National Bank tops expectations as revenue rises across the board
National Bank of Canada topped analysts’ first-quarter expectations on Wednesday after posting higher revenue growth in all business segments.
The Montreal-based bank’s net income for the three months ending Jan. 31 was $997 million, up from $922 million during the same period a year ago, resulting in net earnings per share of $2.78.
Adjusted earnings, which exclude certain items related to National Bank’s acquisition of Canadian Western Bank, were $1.05 billion, down from $922 million a year ago, resulting in adjusted earnings per share of $2.93 compared to analysts’ expectations of $2.65 per share.
“The bank generated strong first-quarter financial results, reflecting solid execution across business segments and our diversified earnings power,” chief executive Laurent Ferreira said in a statement. “In a context of heightened macroeconomic and geopolitical uncertainty and an evolving credit cycle, we remain committed to maintaining our usual discipline regarding credit, capital and costs.”
Canada’s biggest banks are releasing their first-quarter earnings results this week, with United States President Donald Trump expected to impose tariffs on Canadian exports to the U.S. next week, a move some economists say could trigger a recession in Canada.
Results released by the Bank of Montreal and Bank of Nova Scotia on Tuesday included a slight monetary cushion in case Trump approves his planned tariffs. If the proposal to apply a 25 per cent tariff on most Canadian products goes through, both banks expect to keep more money aside in the second quarter to tackle credit losses.
In the personal and commercial segment, National Bank’s net income totalled $290 million, which was 14 per cent lower than last year, mainly due to a
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