TSE:RY

Royal Bank (RY.TO)

295.01
+1.34 (0.46%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
1479 watching
0
Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 57 opinions in the last 12 months.

Royal Bank (RY-T) is widely viewed as a strong performer in the Canadian banking sector, with reviews highlighting its premium positioning and strong capital markets performance. Experts cite robust earnings growth driven by investments in technology, particularly in capital markets and wealth management, as key factors contributing to its resilience. While the valuation of RY is noted to be at a premium compared to historical averages, many analysts believe this premium is justified due to the bank's consistent performance, effective management, and growth potential, particularly following the acquisition of HSBC Canada. Despite some concerns about market valuations being high and potential economic headwinds, RY maintains a favorable outlook, with many recommending it as a core holding for long-term investors. Dividend growth is also a recurring theme, showcasing the bank's commitment to return capital to shareholders while supporting growth initiatives.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD
BUY
Has not done well in Canada, but has behaved very well compared to global banks. In a position where it can buy assets when they come out of Dexia. For a long-term investor, with their high yield, it gives you twice the level you get on a government bond along with the dividend tax credit.
BUY
His 2 favourite banks are this one and TD (TD-T). Looking at the consensus target price and the consensus target return, you've got 24%-25% growth over the year. Cheap. At the bottom of the Bollinger band line.
DON'T BUY
The banks have all had negative reports. Chart shows a double top in 2010-2011. Broke major support at around $50. A falling knife.
BUY ON WEAKNESS
Terrific name for the longer term. They are one of the more levered names to wholesale business. Net interest margins for banks continue to come down, which is a headwind. One wonders if their growth might start to slow if Canadian balance sheets start to get stretched and we get to the top of our real estate curve.
TOP PICK
(A Top Pick Sept 22/10. Down 15.08%.) You want to get banks, particularly those in Canada, when they are mis-priced relative to the rest of the group. This bank has had its share of problems recently. Sold off their US retail operations. For years and years, it has commanded a premium multiple. Good reward in 5 years.
WAIT
One of the first times in his career when he was not an owner of Canadian banks. Canadian housing market is poised to soften at some point. He sees some downside in the banks. Dividends are secure but he thinks they have more to fall. If another 10% dip he would be buying. Fantastic franchise.
TOP PICK
3.18% due Nov 2/15. Financials under performing. (Subordinated, not the seniors.) Cdn banks have very strong footing. They have the option to roll over for another 5 years.
COMMENT
Toronto Dominion (TD-T) or Royal (RY-T) for a long-term hold? Royal just sold their US retail operations while TD continues to expand and is attracting a lot of deposits. Would prefer TD because of less trading activity but a very hard question as they are both very close.
TOP PICK
(A Top Pick Sept 27/10. Down 9.37%.)Has been a laggard among Canadian banks, primarily because of the volatility in their trading revenue. Their domestic franchise is very strong and posted pretty good earnings. Wealth management, long-term, is the right direction as demographics favour this. Yield of about 4.7%.
BUY
Flip-flopped each quarter with one quarter having good earnings in the next having poor earnings. This has to do with trading. Capital Market is an impossible business to analyze. Earnings will increase going forward since they sold off their US assets. (See Top Picks.)
COMMENT
Last couple of earnings reports have disappointed the street. Trade at around 2X book. US strategy has failed. Have been impacted by being a beta for the global market. Doesn't expect it will do anything for the next 6 months. Needs the global markets to recover. This is a 2012-2013 story. (See Top Picks.)
HOLD
Of the banks, this is not one of his favourites. There was a lot of anticipation that they would do quite well with capital markets coming back so there has been a lot of frustration.
COMMENT
All banks are struggling but this one has been struggling more than others. Getting out of US retail banking was a positive. The dominant player in retail banking in Canada and are looking to grow the business in the capital market in trading. Have been making acquisitions recently in Europe.
DON'T BUY
As a GARP manager he doesn't see a lot of growth. There is a perceived risk globally of what is the Canadian exposure to the global issue of sovereign debt and other bank credits that they might own. Recruiting out of the US, they could have some debt and restructuring for the next few quarters.
DON'T BUY
Current market conditions suggest markets are likely to be weak. It broke support and is in a major down trend.
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