National Bank of Canada reports profit of $1.1 billion in Q3

National Bank of Canada reported a third-quarter profit of $1.07 billion, up from $1.03 billion a year earlier. The Montreal-based bank said the profit amounted to $2.58 per diluted share for the quarter ended July 31, compared with $2.89 per diluted share a year ago. Revenue for the quarter totalled $3.45 billion, up from $3 billion in the same quarter last year. Provisions for credit losses amounted to $203 million, up from $149 million. National Bank said its adjusted profit was $2.68 per diluted share, unchanged from a year ago. Analysts on average had expected an adjusted profit of $2.69 per share, according to LSEG Data & Analytics. "The bank reported solid third-quarter results, reflecting strong revenue fundamentals and credit performance, combined with synergy momentum from the (Canadian Western Bank) acquisition," said president and CEO Laurent Ferreira in a release. "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." The bank's personal and commercial banking segment reported net income of $370 million, up 1% from $366 million a year earlier. Its wealth management segment reported net income of $244 million, a 12% increase from $217 million last year. Financial markets profit was $334 million, up 5% from $318 million last year. Net interest income was up 7% from $235 million in the same quarter in 2024, driven by higher loan and deposit volumes and the favourable impact of the deposit composition changes. Fee-based revenue rose 18% to $482 million from a rise in stock markets and positive net inflows. Transaction and other revenues ($94 million) rose 7% compared to the third quarter of 2024 from increased client activity. National Bank's wealth management arm had $818 billion in assets under administration and $183 billion in assets under management as of July 31, up 10% and 22%, respectively, from last year's comparable quarter. Net insurance revenue totalled $19 million, down 5% from $20 million in last year's third quarter. The bank's U.S. specialty finance and international segment reported net income of $178 million, up 13% from $158 million in the same quarter of 2024. The bank also announced Wednesday that its board of directors has authorized a normal course issuer bid to purchase up to eight million, or about 2%, of its common shares for cancellation. It expects to begin the process around Sept. 25 and conclude a year later. The bid is subject to the approval of the Office of the Superintendent of Financial Institutions Canada and the TSX.