Pan‑Canadian lender tops forecasts and steps up share buybacks
National Bank of Canada started 2026 with higher profit and a faster share buyback program, signaling management’s confidence as it continued to absorb last year’s Canadian Western Bank (CWB) acquisition.
The Montreal‑based lender reported net income of $1.25 billion for the quarter ended January 31, up 26% from a year earlier, with adjusted earnings per share of $3.25 versus $2.93 in 2025 and ahead of consensus estimates.
Earnings lift across business lines
Quarterly revenue rose to $3.89 billion from $3.18 billion, while provisions for credit losses edged down to $244 million from $254 million a year earlier.
Personal and commercial banking net income climbed 47% to $427 million, reflecting what the bank described as double‑digit revenue growth from CWB.
Capital markets posted net income of $443 million, up 6% year over year, and U.S. specialty finance and international earnings inched up to $185 million from $183 million.
“The first quarter marks a strong start to the year for the Bank, driven by our diversified and complementary franchises, as well as our prudent approach to capital and credit,” said Laurent Ferreira, president and chief executive officer.
“We are executing on our financial objectives with discipline, driving organic growth and operational efficiency as we reinforce our pan‑Canadian reach, and creating long‑term value for our shareholders.”
Buyback push highlights capital posture
Alongside results, National Bank moved to increase its normal course issuer bid, seeking approval to repurchase up to 14.5 million common shares, or 3.70% of shares outstanding, up from a prior cap of 8 million shares (2.04%).
“The normal course issuer bid provides the Bank with additional flexibility in managing its capital,” the bank said, noting that all repurchased shares would be cancelled.
The Common Equity Tier 1 ratio stood at 13.7%, little changed from 13.8% at the end of October, leaving room for buybacks while maintaining a conservative buffer.
Corporate finance academics have long viewed such programs as a signal of management’s view that the stock is undervalued and as a tool to fine‑tune capital structure rather than a substitute for growth investment.
CWB integration reshapes growth profile
CWB’s results were fully consolidated for the quarter after the acquisition closed in February 2025, with National Bank highlighting the deal’s contribution across its Western Canadian footprint.
Ferreira earlier said that the C$5 billion purchase would “accelerate National Bank’s strategic plan and pan‑Canadian growth,” while CWB chief executive Chris Fowler said he was “confident that this combination will create incredible value for our clients, teams, communities and our shareholders.”
Meanwhile, BMO and Scotiabank also posted their Q1 2026 financials. The Royal Bank of Canada, Toronto‑Dominion Bank and CIBC are expected to report tomorrow, February 26.
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