TORONTO, June 9, 2026, 16:17 (EDT)
Royal Bank of Canada hit a 52-week high Tuesday. Shares closed at C$276.01, up 1.24%, after reaching as high as C$277.09 during the session. The country’s largest bank by market value outperformed, while Canadian Imperial Bank of Commerce rose 1.03% and Bank of Nova Scotia added 0.76%.
Toronto stocks lagged the rally. The S&P/TSX composite index slipped 0.2% to 34,411.69. Financials gained 1%, but energy and materials names lost ground. Traders were looking to Wednesday’s Bank of Canada rate decision, with the policy rate seen as the key tool for borrowing costs.
But it’s not a straightforward set-up. “This is not a cheap market on balance,” said Barry Schwartz, chief investment officer at Baskin Wealth Management, who warned favored stocks could face a pullback. Near-term, RBC faces the risk that rich bank trades flip fast if rate signals, credit costs or broader market sentiment shifts away from lenders. Reuters
Royal Bank of Canada shares have been climbing for more than a day. RBC gained 4.02% for the week, up 9.76% for the month, and has added 58.61% in a year, TradingView data show.
RBC’s latest results gave support to the rally, with earnings a key driver. The bank posted C$5.5 billion in net income for the second quarter and adjusted diluted EPS of C$3.90. Its CET1 ratio was 13.5%. CEO Dave McKay pointed to “solid growth across our diversified businesses and balance sheet strength.”
RBC, Toronto-Dominion Bank and CIBC reported profits that beat forecasts, boosted by gains at home. RBC posted adjusted earnings of C$3.90 per share, ahead of the analyst average of C$3.78. CEO Dave McKay flagged that “uncertainty remains elevated.” Reuters
National Bank analyst Gabriel Dechaine said before the results that credit losses were “stubbornly elevated” and capital markets had to “deliver, yet again.” That happened this time, but investors are still waiting to see if trading and investment-banking revenue hold up if households slow down. Reuters
RBC’s asset management arm rolled out new products Tuesday. The RBC iShares alliance launched three ETF series—exchange-traded funds are baskets of securities that trade like stocks. Stephen Hoffman, managing director of ETFs at RBC Global Asset Management, said investors want “new solutions” for portfolio construction as markets stay volatile. RBC Global Asset Management
Right now, investors are sticking with Canada’s top bank over the wider index, the tape shows. Next up is the Bank of Canada decision, and after that, markets will be watching for any trouble with credit losses or margins.
