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National Bank of Canada reported strong fourth-quarter results on Wednesday.Paul Chiasson/The Canadian Press
National Bank of Canada NA-T reported a jump in fourth-quarter profit that topped analysts’ estimates on a spike in capital markets and wealth management earnings, even as the lender booked costs related its acquisition of Canadian Western Bank.
National Bank’s profit rose 11 per cent to $1.1-billion, or $2.57 per share, from a year prior in the three months ended Oct. 31.
Adjusted to exclude certain items, including acquisition and integration charges related to the lender’s takeover of CWB, the bank said it earned $2.82 per share. That edged out the $2.62 per share analysts expected, according to S&P Capital IQ.
“In 2025, we delivered strong financial performance – meeting all our medium-term financial objectives – as we also completed the largest acquisition in our history,” National chief executive officer Laurent Ferreira said in a statement. “With our strengthened national presence, diversified business mix, strong capital ratios and prudent credit profile, we are well-positioned to generate continued growth and superior returns, in what will remain a complex macro-environment.”
The bank raised its quarterly dividend by 6 cents to $1.24 per share.
National Bank CEO says deal to buy Canadian Western Bank accelerates growth outside Quebec
On Tuesday, National said that it will purchase Laurentian Bank of Canada’s retail and small-and-medium-sized enterprises banking books, as well as its syndicated loan portfolio. Fairstone Bank of Canada will acquire all common shares of Laurentian at $40.50 per share, a premium of 20 per cent over the price of the stock’s close on Monday.
National Bank is the third major Canadian bank to report earnings for the fiscal fourth quarter. RBC RY-T also posted results on Wednesday. On Tuesday, Bank of Nova Scotia BNS-T posted higher profits that beat analysts’ estimates. Toronto-Dominion Bank TD-T, Bank of Montreal BMO-T and Canadian Imperial Bank of Commerce CM-T will wrap up earnings week on Thursday.
In the quarter, National Bank set aside $244-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That included $211-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.
In the same quarter last year, National Bank had set aside $162-million in provisions.
Total revenue rose 26 per cent in the quarter to $3.7-billion. But expenses increased 31 per cent to $2.1-billion, which the bank said was driven by the integration of CWB and higher compensation costs.
Profit from personal and small-business banking was $319-million, down 2 per cent from a year earlier as higher revenues were offset by an increase in non-interest expenses and provisions for credit losses. But loan balances were up 9 per cent year over year.
The wealth management division generated $258-million of profit, up 18 per cent due to higher loan and deposit volumes and fee-based revenues.
Capital markets earnings climbed 41 per cent to $432-million, driven by higher equities revenues, as well as merger and acquisition activities.
