Royal Bank of Canada Q3 earnings beat, reflecting growth across all units

[RBC (Royal Bank of Canada) headquarters in Toronto’s financial district Toronto, Ontario.]
JHVEPhoto/iStock Editorial via Getty Images

Royal Bank of Canada (NYSE:RY [https://seekingalpha.com/symbol/RY]) fiscal Q3 earnings and revenue, released on Wednesday, beat Wall Street consensus estimates, driven by solid gains across all the bank's main business units — Personal Banking, Commercial Banking, Wealth Management, Capital Markets, and Insurance.

In all, its net interest income and non-interest income both rose, as its provision for credit losses declined from the prior quarter.

"We saw strong growth across each of our business segments reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management," said President and CEO Dave McKay.

Q3 adjusted EPS of C$3.84 [https://seekingalpha.com/pr/20212678-royal-bank-of-canada-reports-third-quarter-2025-results] (US$2.77), topping the average analyst estimate of C$3.29, rose from C$3.12 in Q2 and C$3.26 in last year's Q3.

Total revenue for the quarter ended July 31, 2025, was C$17.0B (US$12.3B), beating the C$16.0B consensus and climbing from C$15.7B in the previous quarter and C$14.6B a year ago.

RBC's (NYSE:RY [https://seekingalpha.com/symbol/RY]) stock gained 1.8% in premarket trading.

Q3 net interest income of C$8.35B, exceeding the Visible Alpha consensus of C$8.14B, increased from C$8.06B in Q2 and C$7.33B in Q3 2024.

Noninterest income of C$8.63B climbed from C$7.62B in the prior quarter and C$7.30B a year ago.

Preprovision pretax earnings advanced to C$7.75B from C$6.94B in Q2 and C$6.03B in last year's Q3.

RBC's (RY [https://seekingalpha.com/symbol/RY]) provision for credit losses declined to C$881M from C$1.42B in the previous quarter and increased from C$659M a year ago.

Adjusted return on equity widened to 17.7% vs. 14.7% in Q2 and 16.4% in Q4 2024.

Results by segment:

* Personal Banking adjusted net income of C$1.98B climbed 20% Q/Q and 22% Y/Y.
* Commercial Banking adjusted net income of C$855M jumped 39% Q/Q and increased 2% Y/Y.
* Wealth Management adjusted net income of C$1.16B increased 17% Q/Q and 15% Y/Y. The Q/Q increase was mainly on higher fee-based revenue generated by higher fee-based client assets, reflecting market appreciation and net sales, as well as three more days in the quarter.
* Capital Markets net income of C$1.33B grew 10% Q/Q and 13% Y/Y. The sequential increase was driven by higher fixed income trading revenue, primarily in the U.S., and higher debt and equity originations across most regions, the company said.
* Insurance net income of C$247M rose 17% Q/Q and 45% Y/Y.

Conference call [https://www.rbc.com/investor-relations/financial-information.html]at 8:00 AM ET.

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