Royal Bank of Canada reported third-quarter 2026 net income of C$6.024 billion, up 11% year on year and 9% quarter on quarter, as revenue climbed 9% to C$18.538 billion, according to the bank's quarterly release.
Non-interest income, which captures the group's trading, investment banking, wealth management and card fee streams, rose 13% year on year to C$9.794 billion, outpacing the more sedate 5% expansion in net interest income to C$8.744 billion and helping drive income before income taxes to C$7.749 billion, up 13% on the prior-year quarter.
FEE INCOME LEADS REVENUE MIX
Non-interest income of C$9.794 billion exceeded net interest income of C$8.744 billion in the quarter. RBC said revenue growth was largely due to higher investment management and custodial fees, net interest income, trading revenue and mutual fund revenue.
Growth of 13% in non-interest income compares with 5% in net interest income, with trading revenue up 40% and investment management and custodial fees up 18%. Total revenue was C$18.538 billion, up 9% year on year.
Net income of C$6.024 billion represents an 11% rise on the corresponding quarter of the prior year, and a 9% improvement on the immediately preceding quarter.
INCOME BEFORE TAX UP 13%
Income before income taxes reached C$7.749 billion, an increase of 13% year on year and marginally ahead of the pace of overall net income growth. The effective income tax rate rose 110 basis points from a year earlier to 22.3%.
Non-interest expense rose 6% to C$9.789 billion, slower than revenue, and the efficiency ratio improved by 160 basis points to 52.8%.
RBC describes itself as Canada's biggest bank by market capitalisation, with businesses spanning Personal Banking, Commercial Banking, Wealth Management (including City National in the US), Insurance and Capital Markets.
RBC reported on the same day as TD and CIBC, after BMO and Scotiabank on 25 August and National Bank of Canada on 26 August.
Management said the third-quarter performance reflected diversified strength across the franchise, with higher results in Wealth Management, Capital Markets and Commercial Banking underpinning the year-on-year uplift in earnings. Further detail is set out in the bank's investor materials accompanying the results release.
With net income of C$6.024 billion, revenue of C$18.538 billion and income before income taxes of C$7.749 billion, the third-quarter figures were each higher than a year earlier, and RBC described the net income as a record.
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