CA - How Royal Bank Of Canada Thrives Amid Rising Rates And Banking Mergers

2024-05-11 07:20:53 ET

Summary

• Royal Bank of Canada (RY) has a diversified business model and is expected to continue its recent growth.
• RY's net interest income (NII) is growing due to high interest rates and the difference in growth between deposits and loans.
• RY's non-interest income, particularly from its wealth management division, provides stability and potential for growth.

Royal Bank of Canada (NYSE: RY ) is a financial services company that spans globally. RY holds the largest market share in Canada and takes the 10th largest fees by an investment bank globally. RY has diversified revenue streams through its Wealth Management, Personal and Commercial Banking, and Capital Markets businesses. Graph 1, below, shows RY with a relatively steady performance over the last 5 years; however, the stock is up about 22% in the past 6 months. The stock reached its all-time high of $ 117.33 USD on January 14, 2022. Currently, on April 30, 2024, the stock is trading about 1,700bps below this mark at $ 97.38 USD with a market cap of $137.76 billion USD....

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