TORONTO, May 25, 2026, 13:13 (EDT)
- Royal Bank of Canada shares were up 0.77% at C$263.99 on the TSX as of 12:47 p.m. EDT. The stock hit C$265.10 earlier, a new 52-week high.
- S&P/TSX Composite broke a record Monday, with buyers moving into risk assets as hopes for U.S.-Iran talks boosted sentiment.
- RBC will release Q2 numbers May 28, with results set for about 6:00 a.m. ET. The analyst call follows at 8:30 a.m. ET.
Royal Bank of Canada hit another 52-week high on Monday, with Canada’s biggest bank among the gainers in Toronto ahead of its quarterly earnings later this week.
RBC shares traded above C$263 at midday, with the stock already reflecting bets on a clean quarter. Investors are watching for signs the bank’s strong first-quarter run and gains in revenue and credit quality can continue into the April-ended quarter.
RBC plans to post second-quarter earnings before the open on Thursday. The timing lines up with other Canadian banks, as Bank of Montreal and Scotiabank both report Wednesday, while Toronto-Dominion Bank is also expected Thursday, ATB’s weekly market calendar shows.
S&P/TSX Composite rose 0.7% to 34,778.98 at 10:21 a.m. ET, according to Reuters. Materials were strongest, but most sectors saw gains, with nine out of ten higher. Financials traded up ahead of earnings.
U.S. trading stayed quiet with markets shut for Memorial Day. Canadian exchanges stayed open, but settlement ran only for Canadian-dollar trades, according to a CDS holiday schedule.
The TSX took the lead on RBC pricing Monday, as the New York shares did not trade after Friday. That left the cross-border signal thinner than usual.
Market sentiment gave a lift. Brian Madden, chief investment officer at First Avenue Investment Counsel, told Reuters, “even a non-zero chance the conflict ends is enough to push stocks higher and oil lower.” Madden also said he was not “100% convinced” the optimism about U.S.-Iran talks would last. Reuters
RBC started the week with fresh gains in its numbers. The bank posted first-quarter net income of C$5.8 billion in February, a 13% rise from last year. Adjusted diluted EPS also rose 13% to C$4.08. CEO Dave McKay said RBC is going into fiscal 2026 from a “position of strength.” Newswire
RBC is forecast to deliver net income of C$5.4 billion for the next report, up about 19% from a year ago, with revenue expected to climb nearly 10%, according to S&P Global Market Intelligence’s Visible Alpha breakdown. The data showed provisions for credit losses are seen falling from the prior quarter, which bank investors are watching closely as pressure builds for households and businesses.
Net interest margin is on watch too. Visible Alpha saw RBC’s margin inching up to 1.56% this quarter from last, according to estimates. It’s a slight increase, but could be important with the shares trading near a high.
But the set-up stays messy. A big jump in bad-loan reserves, disappointing capital-markets revenue, or a less upbeat view on Canadian consumers could make a strong share price look like a stretch. Broader risk stays in play too: if the good mood on the Middle East goes and oil or bond yields swing again, Monday’s TSX rally could stall.
RBC has the market’s trust for now. The key test comes Thursday, when its numbers land.
