Royal Bank of Canada Reports Q3 2025 Record Net Income of $5.4 Billion, Up 21% YoY

Royal Bank of Canada reported record net income of $5.4 billion for Q3 2025, up 21% YoY, with diluted EPS also up 21%. Adjusted net income and adjusted diluted EPS increased 17% and 18%, respectively. The bank's diversified business model, investments in technology, and disciplined risk management contributed to the growth.

Title: Royal Bank of Canada Reports Strong Q3 2025 Earnings

Royal Bank of Canada (RBC) has reported record net income of $5.4 billion for the third quarter of 2025, marking a 21% year-over-year (YoY) increase. The bank's diluted earnings per share (EPS) also rose by 21%. Adjusted net income and adjusted diluted EPS increased by 17% and 18%, respectively, reflecting RBC's robust performance. The bank's diversified business model, investments in technology, and disciplined risk management strategies have been key drivers of this growth.

RBC's quarterly revenue reached $32.57 billion, a significant increase from $13.98 billion in the same period last year. The net profit surged to $4.39 billion, up from $3.95 billion in the same period last year [1]. The bank's quarterly dividend was also increased to $1.54 per share, an increment from the previous $1.48 per share.

Despite the positive financial performance, corporate insider activity indicates negative sentiment. There has been an increase in insiders selling their shares. Senior Officer Graeme Ashley Hepworth sold 308 shares on July 22nd, and Director David Ian Mckay sold 20,304 shares on the same day [1]. The total shares sold by insiders in the last 90 days amount to 63,039 shares valued at $11,175,413 [1].

Analysts maintain a positive outlook on RBC's stock. Desjardins analysts raised their quarterly EPS estimate for the third quarter of 2025 to $3.28 per share, up from the previous estimate of $3.12 [1]. The consensus rating among analysts remains "Buy" with an average target price of C$189.62 [1]. Canaccord Genuity Group has set a price target of C$201.00, while Jefferies Financial Group increased their target to C$207.00 [1]. Scotiabank has also given the stock a "strong-buy" rating [1].

RBC's strong Q3 results demonstrate the bank's ability to navigate the current economic environment and capitalize on its diversified business model. The bank's focus on technology and risk management has paid off, contributing to its robust financial performance. As RBC continues to invest in these areas, investors can expect further growth and stability in the coming quarters.

References:
[1] https://www.marketbeat.com/instant-alerts/desjardins-issues-positive-outlook-for-tsery-earnings-2025-08-15/