Toronto, Jan 25, 2026, 1:57 PM EST — Market closed.
- Shares of Royal Bank of Canada ended Friday almost flat, but Monday’s session could see movement due to the dividend record date.
- Investors are bracing for the Bank of Canada’s policy announcement midweek, a key indicator before bank earnings reports.
- RBC is set to release its quarterly results later this February, marking the next major company catalyst.
Royal Bank of Canada shares kick off the week facing two critical moments: the dividend record date on Monday and the Bank of Canada’s rate decision set for Wednesday.
This matters because bank shares often react to changes in interest-rate forecasts. A slight change in central-bank language can shift views on lending growth and credit risk. It also influences how investors value banks’ earnings from loans against their deposit expenses.
The timing of Monday’s dividend throws a wrench into the mix. When a stock starts trading ex-dividend, its price typically drops to reflect the payout, often creating the illusion of heavy trading on a day that might otherwise be slow.
RBC’s shares on the Toronto Stock Exchange (RY.TO) slipped 0.04% to close at C$232.71 on Friday. On the U.S. side, the stock (RY) rose 0.5%, finishing the day at $169.72.
A Reuters poll out Friday shows economists overwhelmingly expect the Bank of Canada (BoC) to hold its key overnight rate at 2.25% on Jan. 28, with most forecasting no changes through 2026. Avery Shenfeld, chief economist at CIBC Capital Markets, said, “If there’s a risk of a move, it’s more likely a cut than a hike.” Reuters
Currency and bond markets shaped the tone for banks this week. The Canadian dollar saw its biggest weekly rise since May, while Canada’s 10-year yield edged up to about 3.44%, Reuters reported. Aaron Hurd, a senior portfolio manager at State Street Global, commented, “I’d call it (U.S.) dollar weakness, not Canadian dollar strength.” Reuters
RBC’s board has raised the quarterly common-share dividend by 10 Canadian cents, upping it to C$1.64 per share. The dividend will be paid on or after Feb. 24 to shareholders on record as of the close of business Jan. 26.
Canada’s main stock index closed Friday at a record high, propelled by gold hitting new highs and a sharp rally in oil, Reuters reported. Doug Porter, chief economist at BMO Capital Markets, said, “Few have been better able to ignore the noise than Canada’s equity market.” But any reversal in commodity prices or renewed trade or geopolitical tensions could quickly sap risk appetite—a scenario that usually hits bank shares hard. Reuters
RBC will release its first-quarter report on Feb. 26 at 8:30 a.m. ET, marking the next key event for the company. Investors will zero in on credit costs and check if trading and investment-banking revenue held up late last year.
