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
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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
PARTIAL BUY
Should start to see yield support in the $27-$28 area. Feels the dividend is secure. Wouldn't hesitate to start establishing positions.
TOP PICK
Has never seen yields on Canadian banks that are twice that yields on 10-year Canada bonds. 5 years from now, when the dividend has gone up 3 or 4 times, you will think you are very smart. 6.2% yield.
DON'T BUY
Doesn't like any financials. If there is that news on one of the big US banks, it could spill over into Canada.
WAIT
Heading into another reporting period for banks and he is a little wary of what might show up on those banks that have operations in the US. Expects to see loan-loss provisions going up but still banks are selling at compelling valuations. This would not be at the top of his list.
COMMENT
Feels all the Canadian banks are solid in respect to their dividends. He worries about the financials midterm. Thinks there will be a nice rally in them for the next couple of months but he has call options on all his banks right now at 15% of the money 30 to 60 days out.
BUY
If Canadian consumer starts to deteriorate, it will hurt retail banking. Canada is a very resource oriented country and their loan book will become more difficult. However, they have very good tier 1 ratios and he would buy at these levels.
BUY
The whole worldwide financials have taken a hit again. Canadian financials are definitely the best but they have been hit as well. Now at 7 or 8 times earnings, not much more than book value. Would buy under $30.
WAIT
A lot of Canadian bank issues relate to foreign banks that are in extreme distress. Fundamentally, Canadian banks are in better shape but are considered very expensive. Thinks earnings are going to come down a little in 2009 but feels they are extremely attractive right now.
HOLD
Hit a new low and hasn't been this low since 04. There have been some questions raised about a potential large loss on some US holdings. All the banks have been getting pounded on a day-to-day basis. If you own, hold until you get more details.
BUY
Canadian Banks: He is convinced that US and UK banks could have a lot more problems yet. There is also a risk that Canadian banks have not fessed up to everything and there could be more to come. Looking at current yields, even if the banks do nothing for 3 years in terms of price or earnings, you could happily buy and afford to wait.
TOP PICK
Canada's premier bank. Good management. Continues to build its franchise. Hasn't been tagged with the US banking problems. 6.1% yield.
TOP PICK
Biggest and most profitable bank in Canada. Has successfully expanded in the Caribbean through the Royal Trust and in the southeastern US 1st of Alabama (?). Continue to execute very well. 5.7% yield.
BUY
HSBC (HBC-N) vs. Royal Bank (RY-T). Fantastic banks. Would lean more towards the Canadian banks because he knows them better.
HOLD
Thinks the financials have further to rally.
DON'T BUY
Relative to the other Canadian banks, it is probably the most overvalued at this time, especially because of their US exposure. Not putting any money into financials right now.
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