What is the revenue and EPS growth rate for Royal Bank Of Canada year over year?

What is Royal Bank Of Canada's gross profit margin?

What is the market's earnings forecast for Royal Bank Of Canada next quarter?

Did Royal Bank Of Canada beat or miss consensus estimates last quarter?

What guidance did Royal Bank Of Canada's management provide for the next earnings period?

What is Royal Bank Of Canada's latest dividend and current dividend yield?

What factors drove the changes in Royal Bank Of Canada's revenue and profit?

What does Royal Bank Of Canada do and what are its main business segments?

- **Record Performance**: Q4 earnings of CAD 5.4B, up 25% YoY, with dividend hike and CAD 1B buybacks.
- **ROE Ambition**: Medium-term target raised to 17%+, fueled by AI (30,000+ employees using generative AI) and U.S. transaction banking growth.
- **Resilience & Risk**: Elevated credit allowances (71bp PCL) amid trade uncertainty, but cautious optimism on Canada's service-driven recovery.
- **AI & Efficiency**: Targeting CAD 700M+ AI-driven value by 2027, with 1%-2% operating leverage in 2026.
- **U.S. Momentum**: City National net income +28% YoY, onboarding 180 clients for RBC Clear.

**【CEO Summary Section】**
- Reported record Q4 earnings of CAD 5.4 billion, with adjusted earnings of CAD 5.5 billion, marking a record year.
- Increased dividend by 6% to CAD 1.05 per share and returned CAD 1 billion through share buybacks.
- Raised medium-term ROE target to 17%+ from 16%+, driven by AI investments and operational efficiency.
- Emphasized cautious optimism on Canada's economic resilience amid trade uncertainties, with focus on service sector growth.
- Highlighted strategic initiatives: HSBC Bank Canada integration (exceeding CAD 740M cost synergies), AI-driven productivity (30,000+ employees using generative AI), and U.S. transaction banking expansion (RBC Clear onboarding 180 clients, $23B deposits).

**【CFO Financial Commentary】**
- Q4 diluted EPS: CAD 3.76 (GAAP) / CAD 3.85 (adjusted), up 25% YoY.
- Net interest income growth: 13% YoY (excluding trading), driven by higher margins in personal and commercial banking.
- Core expense growth: 5% YoY, due to variable compensation and tech investments.
- 2026 outlook: Mid-single-digit NIM growth (benefiting from mortgage spread repricing), 1%-2% operating leverage, and CAD 117M+ HSBC-related accretion.
- Capital return: 59% payout ratio (dividends + buybacks), targeting 40%-50% medium-term.

**【Q&A Highlights】**
- **ROE Target**: 17%+ achievable via organic growth and AI efficiency, with potential to exceed if CUSMA resolved positively.
- **Credit Outlook**: Elevated allowances (71bp PCL ratio) to navigate U.S.-Canada trade uncertainty; 2026 PCL expected stable at 35-39bp.
- **AI Impact**: 30,000+ employees using generative AI, targeting CAD 700M+ enterprise value by 2027.
- **U.S. Strategy**: City National net income up 28% YoY, with focus on transaction banking and cross-border solutions.
- **Mortgage Mix**: Shift from GICs to markets (mutual fund sales +50% YoY), driving NIM expansion.
- **Risks**: CUSMA resolution critical for business investment; cautious on commercial real estate and condo sector.


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