Royal Bank of Canada Announces Share Repurchase and Dividend Increase

TORONTO, May 29, 2025 — Royal Bank of Canada (RY), a leading diversified financial services company, has announced a strategic move to repurchase up to 35 million of its common shares. This decision, pending approval from the Toronto Stock Exchange (TSX) and the Office of the Superintendent of Financial Institutions (OSFI), underscores the bank’s confidence in its financial health and commitment to delivering shareholder value.

The share repurchase initiative is part of a broader strategy to optimize capital allocation and enhance shareholder returns. This move comes on the heels of the bank’s declaration of an increased quarterly dividend, signaling robust financial performance and a positive outlook.

Dividend Increase

Royal Bank of Canada’s board of directors has declared a dividend increase of six cents per share, representing a four percent rise to $1.54 per share. This dividend will be payable on or after August 22, 2025. The increase reflects the bank’s strong earnings performance and its commitment to returning value to shareholders.

Second Quarter 2025 Results

In its second quarter 2025 results, Royal Bank of Canada reported a profit increase, although it fell short of market expectations. The results, compliant with International Accounting Standard 34 Interim Financial Reporting, highlight the bank’s resilience and adaptability in a dynamic financial landscape.

Despite missing estimates, the bank’s performance remains robust, with a market capitalization of CAD 249.04 billion and a close price of 178.6 CAD as of May 27, 2025. The price-to-earnings ratio stands at 13.9298, indicating a balanced valuation in the context of its industry peers.

Market Reaction and Outlook

The announcement of the share repurchase and dividend increase has been well-received by the market, reflecting investor confidence in the bank’s strategic direction. Analysts anticipate that these measures will bolster the bank’s stock performance and enhance its competitive position in the financial sector.

As Royal Bank of Canada continues to navigate the complexities of the global financial environment, its focus on strategic capital management and shareholder returns positions it well for sustained growth and success.

For more information on Royal Bank of Canada’s services and financial performance, visit their website at www.rbc.com .