Royal Bank of Canada (RY:CA) TD Securities Maintains Buy Rating after Strong Earnings

Royal Bank of Canada (RY:CA) (RY)

TD Securities maintained a “Buy” rating on RBC with a 12-month target price of C$260.00, reflecting confidence in the bank’s earnings growth, diversified business mix, and resilient capital position after the company released their earnings report.

The Royal Bank of Canada reported a strong first-quarter profit of C$5.79 billion for the quarter ended January 31, up from C$5.13 billion a year earlier, equating to $4.03 per diluted share, compared with $3.54 per share a year ago. Revenue increased to C$17.96 billion from C$16.74 billion, while provisions for credit losses were slightly higher at C$1.09 billion. On an adjusted basis, earnings rose to $4.08 per share, surpassing the average analyst estimate of $3.85 per share, reflecting the bank’s robust balance sheet and capital position.Management highlighted that RBC entered 2026 with strong momentum, reporting record results driven by broad-based growth. Personal banking earnings grew to C$1.96 billion, supported by higher net interest and non-interest income, while commercial banking profits rose to C$863 million. Wealth management benefited from increased fee-based client assets, driving profits to C$1.30 billion, and capital markets contributed C$1.48 billion, up from C$1.43 billion. Insurance earnings declined to C$213 million from C$272 million.