Canada’s biggest bank reported a second-quarter $5.5 billion profit, up 25.5 per cent year on year and barely topping Visible Alpha’s consensus analyst expectations by 2.2 per cent. Analysts pointed to broad-based strength across the bank’s businesses, noting the earnings beat was not driven primarily by capital markets activity. (The Logic)

Talking point: RBC posted a 17.2 per cent return on equity (ROE), beating the 17 per cent goal it outlined in its annual report in December, after already surpassing the 16 per cent goal outlined at last year’s investor day. TD Cowen analyst Mario Mendonca said an 18-per-cent ROE could be “achievable” if the bank maintains its current trajectory. RBC also announced plans to repurchase up to 45 million common shares, equivalent to roughly 3 per cent of its outstanding stock. Credit conditions also improved, with quarterly provisions for credit losses falling 36 per cent year over year to $912 million. Asked about ongoing USMCA negotiations, chief executive Dave McKay said he remains “optimistic we’ll get to something that’s good for both countries.”