Royal Bank of Canada (RY) 2026 RBC Capital Markets Global Financial Institutions Conference summary

Macroeconomic and industry landscape

• Sector faces ongoing volatility from shifting interest rates, economic outlook, and geopolitical events, with resilience and adaptation defining the new normal.

• Integrated North American supply chains, especially under CUSMA, are vital for competitiveness and inflation control, with ongoing negotiations expected to maintain stability.

• Canadian economy shows resilience with 1.5% growth, supported by consumer spending and lower rates, while the U.S. benefits from wealth effects and fiscal stimulus.

• Goods recession persists in North America, impacting central Canada most, but service consumption and job creation remain strong.

• Canada is leveraging energy and resource exports, attracting record FDI and infrastructure investment, with defense spending and dual-purpose projects stimulating growth.

Strategic positioning and growth outlook

• AI is central to strategy, with significant investments expected to yield CAD 700 million–1 billion in bottom-line benefits by year three.

• Organizational changes include appointing a senior leader to oversee AI, ensuring best practices and integration across all business lines.

• Efficiency gains from the HSBC Canada acquisition and AI adoption have driven best-in-class productivity and ROE, with a 17.8% ROE reported.

• Capital allocation prioritizes organic growth and shareholder returns, with no current plans for major acquisitions.

• U.S. and European business units, especially City National, are performing strongly, supporting international growth ambitions.

Technology, disruption, and competitive advantage

• AI and data scale are seen as foundational, with broad deployment across operations, customer service, and product development.

• Incumbents are expected to successfully adopt and integrate challenger technologies, maintaining customer franchise and operational efficiency.

• Brand, customer, data, balance sheet, and operating scale are identified as critical for success in a digital financial landscape.

• The organization is confident in its ability to build or acquire necessary technologies, viewing disruption as an opportunity for improvement.

• Strategic focus remains on leveraging scale and technology to drive growth, efficiency, and shareholder value.