Provisions for potentially bad loans also fell
National Bank of Canada increased its third-quarter profits compared with the same time last year as adjusted net income rose by 15% to $1.1 billion in Q3, the banking giant said on Wednesday morning.
The company said in its earnings release for the third quarter that adjusted earnings per share were $2.68, largely unchanged from 2024’s third quarter, while year-to-date earnings per share slipped to $7.50 (from $8.03 in the first nine months of 2024) mainly because of common shares issued as part of its blockbuster deal for Canadian Western Bank (CWB).
The lender’s results narrowly failed to meet analysts’ expectations, with adjusted earnings per share coming in just short of forecasts indicated in a Bloomberg survey. But it becomes the fourth of Canada’s top banks to report higher Q3 profits this week after Bank of Montreal (BMO), Scotiabank, and Royal Bank of Canada (RBC) also eked out gains.
Provisions for potential loan losses also came in lower than expected, continuing a trend seen in each of the banking giants’ financial results to date for the quarter. The bank set aside $203 million for credit losses, down from the $250 million anticipated by analysts.
Laurent Ferreira, president and chief executive officer of the Montreal-headquartered lender, said the bank had delivered “solid” Q3 results, driven in part by “synergy momentum” from its deal to purchase CWB.
“With strong capital levels and a disciplined approach to credit and efficiency, we will continue to execute our CWB integration plan while investing in business growth,” Ferreira said in remarks accompanying the quarterly release.
National Bank completed its deal for CWB in February, and the latest financial results mark the second quarter it’s incorporated both companies’ financial results.
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