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
COMMENT
Largest bank in Canada but has some US assets that cause some concern. Had a great quarter because of vote 50% of their revenues came from trading. Has the best ROE in the business. Strong franchise but the shares are priced to reflect that. (See Top Picks.)
SELL
He is selling banks. Not worried about dividends or earning, though, and would rather look at US banks.
TOP PICK
This and Toronto Dominion (TD-T) (See Past Top Picks) are the 2 best managed Canadian banks. At this time, this one is the better pick because of the diversification of its assets and the strong management.
COMMENT
Blew the doors off with their last quarter's earnings. If you own and have doubled, consider taking some profits. Very impressed with this bank. Fair value right now and there is room for the dividend to rise.
TOP PICK
6.1% Series AX Bond yielding 5.5%. Rate reset bond that if the bank or insurance company does not call it back in 5 years, they will either go on for the next 5 years at either a fixed or floating rate, your option. One of Canada's top banks. With the drop in yield, the price should go up.
PAST TOP PICK
(A Top Pick May 5/09. Up 4.25%.) Callable Bond due in 2018 which should be called out in 2013.
BUY ON WEAKNESS
A little bit overvalued and banks could correct here. Overall he doesn't see any significant overall catalyst that is going to bring it down so wouldn't recommend a short position on it.
HOLD
(Market Call Minute) Best of the lot in it’s market place. Sees no calamitis events but tough time moving higher.
BUY ON WEAKNESS
(Market Call Minute.) Prefers the other banks.
BUY
Banks have had a good run. He views them as core holdings and wouldn't be afraid to own them here. Trading at reasonable multiples. There are signs of slowly but surely improvement in the economy. Solid yield.
COMMENT
Canadian banks will make a lot of money on their underwriting. This one has a little bit too much exposure in the US for him. Expecting a reasonably good quarter. Pretty much fully priced. If you own Hold but if not, every portfolio should have a Canadian bank.
BUY ON WEAKNESS
He is under weighted the financials because Canadian banks that are US exposed might be exposed to more bad debt than is thought. If the price gets close to $40 you can buy but don't go roaring after them.
HOLD
Canadian banks have been managing through the cycle considerably better than other global banks. This is the premier, highest-quality bank in Canada. He views Canadian banks as having run too far, too fast and he doesn't find great value in them right now. For a longer-term time horizon you should continue to Hold. Dividends are safe.
PARTIAL SELL
Would take some profits but would keep a little bit in the case of a rebound. Wait for a pullback before buying. If they have bad earnings numbers that would be an opportune time to get in. Good tangible common equity ratio.
PARTIAL SELL
Canadian banks were a screaming buy back in early March when they had yields of 6% plus. They are now up 40%-50%. If you own, consider taking some profits.
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