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TSE:RY

Royal Bank (RY.TO)

296.26
-3.83 (1.28%)
as of Aug 18, 2026, 8:00:00 pm Market Open.
1478 watching
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Investor Insights
star iconAug 18, 2026, 12:00 am

This summary was created by AI, based on 58 opinions in the last 12 months.

Royal Bank (RY) is regarded as the top Canadian bank, benefiting significantly from its capital markets and wealth management divisions. The recent acquisition of HSBC has opened avenues for growth and product cross-selling. Analysts highlight the bank's ability to sustain its dividend, which has historically risen, as well as the positive regulatory changes that have reduced capital requirements, allowing for increased lending potential. While there is a general caution regarding high price-to-earnings ratios across Canadian banks, RY is viewed as a stable, defensible investment with robust growth prospects, even though some experts suggest caution due to its premium valuation. Overall, the bank's solid management, diversified operations, and strong market position contribute to its reputation as a reliable long-term investment.

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Consensus
Buy
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Valuation
Overvalued
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TD,TD
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.
PAST TOP PICK
(A Top Pick Sept 9/10. Down 3.86%.) Earnings were a little light, primarily because of lower margins. They are more geared towards capital markets, which was light on the trading side. Still a Hold.
DON'T BUY
Hasn't been a fan of this bank. Didn't like their presence in retail banking in the US. They will lose money when they sell this. A lot of their earnings come from trading, which is a highly volatile business. Unpredictable.
DON'T BUY
Ranks 140 in his models. Earnings for their core business was down about 8%. Loan growth has been week. All banks will be challenged between now and the end of the year.
TOP PICK
Wait until we see earnings on Friday. Shed it’s US subsidiary, took a write down, but not a bad one. It was a millstone around the banks neck. It is cheap and dividend (4%) is good. As long as earnings don’t have nasty surprises.
DON'T BUY
There are other banks that are better value at this time. Revenues are very highly leveraged to the capital market so not as stable as you might get in other banks.
HOLD
Not super enthused about the banks right now. There is better yield elsewhere. They are economy stocks and the economy is slowing here. A 2 year horizon is pretty good on this one.
COMMENT
Have had particular issues in their US operations, which has helped weaken stock prices. They've now shed most of that but caused a drag on their Canadian operations side. Not expensive, but he would rather be in other banks.
COMMENT
Convertible preferred? He would be kind of negative on preferreds. This bank is “best in class” along with Toronto dominion (TD-T). Got out of the US retail and are now focusing on wealth management. Not a bad time for purchase of the common shares.
BUY
Generally hasn’t owned or liked Canadian banks, but with the recent pullback, they are starting to represent interesting values here. (He recently bought TD (TD-T).) This one has not had the success in the US like the TD has. With 4% dividend yield, it represents pretty interesting value.
BUY
Has been the laggard in the banking sector because of lack of US exposure. They are abandoning the US market. Has a cloud over it from the perspective of global investment banking. Probably not a bad idea to buy the one that has under performed.
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