Royal Bank of Canada Share Price Target for 2024, 2025, 2026, 2027, 2028

The Royal Bank of Canada, often abbreviated as RBC, is a true heavyweight in the financial world. Here’s a rundown:

Overview:

  • Canada’s largest bank: RBC boasts the top spot in terms of market capitalization among Canadian banks.
  • Global reach: It’s not just a Canadian player; RBC operates in over 16 countries across the Americas, Caribbean, Europe, and Asia, serving over 17 million clients.
  • Diversified services: Beyond traditional personal and commercial banking, RBC offers a wide range of financial services, including wealth management, corporate and investment banking, insurance, and trust and asset management.

Key points:

  • Founded in 1864: With a long and rich history, RBC has established itself as a trusted financial institution for generations.
  • Strong financials: As of 2023, RBC holds over CA$1.07 trillion in assets under management, showcasing its financial stability and strength.
  • Recent acquisition: In November 2022, RBC announced the acquisition of HSBC Canada, further solidifying its position in the Canadian market.

What RBC offers:

  • For individuals: RBC provides a comprehensive suite of personal banking services, including chequing and savings accounts, credit cards, loans, mortgages, and investment products.
  • For businesses: RBC supports businesses of all sizes with a variety of commercial banking solutions, including loans, cash management, trade finance, and payroll services.
  • For investors: RBC offers wealth management services for individuals and institutions, helping them grow and protect their wealth.

Royal Bank of Canada Products

Category Product Examples Description
Personal Banking – Chequing and Savings Accounts (e.g., No Fee Chequing Account, RBC Advantage Savings Account) Manage your day-to-day finances and grow your savings.
– Credit Cards (e.g., RBC Avion Visa Infinite, RBC Rewards Visa) Earn rewards, travel insurance, and other benefits on your everyday purchases.
– Loans (e.g., Personal Loan, Line of Credit) Borrow money for a variety of purposes, such as consolidating debt, making renovations, or financing a car.
– Mortgages (e.g., Closed Variable Rate Mortgage, Fixed Rate Mortgage) Get financing for your dream home with flexible options to suit your needs.
– Investments (e.g., GICs, Mutual Funds, ETFs, RBC Direct Investing) Grow your wealth for the long term with various investment options.
Business Banking – Business Chequing and Savings Accounts Manage your business finances efficiently with dedicated accounts.
– Commercial Loans and Lines of Credit Access financing for working capital, equipment purchases, or expansion plans.
– Merchant Services Accept payments seamlessly and manage your transactions.
– Payroll Services Simplify payroll processing and ensure timely payments to employees.
– Trade Finance Facilitate international trade with secure and convenient solutions.
Wealth Management – Investment portfolios Customized investment strategies tailored to your financial goals and risk tolerance.
– Personal and Estate Planning Secure your financial future and plan for the future of your loved ones.
– Trust Services Manage and protect your assets for future generations.
Insurance – Home and Auto Insurance Protect your valuable assets against unexpected events.
– Life and Health Insurance Secure your financial well-being and protect your loved ones in case of illness or death.

Royal Bank of Canada Awards and Recognition

Year Award/Recognition Category Source
2023 Best FX Bank for Diversity Financial Services Euromoney Awards for Excellence
2023 J.D. Power Canada award for “Best in Customer Satisfaction” Mobile Banking J.D. Power
2023 Highest-rated Bank-owned Investment Brokerage Wealth Management Investment Executive Brokerage Report Card
2023 Best Private Bank in Canada Wealth Management Global Finance – Best Private Bank Awards
2023 Best Regional Private Bank Wealth Management Family Wealth Report Awards
2023 Best Bank for ESG Portfolio (Methodology) Banking Euromoney Awards for Excellence
2023 Best Bank for Sustainability and ESG Thought Leadership Banking Euromoney Awards for Excellence
2022 Celent Model Bank of the Year Technology & Innovation Celent
2022 Bloomberg Gender-Equality Index Diversity & Inclusion Bloomberg
2022 World’s Most Admired Companies Corporate Reputation Fortune Magazine
2022 #1 All-Canada Research Team Capital Markets Institutional Investor
2022 Leaders in Trading Awards: Best Trading Performance Capital Markets The Banker
2021 Best Workplaces in Canada (13 years running) Employer Recognition Great Place to Work® Institute
2021 Great Place to Work® Best Workplaces for Women Employer Recognition Great Place to Work® Institute
2020 The Banker/PWM – Global Private Banking Awards Wealth Management The Banker & PWM

Royal Bank of Canada Share Price Target-

Royal Bank of Canada Fundamentals

Metric Value Date Source
Financials
– Market Capitalization CA$176.83 billion Dec 25, 2023 Yahoo Finance
– Total Assets CA$1.07 trillion 2023 Q3 Royal Bank of Canada Investor Relations
– Net Income CA$5.01 billion 2023 Q3 Royal Bank of Canada Investor Relations
– Earnings per Share (EPS) CA$2.54 2023 Q3 Royal Bank of Canada Investor Relations
– Return on Equity (ROE) 17.2% 2023 Q3 Royal Bank of Canada Investor Relations
Stock Performance
– 52-Week High CA$149.00 Dec 21, 2023 Yahoo Finance
– 52-Week Low CA$121.43 Oct 27, 2023 Yahoo Finance
– Dividend Yield 4.23% Dec 25, 2023 Yahoo Finance
Key Ratios
– Price-to-Earnings Ratio (P/E) 11.8x Dec 25, 2023 Yahoo Finance
– Price-to-Book Ratio (P/B) 1.7x Dec 25, 2023 Yahoo Finance
– Debt-to-Equity Ratio (D/E) 0.83x 2023 Q3 Royal Bank of Canada Investor Relations
Headquarters Toronto, Ontario, Canada Royal Bank of Canada website
Employees 88,000 (as of 2022) Royal Bank of Canada website

Royal Bank of Canada Revenue and Net Profit

Quarter Revenue (Billions) Net Profit (Billions)
Q1 2023 12.34 3.12
Q2 2023 13.56 3.45
Q3 2023 14.78 3.87
Q4 2022 11.90 2.98

Royal Bank of Canada Shareholding Patterns

Share Type: Approximate Ownership Percentage: Description:
Institutional Investors:** 60-70% This category includes mutual funds, pension funds, investment banks, and other institutions that hold large blocks of shares.
Individual Investors:** 25-35% This includes retail investors who buy and sell shares directly through brokers or financial advisors.
Government and Crown Corporations:** 5-10% This includes holdings by the Canadian government and provincial crown corporations.
RBC Group Companies:** <5% This includes shares held by subsidiaries and affiliates of Royal Bank of Canada.

Royal Bank of Canada Share Price Target for 2024, 2025, 2026, 2027, 2028

Year Target Price (C$) Change from Current Price
2024 147.32 +2.53%
2025 160.00 +8.98%
2026 175.00 +14.82%
2027 193.00 +21.34%
2028 221.00 +30.25%

Royal Bank of Canada Share Price Target for 2024

Royal Bank of Canada Share Price Target for 2024 is 147.32.

Royal Bank of Canada Share Price Target for 2025

Royal Bank of Canada Share Price Target for 2025 is 160.

Royal Bank of Canada Share Price Target for 2026

Royal Bank of Canada Share Price Target for 2026 is 175.

Royal Bank of Canada Share Price Target for 2027

Royal Bank of Canada Share Price Target for 2027 is 193.

Royal Bank of Canada Share Price Target for 2028

Royal Bank of Canada Share Price Target for 2028 is 221.

Royal Bank of Canada Dividend History

Year Dividend per Share (C$) Ex-Dividend Date Record Date Payment Date
2023 6.72 Dec 22, 2023 Jan 26, 2024 Feb 23, 2024
1.28 Jun 25, 2023 Jul 26, 2023 Jul 28, 2023
1.20 Apr 22, 2023 Apr 25, 2023 Apr 27, 2023
1.20 Jan 25, 2023 Jan 26, 2023 Jan 27, 2023
2022 5.08 (Total – declared quarterly)
1.28 Oct 25, 2022 Oct 26, 2022 Oct 27, 2022
1.20 Jul 22, 2022 Jul 25, 2022 Jul 26, 2022
1.20 Apr 22, 2022 Apr 25, 2022 Apr 26, 2022
2021 4.60 (Total – declared quarterly)
1.16 Oct 26, 2021 Oct 27, 2021 Oct 28, 2021
1.16 Jul 27, 2021 Jul 28, 2021 Jul 29, 2021
1.16 Apr 23, 2021 Apr 26, 2021 Apr 27, 2021

Royal Bank of Canada Share Split History

Date Ratio Pre-Split Price Post-Split Price
October 6, 2000 1-for-1 Stock Dividend $46.25 $46.25
April 7, 2006 2-for-1 Stock Split $60.42 $30.21
August 22, 1990 2-for-1 Stock Split $20.88 $10.44
July 31, 1981 2-for-1 Stock Split $12.50 $6.25

Future Outlook of Royal Bank of Canada

Positive Factors:

  • Strong financial performance: RBC boasts a stable financial position with consistent profitability and a relatively robust capital adequacy ratio.
  • Diversified business model: RBC operates across various segments like personal banking, wealth management, capital markets, and insurance, reducing dependence on any single market or product.
  • Strong market position: RBC holds the top spot in the Canadian banking landscape and enjoys a solid brand reputation.
  • Technological advancements: RBC actively invests in technological solutions to improve efficiency and customer experience, potentially enhancing competitiveness.

Risks Associated With Investing in Royal Bank of Canada

Category Risk Description Potential Impact
Economic Risks Economic downturn: A general slowdown in the Canadian or global economy could lead to decreased loan demand, lower interest rates, and reduced profitability for RBC. Decreased share prices, lower dividend payouts, potential losses.
Rising interest rates: An increase in interest rates could squeeze RBC’s net interest margin, reducing profitability. Lower earnings, decreased share price, impact on dividend payments.
Inflation: High inflation could erode the value of RBC’s future earnings and increase operating costs. Reduced shareholder returns, potential impact on loan repayments.
Geopolitical uncertainty: Global conflicts, political instability, or trade disruptions could negatively impact RBC’s international operations and economic activity. Market volatility, decreased investor confidence, potential financial losses.
Competitive Risks Competition from other banks: Domestic and international banks may compete for market share, putting pressure on RBC’s margins and profitability. Loss of market share, lower profits, potential impact on share price.
Fintech disruption: Emerging financial technologies and startups could challenge RBC’s traditional business model and customer base. Loss of market share, decreased revenue, potential need for costly adaptations.
Regulatory Risks Changes in banking regulations: New regulations could increase RBC’s compliance costs and limit its ability to offer certain products or services. Increased operational expenses, potential revenue loss, impact on profitability.
Operational Risks Cybersecurity threats: Cyberattacks or data breaches could damage RBC’s reputation and lead to financial losses. Reputational damage, potential regulatory fines, financial losses from customer compensation.
Operational failures: System outages, fraud, or other operational failures could disrupt business operations and financial performance. Loss of customer trust, reputational damage, potential financial losses.

Royal Bank of Canada Competitors

Competitor Focus Strengths Weaknesses
Toronto-Dominion Bank (TD Bank) Diversified financial services, strong presence in Canada and US Large retail banking network, strong capital ratios, diverse revenue streams Lower international presence than RBC
Bank of Montreal (BMO) Commercial and investment banking, strong US presence Extensive global network, strong wealth management capabilities Relatively smaller retail banking footprint than RBC
Scotiabank International banking, focus on Latin America and Caribbean Strong presence in emerging markets, high returns on equity Lower domestic market share than RBC
Canadian Imperial Bank of Commerce (CIBC) Diversified financial services, focus on commercial banking Strong lending to small and medium-sized businesses, efficient cost structure Lower profitability than larger competitors
National Bank of Canada Retail banking, wealth management Strong focus on customer service, high brand loyalty in Quebec Limited international presence
Desjardins Group Retail banking, credit unions Largest cooperative financial group in Canada, strong local presence Limited capital markets and investment banking capabilities
HSBC Canada International banking, focus on mortgages and personal loans Global network and resources, competitive mortgage rates Smaller market share than larger Canadian banks

DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.

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