National Bank Of Canada · TSX:NA
National Bank Of Canada — Q3 2025 Earnings Presentation
40 slides from National Bank Of Canada's earnings presentation, Aug 27, 2025
Slide 1: Investor Presentation Third Quarter 2025
INVESTOR PRESENTATION Third Quarter 2025 August 27, 2025
Slide 2: Forward-looking statements
Certain statements in this document and made verbally are forward-looking statements. These statements are made in accordance with applicable securities legislation in Canada and the United States. The forward-looking statements in this document and made verbally may include, but are not limited to,
Slide 3: We closed the acquisition of Canadian Western Bank on February 3, 2025
▪ We closed the acquisition of Canadian Western Bank “CWB” on February 3, 2025 (the “CWB Transaction”) ▪ We present information on a Consolidated Basis and, selectively, exclude any impact from the CWB Transaction - Total Bank: Refers to Consolidated Results - CWB Transaction Impact: Refers to incre
Slide 4: Overview
OVERVIEW Laurent Ferreira President & Chief Executive Officer
Slide 5: Strong results
▪ Strong execution of our strategy Strong results ▪ PTPP(1) YoY: Reported 5% | Adjusted(2) 21% | Ex. CWB(2) 11% ▪ Diluted EPS: Reported $2.58 | Adjusted(2) $2.68 ▪ Strong contribution to our Q3 results Realizing value from CWB ▪ First wave of client migration completed successfully in early August ▪
Slide 6: Segment revenue growth: P&C Banking, Wealth Management, Financial Markets
P&C Banking (YoY Revenue Growth) ▪ Revenue growth YoY reflects the CWB Transaction and robust loan growth, partly (Reported | Ex. CWB) offset by lower non-interest income ▪ Personal mortgages: Up 14% YoY(1) (Ex. CWB up 5%(1)) + 21% | 2% ▪ Commercial loans: Up 61% YoY(1) (Ex. CWB up 13%(1)) Wealth Ma
Slide 7: Financial Review
FINANCIAL REVIEW Marie Chantal Gingras Chief Financial Officer and Executive Vice-President, Finance
Slide 8: Q3 2025 Performance – Total Bank
▪ Revenues increased 10% ex. CWB: Q3 2025 Performance – Total Bank - Record advisory and DCM underwriting fees from C&IB, and ($MM) record fee income from Wealth Management - Strong balance sheet growth Reported Adjusted(1) - Higher revenues from Treasury $ YoY $ YoY Revenues 3,449 15% 3,449 19% ▪ C
Slide 9: NII and NIM
▪ Reported net interest income and margin NII and NIM(1) reflect the financing costs to support trading activity growth(3) ($MM; NIM on Average Interest-Bearing Assets) ▪ Adjusted NII (excl. trading)(2) up $76MM QoQ, 635 0.62% Q2 24 769 0.71% Q3 24 784 0.71% Q4 24 972 0.84% Q1 25 954 0.82% Q2 25 CWB
Slide 10: Loans and Deposits
Loans(1) ($B) Total loans of $293B(1), up 22% YoY (Ex. CWB up 7% YoY) and up 2% QoQ 285.7 292.7 ▪ Personal banking: +14% YoY - Ex. CWB: +6% YoY 239.5 243.0 246.6 ▪ Commercial banking: +59% YoY - Ex. CWB: +12% YoY - CWB loan portfolio stable QoQ ▪ Corporate banking: (2%) YoY (2) (2) ▪ Credigy (US$):
Slide 11: CET1 Ratio
CET1 Ratio(1) ▪ Robust CET1 ratio of 13.9% supported by strong 0.58% 0.16% capital generation (+33 bps) (0.02%) 13.87% (0.25%) (0.01%) 13.41% ▪ RWA growth (-1 bp ex. FX) reflects: - Strong asset growth (-16 bps), credit migration in non-retail portfolios (-5 bps) and operational risk (-3 bps) - Larg
Slide 12: Cost and Funding Synergies
Cost and Funding Synergies ($MM, as at July 31, 2025) Realized synergies of $69MM since close, representing $173MM on an annualized $173 basis(3), or 64% of our 3-year target ▪ Year 1 target of $135MM to be achieved in 3 Year Target: December 2025 ~ $270MM(4) ▪ Realized funding synergies of $34MM YT
Slide 13: Risk Management
RISK MANAGEMENT Jean-Sébastien Grisé Executive Vice-President and Chief Risk Officer
Slide 14: Impaired PCL (excl. Credigy's POCI)
Impaired PCL (excl. Credigy’s POCI) ($MM) Q3 Total PCL of $203MM (28 bps) 32 32 ▪ Reflect resilient portfolio mix and prudent Impaired (excl. Credigy’s POCI) provisioning Impaired bps (excl. Credigy’s POCI) 24 PCL on Impaired Loans (excl. Credigy’s POCI 21 21 loans)(1) of $150MM (21 bps) ▪ Ex. CWB:
Slide 15: ACL
ACL ($MM) Total Allowances 2 285 ▪ Total Allowances Cover 5.0x NCOs(3) 2 209 ▪ Maintaining a prudent level of allowances in light of continued uncertainties 788 1 731 765 Performing Allowances: +$52MM QoQ 1 573 1 514 ▪ 13 consecutive quarters of build 602 ▪ Strong Performing ACL coverage of 2.1x(3)
Slide 16: GIL excl. Credigy's POCI Loans
GIL excl. Credigy’s POCI Loans(1) ($MM) 2,992 ▪ Gross impaired loans (excl. Credigy’s POCI loans) of 2,805 $2,992MM, up 4 bps QoQ to 102 bps 647 608 - GIL excl. USSF&I(2): 73 bps 75 74 119 1,967 43 188 17 1,652 ▪ Net formations of 12 bps, down 21 bps QoQ primarily 544 1,426 driven by the CWB Transac
Slide 17: Canadian Distribution by Province
(As at July 31, 2025) Canadian Distribution by Province ▪ Uninsured mortgages and HELOC in GTA / GVA represent 11% and 2% of the total RESL 51% portfolio and have an average LTV(1) of 55% ▪ Uninsured mortgages and HELOC for condos in GTA / GVA represent 3% of the total RESL 79% 30% Uninsured & HELOC
Slide 18: Canadian Mortgages Distribution by Rate Type
(As at July 31, 2025) Canadian Mortgages Distribution by Rate Type ▪ ~80% of our Canadian Mortgage portfolio has been repriced, absorbing the impact of rate increases - 30% of mortgage portfolio is variable rate and the Variable monthly payments are adjusted Rate 30% - 70% of FRM have already renewe
Slide 19: Appendices
APPENDICES
Slide 20: Q3 2025 – Total Bank
│ Q3 2025 – Total Bank ($MM) ▪ CET1 ratio of 13.9% (1) Reported Results Adjusted Results Q3 25 Q2 25 Q3 24 QoQ YoY Q3 25 Q2 25 Q3 24 QoQ YoY ▪ ROE of 14% Revenues 3,449 3,650 2,996 (6%) 15% 3,449 3,650 2,888 (6%) 19% Non-Int. Expenses 1,925 1,942 1,541 (1%) 25% 1,806 1,800 1,534 - 18% PTPP (2) 1,524
Slide 21: Q3 2025 – Total Bank Excluding CWB
│ Q3 2025 – Total Bank Excluding CWB(1) ($MM) ▪ Broad-based organic growth (2) Reported Results Adjusted Results Q3 25 Q2 25 Q3 24 QoQ YoY Q3 25 Q2 25 Q3 24 QoQ YoY ▪ Solid credit performance Revenues 3,165 3,352 2,996 (6%) 6% 3,165 3,352 2,888 (6%) 10% Non-Int. Expenses 1,747 1,719 1,541 2% 13% 1,6
Slide 22: Q3 2025 – P&C Banking
│ Q3 2025 – P&C Banking ($MM) Reported Results (1) ▪ Strong contribution from CWB Adjusted Results Q3 25 Q2 25 Q3 24 QoQ YoY Q3 25 Q2 25 Q3 24 QoQ YoY Transaction Revenues 1,449 1,416 1,198 2% 21% 1,449 1,416 1,198 2% 21% - Revenues in Q3 include $228MM Personal 711 676 661 5% 8% 711 676 661 5% 8% f
Slide 23: Q3 2025 – P&C Banking Excluding CWB
│ Q3 2025 – P&C Banking Excluding CWB(1) ($MM) ▪ Revenues up 2% YoY, mainly from balance Q3 25 Q2 25 Q3 24 QoQ YoY sheet growth Revenues 1,221 1,176 1,198 4% 2% - Average loans up 8% YoY and average Personal 678 648 661 5% 3% deposits up 2% YoY Commercial 543 528 537 3% 1% - Elevated non-interest in
Slide 24: Q3 2025 – Wealth Management
│ Q3 2025 – Wealth Management ($MM) Reported Results Adjusted Results(1) ▪ Revenues of $811MM, up 13% YoY Q3 25 Q2 25 Q3 24 QoQ YoY Q3 25 Q2 25 Q3 24 QoQ YoY - Strong fee-based revenues, up 18% YoY, Revenues 811 791 716 3% 13% 811 791 716 3% 13% mainly reflect market appreciation, solid net Fee-Base
Slide 25: Q3 2025 – Financial Markets
│ Q3 2025 – Financial Markets(1) ($MM) ▪ Net income of $334MM, up 5% YoY Q3 25 Q2 25 Q3 24 QoQ YoY ▪ C&IB revenues of $408MM, up 24% YoY Revenues 777 1,101 689 (29%) 13% Global Markets 369 784 360 (53%) 3% - Record quarter, led by M&A, DCM, and Corporate Banking C&IB 408 317 329 29% 24% Non-Interest
Slide 26: Q3 2025 – Credigy
│ Q3 2025 – Credigy (US$ MM) ▪ Stable NII YoY with average assets up 1% Q3 25 Q2 25 Q3 24 QoQ YoY - Renewed maturing lending facilities during the Revenues 99 100 102 (1%) (3%) quarter Net Interest Income 95 97 95 (2%) - - End-of-period assets up 5% sequentially, as Non-Interest Income 4 3 7 investm
Slide 27: Q3 2025 – ABA Bank
│ Q3 2025 – ABA Bank (US$ MM) ▪ Net income up 16% YoY Q3 25 Q2 25 Q3 24 QoQ YoY Revenues 188 176 163 7% 15% ▪ Loans up 8% and deposits up 21% YoY, with Non-Interest Expenses 64 55 56 16% 14% client base up 34% PTPP 124 121 107 2% 16% - Benefiting from leading position in digital PCL 14 21 12 payment
Slide 28: Q3 2025 – Other Segment
│ Q3 2025 – Other Segment ($MM) ▪ Reported results reflect specified items related Reported Results Adjusted Results (1) to the CWB Transaction(3) Q3 25 Q2 25 Q3 24 Q3 25 Q2 25 Q3 24 Revenues 10 (48) 32 10 (48) (76) ▪ Adjusted results reflect: Non-Int. Expenses 161 142 75 67 28 68 - Higher revenues
Slide 29: Loan Distribution by Borrower Category
│ Loan Distribution by Borrower Category(1) (in $B) (As at July 31, 2025) ▪ Secured lending accounts for 96% $B % of Total of Retail loans Retail Secured - Mortgage & HELOC 119.6 41% ▪ Indirect auto loans represent 2.4% of total Secured - Other (2) 16.9 6% loans ($7.2B). Unsecured 3.5 1% ▪ Limited e
Slide 30: Geographic distribution
│ Geographic distribution (As at July 31, 2025) Within the Canadian loan portfolio: British Quebec Ontario Columbia Alberta Others Total ▪ Limited exposure to unsecured consumer Retail loans (2.2%) Secured Mortgage & HELOC 21.6% 12.8% 2.5% 3.3% 1.9% 42.1% Secured Other 1.7% 1.6% 0.6% 0.4% 0.5% 4.8%
Slide 31: Strong Performing ACL Coverage
│ Strong Performing ACL Coverage Total Allowances Cover 5.0x NCOs Performing ACL / LTM PCL on Impaired Loans (1) Total ACL / LTM Net Charge-Offs (excl. Credigy’s POCI loans) (2) ABA: Historical PCL and NCOs (bps) Strong Total ACL Coverage Total ACL / Total Loans (excl. Credigy’s POCI and FVTPL) 2020
Slide 32: Total Portfolio by Sector ($44.0B)
│ Total Portfolio by Sector ($44.0B) Corporate Banking (4%) (As at July 31, 2025) ▪ Primarily diversified Canadian REIT Short Term Construction (27%) ▪ Mix of residential construction, land and contractors ▪ Less than 10% of exposure to High Rise condos in GTA/GVA ▪ No US exposure Commercial Banking
Slide 33: Daily Trading and Underwriting Revenues vs. VaR
APPENDIX 12 | DAILY TRADING AND UNDERWRITING REVENUES VS. VAR June, 2025, July, 2025 “ NN (aes Trading P&L Trading VaR 33 | Be
Slide 34: Balance Sheet Overview
│ Balance Sheet Overview ($B, as at July 31, 2025) Balance sheet reflects our diversified business $553 $553 model Business & Government Loans Business & (2) ▪ Core banking activities well-funded through 131 Government Deposits 181 diversified and resilient sources Loans 53% (1) Deposits, - Diversif
Slide 35: Canada Real GDP and Macroeconomic Forecast
│ Canada Real GDP(1) Macroeconomic Forecast: Q3 25 vs. Q2 25(1) ($ Trillions) (Full Calendar Years) Base Scenario C2025 C2026 2.60 Real GDP (Annual Average % Change) As at April 30, 2025 1.1 % 0.9 % 2.50 As at July 31, 2025 1.3 % 1.1 % 2.40 Unemployment Rate (Average %) As at April 30, 2025 7.1 % 7.
Slide 36: Accounting Considerations Related to the Acquisition of CWB
│ Accounting Considerations Related to the Acquisition of CWB - Preliminary Estimates and Subject to Final PPA(1) Estimated P&L impact P&L treatment (2) (in $MM, unless otherwise noted) Amount Comments Pre-tax amount Quarterly EPS Period Adjusted Not Adjusted $ 17 $ (0.03) Q2'25 X Amortized using th
Slide 37: Notes on CWB Transaction Impact
│ (1) Refers to the CWB Transaction’s contribution to results following closing of the acquisition. Results presented under this headline are not representative of CWB’s prior reporting basis as they reflect the Bank’s presentation methodology, including but not limited to the PPA and Fund Transfer
Slide 38: Non-GAAP reconciliation ($MM, except EPS)
│ ($MM, except EPS) Q3 25 Q2 25 Non- Non- Total (6) Income Net Diluted Total (6) Income Net Diluted Interest PTPP PCL Interest PTPP PCL Revenues taxes Income EPS Revenues taxes Income EPS Segment Expenses Expenses Reported Results 3,449 1,925 1,524 203 256 1,065 $2.58 3,650 1,942 1,708 545 267 896 $
Slide 39: Non-GAAP reconciliation ($MM, except EPS)
│ ($MM, except EPS) Q3 24 Non- Total Income Net Diluted Interest PTPP(6) PCL Revenues taxes Income EPS Segment Expenses Reported Results 2,996 1,541 1,455 149 273 1,033 $2.89 Amortization of the subscription receipts Other 5 - 5 - 2 3 $0.01 issuance costs(1) Gain on the fair value remeasurement of a
Slide 40: Investor Relations Contact Information
Investor Relations Contact Information W: —www.nbc.ca/investorrelations a) investorrelations@nbc.ca
National Bank of Canada — Q3 2025 Earnings Presentation on 6ix