Core Insights - Royal Bank has consistently surpassed earnings estimates, averaging a beat of 8.30% over the last two quarters [1][2] - The most recent earnings report showed an actual earnings per share (EPS) of $2.38, exceeding the expected $2.15 by 10.70% [2] - The previous quarter also saw a positive surprise, with an actual EPS of $2.15 against an estimate of $2.03, resulting in a 5.91% surprise [2] Earnings Estimates and Predictions - Recent estimates for Royal Bank have been revised upwards, indicating a positive outlook for future earnings [3] - The Zacks Earnings ESP for Royal Bank is currently +0.09%, suggesting analysts are optimistic about the company's earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high probability of another earnings beat [6][4] Earnings ESP Metric - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of beating consensus estimates [4] - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] - A negative Earnings ESP does not necessarily indicate an earnings miss, as many companies can still beat consensus estimates [7] Upcoming Earnings Report - Royal Bank's next earnings report is expected to be released on December 4, 2024 [6]

Core Viewpoint - Royal Bank (RY) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - For the fiscal year ending October 2024, Royal Bank is expected to earn $8.91 per share, reflecting a 5.7% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Royal Bank has risen by 5.2%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Royal Bank to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Royal Bank of Canada (RBC) is focused on efficient capital allocation, maintaining a strong balance sheet, and achieving cost synergies, particularly following the HSBC acquisition [3][4][7] Capital Allocation and Financial Performance - RBC's Common Equity Tier 1 (CET1) ratio stands at 12.8%, above target levels, following the HSBC acquisition [4] - The bank generated internal capital of 70 basis points in Q3, with dividends paid out resulting in a net capital generation of 38 basis points [20] - RBC is prioritizing organic growth with high returns, followed by dividends and share buybacks, while considering smaller acquisitions in the current regulatory environment [21][22] HSBC Acquisition Insights - The HSBC acquisition has performed better than expected, with lower client attrition than forecasted and a clean credit quality book [8][9] - RBC has already realized $120 million of the anticipated $740 million in cost synergies from the acquisition, with a strong focus on integrating technology and operations [7][14] - Revenue synergies are expected from cross-selling RBC's products to HSBC's affluent client base, with $100 million in assets under management already connected to wealth management services [17] Canadian Banking Performance - RBC's Canadian banking segment shows strong loan growth, with leading market shares in mortgages, personal loans, and commercial banking [35][37] - The bank maintains a loan-to-deposit ratio of 100%, supported by a solid core deposit franchise [36] - While mortgage growth is slowing due to competition and interest rates, RBC is focused on profitability rather than chasing market share aggressively [39][40] Wealth Management Strategy - RBC's wealth management segment is a significant driver of business, with strong positions in Canada and the U.S. [66][67] - The bank is exploring opportunities for small acquisitions in the fragmented U.K. wealth management market [70] Credit Quality and Consumer Resilience - The Canadian consumer remains resilient, with high liquidity levels and prudent spending behaviors observed [48][50] - RBC has seen a slight uptick in delinquency rates in unsecured lending but maintains a high-quality loan book with strong credit metrics [51][52] Interest Rate Environment and NII Management - RBC is managing its net interest income (NII) through hedging strategies, with a focus on maintaining stability despite declining interest rates [56][58] - The bank expects that lower interest rates will eventually stimulate demand, with a forecasted positive impact on the economy over the next 18 to 24 months [54][55]

Royal Bank of Canada (NYSE:RY) Annual Scotiabank Financials Summit September 4, 2024 9:35 AM ET Company Participants Dave McKay - President and Chief Executive Officer Conference Call Participants Meny Grauman - Scotiabank Meny Grauman Welcome, Dave. Good to see you. Dave McKay You got that a bit close. Good morning. Meny Grauman Hope you had a good summer? Dave McKay Year goes by quickly. Meny Grauman That's right. We're back here. I wanted to start off by getting you to give me a pep talk about Canada. Da ...

Shares of Royal Bank of Canada (RY) gained 2.4% since the release of its third-quarter fiscal 2024 (ended July 31) results. Adjusted net income of C$4.73 billion ($3.45 billion) grew 18% from the prior-year quarter. Results reflected the impacts of the specified item relating to the HSBC Canada deal and integration costs, and the amortization of acquisition-related intangibles. RY's quarterly results were aided by higher revenues, and growth in loans and deposit balances. However, an increase in expenses an ...

Key Takeaways The Royal Bank of Canada reported third-quarter earnings above analysts' estimates, sending its stock to a record high Wednesday. The bank saw profits increase in its personal banking and wealth management divisions. By contrast, several of RBC's Canadian banking peers missed estimates or reported falling profits or revenue in recent weeks. Royal Bank of Canada (RY) shares rose to a record high Wednesday after the bank reported earnings above analysts' estimates, thanks to growing profits in i ...

Royal Bank (RY) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.15 per share. This compares to earnings of $2.13 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.70%. A quarter ago, it was expected that this bank would post earnings of $2.03 per share when it actually produced earnings of $2.15, delivering a surprise of 5.91%. Over the last four quarters, the company has surpas ...

Royal Bank (RY) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended July 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 28, 2024, might help the stock move higher if these key numbers are better than expect ...

Core Viewpoint - The Royal Bank of Canada (RBC) is facing a lawsuit from its former CFO Nadine Ahn for $36 million, following her termination over alleged misconduct related to a personal relationship with another employee, which she denies [1][2]. Group 1: Allegations and Lawsuit - Nadine Ahn claims she was wrongfully terminated and suffered "public humiliation" and "palpable reputational harm" due to the allegations against her [1][2]. - RBC stated that Ahn was fired after an investigation found "irrefutable evidence" of her violating the bank's code of conduct, specifically regarding her relationship with Ken Mason, who was also terminated [2][6]. - Ahn asserts that her relationship with Mason was a long-standing friendship and not romantic, countering the bank's claims of preferential treatment [3][5]. Group 2: Investigation and Response - RBC initiated an investigation after receiving allegations against Ahn in March, and they engaged outside legal counsel to conduct the inquiry [6][7]. - The bank's spokesperson has stated that the claims made by Ahn are "without merit" and that RBC will defend itself vigorously in court [6][8]. Group 3: Financial Implications - Ahn's compensation in 2023 was approximately $3 million, which included a salary of about $475,000 and over $2.5 million in bonuses and stock awards, reflecting a 25% increase from the previous year [9]. - RBC's policy indicates that executives terminated for cause are not entitled to severance and may have to forfeit bonuses, although it is unclear if Ahn will have to return any of her earnings [9]. Group 4: Interim Leadership - Following Ahn's termination, RBC appointed Katherine Gibson as the interim CFO, who has over two decades of experience with the bank [10].

Royal Bank in Focus Based in Toronto, Royal Bank (RY) is in the Finance sector, and so far this year, shares have seen a price change of 10.35%. Currently paying a dividend of $1.02 per share, the company has a dividend yield of 3.66%. In comparison, the Banks - Foreign industry's yield is 4.44%, while the S&P 500's yield is 1.56%. Taking a look at the company's dividend growth, its current annualized dividend of $4.08 is up 3% from last year. Royal Bank has increased its dividend 5 times on a year-over-yea ...