06:26 AM EDT, 08/27/2025 (MT Newswires) -- (Adds in third paragraph that adjusted diluted EPS and revenues for Q3 easily beat FactSet forecasts)

Royal Bank of Canada ( RY ) (RY.TO, RY) was at last look up 1.7% in US pre-market trade Wednesday as it reported higher earnings for the third quarter, reflecting "strong growth across each of our business segments".

For Q3, RBC reported record net income of $5.4 billion for the quarter ended July 31, up $928 million or 21% from the prior year. Diluted EPS was $3.75, up 21% over the same period.

Adjusted net income and adjusted diluted EPS of $5.5 billion and $3.84 were up 17% and 18%, respectively, from the prior year. The $3.84 is up from $3.26 a year earlier, and easily beat a FactSet forecast of $3.31. Total revenue of $16.99 billion compared to a FactSet estimate of $16.05 billion.

RBC said record pre-provision, pre-tax earnings of $7.8 billion were up $1.7 billion or 29% from last year, mainly due to higher revenue in Capital Markets driven by strength across Corporate & Investment Banking and Global Markets and higher net interest income in Personal Banking and Commercial Banking reflecting strong average volume growth and higher spreads in Personal Banking. Higher fee-based revenue in Wealth Management reflecting market appreciation and net sales also contributed to the increase. These factors were partially offset by higher variable compensation commensurate with increased results, and continued investments in talent and technology across our businesses, the bank added.

RBC said consolidated results reflect an increase in total PCL of $222 million from a year ago, mainly reflecting higher provisions in Capital Markets, Commercial Banking and Personal Banking, partly offset by releases in Wealth Management in the current quarter. The PCL on loans ratio of 35 bps increased 8 bps from the prior year.

RBC added its capital position remains "robust", with a CET1 ratio of 13.2%, supporting solid volume growth and $3.1 billion of capital returned to shareholders through common share dividends and share buybacks.

The board declared a quarterly common share dividend of $1.54 per share, payable on or after November 24, 2025, to common shareholders of record at the close of business on October 27, 2025.

"We saw strong growth across each of our business segments reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management," said Dave McKay, President and Chief Executive Officer.

Shares in RBC rose $1.51 or 0.8% to near 52 week highs on the TSX yesterday.