Royal Bank of Canada vs TD Bank: Revenue, Profit and Business Model
Royal Bank of Canada reported ~$48B of revenue in FY2025 and ~$14.7B of net income. TD Bank reported ~$45.6B of revenue in FY2025 and ~$14.4B of net income.
Latest financial snapshot
Royal Bank of Canada
- Latest revenue
- ~$48B (FY2025)
- Net income
- ~$14.7B
- Net margin
- 30.6%
- Revenue growth
- +7.2% a year, FY2021–FY2025
TD Bank
- Latest revenue
- ~$45.6B (FY2025)
- Net income
- ~$14.4B
- Net margin
- 31.6%
- Revenue growth
- +10.2% a year, FY2021–FY2025
Financial summary
Royal Bank of Canada
RBC's earnings have climbed sharply since the HSBC Canada deal closed in March 2024. Fiscal 2025 net income was ~$14.7 billion (C$20.4 billion) (diluted EPS C$14.07, both up 25%), adjusted net income was ~$15 billion (C$20.9 billion), and pre-provision, pre-tax earnings rose 30% to about $21.6 billion (C$30 billion). Momentum continued into fiscal 2026: Q1 net income was a then-record ~$4.18 billion (C$5.8 billion), and Q3 (quarter ended July 31, 2026) set a new record of ~$4.34 billion (C$6.024 billion), up 11% year over year, with revenue up 9% to about $13.3 billion (C$18.5 billion).
TD Bank
TD reported fiscal 2025 revenue of ~$48.8 billion (C$67.78 billion) and net income of ~$14.8 billion (C$20.54 billion); the reported figure includes the gain on selling its Charles Schwab stake in February 2025. On an adjusted basis, revenue was ~$44.5 billion (C$61.81 billion) (up 9%) and earnings were ~$10.8 billion (C$15.03 billion) (up 5%). Momentum carried into fiscal 2026: in the third quarter ended July 31, 2026, reported net income was ~$3.33 billion (C$4.62 billion) versus ~$2.4 billion (C$3.34 billion) a year earlier, adjusted net income rose 21% to ~$3.36 billion (C$4.67 billion), adjusted EPS was C$2.77, and total revenue was about $12.2 billion (C$16.9 billion). CET1 capital stood at 14.26% at July 31, 2026, which supported a completed ~$5.04 billion (C$7 billion) buyback in September 2026 and a newly announced program of up to $7.2 billion (C$10 billion).
Revenue and profit by year
Royal Bank of Canada
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$48B | ~$14.7B | 30.6% | +23.1% | Source |
| FY2024 | ~$39B | ~$11.5B | 29.4% | +10.4% | Source |
| FY2023 | ~$35.3B | ~$10.3B | 29.3% | +1.0% | Source |
| FY2022 | ~$34.9B | ~$11.2B | 32.1% | -3.9% | Source |
| FY2021 | ~$36.3B | ~$11.4B | 31.3% | — | Source |
TD Bank
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$45.6B | ~$14.4B | 31.6% | +18.8% | Source |
| FY2024 | ~$38.3B | ~$6B | 15.6% | +7.8% | Source |
| FY2023 | ~$35.6B | ~$7.3B | 20.4% | +3.5% | Source |
| FY2022 | ~$34.4B | ~$12.4B | 36.0% | +11.2% | Source |
| FY2021 | ~$30.9B | ~$10.1B | 32.7% | — | Source |
Where the revenue comes from
Royal Bank of Canada
- Personal Banking
Deposits, mortgages, cards and consumer lending for individuals in Canada and the Caribbean.
- Commercial Banking
Lending, deposits and cash management for Canadian businesses.
- Wealth Management
Fee-based advice and asset management in Canada, the US (including City National Bank) and the UK (RBC Brewin Dolphin).
- Capital Markets
Investment banking, underwriting, advisory and trading through RBC Capital Markets.
- Insurance
Life, health, home, auto and travel insurance and reinsurance.
TD Bank
- Canadian Personal and Commercial Banking - Net Interest Income~25%
Interest income from loans and deposits in Canada generated CAD $16.70 billion in FY2025, up 6% from FY2024. Driven by residential mortgages, personal loans, and commercial lending funded by a CAD $398 billion deposit base. Net interest margin of 2.82%.
- Canadian Personal and Commercial Banking - Non-Interest Income~7%
Service charges, card services, insurance revenue, and fees generated CAD $4.50 billion in FY2025. Includes credit card interchange, overdraft fees, and commercial banking fees.
- U.S. Retail - Net Interest Income~18%
Interest income from US loans and deposits generated CAD $12.37 billion in FY2025, up 7% from FY2024. Net interest margin of 3.15%, higher than Canada due to the US rate environment. Operating under $434 billion asset cap.
- U.S. Retail - Non-Interest Income~5%
Service charges, card services, and wealth management fees from US operations generated CAD $3.37 billion in FY2025. Includes TD Auto Finance fees and TD Wealth (U.S.) contributions.
- Wealth Management and Insurance - Fees and Premiums~15%
Management fees on CAD $759 billion in AUA and CAD $601 billion in AUM, plus insurance premiums, generated net revenue of approximately CAD $9.0 billion after insurance service expenses of CAD $6.09 billion.
- Wholesale Banking - Trading and Advisory~12%
Trading-related revenue of CAD $3.47 billion and corporate and investment banking fees of CAD $2.73 billion generated CAD $7.99 billion in total wholesale revenue in FY2025. Includes TD Cowen contributions.
Business model and strategy
Royal Bank of Canada
How it makes money
RBC earns money in two main ways. Net interest income is the spread between what it earns on mortgages, consumer and business loans and what it pays on deposits, mostly in Personal Banking and Commercial Banking in Canada. Non-interest income comes from Wealth Management fees on client assets, Capital Markets underwriting, advisory and trading, insurance premiums, card and service fees, and custody services.
Growth strategy
RBC is growing by deepening share in Canada after absorbing HSBC Bank Canada (~$9.72 billion (C$13.5 billion), closed March 28, 2024), expanding Wealth Management in the US and UK (City National Bank and RBC Brewin Dolphin), building Capital Markets in the US, and investing in technology and AI across its businesses.
Competitive advantage
RBC's edge is scale and mix. It is the largest of Canada's big banks by market value, holds leading domestic share in deposits, mortgages and mutual funds, and pairs that funding base with one of North America's larger investment banks and a large wealth franchise. That diversification produced a fiscal 2025 ROE of 16.3% and about 18% ROE in Q3 2026.
TD Bank
How it makes money
TD Bank (Toronto-Dominion Bank) operates a diversified multinational retail, commercial, and wholesale banking business model across Canada and the United States. Revenue is generated through two primary engines: Net Interest Income (NII) earned on the spread between interest earned on residential mortgages, commercial loans, personal credit lines, and credit cards versus interest paid on customer deposits;
Growth strategy
TD allocated CAD $8 billion to share buybacks and plans to invest the remainder in organic growth, particularly in Canadian personal banking and wealth management. The Cowen acquisition added 1,700 employees and established TD as a meaningful player in US equities and investment banking, but the segment's return on equity of 15.0% in FY2025 remains below the bank's overall target.
Competitive advantage
TD Bank's advantage comes from Canadian banking scale, low-cost deposits, branch and digital reach, brand trust, wealth and insurance breadth, and strong capital ratios.
Questions about Royal Bank of Canada vs TD Bank
Which company has higher revenue — Royal Bank of Canada or The Toronto-Dominion Bank?
Royal Bank of Canada reported ~$48B (FY2025), while The Toronto-Dominion Bank reported ~$45.6B (FY2025). By last reported revenue, Royal Bank of Canada is the larger business, with The Toronto-Dominion Bank reporting a smaller revenue base.
What is the market cap of Royal Bank of Canada vs The Toronto-Dominion Bank?
Royal Bank of Canada's market capitalisation stands at $285.6B, while The Toronto-Dominion Bank's is $201.0B. Royal Bank of Canada carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to The Toronto-Dominion Bank.
Which is more financially efficient — Royal Bank of Canada or The Toronto-Dominion Bank?
Royal Bank of Canada generates $490k / employee in revenue per employee, while The Toronto-Dominion Bank generates $456k / employee. Royal Bank of Canada shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Royal Bank of Canada and The Toronto-Dominion Bank make money?
Royal Bank of Canada and The Toronto-Dominion Bank generate revenue in fundamentally different ways. Royal Bank of Canada: RBC earns money in two main ways. The Toronto-Dominion Bank: TD Bank (Toronto-Dominion Bank) operates a diversified multinational retail, commercial, and wholesale banking business model across Canada and the United States.
Which company is valued higher relative to revenue — Royal Bank of Canada or The Toronto-Dominion Bank?
On a price-to-sales (P/S) basis, Royal Bank of Canada trades at 6.0x P/S and The Toronto-Dominion Bank at 4.4x P/S. Royal Bank of Canada commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to The Toronto-Dominion Bank. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Royal Bank of Canada bigger than The Toronto-Dominion Bank?
By last reported revenue, Royal Bank of Canada (~$48B (FY2025)) is the larger company compared to The Toronto-Dominion Bank (~$45.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Royal Bank of Canada vs TD Bank overview