Royal Bank of Canada filed a Form 424B2 pricing supplement dated July 31, 2026, offering $388,000 in Capped Enhanced Return Barrier Notes linked to the Russell 2000 Index, due September 15, 2027, with RBC Capital Markets, LLC acting as underwriter.

Key Highlights

  • Total offering size: $388,000 in aggregate principal amount, priced at 100.00% of face value per note.
  • Enhanced upside, capped: If the Final Underlier Value exceeds the Initial Underlier Value, investors receive 200% of the Underlier Return, subject to a Maximum Return of 17.20% (maximum payment of $1,172 per $1,000 principal amount).
  • Barrier protection: The Barrier Value is set at 85% of the Initial Underlier Value, equal to 2,491.638, based on an Initial Underlier Value of 2,931.339 on the Trade Date of July 31, 2026.
  • Principal at risk below barrier: If the Final Underlier Value falls below the Barrier Value, investors lose 1% of principal for each 1% the Final Underlier Value is below the Initial Underlier Value.
  • No interest payments: The notes do not pay interest, and all payments are subject to Royal Bank of Canada's credit risk.
  • Initial estimated value: The bank determined the initial estimated value to be $973.76 per $1,000 principal amount, which the filing notes "is less than the public offering price of the Notes."
  • Underwriting cost: Underwriting discounts and commissions total 2.00%, or $7,760, leaving proceeds to Royal Bank of Canada of $380,240.

Structure and Risk Profile of Royal Bank of Canada's Russell 2000 Linked Notes

According to the pricing supplement, Royal Bank of Canada (NYSE: RY) is offering Capped Enhanced Return Barrier Notes linked to the Russell 2000 Index (Bloomberg Ticker: RTY). The Trade Date is July 31, 2026, the Issue Date is August 5, 2026, the Valuation Date is September 10, 2027, and the Maturity Date is September 15, 2027. The notes carry CUSIP 78017UY38 and will not be listed on any securities exchange.

The filing describes a three-scenario payment structure at maturity. If the Final Underlier Value is greater than the Initial Underlier Value of 2,931.339, investors receive $1,000 plus the lesser of (a) the Underlier Return multiplied by the 200% Participation Rate, or (b) the Maximum Return of 17.20%. If the Final Underlier Value is at or below the Initial Underlier Value but at or above the Barrier Value of 2,491.638, investors receive $1,000 per $1,000 principal amount. If the Final Underlier Value falls below the Barrier Value, the filing states that investors "will lose a substantial portion or all of your principal amount at maturity," with the loss calculated dollar-for-dollar relative to the Initial Underlier Value.

The filing discloses that the initial estimated value of $973.76 per $1,000 principal amount reflects the bank's own determination as of the Trade Date and that "the market value of the Notes at any time will reflect many factors, cannot be predicted with accuracy and may be less than this amount." Selling concessions of up to $20.00 per $1,000 principal amount may be paid to other registered broker-dealers. For investors in certain fee-based advisory accounts, the public offering price may range between $980.00 and $1,000.00 per $1,000 principal amount. The filing directs investors to "Selected Risk Considerations" beginning on page P-6 and to Risk Factors in the accompanying prospectus and supplements. Any forward-looking statements contained in the filing are the company's own and subject to its cautionary language.

What Was Disclosed

Royal Bank of Canada disclosed the pricing terms of $388,000 in structured notes linked to the Russell 2000 Index, maturing September 15, 2027, with a 200% participation rate, a 17.20% maximum return, and an 85% barrier level protecting principal under certain conditions.