RBC closes 2025 on a high as profit jumps in Q4

Royal Bank of Canada’s fourth-quarter earnings saw the country's largest lender end 2025 with strong momentum, even as it continues to set aside more for potential loan losses.

In the three months ended October 31, RBC’s profit climbed to about $5.4 billion, a jump of roughly 29% from the same period a year earlier, with diluted and adjusted earnings per share of $3.85 beating analyst expectations.

Net income in capital markets ($1.43 billion) and wealth management ($1.28 billion) outpaced forecasts, as trading, dealmaking and fee-based assets remained robust in both Canada and the United States.

RBC set aside slightly more than $1 billion in provisions for credit losses in the quarter, above some analyst estimates and higher than the same period last year, reflecting pressure in commercial and personal lending portfolios and select capital markets exposures.

“Looking to 2026, our financial strength remained one of our greatest advantages, underpinning our strong credit ratings and giving us the capacity to fund future growth and pursue our client-centric ambitions,” Dave McKay, the bank's chief executive officer, said.

RBC raised its quarterly dividend by 10 cents to $1.64 per share in Q4, a 6% increase that highlighted management’s confidence in the bank’s earnings power and capital position.

The lender’s key capital and liquidity ratios stayed comfortably above regulatory floors, offering a buffer as borrowers continued to adapt to higher-for-longer interest rates and more stringent underwriting.

National Bank, meanwhile, reported net income of $1.059 billion, while Scotiabank had earnings of $2.2 billion per share. 

Other top lenders are scheduled to release their Q4 results tomorrow, including Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD).

Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.