Royal Bank of Canada Sells Moneris Stake for $1 Billion
The bank returned $3.1 billion to shareholders in the third quarter as net income rose 23% to $5.4 billion [18][19][31].
Royal Bank of Canada (RY) announced an agreement to sell its 50% share of Moneris Solutions Corporation for approximately $1 billion. The transaction, which represents half of a $2 billion total consideration, is expected to close by the end of the first quarter of fiscal 2027.
Net income for the third quarter of 2025 rose 23% from the prior quarter and 21% year-over-year to $5.4 billion. Return on equity increased 310 bps sequentially and 180 bps year-over-year to 17.3%.
Credit costs declined as total provisions for credit losses decreased 38% sequentially to $881 million. The PCL on loans ratio fell 23 bps from the prior quarter to 35 bps, driven by lower provisions on performing loans compared to the impact of tariffs and trade disruptions in the previous period.
Personal Banking net income rose 21% sequentially and 22% year-over-year. Growth was driven by higher net interest income resulting from higher spreads and an average volume increase of 3% in Canada. Commercial Banking net income increased 40% sequentially, supported by lower PCL and higher net interest income from a three-day calendar effect and higher spreads.
Non-interest revenue streams also expanded. Wealth Management net income increased 18% sequentially on higher fee-based revenue from net sales and market appreciation. Capital Markets net income rose 10% sequentially, primarily due to higher debt and equity origination and increased fixed income trading revenue in the U.S..
The bank returned $3.1 billion to shareholders through buybacks and common share dividends during the quarter. The CET1 ratio remained unchanged from the prior quarter at 13.2% as of July 31, 2025.