TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1477 watching
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Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 55 opinions in the last 12 months.

Royal Bank (RY-T) has been a strong performer, with a consensus appreciation for its stability, especially in its capital markets and wealth management divisions. Experts praise the bank's robust earnings, dividends that have grown consistently, and its strategic acquisition of HSBC Canada, which is expected to enhance its global platform. However, there are concerns regarding its current high valuation relative to historical standards and the overall Canadian banking sector, leading some to suggest trimming positions. While many maintain a positive outlook on RY due to its dominance and management quality, the general sentiment reflects caution against buying at elevated prices with potential headwinds from slowing loan growth and economic pressures.

consensus icon
Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
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.
BUY
Raised $2 billion in equity and several hundred million in preferred shares. Solid balance sheet. Tier 1 capital. Good hold on a long-term basis. Dividends are secure. (See Top Picks.)
COMMENT
One of the premier banks globally. The whole Canadian banking sector will have headwinds going forward. Still worthwhile to own banks but doesn't think it's going to go anywhere.
TOP PICK
Thinks they are the strongest financial institution in Canada. Has a tremendous franchise. Thinks their US assets are manageable. Incredibly cheap at 9 X next year's earnings. Yield of 5.6%.
COMMENT
Just doing an equity issue at $35.25 and looks like a fairly good discount to the market. Seems to be going quite well. This should be enough to get them through the balance sheet concerns.
TOP PICK
(2 Top Picks are pair trades.) Buy Royal Bank (RY-T) and Short Cannacord (CCI-T). Once you see some predictability in the market (6 months?) you might consider getting out.
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