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BMO and RY Cutting Ties with Moneris?

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 8/27/2025, 2:33 pm ET 8/27/2025, 2:33 pm ET | 8 min 8 min read
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Royal Bank Of Canada stocks have been trading up by 6.17 percent as investor confidence rises amid strong earnings report.

  • It’s a big move for RY and BMO. Both have their eyes on selling Moneris, a giant in Canada’s payments sector, possibly worth up to $2B. If this goes through, it could be a game-changer in how both banks operate in the payments industry.

  • Barclays is optimistic about RY’s future. They’ve increased their price target to C$190. This change is on the back of expected better earnings for Canadian banks in Q3, with fewer loan losses and more net interest income.

  • People are talking about RY’s recent tech advancements. Their new foundation model ATOM is all set to transform client services using AI. It could create up to $1B in value by 2027. It’s a big part of RBC’s plan to push for innovative tech while keeping data safe and private.

  • UBS still backs RY, even after a small drop in shares. They’ve upped their price target to CA$200. Despite the minor slip in stock, they’re staying positive, hinting at a bright future.

  • There’s buzz around RY’s tie-up with Olympian Summer McIntosh. As part of the RBC Olympians program, they’re aiming to support Canadian sports stars. This partnership highlights their ongoing commitment to backing local athletes.

Candlestick Chart

Live Update At 14:33:10 EST: On Wednesday, August 27, 2025 Royal Bank Of Canada stock [NYSE: RY] is trending up by 6.17%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of RY’s Recent Earnings

As traders navigate the unpredictable world of stock markets, the importance of risk management cannot be overstated. Losses, no matter how big or small, can quickly escalate if one is not cautious. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This mindset encourages traders to prioritize safety and avoid the temptation of chasing losses, which often leads to even greater financial strain. By adhering to this principle, traders can maintain a disciplined approach, ensuring that they minimize losses and maximize long-term success.

Let’s dive into the financial waters of Royal Bank Of Canada (RY). On April 30, 2025, RY unveiled its financial performance, showcasing a robust net income of $4.37B for Q2. The company’s cash and cash equivalents stood strong at $114.59B, signaling a strategic positioning poised for future growth and capital maneuvers.

Now, let’s peer into the ally reinforce walls of the income statement. RY recorded total revenue of $15.67B, with interest income making up the lion’s share at $24.97B. A noteworthy highlight is the non-interest income, which came in at $7.62B, combining various fees, commissions, and service charges. Despite eye-watering interest expenses, the net income from continuing operations stood impressively at $4.39B.

Recent stock data shows some eye-catching movements. On Aug 27, shares opened at 141.5 and spiked to a high of 147.64 before closing at 146.17. This bullish run reflects continued investor confidence amidst favorable analyst projections and strategic initiatives.

RY’s key financial strengths include boasting a pretax profit margin of 39.5%, showcasing the bank’s inherent profitability. Meanwhile, the P/E ratio sits at 20.42, picturing a balanced valuation amidst the evolving financial landscape. A noteworthy book value per share of 86.61 highlights investment security, while a leverage ratio of 18.4 portrays manageable debt exposure.

RY’s recent performance is a blend of strategic foresight and organic growth. The Canadian banking titan continuously emphasizes innovative endeavors to carve out a niche in a dynamic market landscape. Rumors about the Moneris sale align with a bold move towards optimizing its core competencies and refocusing on higher-margin activities.

In parallel, RY’s ATOM foundation model project provides a glimpse into the bank’s ambitious tech-centric blueprint. Such in-house innovations are expected to enhance client experiences while cementing RBC Borealis as a formidable force in AI-driven solutions. By leveraging financial data on a grand scale, RY is poised to potentially unlock $1B in value by 2027.

With Moneris, a significant player in Canada’s payment processing sector, managing a third of business transactions locally, its sale would represent a seismic shift. Potentially valued at $2B, the offloading of Moneris aligns with efforts to streamline operations and bolster strategic equity investments.

The ongoing market buzz around Royal Bank Of Canada centers on its continuous adaptability and forward-thinking pursuits. Analysts increase their forecasts, underscoring the bank’s profound ability to reinterpret challenges into lucrative opportunities.

Strategic Moves and Their Impacts

Strategically, RY’s partnership with Summer McIntosh as part of the RBC Olympians program underscores the institution’s commitment to fostering sports excellence in Canada. This partnership has extensive implications, extending beyond financial support to encompass brand visibility and athlete development. As RY aligns itself with national sports icons, it further cements its societal impact while driving engagement and customer loyalty.

Financial inclusivity remains at the heart of RBC’s operations, demonstrated by its new no-monthly-fee account catering to Indigenous Peoples as part of its Reconciliation Action Plan. This initiative, extending to seniors, youth, and other marginalized groups, demonstrates RY’s commitment to creating accessible financial solutions while nurturing underserved communities.

However, external challenges persist. Tariffs and mortgage renewals, intensified by the post-pandemic landscape, continue posing uncertainties. Despite this backdrop, the bank remains optimistic, reiterating a positive outlook for 2025, backed by diversified earnings and prudent risk management.

The financial terrain remains unpredictable, yet RY embarks equivocally on a journey driven by transformative technological endeavors, strategic partnerships, and an unwavering quest for market leadership. As they navigate this intricate landscape, investor enthusiasm and sentiment remain anchored in their innovative aspirations and calculated resilience.

With acute attention to strategic amid volatile market conditions, RY aims to hold its ground while seeking growth across untapped sectors. As it maneuvers the fiscal labyrinth, building competitive advantages becomes imperative.

Positioned against formidable competition, RY continues to embrace sustainability and adaptation, redefining customer experience in an increasingly digital-first world. Its financial narrative is interwoven with curated strategic insights, a proficient leadership, and an ability to respond to disruptors and emergent trends.

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We’re Making Predictions: Future Outlook

In line with its comprehensive blueprint, RY is poised to bolster its market stronghold, ensuring a sustained upward trajectory. Innovation-driven growth, steered by the ATOM model, will likely serve as the cornerstone for profitability and expansion.

The potential sale of Moneris presents lucrative prospects, with an inflow of capital enabling strategic reinvestment into growth-focused ventures. Despite persisting trade challenges, RBC’s diversified portfolio, coupled with prudent fiscal strategies, insulates it against volatility while securing long-term value. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” RY’s approach mirrors this ethos as it focuses on sustainable trading gains and wealth preservation.

On a micro level, RY demonstrates meticulous attention to operational detail, reflected in streamlined mortgage renewals to capture emerging market segments. By championing a customer-centric approach, RY is committed to tailoring financial products and solutions to evolving consumer needs.

Amid economic headwinds, RY’s resilience transcends mere financial metrics – its proficiency lies in integrating technology, inclusivity, and integrity into core practices. Embarking upon an exploratory journey, RY is steadfast in redefining Canadian banking, fortifying its stature as a dynamic beacon of innovation and positive societal change.

Traders continue to rally around RY, pinning hopes on robust strategic implementation and continued commitment to pioneering sustainable growth. As the future beckons, RY’s multifaceted vision and commitment to transformation present an optimistic narrative, harmonizing traditional banking’s tenacity with a touch of entrepreneurial finesse.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”