Why Royal bank still drop even the report is positive? Any reason behind that I missed out? Please comment profit result and should be keep or sell for profit?
Many thanks for the advise?
The quarter was fine, and the stock is still up 38% in a year. Selling-on-news does happen. Analysts noted that credit trends were 'slightly' worse than other banks, but hardly concerning. Royal Bank of Canada reaffirmed its fiscal 2026 targets after a strong quarter, particularly in Personal banking, while remaining cautious on balance sheet growth. A stable net interest margin, aided by mix shift, will be key to support its mid-single-digit nontrading net interest income gain goal amid slower mortgage growth, which could be in the low- to mid-single digits, and commercial loan expansion now expected at the low end of mid- to high-single digits. Keeping expense growth in the mid-single digits, even as the bank invests C$1 billion annually in technology, should support positive operating leverage. City National Bank showed momentum. Provisions are likely to remain elevated but within guidance, as the impaired provision ratio rose to 40 bps, above the goal to stay near 2025's 37 bps. We would be fully comfortable owning/buying RY.