the fiscal year ending 2025 with a net profit margin of 14.8%.
Royal Bank of Canada (RY) reported an operating income of $25.65B, resulting in an operating profit margin of 18.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Royal Bank of Canada (RY) generated $62.17B in gross profit for the year, representing a gross profit margin of 45.3%. This demonstrates the company's core pricing power and production efficiency.