Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Royal Bank of Canada and CIBC reported fiscal third-quarter 2026 results Thursday morning before the market open, with both banks topping Investing.com consensus estimates on adjusted earnings. RBC posted adjusted diluted earnings per share of $4.28 versus consensus of $4.04, while CIBC delivered adjusted diluted EPS of $2.73 versus consensus of $2.50.
The results cover the three months ended July 31, 2026. RBC and CIBC are the fourth and fifth of Canada’s Big Six banks to report this week, following BMO and Scotiabank Tuesday and National Bank Wednesday. According to Investing.com, every Big Six bank had exceeded consensus for four consecutive quarters heading into this week.
RBC Net Income Rises 11% to $6.0 Billion
RBC reported net income of $6.0 billion for the quarter ended July 31, 2026, up $610 million or 11% from the prior year, which the bank called a record. Diluted EPS of $4.23 increased 13% over the same period, while adjusted diluted EPS of $4.28 beat the Investing.com consensus of $4.04 by $0.24.
Total revenue of $18.54 billion exceeded the $18.07 billion consensus and compared to $16.99 billion in the prior year. The bank’s return on equity reached 17.9%, up 60 basis points year over year.
Segment performance was led by Wealth Management, Capital Markets and Commercial Banking. Wealth Management posted net income of $1.44 billion, up 32% from the prior year, driven by higher fee-based client assets reflecting market appreciation and net sales. Capital Markets delivered $1.54 billion, up 16%, while Commercial Banking reported $936 million, up 12%. Personal Banking came in at $1.92 billion, down 1% as higher net interest income was offset by higher non-interest expense and provision for credit losses, and Insurance net income fell 20% to $197 million on a lower insurance service result.
Provision for credit losses totalled $1.00 billion for the quarter, up $119 million or 14% year over year, mainly reflecting higher provisions in Capital Markets and Personal Banking, partially offset by lower provisions in Commercial Banking. The bank’s CET1 ratio stood at 13.5% at July 31, 2026, unchanged from the prior quarter.
“Across the globe, Team RBC continues to raise the bar to deliver exceptional, record results,” said Dave McKay, President and Chief Executive Officer of Royal Bank of Canada. “Our third quarter earnings showcase the strength of our diversified business and our robust balance sheet.”
RBC returned $4.0 billion to shareholders in the quarter, including $1.6 billion of share buybacks and $2.4 billion of common share dividends. The bank declared a quarterly common share dividend of $1.76 per share, payable on or after November 24, 2026, to shareholders of record October 26, 2026.
CIBC Beats Despite Caribbean Sale Charge
CIBC reported adjusted diluted EPS of $2.73, beating the Investing.com consensus of $2.50 by $0.23. Reported diluted EPS of $2.47 was slightly below the $2.50 consensus because of items of note totalling $0.26 per share, primarily $269 million ($232 million after-tax) in charges related to the announced sale of CIBC Caribbean Bank Limited.
Revenue of $8.37 billion exceeded the $8.02 billion consensus and increased 15% from the prior year. Adjusted net income of $2.65 billion rose 26% year over year, while the bank’s adjusted return on equity reached 16.8%.
Segment results showed strength across the bank. Capital Markets posted net income of $722 million, up 34% from the prior year, driven by higher revenue and lower provision for credit losses. U.S. Commercial Banking and Wealth Management reported $320 million, up 23% in U.S.-dollar terms, reflecting lower provision for credit losses and higher revenue. Canadian Personal and Business Banking delivered $948 million, up 17%, while Canadian Commercial Banking and Wealth Management came in at $619 million, up 4%.
The bank’s net interest margin on average interest-earning assets stood at 1.63% versus 1.58% in the prior year. Provision for credit losses totalled $564 million, up $5 million from the same quarter last year, according to the bank’s release. CIBC’s CET1 ratio was 13.4% at July 31, 2026, compared with 13.6% at the end of the prior quarter.
“We continue to accelerate the execution of our strategy, driving another quarter of strong financial results including double-digit growth in net income and a higher return on equity compared to a year ago,” said Harry Culham, CIBC President and Chief Executive Officer.
CIBC declared a quarterly common share dividend of $1.07 per share for the quarter ending October 31, 2026, payable October 28, 2026, to shareholders of record September 28, 2026.
Earnings Week So Far
All three banks that reported earlier this week topped consensus estimates on an adjusted basis. BMO and Scotiabank both beat on Tuesday, while National Bank topped estimates Wednesday.
On Wednesday, the S&P/TSX Composite closed at 36,814, down 143.98 points or 0.39%, according to Trading Economics. National Bank fell 4.2% despite reporting third-quarter profit above expectations. RBC gained 0.5% and CIBC added 0.1% on Wednesday.
Stock and Market Data
RBC (TSX: RY): $288.11, up $1.48 or 0.52% at Wednesday’s close; 52-week range $188.54–$306.38; market cap $400.40 billion; P/E ratio 18.73; annual dividend $7.04 (2.49% yield).
CIBC (TSX: CM): $163.82, up $0.10 or 0.06% at Wednesday’s close; 52-week range $100.50–$172.87; market cap $149.54 billion; P/E ratio 16.26; annual dividend $4.28 (2.61% yield).
Data as of August 26, 2026 close. Source: StockAnalysis.
What It Means for Investors
Both banks delivered strong adjusted earnings that topped analyst expectations for the July quarter. RBC’s growth came from Wealth Management, Capital Markets and Commercial Banking, while Personal Banking and Insurance net income declined from a year ago. CIBC’s adjusted results reflected double-digit net income growth despite charges related to the Caribbean divestiture.
If credit quality trends remain stable in the fiscal fourth quarter, that could support earnings momentum into the 2027 fiscal year. For investors evaluating Canadian dividend stocks, provisioning levels and capital returns are the figures to compare across all six banks once TD reports.
What’s Next
TD Bank reports later Thursday morning. The Investing.com consensus calls for EPS of $2.45 on revenue of $15.17 billion. TD’s results were not available when this article was prepared and we will cover them separately.
The Jackson Hole economic symposium runs Thursday through Saturday, hosted by the Kansas City Fed. The Bank of Canada’s next rate decision is Wednesday, September 2.
For the setup heading into the quarter across all six banks, see our Q3 earnings preview.
Ready to invest in Canadian bank stocks? Open a Questrade account to track RBC, CIBC and the rest of the Big Six. Compare features and pricing across Canada’s top investing platforms.
Results for the quarter ended July 31, 2026; market and stock data as of August 26, 2026 close.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Bank results for the quarter ended July 31, 2026; market and stock data as of the August 26, 2026 close.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
