Toronto, Jan 25, 2026, 1:57 PM EST — Market closed.
- Royal Bank of Canada shares finished Friday nearly unchanged, though Monday’s trading might be skewed by a dividend record date.
- Investors are gearing up for the Bank of Canada’s policy decision midweek, a crucial signal ahead of bank earnings.
- RBC’s upcoming quarterly results, due later this February, stand as the next key company catalyst.
Royal Bank of Canada shares enter the week with two key dates that could shake the market: the dividend record date arrives Monday, followed by the Bank of Canada’s rate decision on Wednesday.
This is crucial since bank stocks tend to move with shifts in interest-rate expectations. Even a subtle tweak in central-bank wording can alter outlooks on lending growth and credit risk. It also affects how investors price banks’ earnings on loans compared to their deposit costs.
The timing of Monday’s dividend complicates things. When a stock begins trading without the right to the upcoming payout, its price usually adjusts, which can give the impression of heavy activity on an otherwise quiet day.
RBC’s shares on the Toronto Stock Exchange (RY.TO) edged down 0.04% to C$232.71 on Friday. Across the border, its U.S.-listed stock (RY) gained 0.5%, closing at $169.72. (Yahoo Finance)
A Reuters poll released Friday found economists widely expect the Bank of Canada (BoC) to keep its key overnight rate steady at 2.25% on Jan. 28, with most predicting no changes through 2026. Avery Shenfeld, chief economist at CIBC Capital Markets, noted, “If there’s a risk of a move, it’s more likely a cut than a hike.” (Reuters)
Currency and bond markets helped set the mood for banks. The Canadian dollar notched its largest weekly gain since May, while Canada’s 10-year yield climbed to roughly 3.44%, according to Reuters. Aaron Hurd, a senior portfolio manager at State Street Global, remarked, “I’d call it (U.S.) dollar weakness, not Canadian dollar strength.” (Reuters)
RBC announced its board has increased the quarterly common-share dividend by 10 Canadian cents, bringing it to C$1.64 per share. The payout will be made on or after Feb. 24 to shareholders recorded by the close of business on Jan. 26. (RBC)
The week kicks off with a market still riding the momentum from commodities and headlines. Canada’s main stock index hit a record high on Friday, buoyed by gold reaching new peaks and oil surging sharply, Reuters noted. Doug Porter, chief economist at BMO Capital Markets, remarked: “Few have been better able to ignore the noise than Canada’s equity market.” But a flip in commodity prices or a fresh surge in trade or geopolitical tensions could quickly curb risk appetite — a setup that typically weighs on bank shares. (Reuters)
RBC’s first-quarter report is set for Feb. 26 at 8:30 a.m. ET — the next major company event. Investors will focus on credit costs and whether trading and investment-banking revenue stayed strong through the end of the year. (RBC)
