National Bank reports third-quarter profit decline year-on-year
National Bank of Canada reported its third-quarter profit fell from a year ago as it was hit by higher provisions for credit losses due to a less favorable economic outlook.
The Montreal-based bank said Wednesday that it earned net income of $826 million or $2.35 per diluted share for the quarter ended July 31, down from $839 million. dollars or $2.36 per diluted share one year ago.
Total revenue came in at $2.4 billion, up from $2.3 billion in the same quarter last year.
Provisions for credit losses amounted to $57 million in the quarter compared with a credit default reversal of $43 million a year earlier.
On an adjusted basis, National Bank said it earned $2.35 per diluted share compared with adjusted profit of $2.36 per diluted share a year ago.
Analysts had expected adjusted earnings of $2.34 per share, according to financial market data firm Refinitiv.
National Bank CEO Laurent Ferreira said sustained loan and deposit growth contributed to the bank’s results this quarter.
“We continue to operate amid an increasingly complex landscape,” Ferreira said in a statement.
“Despite these challenges, the bank is in a strong position with strong capital and substantial credit provision, which, together with our conservative positioning, gives us comfort.” in the current environment.”
National Bank said its commercial and personal banking businesses earned $335 million, up from $303 million in the same quarter last year.
The bank’s wealth management business earned $181 million, up from $164 million a year ago, while its financial markets operations earned $280 million, up from $249 million. la a year ago.
National Bank of America Specialty Finance and International Business earned $125 million, down from $161 million in the third quarter of 2021.
This Canadian Press report was first published on August 24, 2022