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.
Royal Bank of Canada (RY) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
Quick answers to the most common questions about buying RY stock.
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.
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%.
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.
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.
Key Metrics
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.