Royal Bank of Canada (RY): Business Model Canvas [Dec-2025 Updated]

You're looking to map out the core engine of the Royal Bank of Canada as of late 2025, and honestly, it's a story of sheer, diversified might, especially now that they've integrated HSBC Canada. This isn't just a big bank; it's a financial behemoth sitting on over $1.621 Trillion in assets, maintaining a rock-solid 13.5% CET1 ratio while aggressively deploying AI tools like RBC Assist. They pull in $66.6 billion in revenue by balancing everything from mass-market retail to global capital markets, all while managing a $4.36 billion provision for credit losses. Want to see the nine pieces that make this complex machine tick? Keep reading below.

Royal Bank of Canada (RY) - Canvas Business Model: Key Partnerships

You're looking at the network Royal Bank of Canada builds to keep its engine running, which is key to understanding its competitive edge right now. These aren't just casual vendor relationships; they're strategic alliances that drive innovation and market share. Honestly, the depth of these partnerships is what separates the leaders from the laggards in big banking today.

NVIDIA for AI tool development (RBC Assist)

The collaboration with NVIDIA and Red Hat is building out a serious computational backbone. This private cloud infrastructure, using NVIDIA's DGX AI systems, lets Royal Bank of Canada run thousands of simulations and crunch millions of data points in real time. That speed translates directly into better algorithmic trading and risk modeling. Royal Bank of Canada's in-house AI research, Borealis AI, has developed tools like ATOM and Lumina, which are powered by this infrastructure.

The internal deployment of generative AI is already substantial. Here's the quick math on the rollout of their internal tool:

The market is definitely noticing this focus; Royal Bank of Canada's stock outperformed peers by 15% in 2025, reflecting investor belief in this AI-first strategy. What this estimate hides is the ongoing investment cost, but the bank announced an intention to create up to C$1 billion ($730 million) in enterprise value by 2027 from these AI initiatives. That's a big number to chase.

Extensive roster of retail partners for Avion Rewards loyalty program

The Avion Rewards program is a massive consumer engagement tool, and its strength lies in its breadth. It's Canada's largest proprietary loyalty program, and anyone can join, not just Royal Bank of Canada clients. This wide reach helps keep the bank top-of-mind across the entire shopping journey.

The program's scale is impressive, especially considering its recent accolades:

• Program recognized as '2025 International Loyalty Program of the Year The Americas' for the third consecutive year.
• Provides redemption options with more than 2,000 retail partners.
• Offers linked card benefits with major retailers like Canadian Tire (earning 3X CT Money) and others.
• Members can earn 5x more Be Well points at participating locations.

To be fair, the success of this program feeds back into customer acquisition and retention across all segments.

Global financial institutions for Capital Markets co-mandates

In Capital Markets, partnerships are about co-advising on the biggest deals globally. Royal Bank of Canada is strategically shifting to win larger mandates, and the results from Q2 2025 show this is working. Investment banking revenue specifically jumped 26% year-over-year due to higher M&A activity. Also, Global Markets revenue saw a solid 30% increase from the prior year.

The asset management side also shows the scale of their global reach through these relationships:

• Assets under management in RBC Global Asset Management hit $794 billion (Q2 2025).
• This represented a 17% increase year-over-year.
• The bank posted a strong Return on Equity of 16.8% for the quarter.

These figures suggest that their positioning in technology, energy, power, utility, and infrastructure teams is securing mandates alongside global peers.

Fintech firms for specialized digital service integration

The blurring lines between traditional banking and fintech mean these partnerships are critical for staying current. Royal Bank of Canada is actively integrating specialized digital services to meet rapidly evolving customer expectations. You can see this in their mobile engagement metrics, which show a clear shift in client behavior.

The adoption of digital channels has been significant:

• Active mobile users increased by 69% compared to pre-pandemic levels.
• Mobile sessions increased by 139% compared to pre-pandemic levels (as of early 2025).

While the search didn't provide a specific dollar amount for a single fintech integration, the overall environment shows massive activity; for context, investments in Canadian fintech hit a record US$7.8 billion in the first half of 2024. Royal Bank of Canada's 'RBC Go Digital' initiative explicitly points to leveraging these technology services to support business digital transformation.

Finance: draft the Q3 2025 partnership ROI analysis by next Tuesday.

Royal Bank of Canada (RY) - Canvas Business Model: Key Activities

You're looking at the core engine of Royal Bank of Canada, the activities that actually generate the returns you see in the financial statements. It's about managing a massive, complex operation across distinct lines of business while simultaneously integrating a major acquisition and pushing hard on technology. Here's the quick math on what they've been doing to drive performance as of late 2025.

Managing a diversified portfolio across five core segments

Royal Bank of Canada's diversified model is defintely a key activity, allowing strength in one area to cushion weakness elsewhere. For the full fiscal year ended October 31, 2025, the bank reported record net income of $20.4 billion, which was up 25% from the prior year. Diluted Earnings Per Share (EPS) followed suit, landing at $14.07, also up 25%. This diversified strength is clear when you look at the segment-level earnings growth for the full year 2025:

Even in the fourth quarter of 2025, net income hit a record $5.4 billion, marking a 29% jump year-over-year, showing momentum carried right through the year-end.

Integrating HSBC Canada operations and achieving synergies

A major operational focus has been the full absorption of HSBC Bank Canada. The full-year 2025 results actually include the impact of five additional months of results from this acquisition, meaning the integration is substantially complete from a reporting perspective. The initial plan targeted approximately $740 million in fully realized annual pre-tax expense synergies, based on HSBC Canada's estimated 2024 non-interest expense base. To be fair, some analysts suggest the bank is exceeding that $740 million cost synergy target, while also aiming for $300 million in revenue synergies by 2027. The total acquisition and integration costs were approximately $1 billion.

Global capital markets and investment banking advisory

The Capital Markets segment is a significant value driver, with its U.S. franchise accounting for more than half of the unit's revenues. This activity was red-hot in the fourth quarter of 2025; Global Markets revenues specifically were up 30% from the prior year, driven by fixed income trading. Corporate and Investment Banking revenue also saw a strong increase of 18% year-over-year for the full year 2025. This area is about executing large advisory mandates and capitalizing on market volatility.

Developing and deploying Artificial Intelligence (AI) for productivity

Royal Bank of Canada is treating AI as a core strategic activity, not just a side project. The bank is currently investing over $5 billion in technology to accelerate innovation, with a specific AI ambition to generate between $700 million to $1 billion in enterprise value from AI-driven benefits by 2027. This isn't just theoretical; the bank ranks third out of 50 global financial institutions for AI maturity in the 2025 Evident AI Index. In Capital Markets, an AI-powered platform named Aiden helps with various business aspects, and automation has reclaimed thousands of analyst hours annually, letting staff focus on client interaction.

• Ranked #1 in Canada for AI maturity in 2025.
• Achieved the global #1 spot in AI talent development.
• Reported productivity gains of 20%-30% in coding/development elsewhere in the sector.

Prudent risk management and regulatory compliance

Maintaining a strong capital buffer is a non-negotiable activity. Royal Bank of Canada finished the fiscal year 2025 with a Common Equity Tier 1 (CET1) ratio of 13.5%, which is well above regulatory minimums and supports solid volume growth. This strong capital position allowed the bank to return $11.3 billion to shareholders through dividends and buybacks during 2025. Furthermore, the bank signaled confidence by increasing its quarterly dividend by $0.10, or 6%, and setting a new Return on Equity (ROE) financial objective of 17%+ for fiscal 2026. On the credit risk side, the Provision for Credit Losses (PCL) on impaired loans ratio for the year was 37 bps, an increase of 9 bps year-over-year.

Finance: draft 13-week cash view by Friday.

Royal Bank of Canada (RY) - Canvas Business Model: Key Resources

You're looking at the core assets that power Royal Bank of Canada (RY) right now, late in 2025. These aren't just line items; they are the engine room for their operations across Canada and globally. Honestly, the scale is what hits you first.

The foundation of Royal Bank of Canada's strength rests on a massive balance sheet and a highly disciplined capital structure. This allows them to absorb shocks and continue investing, which is key in this economic climate. Here's a look at the hard numbers defining those resources as of the end of fiscal 2025:

The human capital is substantial, supporting a vast client base. You can see the global footprint reflected in the employee count, which is definitely a resource in itself for service delivery.

• Global Employees: Over 100,000 people worldwide, driving operations as of October 31, 2025.
• Canadian Client Base: Serves approximately ~15 million clients in Canada.
• Global Client Base: Serves more than 19 million clients worldwide.

Market position in the home market is perhaps the most critical tangible resource, providing stable funding and high-volume business. They have established dominance across several core areas in Canada, which is hard for competitors to crack.

The leadership in Canadian banking translates directly into stable funding sources and strong lending pipelines. Here's where they lead:

• Commercial Banking: Number one in market share for commercial loans and deposits in Canada.
• Personal Banking: Number one ranking in market share for all key retail products, including Personal Core Deposits and Guaranteed Investment Certificates (GICs).

The Wealth Management franchise is another powerhouse, managing significant client assets globally. While the total AUA is stated as $2.3 trillion in the outline, the segment data shows the depth of this resource:

The firm's Wealth Management segment is a leading global player, with specific rankings that underscore its resource strength in fee-based income generation:

• Largest full-service wealth advisory business in Canada.
• 6th largest full-service wealth advisory firm in the U.S. based on AUA.
• 5th largest wealth manager in the U.K. as measured by AUA.

The capital base itself is a resource that signals stability. The CET1 ratio of 13.5% as of year-end 2025 is well above regulatory minimums, showing a strong buffer against unexpected losses. Also, note the sheer size of the balance sheet-CAD 2.2 Trillion in assets-which provides the necessary scale to compete globally in Capital Markets and Transaction Banking.

Finance: Review the Q1 2026 capital plan presentation deck by end of January.

Royal Bank of Canada (RY) - Canvas Business Model: Value Propositions

Comprehensive, integrated financial services (OneRBC approach)

Royal Bank of Canada provides a full suite of services across its diversified business model, which includes Personal Banking, Wealth Management, Capital Markets, and Commercial Banking. The integration of these segments is a core value proposition, exemplified by RBC Insurance being an integral part of the OneRBC model, working alongside Canadian Wealth Management and Personal Banking to deliver combined wealth and insurance solutions. The bank's overall scale supports this, reporting total assets exceeding $1.621 Trillion as of July 2025. The fiscal 2025 Return on Equity (ROE) reached 16.3%, reflecting the performance derived from this integrated approach.

Global banking capabilities for internationally-connected clients

Royal Bank of Canada serves over 19 million clients across Canada, the U.S., and 27 other countries. The bank aims to be the preferred partner for institutional, corporate, commercial, and high-net-worth clients in the United States, while in select global financial centres, it strives to be a leading partner valued for its expertise. The Capital Markets segment saw Global Markets revenue increase 30 percent from the prior year in Q4 2025, driven by higher fixed income trading across all regions. The bank maintains a robust capital base, evidenced by a Common Equity Tier 1 (CET1) ratio of 13.5% in Q4 2025, well above regulatory minimums.

Market leadership in Canadian banking products and services

A primary strategic goal for Royal Bank of Canada is to be the undisputed leader in financial services in Canada. This leadership is supported by strong operational metrics within its core domestic segment. For instance, in Q4 2025, Personal Banking Canada reported net income up 20 percent year-over-year, supported by an efficiency ratio improvement to 38.4%. The bank's loan to deposit ratio in Canadian banking improved to 97%, helping fund loan growth efficiently.

Dedicated private wealth advisory for High-Net-Worth clients

Royal Bank of Canada's Wealth Management division offers dedicated services for High-Net-Worth (HNW) clients. RBC Wealth Management is recognized as North America's best private bank for HNW customers, holding the number one market share for HNW assets in its home market. The firm's global Assets Under Administration (AUA) reached US$3.65 trillion as of July 31, 2025. In Canada, RBC Family Office Services provides tax, estate, and financial planning expertise, utilizing a team of over 200 lawyers, accountants, will and estate consultants, and other specialists. The Q3 2025 revenue for all wealth businesses was CA$5.5 billion, with non-interest expenses at CA$4.2 billion.

Here's a look at the scale of the wealth operations:

• Global Assets Under Administration (AUA) as of July 31, 2025: US$3.65 trillion
• RBC Family Office Services team size (Canada): Access to over 200 professionals
• Q3 2025 Wealth Management Revenue (All businesses): CA$5.5 billion
• Q3 2025 Wealth Management Non-Interest Expenses (All businesses): CA$4.2 billion

Commission-free ETF trading on RBC Direct Investing

Royal Bank of Canada enhanced its value proposition for self-directed investors by introducing commission-free ETF trading. RBC Direct Investing offers a curated selection of over 50 commission-free ETFs, including popular iShares funds. This move contrasts with its previous standard fee structure. Furthermore, as of August 1, the bank eliminated its quarterly account maintenance fee regardless of account size.

You can see the fee structure shift below:

The platform remains a major player, with clients actively trading, as seen by the top bought ETFs in November 2025, such as the iShares Core Equity ETF Portfolio.

Royal Bank of Canada (RY) - Canvas Business Model: Customer Relationships

You're looking at how Royal Bank of Canada builds and keeps its client base across its diverse operations as of late 2025. It's a mix of high-touch personal service and scaled digital tools, which is key for a bank of this size.

Dedicated relationship managers for commercial and corporate clients

For mid-market corporations, Royal Bank of Canada's Corporate Client Group deploys dedicated Relationship Managers. These managers focus on a modest portfolio of Mid-market companies that have revenues greater than $100 million. This dedicated coverage model is designed to provide trusted advisory services. Commercial Banking saw earnings growth of 7% for the full year ended October 31, 2025, supported by a 16% increase in average loans and acceptances across client segments.

Digital self-service tools and AI-driven personalized support

Royal Bank of Canada is clearly pushing technology to serve clients, both internally and externally. The bank launched RBC Assist, an AI tool specifically for employees, and entered a partnership with NVIDIA to support this. On the client-facing side, the U.S. transaction banking platform, RBC Clear, has onboarded over 180 clients and secured US$23 billion in deposits this year, working toward a medium-term target of US$50 billion. Also, in Direct Investing, the bank is enhancing its value proposition by introducing commission-free ETF trading to win with early-stage investors.

High-touch advisory model for Wealth Management clients

The approach in Wealth Management is about deepening relationships and leveraging data-driven insights. The total Assets Under Administration (AUA) across all Wealth Management advisory businesses has reached $2.3 trillion. Canadian Wealth Management saw annual net new assets increase by $33 billion, which is a 4.9% growth rate. For High-Net-Worth (HNW) clients, the bank launched the Royal Distinction program to provide dedicated support and exclusive benefits as they transition into full-service relationships. The pre-tax margin in Wealth Management improved to 24.5 percent in the latest reporting period.

Here's a quick look at some key metrics supporting these relationship-focused segments:

Loyalty programs like Avion Rewards to foster retention

The Avion Rewards program is positioned as Canada's largest bank-owned loyalty program, designed to offer a comprehensive rewards experience. The program has 3 distinct membership levels: Avion Select, Avion Premium, and Avion Elite. Members can earn cash back and points at over 2,000 retail partners. For high-tier cardholders, the RBC Avion Visa Infinite Privilege Card offers a welcome bonus of up to 70,000 Avion Points. The program also facilitates point conversion to other loyalty programs like WestJet dollars and British Airways Avios. The program was recognized globally, winning '2025 International Loyalty Program of the Year The Americas' for the third consecutive year.

The customer relationship strategies manifest in these key areas:

• Dedicated Relationship Managers for Mid-market clients with revenues over $100 million.
• Avion Rewards featuring 3 membership tiers and partnerships with over 2,000 retailers.
• Wealth Management AUA reaching $2.3 trillion, with Canadian NNA growth at 4.9%.
• Digital platform RBC Clear onboarding over 180 clients in the U.S. market.
• Introduction of commission-free ETF trading for RBC Direct Investing clients.

Finance: draft 13-week cash view by Friday.

Royal Bank of Canada (RY) - Canvas Business Model: Channels

The distribution of Royal Bank of Canada (RY) services relies on a multi-pronged approach, blending a significant physical footprint with advanced digital capabilities, serving distinct client segments through specialized entities.

Extensive physical branch and ATM network across Canada

Royal Bank of Canada maintains a substantial physical presence, which it claims is the largest combined branch and ATM network in Canada. As of the second quarter of fiscal 2025, the network included 1,284 Bank branches in Canada, serving approximately 11 million clients through this channel. The ATM network supported these physical locations, with over 4,000+ ATMs available for cash withdrawal, transfers, and deposits across the country.

The physical network data as of Q2/2025 was:

Digital and mobile banking platforms for retail clients

Digital channels are a core focus, evidenced by increasing adoption rates. For Canadian Banking, the active digital user base showed growth through 2025. The bank is actively investing in technology to support these platforms.

• Active Digital Users (Canadian Banking) in Q4/2025: 10,289 thousand
• Active Mobile Users in Q4/2025: 8,178 thousand
• Digital Personal Adoption Rate in Q4/2025: 63.4%

RBC Direct Investing (self-directed brokerage platform)

RBC Direct Investing is positioned as the second-largest self-directed platform in Canada. This platform is housed within the Wealth Management segment. The total Assets Under Administration (AUA) across all Wealth Management advisory businesses, which includes RBC Direct Investing, reached $2.3 trillion by the end of fiscal 2025.

City National Bank (CNB) network for U.S. commercial and HNW clients

For U.S. commercial and High Net Worth (HNW) clients, Royal Bank of Canada utilizes City National Bank. CNB is the largest bank headquartered in Los Angeles, holding $93 billion in assets as of April 30, 2025. The physical reach includes 79 branches operating across 11 US states. In the fourth quarter of 2025, City National Bank generated $163 million USD in adjusted earnings.

Global Capital Markets offices in major financial centers

The Global Capital Markets division extends its reach through a significant international footprint. RBC Capital Markets operates 58 offices across 14 or 16 countries, serving clients globally in centers across North America, Europe, and the Asia-Pacific region. This global presence supports its investment banking, markets, and advisory services worldwide.

The global channel footprint can be summarized:

Royal Bank of Canada (RY) - Canvas Business Model: Customer Segments

You're mapping out the sheer scale of Royal Bank of Canada (RY)'s client reach, which is massive, spanning retail to the most complex institutions globally. Honestly, understanding these segments is key because their diversified client base is what underpins their status as Canada's largest bank by market capitalization.

Mass market retail clients (Personal Banking)

This is the foundation, the engine of Royal Bank of Canada's domestic operations. They maintain the number one market share in Canada across key retail products. For the fiscal year 2025, Personal Banking in Canada saw strong volume growth, specifically 7% in average loans and 9% in average deposits, showing deep client engagement even as interest rates shifted.

• Total global client base is over 19 million across Canada, the U.S., and 27 other countries.
• The bank targets students with specialized packages, serving approximately 350,000 student clients.
• The acquisition of HSBC Bank Canada in 2024 added approximately 780,000 new customers to the overall base.

Small to mid-sized businesses (Commercial Banking)

This segment, which became a standalone reporting segment effective Q4 2024, focuses on growing strategic business clients. In fiscal 2025, Commercial Banking delivered 7% earnings growth, fueled by solid volume increases. This group is critical for driving transaction and lending revenue across the Canadian footprint.

• Average loans and acceptances grew by 16% in 2025.
• Average deposits increased by 10% across major product lines in 2025.
• The segment serves approximately 280,000 business clients, generating $6.8 billion in annual revenue.

High-Net-Worth (HNW) and Ultra-High-Net-Worth individuals

This group is primarily served through the Wealth Management segment, which saw record results in 2025. Royal Bank of Canada aims to be the preferred partner for HNW clients in the United States. You see the scale in the assets they manage; total Assets Under Administration (AUA) across all advisory businesses reached $2.3 trillion as of late 2025.

Here's a quick look at the scale in Wealth Management:

Large corporations and institutional investors (Capital Markets)

Royal Bank of Canada positions itself as the '#1 Canadian bank-owned capital markets firm by revenue'. This segment is a powerhouse, delivering 18% earnings growth in 2025, driven by strong performance in Global Markets and Corporate & Investment Banking. They are a key player in M&A and trading flows.

• Investment banking revenue was up 26% year-over-year in fiscal 2025 due to higher M&A activity.
• Global Markets revenue increased by 30% from the prior year in 2025, supported by elevated market volatility.
• Market share leadership in Canadian debt was 20.9% and in equity underwriting was 19.3% in 2024.

Internationally-connected commercial and retail clients (post-HSBC)

The acquisition of HSBC Bank Canada was specifically aimed at bolstering this client group, integrating their globally-minded commercial clients. Royal Bank of Canada explicitly targets being a leading financial services partner in select global financial centres. The bank expects to drive further synergies by cross-selling Personal Banking and Wealth Management products, along with enhanced treasury management solutions and international trade capabilities, specifically mentioning strength with internationally-connected clients. This focus is about deepening relationships with clients who need seamless cross-border service, a direct benefit from the HSBC integration.

Royal Bank of Canada (RY) - Canvas Business Model: Cost Structure

The Cost Structure for Royal Bank of Canada is heavily weighted toward personnel, technology modernization, and managing credit risk in the current economic cycle. You're looking at the major outflows that keep this massive operation running, so let's break down the hard numbers we have for the 2025 fiscal year.

Employee Compensation and Benefits

For the staff base, which is now reported to be over 101,000, compensation is a primary cost driver. Looking at the first quarter of fiscal 2025, the Human Resources component of non-interest expense alone was $5,987 million. This single quarter's cost breaks down into several key areas:

The variable compensation component, at $2,569 million for just one quarter, clearly shows how closely personnel costs are tied to performance, which is a key feature of a 'pay for performance' philosophy.

Significant Technology and Digital Transformation Investments

Royal Bank of Canada continues to pour capital into digital transformation, using technologies like AI and machine learning to drive efficiency. While a specific FY2025 technology spend figure isn't explicitly isolated in the full-year reports, the overall non-interest expense for Q1 2025 was $9,256 million [cite: 12 from previous turn]. The bank explicitly cited 'continued investments in technology and talent' as a driver for expense growth in Q1 2025 [cite: 12 from previous turn]. The narrative suggests these tech investments are intended to deliver operating leverage, as the trailing 12-month cost-to-income ratio moved down to the low 50s in Q3 2025 [cite: 13 from previous turn].

Provision for Credit Losses (PCL)

Managing potential loan defaults is a critical, non-operational cost. For the full fiscal year 2025, the Provision for Credit Losses (PCL) totaled $4.36 billion. This represents a significant increase from the prior year's total PCL of $3.23 billion. This higher provisioning reflects management's view on economic headwinds, including slowing growth and trade disruptions [cite: 4 from previous turn].

Branch Network Maintenance and Real Estate Costs

The physical footprint remains a necessary, though managed, expense. For the first quarter of fiscal 2025, the cost categorized as Occupancy was $429 million [cite: 12 from previous turn]. This figure covers the maintenance and real estate costs associated with the branch network and other physical assets.

Integration Costs related to the HSBC Canada Acquisition

The cost of absorbing HSBC Canada is a material, though diminishing, factor in the cost structure. The initial expectation for total acquisition and integration costs was approximately $1 billion [cite: 3, 6 from previous turn]. By Q1 2025, the bank noted that these costs were lower, as the transaction and integration expenses were treated as a specified item and were decreasing [cite: 12 from previous turn]. The acquisition is now contributing to revenue and expense bases, with the inclusion of HSBC Canada results increasing pre-provision, pre-tax earnings by $451 million in Q1 2025 alone [cite: 12 from previous turn].

The total Non-interest Expense for the full year 2025 was reported at $36.6 billion.

• The bank is actively managing its cost base, with the full-year 2025 Non-interest Expense rising to $36.6 billion, up from $34.3 billion in the prior year.
• The efficiency ratio improved to 55.3% in Q1 2025 from 61.7% in Q1 2024 [cite: 12 from previous turn].

Royal Bank of Canada (RY) - Canvas Business Model: Revenue Streams

You're looking at the core engines that power Royal Bank of Canada's financial results as of late 2025. These streams show where the money actually comes from, which is key for understanding their stability.

Total revenue for fiscal 2025 was $66.6 billion, marking a significant increase on a reported basis. This top-line strength was the foundation for record profitability across the institution.

Net Interest Income (NII) from lending and deposit spreads remains a massive component. This is the difference between the interest Royal Bank of Canada earns on its loans and the interest it pays out on deposits. For the full year, this was a key driver, with Personal Banking earnings growing 20%, largely due to higher NII and volume growth. In the fourth quarter, net interest income specifically was up 13% year-over-year.

Fee-based revenue from Wealth Management saw strong momentum. This revenue is generated from fees charged on Assets Under Administration (AUA) and Assets Under Management (AUM). Net income in this segment rose 25% for the full year, driven by higher fee-based client assets resulting from market appreciation and continued net sales. The Assets Under Management in RBC Global Asset Management increased to CAD 794 billion year-over-year.

Capital Markets activity contributed meaningfully through trading and underwriting fees. This segment capitalized on elevated market volatility, supporting strong trading flows. Full-year earnings for Capital Markets were up 18%. The fourth quarter was particularly strong, delivering a record revenue of US$3.6 billion and net income of CAD 1.4 billion, up 45% from the prior year.

Insurance premiums and investment income also form a reliable stream. The insurance business saw its net income rise 14% in fiscal 2025, supported by steady growth in total premiums and deposits, reflecting disciplined underwriting.

Here's a quick look at how the segments contributed to the overall picture based on reported net income changes for the full year 2025:

The drivers behind the strong pre-provision, pre-tax earnings of $30 billion for the fiscal year included:

• Higher net interest income across personal and commercial banking.
• Stronger capital markets results.
• Growth in fee-based revenue within wealth management.
• Improved claims experience in longevity reinsurance for Insurance.

The bank's strategic focus on expanding its client base and optimizing product offerings clearly paid off in these revenue-generating areas. If onboarding takes 14+ days, churn risk rises, but here, the client asset growth suggests strong engagement.