Royal Bank of Canada (RY) Income Statement

30Y historyFree accessUpdated daily

Record $38.7B total revenue in Q3 2026 was driven by a surge in non-interest income to $12.1B (57.9% of revenue), but this was offset by NIM compression to 0.3% and an efficiency ratio that worsened to 58.0% from 52.6% in Q1 2026.

Annual statement

RY Income Statement

Royal Bank of Canada (RY) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

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	34.48B	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 %	31.02%	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 %	1.38%	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	104.01B	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	69.52B	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	4.01B	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	38.86B	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 %	52.99%	50.4%	51.38%	51.29%	53.42%	59.62%	55.77%	56.85%	57.77%	57.28%	56.57%	57.91%	58.42%	56.57%	57.08%	58.92%	60.36%	59.51%	56.63%	65.21%	67.07%	64.59%	64.06%	62.7%	59.81%	60.74%	56.05%	51.77%	49.67%	46.17%	41.28%
Total Net Revenue	73.34B	66.53B	57.49B	51.59B	48.77B	49.54B	47.1B	45.77B	42.52B	40.12B	38.06B	35.09B	33.95B	30.51B	28.98B	27.64B	26.08B	26.44B	21.58B	22.14B	20.64B	19.18B	17.8B	16.99B	17.25B	16.08B	12.01B	10.61B	10.06B	9.29B	7.91B
Revenue Growth %	13.89%	15.73%	11.44%	5.77%	-1.54%	5.17%	2.92%	7.65%	5.96%	5.41%	8.46%	3.38%	11.28%	5.25%	4.84%	5.99%	-1.36%	22.51%	-2.5%	7.26%	7.57%	7.76%	4.79%	-1.54%	7.32%	33.86%	13.21%	5.45%	8.32%	17.41%	8.71%
Non-Interest Expense	40.3B	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	54.94%	54.89%	59.83%	59.97%	57.78%	59.87%	60.22%	61.16%	59.86%	60.57%	61%	60.91%	62.08%	61.7%	62.44%	63.42%	65.24%	62.32%	65.17%	64.69%	67.86%	73.12%	73.78%	69.89%	69.91%	69.71%	63.28%	67.38%	65.46%	66.19%	65.24%
Operating Income	29.09B	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 %	39.66%	38.55%	34.55%	35.24%	41.23%	41.65%	30.55%	34.77%	37.07%	36.57%	34.94%	35.97%	34.5%	34.25%	33.07%	32.48%	30.01%	29.48%	27.45%	31.74%	30.06%	24.51%	24.28%	25.87%	23.91%	23.33%	30.97%	25.45%	28.82%	29.72%	29.2%
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	29.04B	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 %	39.59%	38.55%	34.55%	35.24%	41.23%	41.65%	30.55%	34.77%	37.07%	36.57%	34.94%	35.97%	34.5%	34.25%	33.07%	32.48%	30.01%	29.48%	27.45%	31.74%	30.06%	24.51%	24.28%	25.87%	23.91%	23.33%	30.97%	25.45%	28.82%	29.72%	29.2%
Income Tax	6.34B	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 %	21.82%	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	22.75B	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 %	31.01%	30.6%	28.23%	28.31%	32.38%	32.38%	24.27%	28.1%	29.17%	28.48%	27.34%	28.28%	26.25%	27.02%	25.57%	22.94%	20.03%	14.59%	21.11%	24.81%	22.91%	17.66%	15.75%	17.47%	16.01%	15%	18.93%	16.27%	17.61%	17.81%	18.08%
Net Income Growth %	18.79%	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)	22.7B	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)	22.94	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 %	19.97%	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	991.7M	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

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetHealthy

Cash FlowRobust

Top Statement Risk

Canadian mortgage renewal cliff

NII Growth Decelerates from Peak Momentum

Net interest income growth has moderated to 4.8% year-over-year in the most recent quarter, a significant slowdown from the 25.5% growth seen in early 2025, suggesting the tailwinds from the rate cycle are fading.

The deceleration in NII growth from double-digit rates to mid-single digits implies the bank is approaching the peak of its rate cycle benefit. This trajectory suggests future NII growth will be more dependent on loan volume expansion and managing deposit costs, rather than favorable rate spreads. Investors should monitor whether the bank can sustain this growth rate as the Canadian mortgage renewal wall in 2026 approaches, which could pressure both volumes and credit quality.

NIM Compression Amidst Fee Income Surge

Net interest margin has compressed to 0.3% in the latest quarter from a range of 0.4% earlier in the cycle, even as total revenue reached a record $38.7B, indicating a shift in the bank's revenue mix.

The persistent NIM compression, despite a high-rate environment, suggests intense deposit competition or a shift in the asset mix towards lower-yielding securities. This margin pressure is being offset by a significant increase in non-interest income, which now constitutes 57.9% of total revenue. The bank's profitability is increasingly reliant on its fee-generating businesses like Wealth Management and Capital Markets, making it more sensitive to market volatility and transaction volumes.

Efficiency Ratio Deteriorates on Revenue Surge

The efficiency ratio worsened to 58.0% in the latest quarter from 52.6% in Q1 2026, despite record revenue, suggesting non-interest expenses are growing faster than the top line.

The deterioration in the efficiency ratio is notable because it occurred during a period of strong revenue growth, implying that cost controls are not keeping pace. This could be driven by integration costs from the HSBC acquisition, technology investments, or compensation pressures in competitive segments. If this trend persists, it will erode operating leverage and could limit the bank's ability to translate top-line growth into bottom-line profitability.

Provisioning Remains Elevated Amidst Growth

Provision for credit losses has remained consistently above $900M per quarter for the past six quarters, with the latest at $1.0B, indicating management is maintaining a prudent stance ahead of potential credit deterioration.

The sustained elevated provisioning, even as the bank reports strong earnings, suggests management is proactively building reserves under IFRS 9's forward-looking framework. This appears to be a direct response to the anticipated stress from the 2026 mortgage renewal wall and broader economic uncertainty. The provision coverage ratio should be closely monitored; if actual losses remain below these reserved levels, it could represent a future earnings tailwind.

Fee Income Dominance Drives Record Quarter

Non-interest income surged to $12.1B in the latest quarter, representing 57.9% of total revenue and driving the record $38.7B top line, highlighting the critical role of Capital Markets and Wealth Management.

The exceptional fee income quarter appears to be driven by strong Capital Markets activity, likely in trading and advisory, which can be volatile. While this demonstrates the strength of RY's diversified model, it also introduces earnings variability. The sustainability of this fee level is questionable, as it may reflect favorable market conditions rather than a permanent structural shift. Investors should assess the recurring versus transactional components of this fee surge.

City National Drag and Mortgage Cliff Risk

The bank's U.S. growth engine, City National, has required capital injections and management changes, while millions of Canadian mortgages renewing at higher rates in 2026 pose a material credit risk to the core P&CB segment.

The challenges at City National suggest the U.S. expansion is proving more capital-intensive and operationally complex than anticipated, potentially diluting group ROE. Simultaneously, the 2026 mortgage renewal cliff represents a significant, concentrated risk to the domestic retail book, which could trigger a sharp increase in provisions and pressure net interest margins. These two factors together could challenge the bank's earnings quality and capital allocation plans in the near to medium term.

RY — Frequently Asked Questions

Quick answers to the most common questions about buying RY stock.

What was Royal Bank of Canada's (RY) revenue in 2025?

For fiscal year 2025, Royal Bank of Canada (RY) reported total revenue of $66.53B. This represents a 741.0% increase compared to $7.91B in 1996.

Is Royal Bank of Canada (RY) profitable?

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 30.6%.

What is Royal Bank of Canada's operating profit margin?

Royal Bank of Canada (RY) reported an operating income of $25.65B, resulting in an operating profit margin of 38.6%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Royal Bank of Canada's gross profit and gross margin?

Royal Bank of Canada (RY) generated $62.17B in gross profit for the year, representing a gross profit margin of 93.4%. This demonstrates the company's core pricing power and production efficiency.