National Bank reports higher profit, net income climbs 24%
The National Bank of Canada reported a higher profit in its third quarter and beat analysts’ expectations as it reported higher results in all of its business segments.
The Montreal-based bank’s adjusted net income was $960 million for the three-month period that ended on July 31, 23 per cent higher than the $781 million it reported last year. The higher profit resulted in adjusted earnings per share of $2.68, up from $2.18 during the same period last year
Its reported net income, which excludes the bank’s agreement to acquire Canadian Western Bank, was around $1 billion, up 24 per cent from last year, leading to earnings per share of $2.89.
National’s total provisions for credit losses, or the money kept aside for potential bad loans, increased to $149 million for the quarter, compared to $111 million during the same period last year.
“Results for the third quarter reflect our diversified earnings mix and solid credit profile as well as disciplined execution across the bank,” Laurent Ferreira, the bank’s chief executive, said in a statement on Wednesday.
Matthew Lee, an analyst at Canaccord Genuity Group Inc, said in a note on Wednesday that the bank’s adjusted earnings per share of $2.68 was higher than the consensus estimate of $2.47.
“The beat against our estimates was due to higher revenue, while expenses were slightly higher than expected,” he said.
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