National Bank beats expectations on gains in capital markets and wealth management

The National bank of Canada beat analysts’ third-quarter earnings expectations on higher profits in its capital markets and wealth management business segments.

National Bank’s net income for the three months ending July 31 was $1.30 billion, up 23 per cent from $1.06 billion during the same quarter last year, resulting in net earnings per share of $3.25.

Its adjusted net income — which removes the impact of non-recurring items — was $1.36 billion, compared to $1.10 billion last year, resulting in adjusted earnings per share of $3.39, which beat analysts’ expectations of about $3.21.

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“We delivered strong earnings and revenue growth,” National Bank’s chief executive Laurent Ferreira said in a statement on Wednesday. “Despite trade and geopolitical uncertainty, Canada’s resilience and the retooling of its economy are creating opportunities for growth.”

Earnings in the bank’s wealth management and capital markets segments increased by 21 per cent to $296 million and 32 per cent to $442 million respectively, while its personal and commercial business segment rose by 14 per cent to $421 million.

National also announced a dividend of $1.32 per share — unchanged from the previous quarter and payable on Nov. 1.

The lender’s provision for credit losses, or the amount of money that the bank kept aside to tackle loans that may potentially go bad, increased to $246 million compared to $203 million during the same quarter last year.

Canada’s biggest banks are releasing their earnings results this week. Bank of Montreal and Bank of Nova Scotia reported on Tuesday, while the Royal Bank of Canada , Toronto-Dominion Bank and the Canadian Imperial Bank of Commerce will report on Thursday.