National Bank Q3 profit edges higher but misses analysts' estimates
MONTREAL — National Bank of Canada reported its third-quarter profit edged higher compared with a year ago even as the money it set aside for bad loans in the quarter also rose.
The Montreal-based bank said Aug. 30 it earned $839 million or $2.36 per diluted share for the quarter ended July 31, up from $826 million or $2.35 in the third quarter of 2022.
Revenue for the quarter totalled $2.52 billion, up from $2.41 billion in the same quarter last year.
National Bank’s provision for credit losses amounted to $111 million for the quarter, up from $57 million a year earlier.
On an adjusted basis, National Bank says it earned $2.21 per diluted share, down from $2.35 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $2.38 per share, according to estimates compiled by financial markets data firm Refinitiv.
National Bank chief executive Laurent Ferreira said the bank saw revenue and earnings growth in its personal and commercial banking, wealth management and U.S. specialty finance and international segments, partly offset by its financial markets business.
“The bank’s performance highlights the strength of our strategic positioning in a challenging macroeconomic environment,” Ferreira said in a statement.
“With our high capital levels, strong earnings power, and constant discipline on managing cost and credit, the bank is well-positioned to navigate continued uncertainty and generate long-term profitable growth.”
National Bank said its personal and commercial banking business earned $328 million in its third quarter, up from $319 million a year earlier as revenue growth was offset in part by higher non-interest expenses and higher provisions for credit losses.
The bank’s
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