Erste Group Bank Issues Optimistic Forecast for RY Earnings

Royal Bank Of Canada (NYSE:RY) (TSE:RY) – Stock analysts at Erste Group Bank upped their FY2026 earnings per share estimates for Royal Bank Of Canada in a report issued on Wednesday, August 5th. Erste Group Bank analyst H. Engel now expects that the financial services provider will earn $11.54 per share for the year, up from their previous estimate of $11.40. The consensus estimate for Royal Bank Of Canada’s current full-year earnings is $11.41 per share.

Royal Bank Of Canada (NYSE:RY) (TSE:RY) last issued its earnings results on Thursday, May 28th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.81 by $0.03. Royal Bank Of Canada had a return on equity of 17.68% and a net margin of 15.92%.The firm had revenue of $12.84 billion for the quarter, compared to analyst estimates of $12.74 billion. During the same period in the previous year, the company posted $3.12 earnings per share. The business’s revenue was up 11.4% on a year-over-year basis.

RY has been the topic of a number of other reports. Weiss Ratings upgraded Royal Bank Of Canada from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Wednesday, July 29th. Argus set a $225.00 target price on shares of Royal Bank Of Canada in a research note on Thursday, June 11th. TD Securities reissued a “buy” rating on shares of Royal Bank Of Canada in a research report on Friday, May 29th. Scotiabank restated an “outperform” rating on shares of Royal Bank Of Canada in a research note on Monday, June 1st. Finally, Raymond James Financial downgraded shares of Royal Bank Of Canada from an “outperform” rating to a “market perform” rating in a report on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Royal Bank Of Canada has a consensus rating of “Moderate Buy” and an average target price of $225.00.

Royal Bank Of Canada Stock Down 0.1%

RY stock opened at $210.52 on Wednesday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market capitalization of $291.91 billion, a price-to-earnings ratio of 18.91, a PEG ratio of 1.67 and a beta of 0.80. Royal Bank Of Canada has a fifty-two week low of $133.66 and a fifty-two week high of $218.57. The stock has a fifty day moving average of $206.13 and a 200-day moving average of $184.34.

Hedge Funds Weigh In On Royal Bank Of Canada

A number of large investors have recently modified their holdings of RY. Norges Bank purchased a new position in Royal Bank Of Canada during the fourth quarter worth about $3,472,382,000. Deutsche Bank AG bought a new stake in shares of Royal Bank Of Canada during the 2nd quarter valued at about $540,037,000. Alberta Investment Management Corp purchased a new position in shares of Royal Bank Of Canada during the fourth quarter worth about $324,237,000. Assenagon Asset Management S.A. grew its holdings in shares of Royal Bank Of Canada by 3,329.9% during the second quarter. Assenagon Asset Management S.A. now owns 1,589,605 shares of the financial services provider’s stock worth $329,002,000 after purchasing an additional 1,543,260 shares in the last quarter. Finally, BlackRock Inc. bought a new position in shares of Royal Bank Of Canada in the second quarter worth approximately $303,751,000. 45.31% of the stock is currently owned by institutional investors.

Royal Bank Of Canada Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Stockholders of record on Monday, July 27th will be given a dividend of $1.76 per share. This is a boost from Royal Bank Of Canada’s previous quarterly dividend of $1.64. This represents a $7.04 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Monday, July 27th. Royal Bank Of Canada’s dividend payout ratio (DPR) is currently 44.47%.

Key Stories Impacting Royal Bank Of Canada

Here are the key news stories impacting Royal Bank Of Canada this week:

• Positive Sentiment: Moneris sale strengthens capital flexibility. RBC and Bank of Montreal agreed to sell payments processor Moneris Solutions to Francisco Partners for approximately C$2 billion in cash. The proceeds could give RBC additional capacity for share buybacks, acquisitions, balance-sheet investment or other capital deployment. RBC and BMO sell Moneris for $2 billion
• Positive Sentiment: FY2027 earnings expectations increased. Erste Group raised its forecast for RBC’s fiscal 2027 earnings to $12.57 per share from $12.41, signaling improving confidence in the bank’s profit outlook. The revised estimate is also above the broader current-year consensus of $11.41 per share. Analyst raises RBC earnings estimate
• Positive Sentiment: Asset-management and ETF offerings continue to expand. RBC’s alliance with BlackRock launched two TSX-listed ETFs, adding international-equity and equity-plus-bitcoin products. The launches may support long-term fee-based asset growth and strengthen RBC’s investment-product distribution platform. RBC iShares launches two new ETFs
• Neutral Sentiment: RBC is reopening a large bond fund. RBC Global Asset Management is accepting new investors into a C$13.9 billion bond fund as Canadian high-yield issuance increases. This could benefit management-fee revenue, but the direct earnings impact is not quantified. RBC reopens bond fund
• Negative Sentiment: Moneris divestiture removes a strategic payments asset. Although the cash proceeds are favorable, RBC will give up future earnings and growth exposure from Moneris. The impact will depend on how effectively management redeploys the capital.
• Neutral Sentiment: RBC executives’ participation in an upcoming Milken Toronto event and a C$1 million RBC Foundation education initiative enhance visibility and social impact but are unlikely to drive near-term financial results.

About Royal Bank Of Canada

Royal Bank of Canada (NYSE: RY) is a diversified financial services company and one of Canada’s largest banks. Founded in 1864 in Halifax, Nova Scotia, the firm is now headquartered in Toronto, Ontario. It provides a broad range of banking and financial services to individuals, businesses, and institutional clients through a network of branches, digital platforms and international offices.

RBC operates across several principal business segments including personal and commercial banking, wealth management, insurance, investor and treasury services, capital markets, and global asset management.