National Bank Of Canada TSX:NA
National Bank of Canada : Report to Shareholders Q2 2026
Source: MarketScreener
Report to Shareholders Second Quarter 2026
National Bank reports its results for the Second Quarter of 2026 and raises its quarterly dividend by 8 cents to $1.32 per share
The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter and six-month period ended April 30, 2026 and is prepared in accordance with IAS 34 - Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). All amounts are presented in Canadian dollars.
MONTREAL, May 27, 2026 - For the second quarter of 2026, National Bank is reporting net income of $1,234 million, up 38% from $896 million in the second quarter of 2025. Diluted earnings per share stood at $3.06 in the second quarter of 2026, up 41% from $2.17 in the second quarter of 2025.These increases reflect good performance across the business segments and lower provisions for credit losses, particularly due to the initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired Canadian Western Bank (CWB) loans. Excluding specified items(1) recorded in the second quarters of 2026 and 2025 mainly related to the acquisition of CWB, adjusted net income(1) stood at
$1,303 million, up 12% from $1,166 million in the corresponding quarter of 2025. Adjusted diluted earnings per share(1) stood at $3.23, up 13% from
$2.85 in the second quarter of 2025.
For the six-month period ended April 30, 2026, the Bank's net income totalled $2,488 million, up 31% from $1,893 million for the corresponding period of 2025. Diluted earnings per share stood at $6.14 compared to $4.91 for the corresponding period of 2025, an increase of 25%. This growth was driven by good performance across all business segments and the inclusion of CWB's results starting in the second quarter of 2025. Adjusted net income(1) for the six-month period ended April 30, 2026 totalled $2,623 million, up 18% from $2,216 million for the corresponding period of 2025, while adjusted diluted earnings per share(1) stood at $6.48, up 12% from $5.78 for the six-month period ended April 30, 2025.
"We delivered strong growth in the second quarter, reflecting the diversification of our business and continued client activity across our franchises. Our performance was further supported by credit discipline, CWB-related synergies and share buybacks," said Laurent Ferreira, President and Chief Executive Officer of National Bank of Canada. "In the context of heightened macroeconomic uncertainty, we remain well positioned to support our clients, and continue delivering strong earnings growth and return on equity, while maintaining robust capital levels," concluded Mr. Ferreira.
Highlights
(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Net income | 1,234 | 896 | 38 | 2,488 | 1,893 | 31 |
Diluted earnings per share (dollars) | $ 3.06 | $ 2.17 | 41 | $ 6.14 | $ 4.91 | 25 |
Income before provisions for credit losses and income taxes | 1,848 | 1,708 | 8 | 3,730 | 3,245 | 15 |
Return on common shareholders' equity(2) | 15.9 % | 11.9 % | 15.8 % | 14.0 % | ||
Dividend payout ratio(2) | 42.3 % | 42.2 % | 42.3 % | 42.2 % | ||
Operating results - Adjusted(1) | ||||||
Net income - Adjusted | 1,303 | 1,166 | 12 | 2,623 | 2,216 | 18 |
Diluted earnings per share - Adjusted (dollars) | $ 3.23 | $ 2.85 | 13 | $ 6.48 | $ 5.78 | 12 |
Income before provisions for credit losses and | ||||||
income taxes - Adjusted | 1,936 | 1,850 | 5 | 3,909 | 3,460 | 13 |
Return on common shareholders' equity - Adjusted(3) | 16.8 % | 15.6 % | 16.7 % | 16.5 % |
As at April 30, 2026 | As at October 31, 2025 | |
CET1 capital ratio under Basel III(4) | 13.5 % | 13.8 % |
Leverage ratio under Basel III(4) | 4.3 % | 4.5 % |
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Report to Shareholders
Second quarter of 2026 versus second quarter of 2025 Personal and Commercial
Net income totalled $355 million versus $132 million in 2025, a $223 million increase. Adjusted net income(1) totalled $373 million, up $57 million
or 18%.
At $1,488 million, second-quarter total revenues rose $72 million or 5% mainly due to net interest income, in line with the growth in loan and deposit volumes, partly offset by a lower net interest margin.
Compared to a year ago, personal lending grew 11% and commercial lending grew 5%, due to the good organic growth.
Net interest margin(2) stood at 2.26%, down from 2.30%.
Non-interest expenses stood at $829 million, up 3%.
Provisions for credit losses were down $257 million, mainly due to initial provisions for credit losses of $230 million on acquired non-impaired CWB loans recorded in 2025.
At 55.7%, the efficiency ratio(2) improved compared to 56.8%.
Wealth Management
Net income totalled $274 million, an 18% increase from $232 million in 2025.
Total revenues amounted to $905 million compared to $791 million last year, a $114 million or 14% increase driven by growth in all types of revenues, mainly fee-based revenues.
Non-interest expenses stood at $531 million versus $476 million in 2025, a 12% increase associated with revenue growth.
At 58.7%, the efficiency ratio(2) improved compared to 60.2%.
Capital Markets
Net income totalled $488 million, versus $501 million in 2025, a 3% decrease.
Total revenues amounted to $1,074 million, down 2%, mainly due to a decrease in global markets revenues, partly offset by an increase in corporate and investment banking revenues.
Non-interest expenses stood at $439 million compared to $403 million, an increase that was due to compensation and employee benefits as well as expenses related to the segment's business growth.
Provisions for credit losses were $16 million compared to $64 million, a decrease attributable to provisions for credit losses on impaired loans.
At 40.9%, the efficiency ratio(2) deteriorated compared to 36.6%.
U.S. Specialty Finance and International (USSF&I)
Net income totalled $186 million, up 10% from $169 million last year.
Total revenues amounted to $410 million, a 5% increase attributable to revenue growth at the ABA Bank subsidiary.
Non-interest expenses stood at $131 million, a 12% increase mainly attributable to the ABA Bank subsidiary.
Provisions for credit losses were down $15 million, a decrease attributable to the Credigy and ABA Bank subsidiaries.
At 32.0%, the efficiency ratio(2) compares to 30.0%.
Other
The Other heading reported a net loss of $69 million compared to a net loss of $138 million in 2025, owing mainly to a higher contribution from Treasury activities, as well as the decrease in non-interest expenses.
Capital Management
As at April 30, 2026, the Common Equity Tier 1 (CET1) capital ratio under Basel III(3) stood at 13.5%, down from 13.8% as at October 31, 2025.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
2
National Bank of Canada Report to Shareholders, Second Quarter 2026
Management's Discussion
and Analysis
May 26, 2026
The following Management's Discussion and Analysis (MD&A) presents the financial condition and operating results of National Bank of Canada (the Bank). This analysis was prepared in accordance with the requirements set out in National Instrument 51-102, Continuous Disclosure Obligations, released by the Canadian Securities Administrators (CSA). This MD&A should be read in conjunction with the unaudited interim condensed consolidated financial statements (the Consolidated Financial Statements) and accompanying notes for the quarter and six-month period ended April 30, 2026 and with the audited annual consolidated financial statements for the year ended October 31, 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise indicated. IFRS represent Canadian generally accepted accounting principles (GAAP). All amounts are presented in Canadian dollars. Additional information about the Bank, including the Annual Information Form, can be obtained from the Bank's website at nbc.ca and SEDAR+'s website at sedarplus.ca. The information found in the various documents and reports published by the Bank or the information available on the Bank's website and mentioned herein is not and should not be considered incorporated by reference into the Report to Shareholders, the Management's Discussion and Analysis, or the consolidated financial statements, unless expressly stated otherwise.
Economic Review and Outlook | 4 | Capital Management | 25 |
Financial Reporting Method | 5 | Risk Management | 31 |
Highlights | 13 | Risk Disclosures | 43 |
Financial Analysis | 14 | Accounting Policies and Financial Disclosure | 44 |
Consolidated Results | 14 | Material Accounting Policies and Accounting Estimates | 44 |
Results by Segment | 17 | Future Accounting Policy Changes | 44 |
Consolidated Balance Sheet | 23 | Financial Disclosure | 44 |
Laurentian Bank of Canada (LBC) Transactions | 24 | Quarterly Financial Information | 44 |
Related Party Transactions | 24 | Glossary | 45 |
Securitization and Off-Balance-Sheet Arrangements | 24 | ||
Income Taxes | 25 |
Certain statements in this document 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 may include, but are not limited to, statements in the messages from management, as well as other statements about the economy, the Bank's objectives, outlook, and priorities for fiscal 2026 and beyond, the strategies or actions that the Bank will take to achieve them, expectations for the Bank's financial condition and operations, the regulatory environment in which it operates, the potential impacts of increased geopolitical uncertainty on the Bank and its clients, its environmental, social, and governance targets and commitments, the impacts and benefits of the acquisition of Canadian Western Bank (CWB), and of the proposed acquisition of certain portfolios of the Laurentian Bank of Canada (LBC), and certain risks to which the Bank is exposed. The Bank may also make forward-looking statements in other documents and regulatory filings, as well as orally. These forward-looking statements are typically identified by verbs or words such as "outlook", "believe", "foresee", "forecast", "anticipate", "estimate", "project", "expect", "intend" and "plan", the use of future or conditional forms, notably verbs such as "will", "may", "should", "could" or "would", as well as similar terms and expressions.
These forward-looking statements are intended to assist the security holders of the Bank in understanding the Bank's financial position and results of operations as at the dates indicated and for the periods then ended, as well as the Bank's vision, strategic objectives, and performance targets, and may not be appropriate for other purposes. These forward-looking statements are based on current expectations, estimates, assumptions and intentions that the Bank deems reasonable as at the date thereof and are subject to uncertainty and risks, many of which are beyond the Bank's control. There is a strong possibility that the Bank's express or implied predictions, forecasts, projections, expectations, or conclusions will not prove to be accurate, that its assumptions will not be confirmed, and that its vision, strategic objectives, and performance targets will not be achieved. The Bank cautions investors that these forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from the expectations, estimates, or intentions expressed in these forward-looking statements due to a number of factors. Therefore, the Bank recommends that readers not place undue reliance on these forward-looking statements. Investors and others who rely on the Bank's forward-looking statements should carefully consider the factors listed below as well as other uncertainties and potential events and the risks they entail. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf.
Assumptions about the performance of the Canadian and U.S. economies in 2026, in particular in the context of increased geopolitical uncertainty, and how that performance will affect the Bank's business are among the factors considered in setting the Bank's objectives, outlooks and priorities. These assumptions appear in the Economic Review and Outlook section and, for each business segment, in the Economic and Market Review sections of the 2025 Annual Report and the Economic Review and Outlook section of this document, and may be updated in the quarterly reports to shareholders filed thereafter.
The forward-looking statements made in this document are based on a number of assumptions and their future outcome is subject to a variety of factors, many of which are beyond the Bank's control and the impacts of which are difficult to predict. These risk factors include, among others, the general economic environment and business and financial market conditions in Canada, the United States, and the other countries where the Bank operates, including recession risk; geopolitical and sociopolitical uncertainty; the measures affecting trade relations between Canada and its partners, including the imposition of tariffs and any measures taken in response to such tariffs, as well as the possible impacts on our clients, our operations and, more generally, the economy; exchange rate and interest rate fluctuations; inflation; global supply chain disruptions; higher funding costs and greater market volatility; changes to fiscal, monetary, and other public policies; regulatory oversight and changes to regulations that affect the Bank's business; the Bank's ability to successfully integrate CWB and the undisclosed costs or liabilities associated with the acquisition; the possibility that the acquisition of certain LBC portfolios may not happen, or not at the expected time, and that the expected benefits of the transaction may not be realized, or not within the expected timeframe; climate change, including physical risks and risks related to the transition to a low-carbon economy; stakeholders engagement and the Bank's ability to meet their expectations on environmental and social issues; the availability of comprehensive and high-quality information from customers and other third parties, including on greenhouse gas emissions; the ability of the Bank to identify climate-related opportunities as well as to assess and manage climate-related risks; significant changes in consumer behaviour; the housing situation, the real estate market, and household indebtedness in Canada; the Bank's ability to achieve its key short-term priorities and long-term strategies; the timely development and launch of new products and services; the ability of the Bank to recruit and retain key personnel; technological innovation, including open banking and the use of artificial intelligence; heightened competition from established companies and from competitors offering non-traditional services; model risk; changes in the performance and creditworthiness of the Bank's clients and counterparties; the Bank's exposure to significant regulatory issues or litigation; changes made to the accounting policies used by the Bank to report its financial position, including the uncertainty related to assumptions and significant accounting estimates; changes to tax legislation in the countries where the Bank operates; changes to capital and liquidity guidelines as well as to the instructions related to the presentation and interpretation thereof; changes to the credit ratings assigned to the Bank by financial and extra-financial rating agencies; potential disruptions to key suppliers of goods and services to the Bank; third-party risk, including failure by third parties to fulfil their obligations to the Bank; the potential impacts of disruptions to the Bank's information technology systems due to cyberattacks and theft or disclosure of data, including personal information and identity theft; the risk of fraudulent activity; the possible impacts of major events on the economy, market conditions, or the Bank's outlook, including international conflicts, natural disasters, public health crises, and the measures taken in response to these events; and the ability of the Bank to anticipate and successfully manage risks arising from all of the foregoing factors.
The foregoing list of risk factors is not exhaustive, and the forward-looking statements made in this document are also subject to risks detailed in the Risk Management section of the 2025 Annual Report as well as in the Risk Management section of the Report to Shareholders for the second quarter of 2026 and may be updated in the quarterly reports to shareholders filed thereafter.
Economic Review and Outlook (1)
Global EconomyIn the global economy, the most significant event of the past quarter has undoubtedly been the conflict in the Middle East, which led to paralysis in the Strait of Hormuz, a transit route for approximately 20% of global oil supply as well as several other strategic commodities. Unsurprisingly, this situation triggered a surge in the prices of these products, which still remain well above their pre-war levels, as uncertainty surrounding the outcome of the conflict remains very high. Attempts at rapprochement between the United States and Iran have been unsuccessful, despite several initiatives. Although tensions have eased somewhat following ceasefire agreements, a return to normal will depend largely on the reopening of the Strait of Hormuz, the timing of which remains uncertain at this stage. The economic repercussions of these developments will nevertheless vary by country. Commodity-exporting economies are clearly benefitting from higher prices. However, even in those countries, households will feel the effects of higher inflation on their purchasing power. As for European and Asian economies, they appear particularly vulnerable, given their heavy dependence on energy supplies from the Middle East. These headwinds have led us to reduce our 2026 growth forecast to 3.0%(2), representing a more modest increase than the 3.4% recorded in 2025.
In the United States, rising energy prices have added to inflation that was already above the U.S. Federal Reserve's (FED) target. Since commodity prices may take some time to normalize, and the labour market remains resilient, the recent inflationary surge may well generate second-round effects (i.e., inflationary pressure through wages). Moreover, inflation was already above target before the conflict began, and had been so for several months. This greatly limits the FED's leeway to lower its policy rate again this year. In this respect, the monetary policy committee appears increasingly divided. Governor Powell's last decision, before handing over his position to Kevin Warsh, was to keep rates unchanged. However, that decision was marked by one dissent in favour of a rate cut, while three other members opposed the accommodative bias of the statement. For our part, we find it difficult to see the FED cutting rates by year-end, since the inflationary surge is taking place in the context of an economy operating above potential. That said, it should be noted that economic growth at the beginning of the year fell short of expectations, as shown by weak growth in real personal consumption expenditures and real personal income. This was probably due in large part to weak population growth. What is really driving the U.S. economy at present is investment in artificial intelligence-related industries. As a result, the composition of growth is evolving, with household demand gradually giving way to investment. Still, we are not overly concerned about the consumer, given the highly expansionary fiscal stimulus measures associated with the One Big Beautiful Bill. Under our base-case scenario, this would translate into gross domestic product (GDP) growth of 2.3%(2) in 2026, following 2.1% in 2025. This forecast nevertheless remains conditional on a rapid geopolitical de-escalation and, consequently, on central banks not overreacting to the current inflation shock.
Canadian EconomyThe impact of the oil shock on the Canadian economy continues to generate debate. It is generally acknowledged that Canada is relatively better positioned than many other countries to cope with rising oil prices, given its status as a net exporter. That does not mean, however, that the Canadian economy will benefit in the short term from the tensions in the Middle East. To be sure, improved terms of trade support nominal GDP as well as public finances. In addition, higher prices are a positive factor for the energy sector. However, because this increase is currently viewed as temporary, it should not lead to a marked rebound in investment or job creation. Moreover, households may be forced to reduce discretionary spending because of higher prices at the pump. This risk is all the greater given that the labour market is currently showing little strength in the context of trade tensions with the United States, as evidenced by its recent deterioration and the low number of job vacancies. Added to this is a negative wealth effect linked to declining real estate prices, which could also weigh on household consumption. Fortunately, financial conditions remain relatively favourable despite the current uncertainty. In this context, and considering that inflation was broadly under control before the outbreak of hostilities in the Middle East, we believe it would be premature for the Bank of Canada to raise its policy rate in response to higher energy costs. Since the Canadian economy is currently operating with excess supply, second-round effects - particularly a resurgence of wage pressures - are less likely to materialize. All things considered, the current difficulties, combined with slower immigration, should limit economic growth in 2026. Growth should come in at 1.0%(2), a modest pace but one that should still allow for a slight improvement in the labour market by year-end. This scenario nevertheless depends in part on a renegotiation of Canada-United States-Mexico Agreement (CUSMA). We believe it is unlikely that Washington will impose significant tariffs on Canada and Mexico in a context of renewed inflationary pressures, as the midterm elections approach.
Quebec EconomyThe challenges posed by U.S. tariffs and the importance of the manufacturing sector remain significant for Quebec's economy. Following a year of hesitant economic growth, data from the Labour Force Survey (LFS) indicate that the labour market stumbled at the start of this year. The unemployment rate thus returned to a cyclical high of 6.2% in April, driven by a contraction in employment. Although this level remains enviable compared with the rest of the country - the national unemployment rate stood at 6.9% - it is still above the level observed before the current trade tensions (5.4%), if further data confirm this episode of weakness. Some deterioration was expected in the current environment, but its magnitude is surprising. Provincial data are generally more volatile, so the indicators may rally somewhat over the coming months. This is all the more true given that layoff notices published by the government do not point to a marked deterioration, and SME confidence is at a six-year high. We therefore remain relatively confident despite this soft patch, especially since the province has several strengths to get through this period, including as the country's most diversified economy. Quebec households also have a savings rate above the Canadian average (7.7% versus 4.4% in the fourth quarter of 2025), which provides them with a considerable cushion in a context of rising energy costs. In addition, according to the firm Léger, 67% of Quebec households consider their financial situation to be good or very good, compared with 57% for Canada as a whole. This consumer confidence is explained in part by the fact that they have been less affected by the fight against inflation launched in 2022 and the monetary tightening that followed. Quebec households are in fact less indebted than elsewhere in the country, while housing prices remain more affordable. Moreover, despite the current uncertainty, the Quebec housing market continues to show greater resilience than those of Ontario and British Columbia. We forecast economic growth of 0.9%(2) for the province in 2026, following a 0.7% growth in 2025.
The quarters used in the Economic Review and Outlook section are calendar quarters.
Economic Forecasts, National Bank's Economics and Strategy Group.
Financial Reporting Method
The Bank's Consolidated Financial Statements are prepared in accordance with IFRS, as issued by the IASB and represent Canadian GAAP.
Non-GAAP and Other Financial Measures
The Bank uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with GAAP. Regulation 52-112 Respecting Non-GAAP and Other Financial Measures Disclosure (Regulation 52-112) prescribes disclosure requirements that apply to the following measures used by the Bank:
non-GAAP financial measures;
non-GAAP ratios;
supplementary financial measures;
capital management measures.
The Bank uses non-GAAP financial measures that do not have standardized meanings under GAAP and that therefore may not be comparable to similar measures used by other companies. Presenting non-GAAP financial measures helps readers to better understand how management analyzes results, shows the impacts of specified items on the results of the reported periods, and allows readers to better assess results without the specified items if they consider such items not to be reflective of the underlying performance of the Bank's operations.
The key non-GAAP financial measures used by the Bank to analyze its results are described below, and a quantitative reconciliation of these measures is presented in the tables in the Reconciliation of Non-GAAP Financial Measures section on pages 10 to 12 and in the Consolidated Results table on page 14. It should be noted that, for the quarter and six-month period ended April 30, 2026, as part of the CWB acquisition and the LBC transactions, related items have been excluded from results since, in the opinion of management, they do not reflect the underlying performance of the Bank's operations, in particular, integration and transactions-related charges, amortization of intangible assets related to the CWB acquisition and initial provisions for credit losses on non-impaired loans acquired from LBC. For the quarter and six-month period ended April 30, 2025, several CWB acquisition-related items had been excluded from results (in particular, integration and transaction-related charges, amortization of intangible assets related to the CWB acquisition and initial provisions for credit losses on acquired non-impaired CWB loans). In addition, for the six-month period ended April 30, 2025, the amortization of the subscription receipt issuance costs, the gain resulting from the remeasurement at fair value of the CWB common shares already held by the Bank, the loss resulting from the impact of managing fair value changes were excluded from results.
Adjusted Net Interest Income
This item represents net interest income excluding specified items. Specified items are excluded so that net interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Non-Interest Income
This item represents non-interest income excluding specified items. Specified items are excluded so that non-interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Total Revenues
This item represents total revenues excluding specified items. It consists of adjusted net interest income and adjusted non-interest income. Specified items are excluded so that total revenues can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Non-Interest Expenses
This item represents non-interest expenses excluding specified items. Specified items are excluded so that non-interest expenses can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Income Before Provisions for Credit Losses and Income Taxes
This item represents income before provisions for credit losses and income taxes excluding specified items. It also represents the difference between adjusted total revenues and adjusted non-interest expenses. Specified items are excluded so that income before provisions for credit losses and income taxes can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Provisions for Credit Losses
This item represents provisions for credit losses excluding specified items. Specified items are excluded so that provisions for credit losses can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Income Taxes (Recovery)
This item represents income taxes excluding income taxes (recovery) on specified items.
Adjusted Net Income
This item represents net income excluding specified items. Specified items are excluded so that net income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Net Income Attributable to the Bank's Shareholders and Holders of Other Equity Instruments
This item represents net income attributable to the Bank's shareholders and holders of other equity instruments excluding specified items. Specified items are excluded so that net income attributable to Bank's shareholders and holders of other equity instruments can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Net Income Attributable to Common Shareholders
This item represents net income attributable to common shareholders excluding specified items. Specified items are excluded so that net income attributable to common shareholders can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Basic Earnings Per Share
This item represents basic earnings per share excluding specified items. Specified items are excluded so that basic earnings per share can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Diluted Earnings Per Share
This item represents diluted earnings per share excluding specified items. Specified items are excluded so that diluted earnings per share can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
The Bank also uses the below-described measures to assess its results, and a quantitative reconciliation of these non-GAAP financial measures is presented in the document entitled Supplementary Financial Information -Second Quarter 2026 on page 7 available on the Bank's website at nbc.ca.
Adjusted Non-Trading Net Interest Income
This item represents non-trading net interest income excluding specified items. It includes revenues related to financial assets and financial liabilities associated with non-trading activities, interest income related to the financing of these financial assets and liabilities, net of interest expenses, and is used to calculate adjusted non-trading net interest margin. Specified items are excluded so that non-trading net interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Net Interest Income Related to Trading Activities
This item represents net interest income related to trading activities which comprises dividends related to financial assets and liabilities associated with trading activities and certain interest income related to the financing of these financial assets and liabilities, net of interest expenses.
Non-Interest Income Related to Trading Activities
This item represents non-interest income related to trading activities which consists of realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss, income from held-for-trading derivative financial instruments, changes in the fair value of loans at fair value through profit or loss, changes in the fair value of financial instruments designated at fair value through profit or loss, realized and unrealized gains and losses as well as interest expense on obligations related to securities sold short, certain commission income as well as other trading activity revenues, and any applicable transaction costs.
Trading Activity Revenues
This item represents trading activity revenues which comprise dividends related to financial assets and financial liabilities associated with trading activities; certain interest income related to the financing of these financial assets and liabilities, net of interest expenses; realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss; income from held-for-trading derivative financial instruments; changes in the fair value of loans at fair value through profit or loss; changes in the fair value of financial instruments designated at fair value through profit or loss; realized and unrealized gains and losses as well as interest expense on obligations related to securities sold short; certain commission income as well as other trading activity revenues, and any applicable transaction costs.
Given that the subsidiary Credigy Ltd. (Credigy) conducts specialized lending activities, whose business model and risk profile differ from those of the Bank's other business segments, the Bank excludes purchased or originated credit-impaired (POCI) loans of this subsidiary, as well as related items, from the following non-GAAP financial measures. These exclusions are intended to better reflect the underlying financial performance of the Bank's operations. The quantitative reconciliation of these non-GAAP financial measures is presented in the document entitled Supplementary Financial Information - Second Quarter 2026 on pages 24, 25, 28, 29 and 32.
Provisions for credit losses on impaired loans excluding Credigy's POCI loans
This item represents the amount charged to income to bring the allowances for credit losses to a level deemed appropriate by management and is comprised of provisions for credit losses on impaired financial assets excluding the Credigy subsidiary's POCI loans.
Gross loans excluding Credigy's POCI loans
This item represents gross loans excluding the Credigy subsidiary's POCI loans.
Gross impaired loans excluding Credigy's POCI loans
This item represents all loans classified in Stage 3 of the expected credit loss model and POCI loans excluding the Credigy subsidiary's POCI loans.
Net impaired loans excluding Credigy's POCI loans
This item represents gross impaired loans excluding the Credigy subsidiary's POCI loans presented net of allowances for credit losses on amounts drawn on Stage 3 loans granted by the Bank and POCI loans excluding the Credigy subsidiary's POCI loans.
Allowances for credit losses on impaired loans excluding Credigy's POCI loans
This item represents allowances for credit losses on amounts drawn on Stage 3 loans granted by the Bank and POCI loans excluding the Credigy subsidiary's POCI loans.
Non-GAAP RatiosThe Bank uses non-GAAP ratios that do not have standardized meanings under GAAP and that may therefore not be comparable to similar measures used by other companies. A non-GAAP ratio is a ratio in which at least one component is a non-GAAP financial measure. The Bank uses non-GAAP ratios to present aspects of its financial performance or financial position.
The key non-GAAP ratios used by the Bank are described below. Adjusted Return on Average Assets (ROA)
This item represents ROA excluding specified items. It is adjusted net income expressed as a percentage of average assets. This ratio is used to
measure the Bank's efficiency in using all its assets to generate profits. Specified items are excluded so that ROA can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Return on Common Shareholders' Equity (ROE)
This item represents ROE excluding specified items. It is adjusted net income attributable to common shareholders expressed as a percentage of average equity attributable to common shareholders. Adjusted ROE for the business segments is calculated using adjusted net income attributable to common shareholders of the business segment expressed as a percentage of average allocated capital. It is a general measure of the Bank's and the business segments' efficiency in using equity. Specified items are excluded so that ROE can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Dividend Payout Ratio
This item represents the dividend payout ratio excluding specified items. It is dividends on common shares (per share amount) expressed as a percentage of adjusted basic earnings per share. This ratio is a measure of the proportion of earnings that is paid out to shareholders in the form of dividends. Specified items are excluded so that the dividend payout ratio can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Operating Leverage
This item represents operating leverage excluding specified items. It is the difference between the growth rate of adjusted total revenues and the growth rate of adjusted non-interest expenses, and it measures the sensitivity of the Bank's results to changes in its revenues. Specified items are excluded so that the operating leverage can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Efficiency Ratio
This item represents the efficiency ratio excluding specified items. The ratio represents adjusted non-interest expenses expressed as a percentage of adjusted total revenues. It measures the efficiency of the Bank's operations. Specified items are excluded so that the efficiency ratio can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Adjusted Net Interest Margin, Non-Trading
This item represents the non-trading net interest margin excluding specified items. It is calculated by dividing adjusted non-trading net interest income by average non-trading interest-bearing assets. This ratio is a measure of the profitability of non-trading activities. Specified items are excluded so that the net interest margin, non-trading can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Given that the subsidiary Credigy conducts specialized lending activities, whose business model and risk profile differ from those of the Bank's other business segments, the Bank excludes POCI loans of this subsidiary, as well as related items, from the following non-GAAP ratios. These exclusions are intended to better reflect the underlying financial performance of the Bank's operations, taking into account Credigy Ltd.'s distinct business model.
Provisions for credit losses on impaired loans excluding Credigy's POCI loans as a percentage of average loans or provisions for credit losses on impaired loans excluding Credigy's POCI loans ratio
This item represents the provisions for credit losses on impaired loans excluding the Credigy subsidiary's POCI loans expressed as a percentage of average loans.
Gross impaired loans excluding Credigy's POCI loans as a percentage of total loans
This item represents gross impaired loans excluding the Credigy subsidiary's POCI loans expressed as a percentage of the balance of loans.
Net impaired loans excluding Credigy's POCI loans as a percentage of total loans
This item represents net impaired loans excluding the Credigy subsidiary's POCI loans presented as a percentage of the balance of loans.
Net charge-off excluding Credigy's POCI loans presented as a percentage of average loans
This item represents the net write-off, excluding the Credigy subsidiary's POCI loans (net of recoveries) expressed as a percentage of average loans.
Provisioning rate or coverage ratio of gross impaired loans excluding Credigy's POCI loans
This item represents the allowances for credit losses on impaired loans excluding the Credigy subsidiary's POCI loans expressed as a percentage of gross impaired loans excluding the Credigy subsidiary's POCI loans.
Supplementary Financial MeasuresA supplementary financial measure is a financial measure that: (a) is not reported in the Bank's Consolidated Financial Statements, and (b) is, or is intended to be, reported periodically to represent historical or expected financial performance, financial position, or cash flows. The composition of these supplementary financial measures is presented in table footnotes or in the Glossary section on pages 45 to 48 of this MD&A.
Capital Management MeasuresThe financial reporting framework used to prepare the financial statements requires disclosure that helps readers assess the Bank's capital management objectives, policies, and processes, as set out in IFRS under IAS 1 - Presentation of Financial Statements. The Bank has its own methods for managing capital and liquidity, and IFRS does not prescribe any particular calculation method. These measures are calculated using various guidelines and advisories issued by the Office of the Superintendent of Financial Institutions (Canada) (OSFI), which are based on the standards, recommendations, and best practices of the Basel Committee on Banking Supervision (BCBS), as presented in the following table.
OSFI guideline or advisory Measure
Capital Adequacy Requirements Common Equity Tier 1 (CET1) capital ratio Tier 1 capital ratio
Total capital ratio CET1 capital
Tier 1 capital
Tier 2 capital Total capital
Risk-weighted assets
Maximum credit risk exposure under the Basel asset classes
Leverage Requirements Leverage ratio
Total exposure
Total Loss Absorbing Capacity (TLAC) Key indicators - TLAC requirements Available TLAC
TLAC ratio
TLAC leverage ratio
Liquidity Adequacy Requirements Liquid asset portfolio
Encumbered assets and unencumbered assets Liquidity coverage ratio (LCR)
High-quality liquid assets (HQLA)
Cash inflows/outflows and net cash outflows Net stable funding ratio (NSFR)
Available stable funding items Required stable funding items
Global Systemically Important Banks (G-SIBs) -Public Disclosure Requirements
G-SIB indicators
Reconciliation of Non-GAAP Financial Measures
Presentation of Results - Adjusted(millions of Canadian dollars) Quarter ended April 30
2026 | 2025 | ||||||
Personal and Commercial | Wealth Management | Capital Markets | USSF&I | Other | Total | Total | |
Operating results Net interest income Non-interest income | 1,212 276 | 241 664 | (483) 1,557 | 373 37 | (34) 64 | 1,309 2,598 | 1,205 2,445 |
Total revenues | 1,488 | 905 | 1,074 | 410 | 30 | 3,907 | 3,650 |
Non-interest expenses | 829 | 531 | 439 | 131 | 129 | 2,059 | 1,942 |
Income before provisions for credit losses and income taxes | 659 | 374 | 635 | 279 | (99) | 1,848 | 1,708 |
Provisions for credit losses | 169 | 1 | 16 | 44 | 3 | 233 | 545 |
Income before income taxes (recovery) | 490 | 373 | 619 | 235 | (102) | 1,615 | 1,163 |
Income taxes (recovery) | 135 | 99 | 131 | 49 | (33) | 381 | 267 |
Net income | 355 | 274 | 488 | 186 | (69) | 1,234 | 896 |
Items that have an impact on results | |||||||
Non-interest expenses | |||||||
Integration and transaction-related charges(1) | − | − | − | − | 64 | 64 | 118 |
Amortization of intangible assets related to the CWB acquisition(2) | 20 | 4 | − | − | − | 24 | 24 |
Impact on non-interest expenses | 20 | 4 | − | − | 64 | 88 | 142 |
Provisions for credit losses Initial provisions for credit losses on non-impaired loans acquired(3) | 4 | − | 2 | − | − | 6 | 230 |
Impact on provisions for credit losses | 4 | − | 2 | − | − | 6 | 230 |
Income taxes Income taxes on the integration and transaction-related charges(1) Income taxes on the amortization of intangible assets related to the CWB acquisition(2) Income taxes on initial provisions for credit losses on non-impaired loans acquired(3) | − | − | − | − | (18) | (18) | (32) |
(5) | (1) | − | − | − | (6) | (6) | |
(1) − | − | − | − | (1) | (64) | ||
Impact on income taxes | (6) | (1) | − | − | (18) | (25) | (102) |
Impact on net income | (18) | (3) | (2) | − | (46) | (69) | (270) |
Operating results - Adjusted | |||||||
Net interest income - Adjusted | 1,212 | 241 | (483) | 373 | (34) | 1,309 | 1,205 |
Non-interest income - Adjusted | 276 | 664 | 1,557 | 37 | 64 | 2,598 | 2,445 |
Total revenues - Adjusted | 1,488 | 905 | 1,074 | 410 | 30 | 3,907 | 3,650 |
Non-interest expenses - Adjusted | 809 | 527 | 439 | 131 | 65 | 1,971 | 1,800 |
Income before provisions for credit losses and income | |||||||
taxes - Adjusted | 679 | 378 | 635 | 279 | (35) | 1,936 | 1,850 |
Provisions for credit losses - Adjusted | 165 | 1 | 14 | 44 | 3 | 227 | 315 |
Income before income taxes (recovery) - Adjusted | 514 | 377 | 621 | 235 | (38) | 1,709 | 1,535 |
Income taxes (recovery) - Adjusted | 141 | 100 | 131 | 49 | (15) | 406 | 369 |
Net income - Adjusted | 373 | 277 | 490 | 186 | (23) | 1,303 | 1,166 |
During the quarter ended April 30, 2026, the Bank recorded integration and transaction-related charges of $57 million ($41 million net of income taxes) related to the CWB transaction (2025: $118 million, $86 million net of income taxes) and charges of $7 million ($5 million net of income taxes) related to the LBC transactions.
During the quarter ended April 30, 2026, the Bank recorded an amount of $24 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $24 million, $18 million net of income taxes).
During the quarter ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million ($5 million net of income taxes). During the quarter ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
(millions of Canadian dollars) Six-month ended April 30
2026 | 2025 | ||||||
Personal and Commercial | Wealth Management | Capital Markets | USSF&I | Other | Total | Total | |
Operating results Net interest income Non-interest income | 2,452 564 | 481 1,323 | (980) 3,044 | 770 74 | (20) 92 | 2,703 5,097 | 2,177 4,656 |
Total revenues | 3,016 | 1,804 | 2,064 | 844 | 72 | 7,800 | 6,833 |
Non-interest expenses | 1,629 | 1,062 | 851 | 251 | 277 | 4,070 | 3,588 |
Income before provisions for credit losses and income taxes | 1,387 | 742 | 1,213 | 593 | (205) | 3,730 | 3,245 |
Provisions for credit losses | 308 | (1) | 42 | 124 | 4 | 477 | 799 |
Income before income taxes (recovery) | 1,079 | 743 | 1,171 | 469 | (209) | 3,253 | 2,446 |
Income taxes (recovery) | 297 | 197 | 240 | 98 | (67) | 765 | 553 |
Net income | 782 | 546 | 931 | 371 | (142) | 2,488 | 1,893 |
Items that have an impact on results Net interest income Amortization of the subscription receipt issuance costs(1) | − | − | − | − | − | − | (28) |
Impact on net interest income | − | − | − | − | − | − | (28) |
Non-interest income Gain on the fair value remeasurement of an equity interest(2) Management of the fair value changes related to the CWB acquisition(3) | − | − | − | − | − | − | 4 |
− | − | − | − | − | − | (23) | |
Impact on non-interest income | − | − | − | − | − | − | (19) |
Non-interest expenses Integration and transaction-related charges(4) Amortization of intangible assets related to the CWB acquisition(5) | − 41 | − 7 | − − | − − | 131 − | 131 48 | 144 24 |
Impact on non-interest expenses | 41 | 7 | − | − | 131 | 179 | 168 |
Provisions for credit losses Initial provisions for credit losses on non-impaired loans acquired(6) | 4 | − | 2 | − | − | 6 | 230 |
Impact on provisions for credit losses | 4 | − | 2 | − | − | 6 | 230 |
Income taxes Income taxes on the amortization of the subscription receipt issuance costs(1) Income taxes on the gain on the fair value remeasurement of an equity interest(2) Income taxes on management of the fair value changes related to the CWB acquisition(3) Income taxes on the integration and transaction-related charges(4) Income taxes on the amortization of intangible assets related to the CWB acquisition(5) Income taxes on initial provisions for credit losses on non-impaired loans acquired(6) | − | − | − | − | − | − | (8) |
− | − | − | − | − | − | 1 | |
− | − | − | − | − | − | (6) | |
− | − | − | − | (36) | (36) | (39) | |
(11) | (2) | − | − | − | (13) | (6) | |
(1) − | − | − | − | (1) | (64) | ||
Impact on income taxes | (12) | (2) | − | − | (36) | (50) | (122) |
Impact on net income | (33) | (5) | (2) | − | (95) | (135) | (323) |
Operating results - Adjusted Net interest income - Adjusted Non-interest income - Adjusted | 2,452 564 | 481 1,323 | (980) 3,044 | 770 74 | (20) 92 | 2,703 5,097 | 2,205 4,675 |
Total revenues - Adjusted | 3,016 | 1,804 | 2,064 | 844 | 72 | 7,800 | 6,880 |
Non-interest expenses - Adjusted | 1,588 | 1,055 | 851 | 251 | 146 | 3,891 | 3,420 |
Income before provisions for credit losses and income taxes - Adjusted Provisions for credit losses - Adjusted | 1,428 304 | 749 (1) | 1,213 40 | 593 124 | (74) 4 | 3,909 471 | 3,460 569 |
Income before income taxes (recovery) - Adjusted | 1,124 | 750 | 1,173 | 469 | (78) | 3,438 | 2,891 |
Income taxes (recovery) - Adjusted | 309 | 199 | 240 | 98 | (31) | 815 | 675 |
Net income - Adjusted | 815 | 551 | 933 | 371 | (47) | 2,623 | 2,216 |
During the six-month period ended April 30, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB.
During the six-month period ended April 30, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB.
During the six-month period ended April 30, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB's assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction.
During the six-month period ended April 30, 2026, the Bank recorded integration and transaction-related charges of $122 million ($88 million net of income taxes) related to the CWB transaction (2025: $144 million, $105 million net of income taxes) and charges of $9 million ($7 million net of income taxes) related to the LBC transactions.
During the six-month period ended April 30, 2026, the Bank recorded an amount of $48 million ($35 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $24 million, $18 million net of income taxes).
During the six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million ($5 million net of income taxes). During the six-month period ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
(Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Basic earnings per share | $ 3.10 | $ 2.19 | 42 | $ 6.22 | $ 4.96 | 25 |
Amortization of the subscription receipt issuance costs(1) | − | - | − | 0.05 | ||
Gain on the fair value remeasurement of an equity interest(2) | − | - | − | (0.01) | ||
Management of the fair value changes related to the | ||||||
CWB acquisition(3) | − | - | − | 0.05 | ||
Integration and transaction-related charges(4) | 0.12 | 0.22 | 0.24 | 0.29 | ||
Amortization of intangible assets related to the CWB acquisition(5) | 0.04 | 0.04 | 0.09 | 0.05 | ||
Initial provisions for credit losses on non-impaired loans acquired(6) | 0.01 | 0.43 | 0.01 | 0.45 | ||
Basic earnings per share - Adjusted | $ 3.27 | $ 2.88 | 14 | $ 6.56 | $ 5.84 | 12 |
Diluted earnings per share | $ 3.06 | $ 2.17 | 41 | $ 6.14 | $ 4.91 | 25 |
Amortization of the subscription receipt issuance costs(1) | − | - | − | 0.05 | ||
Gain on the fair value remeasurement of an equity interest(2) | − | - | − | (0.01) | ||
Management of the fair value changes related to the | ||||||
CWB acquisition(3) | − | - | − | 0.05 | ||
Integration and transaction-related charges(4) | 0.12 | 0.22 | 0.24 | 0.28 | ||
Amortization of intangible assets related to the CWB acquisition(5) | 0.04 | 0.04 | 0.09 | 0.05 | ||
Initial provisions for credit losses on non-impaired loans acquired(6) | 0.01 | 0.42 | 0.01 | 0.45 | ||
Diluted earnings per share - Adjusted | $ 3.23 | $ 2.85 | 13 | $ 6.48 | $ 5.78 | 12 |
During the six-month period ended April 30, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB.
During the six-month period ended April 30, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB.
During the six-month period ended April 30, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB's assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction.
During the quarter ended April 30, 2026, the Bank recorded integration and transaction-related charges of $57 million ($41 million net of income taxes) related to the CWB transaction (2025: $118 million, $86 million net of income taxes) and charges of $7 million ($5 million, net of income taxes) related to the LBC transactions. For the six-month period ended April 30, 2026, charges related to the CWB transaction are $122 million ($88 million, net of income taxes) (2025: $144 million, $105 million net of income taxes) and charges of $9 million ($7 million, net of income taxes) related to the LBC transactions.
During the quarter ended April 30, 2026, the Bank recorded an amount of $24 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition. For the six-month period ended April 30, 2026, this expense was $48 million ($35 million net of income taxes). For the quarter and six-month period ended
April 30, 2025, this charge was $24 million ($18 million of income taxes).
During the quarter and six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million
($5 million net of income taxes). During the quarter and six-month ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
Highlights
(millions of Canadian dollars, except per share amounts) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Operating results | ||||||
Total revenues | 3,907 | 3,650 | 7 | 7,800 | 6,833 | 14 |
Income before provisions for credit losses and income taxes | 1,848 | 1,708 | 8 | 3,730 | 3,245 | 15 |
Net income | 1,234 | 896 | 38 | 2,488 | 1,893 | 31 |
Return on common shareholders' equity(1) | 15.9 % | 11.9 % | 15.8 % | 14.0 % | ||
Operating leverage(1) | 1.0 % | 0.8 % | 0.8 % | 2.3 % | ||
Efficiency ratio(1) | 52.7 % | 53.2 % | 52.2 % | 52.5 % | ||
Earnings per share | ||||||
Basic | $ 3.10 | $ 2.19 | 42 | $ 6.22 | $ 4.96 | 25 |
Diluted | $ 3.06 | $ 2.17 | 41 | $ 6.14 | $ 4.91 | 25 |
Operating results - Adjusted(2) | ||||||
Total revenues - Adjusted(2) | 3,907 | 3,650 | 7 | 7,800 | 6,880 | 13 |
Income before provisions for credit losses and | ||||||
income taxes - Adjusted(2) | 1,936 | 1,850 | 5 | 3,909 | 3,460 | 13 |
Net income - Adjusted(2) | 1,303 | 1,166 | 12 | 2,623 | 2,216 | 18 |
Return on common shareholders' equity - Adjusted(3) | 16.8 % | 15.6 % | 16.7 % | 16.5 % | ||
Operating leverage - Adjusted(3) | (2.5) % | 10.4 % | (0.4) % | 8.9 % | ||
Efficiency ratio - Adjusted(3) | 50.4 % | 49.3 % | 49.9 % | 49.7 % | ||
Diluted earnings per share - Adjusted(2) | $ 3.23 | $ 2.85 | 13 | $ 6.48 | $ 5.78 | 12 |
Common share information | ||||||
Dividends declared | $ 1.24 | $ 1.14 | 9 | $ 2.48 | $ 2.28 | 9 |
Book value(1) | $ 80.31 | $ 76.13 | $ 80.31 | $ 76.13 | ||
Share price | ||||||
High | $ 205.04 | $ 127.44 | $ 205.04 | $ 140.76 | ||
Low | $ 163.94 | $ 107.01 | $ 156.88 | $ 107.01 | ||
Close | $ 205.04 | $ 121.08 | $ 205.04 | $ 121.08 | ||
Number of common shares (thousands) | 385,634 | 391,322 | 385,634 | 391,322 | ||
Market capitalization | 79,070 | 47,381 | 79,070 | 47,381 |
(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 | % Change |
Balance sheet and off-balance-sheet | |||
Total assets | 617,734 | 576,919 | 7 |
Loans, net of allowances | 311,987 | 302,623 | 3 |
Deposits | 450,711 | 428,003 | 5 |
Equity attributable to common shareholders | 30,970 | 30,655 | 1 |
Assets under administration(1) | 938,997 | 874,360 | 7 |
Assets under management(1) | 206,933 | 194,467 | 6 |
Regulatory ratios under Basel III(4) | |||
Capital ratios | |||
Common Equity Tier 1 (CET1) | 13.5 % | 13.8 % | |
Tier 1 | 14.9 % | 15.1 % | |
Total | 17.0 % | 17.3 % | |
Leverage ratio | 4.3 % | 4.5 % | |
TLAC ratio(4) | 31.5 % | 29.7 % | |
TLAC leverage ratio(4) | 9.0 % | 8.8 % | |
Liquidity coverage ratio (LCR)(4) | 170 % | 173 % | |
Net stable funding ratio (NSFR)(4) | 118 % | 124 % | |
Other information | |||
Number of employees - Worldwide (full-time equivalent) | 33,767 | 33,200 | 2 |
Number of branches in Canada | 361 | 382 | (5) |
Number of banking machines in Canada | 818 | 939 | (13) |
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Financial Analysis
Consolidated Results
(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Operating results Net interest income Non-interest income | 1,309 2,598 | 1,205 2,445 | 9 6 | 2,703 5,097 | 2,177 4,656 | 24 9 |
Total revenues Non-interest expenses | 3,907 2,059 | 3,650 1,942 | 7 6 | 7,800 4,070 | 6,833 3,588 | 14 13 |
Income before provisions for credit losses and income taxes Provisions for credit losses | 1,848 233 | 1,708 545 | 8 (57) | 3,730 477 | 3,245 799 | 15 (40) |
Income before income taxes Income taxes | 1,615 381 | 1,163 267 | 39 43 | 3,253 765 | 2,446 553 | 33 38 |
Net income Non-controlling interests | 1,234 − | 896 - | 38 | 2,488 − | 1,893 - | 31 |
Net income attributable to the Bank's shareholders and holders of other equity instruments | 1,234 | 896 | 38 | 2,488 | 1,893 | 31 |
Dividends on preferred shares and distributions on other equity instruments | 37 | 43 | (14) | 74 | 82 | (10) |
Net income attributable to common shareholders | 1,197 | 853 | 40 | 2,414 | 1,811 | 33 |
Diluted earnings per share (dollars) | 3.06 | 2.17 41 | 6.14 | 4.91 25 | ||
Specified items(1) Amortization of the subscription receipt issuance costs Gain on the fair value remeasurement of an equity interest Management of the fair value changes related to the CWB acquisition Integration and transaction-related charges Amortization of intangible assets related to the CWB acquisition Initial provisions for credit losses on non-impaired loans acquired | − − − (64) (24) (6) | - - -(118) (24) (230) | − − − (131) (48) (6) | (28) 4 (23) (144) (24) (230) | ||
Specified items before income taxes Income taxes related to specified items | (94) (25) | (372) (102) | (185) (50) | (445) (122) | ||
Specified items after income taxes | (69) | (270) | (135) | (323) | ||
Operating results - Adjusted(1) Net interest income - Adjusted Non-interest income - Adjusted | 1,309 2,598 | 1,205 2,445 | 9 6 | 2,703 5,097 | 2,205 4,675 | 23 9 |
Total revenues - Adjusted Non-interest expenses - Adjusted | 3,907 1,971 | 3,650 1,800 | 7 10 | 7,800 3,891 | 6,880 3,420 | 13 14 |
Income before provisions for credit losses and income taxes - Adjusted Provisions for credit losses - Adjusted | 1,936 227 | 1,850 315 | 5 (28) | 3,909 471 | 3,460 569 | 13 (17) |
Income before income taxes - Adjusted Income taxes - Adjusted | 1,709 406 | 1,535 369 | 11 10 | 3,438 815 | 2,891 675 | 19 21 |
Net income - Adjusted Non-controlling interests | 1,303 − | 1,166 - | 12 | 2,623 − | 2,216 - | 18 |
Net income attributable to the Bank's shareholders and holders of other equity instruments - Adjusted | 1,303 | 1,166 | 12 | 2,623 | 2,216 | 18 |
Dividends on preferred shares and distributions on other equity instruments | 37 | 43 | (14) | 74 | 82 | (10) |
Net income attributable to common shareholders - Adjusted | 1,266 | 1,123 | 13 | 2,549 | 2,134 | 19 |
Diluted earnings per share - Adjusted (dollars) | 3.23 | 2.85 13 | 6.48 | 5.78 12 | ||
Average assets(2) Average loans(2) Average deposits(2) Operating leverage(3) Operating leverage - Adjusted(4) Efficiency ratio(3) Efficiency ratio - Adjusted(4) | 631,995 307,335 458,754 1.0 % (2.5) % 52.7 % 50.4 % | 551,432 284,845 399,064 0.8 % 10.4 % 53.2 % 49.3 % | 15 8 15 | 617,489 305,009 449,316 0.8 % (0.4) % 52.2 % 49.9 % | 519,296 264,442 373,936 2.3 % 8.9 % 52.5 % 49.7 % | 19 15 20 |
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures.
Represents an average of the daily balances for the period.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Second quarter of 2026 versus second quarter of 2025
The Bank is reporting net income of $1,234 million, up 38% from $896 million. Diluted earnings per share stood at $3.06 compared to $2.17. These increases reflect strong performance across the business segments and lower provisions for credit losses, particularly due to the initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired CWB loans. Excluding specified items, adjusted net income stood at
$1,303 million, up 12% from $1,166 million. Adjusted diluted earnings per share stood at $3.23, up 13%.
First six-month period of 2026 versus first six-month period of 2025
The Bank's net income totalled $2,488 million, up 31% from $1,893 million. Diluted earnings per share stood at $6.14 versus $4.91 in 2025. This growth was driven by strong performance across all business segments and the inclusion of CWB's results starting in the second quarter of 2025. Excluding specified items, adjusted net income totalled $2,623 million, up 18% from $2,216 million, and adjusted diluted earnings per share stood at $6.48, up 12% from $5.78.
Return on common shareholders' equity was 15.8% compared to 14.0% last year. Adjusted return on common shareholders' equity was 16.7% compared to 16.5% in 2025.
Total RevenuesSecond quarter of 2026 versus second quarter of 2025
The Bank's total revenues amounted to $3,907 million, up $257 million or 7%. In the Personal and Commercial segment, total revenues rose 5% due to the growth in loans and deposits, which more than offset the impact of a lower net interest margin, as well as the increase in internal commission revenues related to the distribution of Wealth Management products. The 14% growth in total revenues in the Wealth Management segment was mainly attributable to increases in fee-based revenues, notably revenues from investment management and trust service fees and mutual fund revenues. The growth was also due to an increase in net interest income and securities brokerage commissions, which was driven by an increase in client activity. Total revenues for the Capital Markets segment decreased by 2% due to lower global markets revenues, partly offset by higher corporate and investment banking revenues. In the USSF&I segment, total revenues were up 5% as a result of revenue growth at the ABA Bank subsidiary, stemming from business growth. Total revenues for the Other heading increased compared to last year, in particular as a result of a higher contribution from Treasury activities.
First six-month period of 2026 versus first six-month period of 2025
The Bank's total revenues amounted to $7,800 million compared to $6,833 million, an increase of $967 million or 14%. In the Personal and Commercial segment, total revenues were up $396 million or 15%, mainly driven by the increase in net interest income arising from growth in personal and commercial loans and deposits, partly offset by a decrease in net interest margin, the inclusion of CWB's results beginning in the second quarter of 2025, as well as growth in internal commission revenues related to the distribution of Wealth Management products. The 15% increase in total revenues in the Wealth Management segment was mainly due to increases in fee-based revenues, notably revenues from investment management and trust service fees and mutual fund revenues as a result of growth in assets under administration and under management. The growth was also attributable to the rise in net interest income and securities brokerage commissions, which was driven by an increase in client activity. Total revenues for the Capital Markets segment were up $56 million or 3% as a result of higher corporate and investment banking revenues, partly offset by the decrease in global markets revenues. In the USSF&I segment, total revenues were up 6%, which was mainly driven by revenue growth at the ABA Bank subsidiary, stemming from business growth, and an increase in Credigy's revenues. Total revenues for the Other heading were higher than in 2025, mainly attributable to a higher contribution from Treasury activities and the unfavourable impact of specified items related to the CWB acquisition recorded in 2025. Excluding specified items, adjusted total revenues were $7,800 million, up 13% from $6,880 million in 2025.
Non-Interest ExpensesSecond quarter of 2026 versus second quarter of 2025
Non-interest expenses stood at $2,059 million, up $117 million or 6%. The increase was due to higher compensation and employee benefits, notably variable compensation related to revenue growth. In addition, occupancy expenses, including depreciation expense, were up due to a $22 million reversal in second-quarter of 2025 of the provision for property taxes related to the Bank's head office building, head office-related expenses, as well as the expansion of the banking network at the ABA Bank subsidiary. The increase in technology expenses, including depreciation expense, was attributable to significant investments made to support the Bank's technological evolution and business development plan. Professional fees were down, notably due to lower expenses related to the integration of CWB compared to 2025. Communication expenses were also down compared to last year. In addition, the increase in other expenses was partly due to litigation expenses of $15 million recorded in the second quarter of 2026.
Excluding specified items, mainly related to the CWB acquisition, adjusted non-interest expenses stood at $1,971 million, up 10% from $1,800 million last year.
First six-month period of 2026 versus first six-month period of 2025
Non-interest expenses totalled $4,070 million, up 13%. The growth in non-interest expenses was essentially due to the same reasons provided above for the quarter, notably higher compensation and employee benefits, occupancy expenses and technology expenses. In addition, communication expenses were stable and professional fees were up compared to 2025. Moreover, the increase in other expenses was mainly attributable to the amortization of intangible assets related to the acquisition of CWB, which began in the second quarter of 2025, as well as litigation expenses of
$15 million recorded in the second quarter of 2026. Adjusted non-interest expenses were $3,891 million, a 14% increase from $3,420 million.
Provisions for Credit LossesSecond quarter of 2026 versus second quarter of 2025
The Bank recorded provisions for credit losses of $233 million compared to $545 million last year. This significant decrease was partly due to initial provisions for credit losses of $230 million recorded on acquired non-impaired CWB loans in 2025. Provisions for credit losses on non-impaired loans totalled $38 million, reflecting growth in loan portfolios, the unfavourable impact of updated macroeconomic scenarios, as well as initial provisions for credit losses of $6 million recorded on non-impaired syndicated loans acquired from LBC during the second quarter of 2026. Provisions for credit losses on impaired loans amounted to $195 million compared to $230 million in 2025, a decrease that was mainly due to the Capital Markets segment and the Credigy subsidiary. These decreases were offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and in Commercial Banking. Provisions for credit losses on impaired loans excluding Credigy's POCI loans(1) represented 0.26% of average loans, compared to 0.32% in 2025. Adjusted provisions for credit losses totalled $227 million, down $88 million from 2025.
First six-month period of 2026 versus first six-month period of 2025
The Bank's provisions for credit losses totalled $477 million compared to $799 million. This decrease was partly due to initial provisions for credit losses of $230 million recorded on acquired non-impaired CWB loans in 2025. In addition, provisions for credit losses on non-impaired loans reflect growth in loan portfolios (including non-impaired syndicated loans acquired from LBC during the second quarter of 2026) and credit risk migration, partly offset by the favourable impact of updated macroeconomic scenarios. Provisions for credit losses on impaired loans were lower, mainly due to the Capital Markets segment, partly offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and in Commercial Banking. Provisions for credit losses on impaired loans excluding Credigy's POCI loans(1) represented 0.27% of average loans, compared to 0.32% in 2025. Adjusted provisions for credit losses were $471 million compared to $569 million in 2025.
Income TaxesSecond quarter of 2026 versus second quarter of 2025
Income taxes stood at $381 million compared to $267 million and the effective income tax rate was 24% compared to 23%. This is mainly due to a lower proportion of income from lower tax-rate jurisdictions in 2026.
First six-month period of 2026 versus first six-month period of 2025
The effective income tax rate stood at 24% compared to 23% last year, a change mainly due to a lower proportion of income from lower tax-rate jurisdictions in 2026.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Results by Segment
The Bank carries out its activities in four business segments: Personal and Commercial, Wealth Management, Capital Markets, and U.S. Specialty Finance and International, which mainly comprises the activities of the Credigy Ltd. (Credigy) and Advanced Bank of Asia Limited (ABA Bank) subsidiaries. Other operating activities, certain specified items, Treasury activities, and the operations of the Flinks Technology Inc. (Flinks) subsidiary are grouped in the Other heading of segment results. Each reportable segment is distinguished by services offered, type of clientele, and marketing strategy.
Personal and Commercial(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Operating results | ||||||
Net interest income | 1,212 | 1,146 | 6 | 2,452 | 2,090 | 17 |
Non-interest income | 276 | 270 | 2 | 564 | 530 | 6 |
Total revenues | 1,488 | 1,416 | 5 | 3,016 | 2,620 | 15 |
Non-interest expenses | 829 | 804 | 3 | 1,629 | 1,445 | 13 |
Income before provisions for credit losses and income taxes | 659 | 612 | 8 | 1,387 | 1,175 | 18 |
Provisions for credit losses | 169 | 426 | (60) | 308 | 588 | (48) |
Income before income taxes | 490 | 186 | 1,079 | 587 | 84 | |
Income taxes | 135 | 54 | 297 | 165 | 80 | |
Net income | 355 | 132 | 782 | 422 | 85 | |
Less: Specified items after income taxes(1) | (18) | (184) | (33) | (184) | ||
Net income - Adjusted(1) | 373 | 316 | 18 | 815 | 606 | 34 |
Return on common shareholders' equity(2) | 10.4 % | 11.3 % | ||||
Return on common shareholders' equity - Adjusted(3) | 10.9 % | 11.8 % | ||||
Net interest margin(2) | 2.26 % | 2.30 % | 2.26 % | 2.29 % | ||
Average interest-bearing assets(2) | 220,076 | 204,759 | 7 | 218,244 | 184,214 | 18 |
Average assets(4) | 224,690 | 208,658 | 8 | 222,341 | 186,905 | 19 |
Average loans(4) | 219,673 | 203,341 | 8 | 217,870 | 183,394 | 19 |
Net impaired loans(2) | 1,607 | 1,237 | 30 | 1,607 | 1,237 | 30 |
Net impaired loans as a % of total loans(2) | 0.7 % | 0.6 % | 0.7 % | 0.6 % | ||
Average deposits(4) | 110,656 | 107,086 | 3 | 110,980 | 99,433 | 12 |
Efficiency ratio(2) | 55.7 % | 56.8 % | 54.0 % | 55.2 % | ||
Efficiency ratio - Adjusted(3) | 54.4 % | 55.1 % | 52.7 % | 54.2 % | ||
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded amortization of intangible assets of $15 million net of income taxes related to the CWB acquisition ($30 million net of income taxes for the six-month period ended April 30, 2026) and initial provisions for credit losses of $3 million net of income taxes on non-impaired loans acquired from LBC. In addition, during the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $1 million net of income taxes, amortization of intangible assets of
$17 million net of income taxes and initial provisions for credit losses on acquired non-impaired CWB loans of $166 million net of income taxes.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Represents an average of the daily balances for the period.
Second quarter of 2026 versus second quarter of 2025
In the Personal and Commercial segment, net income totalled $355 million compared to $132 million last year, an increase of $223 million partly due to the decrease in provisions for credit losses, which had included initial provisions for credit losses of $230 million on acquired non-impaired CWB loans in the second quarter of 2025. In addition, income before provisions for credit losses and income taxes stood at $659 million compared to
$612 million, up 8%. Adjusted net income was $373 million, up 18%. The 6% increase in net interest income was driven by growth in personal and commercial loans as well as commercial deposits, which more than offset the impact of a lower net interest margin. In addition, non-interest income increased by 2%.
Personal Banking's total revenues increased by $64 million. This increase was driven by growth in loans, partly offset by a narrower net interest margin, as well as the increase in internal commission revenues related to the distribution of Wealth Management products. Commercial Banking's total revenues grew $8 million, mainly due to an increase in net interest income, driven by loan growth and deposit growth, partly offset by a narrower net interest margin.
The segment's non-interest expenses stood at $829 million, up 3%. The increase in non-interest expenses was due to higher compensation and employee benefits, mainly from salary increases, fees and investments made as part of the segment's technological evolution, professional fees, and litigation expenses of $15 million recorded in the second quarter of 2026. The efficiency ratio of 55.7% has improved from 56.8% in 2025 partly as a result of cost synergies achieved as part of the acquisition of CWB. Adjusted non-interest expenses amounted to $809 million, compared to
$780 million. The adjusted efficiency ratio stood at 54.4%, compared to 55.1%.
Provisions for credit losses stood at $169 million compared to $426 million last year, down $257 million. This decrease was mainly due to initial provisions for credit losses on acquired non-impaired CWB loans of $230 million recorded in the second quarter of 2025. In addition, provisions for credit losses on non-impaired loans were down, while provisions for credit losses on impaired loans were up as a result of impaired loans in Personal Banking (including credit card receivables) and Commercial Banking. Adjusted provisions for credit losses totalled $165 million, down $31 million from 2025.
First six-month period of 2026 versus first six-month period of 2025
The Personal and Commercial segment's net income was $782 million, up 85% from $422 million, partly due to initial provisions for credit losses of
$230 million on acquired non-impaired CWB loans recorded last year, as well as to the inclusion of CWB's results beginning in the second quarter of 2025. Income before provisions for credit losses and income taxes stood at $1,387 million compared to $1,175 million, up 18%. Adjusted net income was up 34%. The increase in Personal Banking's total revenues was mainly due to growth in loans and deposits offset by a narrower net interest margin, as well as an increase in internal commission revenues arising from the distribution of the Wealth Management segment's products. In addition, the increase in Commercial Banking's total revenues was mainly due to the inclusion of CWB's results beginning in the second quarter of 2025, as well as loan and deposit growth, partly offset by a narrower net interest margin.
Non-interest expenses stood at $1,629 million, up 13% due to the same reasons provided above for the quarter, as well as the inclusion of CWB's non-interest expenses beginning in the second quarter of 2025. The efficiency ratio stood at 54.0% and improved compared to the same period in 2025. Adjusted non-interest expenses of $1,588 million were up 12% from $1,421 million. The adjusted efficiency ratio, at 52.7%, improved compared to 54.2%. Provisions for credit losses amounted to $308 million, a decrease of $280 million from last year. This decrease was due to initial provisions on credit losses on acquired non-impaired CWB loans of $230 million recorded in 2025, as well as to provisions for credit losses on non-impaired loans in Commercial Banking. These decreases were partly offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and Commercial Banking. Excluding specified items, provisions for credit losses totalled $304 million down from $358 million.
Wealth Management(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Operating results | ||||||
Net interest income | 241 | 230 | 5 | 481 | 457 | 5 |
Fee-based revenues | 540 | 467 | 16 | 1,073 | 917 | 17 |
Transaction-based and other revenues | 124 | 94 | 32 | 250 | 193 | 30 |
Total revenues | 905 | 791 | 14 | 1,804 | 1,567 | 15 |
Non-interest expenses | 531 | 476 | 12 | 1,062 | 917 | 16 |
Income before provisions for credit losses and income taxes | 374 | 315 | 19 | 742 | 650 | 14 |
Provisions for credit losses | 1 | (1) | (1) | 1 | ||
Income before income taxes | 373 | 316 | 18 | 743 | 649 | 14 |
Income taxes | 99 | 84 | 18 | 197 | 175 | 13 |
Net income | 274 | 232 | 18 | 546 | 474 | 15 |
Less: Specified items after income taxes(1) | (3) | (3) | (5) | (3) | ||
Net income - Adjusted(1) | 277 | 235 | 18 | 551 | 477 | 16 |
Return on common shareholders' equity(2) | 58.4 % | 57.6 % | ||||
Return on common shareholders' equity - Adjusted(3) | 59.0 % | 58.2 % | ||||
Average assets(4) | 13,348 | 10,754 | 24 | 13,236 | 10,681 | 24 |
Average loans(4) | 11,581 | 9,596 | 21 | 11,398 | 9,518 | 20 |
Net impaired loans(2) | 37 | 12 | 37 | 12 | ||
Average deposits(4) | 61,750 | 60,015 | 3 | 60,985 | 51,602 | 18 |
Assets under administration(2) | 938,997 | 825,523 | 14 | 938,997 | 825,523 | 14 |
Assets under management(2) | 206,933 | 170,469 | 21 | 206,933 | 170,469 | 21 |
Efficiency ratio(2) | 58.7 % | 60.2 % | 58.9 % | 58.5 % | ||
Efficiency ratio - Adjusted(3) | 58.2 % | 59.7 % | 58.5 % | 58.3 % | ||
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded amortization of intangible assets of $3 million net of income taxes related to the CWB acquisition ($5 million net of income taxes for the six-month period ended April 30, 2026). In addition, during the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $2 million net of income taxes and amortization of intangible assets of $1 million net of income taxes.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Represents an average of the daily balances for the period.
Second quarter of 2026 versus second quarter of 2025
In the Wealth Management segment, net income totalled $274 million, an 18% increase from $232 million last year. The segment's total revenues amounted to $905 million, up $114 million or 14% from $791 million in 2025. The 5% increase in net interest income was primarily due to higher loan and deposit volumes. The 16% increase in fee-based revenues was due to growth in assets under administration and assets under management, reflecting mainly the rise in stock markets as well as positive net inflows for the various solutions. Transaction-based and other revenues rose 32%, primarily due to increased client activity.
Non-interest expenses stood at $531 million, up 12% from $476 million in 2025. This increase was mainly a result of higher compensation and employee benefits, due in particular to variable compensation in line with revenue growth, as well as higher technology expenses related to the segment's initiatives. The efficiency ratio stood at 58.7%, improved from 60.2% in 2025. Provisions for credit losses of $1 million were recorded, compared to recoveries of credit losses of $1 million in 2025.
First six-month period of 2026 versus first six-month period of 2025
In the Wealth Management segment, net income totalled $546 million compared to $474 million, an increase of 15%. The segment's total revenues stood at $1,804 million, an increase of 15% compared to $1,567 million, mainly due to the 17% increase in fee-based revenues due to growth in assets under administration and under management as a result of stronger stock markets, positive net inflows for the various solutions as well as the inclusion of CWB's revenues beginning in the second quarter of 2025. Net interest income rose by $24 million or 5%, mainly due to higher loan and deposit volumes. In addition, transaction-based and other revenues increased by 30% due to increased client activity. Non-interest expenses stood at
$1,062 million compared to $917 million, an increase of 16% due to the same reasons provided above for the quarter, as well as external management fees and the inclusion of CWB's non-interest expenses beginning in the second quarter of 2025. The efficiency ratio stood at 58.9%, compared to 58.5%. The segment recorded recoveries of credit losses of $1 million compared to provisions for credit losses of $1 million recorded in 2025.
Capital Markets(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Operating results | ||||||
Global markets | ||||||
Equities | 348 | 542 | (36) | 728 | 909 | (20) |
Interest rate and credit | 165 | 180 | (8) | 298 | 350 | (15) |
Commodities and foreign exchange | 88 | 62 | 42 | 146 | 120 | 22 |
601 | 784 | (23) | 1,172 | 1,379 | (15) | |
Corporate and investment banking | 473 | 317 | 49 | 892 | 629 | 42 |
Total revenues | 1,074 | 1,101 | (2) | 2,064 | 2,008 | 3 |
Non-interest expenses | 439 | 403 | 9 | 851 | 770 | 11 |
Income before provisions for credit losses and income taxes | 635 | 698 | (9) | 1,213 | 1,238 | (2) |
Provisions for credit losses | 16 | 64 | (75) | 42 | 100 | (58) |
Income before income taxes | 619 | 634 | (2) | 1,171 | 1,138 | 3 |
Income taxes | 131 | 133 | (2) | 240 | 220 | 9 |
Net income | 488 | 501 | (3) | 931 | 918 | 1 |
Less: Specified items after income taxes(1) | (2) | - | (2) | - | ||
Net income - Adjusted(1) | 490 | 501 | (2) | 933 | 918 | 2 |
Return on common shareholders' equity(2) | 28.9 % | 27.4 % | ||||
Return on common shareholders' equity - Adjusted(3) | 28.9 % | 27.4 % | ||||
Average assets(4) | 269,129 | 224,314 | 20 | 259,651 | 217,949 | 19 |
Average loans(4) (Corporate Banking only) | 32,628 | 31,118 | 5 | 32,147 | 31,298 | 3 |
Net impaired loans(2) | 66 | 74 | (11) | 66 | 74 | (11) |
Net impaired loans as a % of total loans(2) | 0.2 % | 0.2 % | 0.2 % | 0.2 % | ||
Average deposits(4) | 97,818 | 77,467 | 26 | 94,541 | 75,872 | 25 |
Efficiency ratio(2) | 40.9 % | 36.6 % | 41.2 % | 38.3 % | ||
During the quarter and six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses of $2 million on non-impaired loans acquired from LBC.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Represents an average of the daily balances for the period.
Second quarter of 2026 versus second quarter of 2025
In the Capital Markets segment, net income totalled $488 million compared to $501 million last year, down 3%. Total revenues amounted to
$1,074 million compared to $1,101 million in 2025, a decrease of $27 million or 2%. Global markets revenues were down 23% due to a 36% decrease in equities revenues and an 8% decrease in interest rate and credit revenues, partly offset by a 42% increase in commodities and foreign exchange revenues. Corporate and investment banking revenues were up 49% due to growth in banking service revenues, revenues related to capital markets activity and revenues from merger and acquisition activity.
Non-interest expenses stood at $439 million, up 9%, due to higher compensation and employee benefits as well as an increase in technology investment expenses and other expenses related to the segment's business growth. The efficiency ratio stood at 40.9% and deteriorated compared to 36.6% in 2025. Provisions for credit losses were down $48 million due to a $56 million decrease in provisions for credit losses on impaired loans attributable to a file in the manufacturing sector last year, partly offset by an $8 million increase in provisions for credit losses on non-impaired loans related to loan portfolio growth.
First six-month period of 2026 versus first six-month period of 2025
The Capital Markets segment's net income totalled $931 million, up 1% from 2025. Total revenues amounted to $2,064 million, an increase of
$56 million or 3%. Global markets revenues were down 15% due to a 20% decrease in equities revenues and a 15% decrease in interest rate and credit revenues, partly offset by a 22% increase in commodities and foreign exchange revenues. In addition, corporate and investment banking revenues were up 42% due to growth in banking service revenues, revenues from capital markets activity and revenues from merger and acquisition activity.
Non-interest expenses were up 11% due to higher compensation and employee benefits, mainly attributable to higher variable compensation notably driven by revenue growth, as well as an increase in technology investment expenses and other expenses related to the segment's business growth. The efficiency ratio stood at 41.2%, deteriorating by 2.9 percentage points compared to last year. Provisions for credit losses totalled $42 million compared to $100 million in 2025. This decrease was due to a $46 million decrease in provisions for credit losses on impaired loans and a $12 million decrease in provisions for credit losses on non-impaired loans.
USSF&I(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | % Change | 2026 | 2025 | % Change | |
Total revenues | ||||||
Credigy | 140 | 141 | (1) | 300 | 286 | 5 |
ABA Bank | 265 | 250 | 6 | 536 | 498 | 8 |
International | 5 | (1) | 8 | 11 | ||
410 | 390 | 5 | 844 | 795 | 6 | |
Non-interest expenses | ||||||
Credigy | 36 | 39 | (8) | 73 | 79 | (8) |
ABA Bank | 94 | 77 | 22 | 177 | 160 | 11 |
International | 1 | 1 | 1 | 1 | ||
131 | 117 | 12 | 251 | 240 | 5 | |
Income before provisions for credit losses and income taxes | 279 | 273 | 2 | 593 | 555 | 7 |
Provisions for credit losses | ||||||
Credigy | 25 | 30 | (17) | 67 | 60 | 12 |
ABA Bank | 19 | 29 | (34) | 57 | 50 | 14 |
International | − | - | − | - | ||
44 | 59 | (25) | 124 | 110 | 13 | |
Income before income taxes | 235 | 214 | 10 | 469 | 445 | 5 |
Income taxes | ||||||
Credigy | 17 | 15 | 13 | 34 | 31 | 10 |
ABA Bank | 31 | 31 | - | 63 | 61 | 3 |
International | 1 | (1) | 1 | 1 | ||
49 | 45 | 9 | 98 | 93 | 5 | |
Net income | ||||||
Credigy | 62 | 57 | 9 | 126 | 116 | 9 |
ABA Bank | 121 | 113 | 7 | 239 | 227 | 5 |
International | 3 | (1) | 6 | 9 | ||
186 | 169 | 10 | 371 | 352 | 5 | |
Return on common shareholders' equity(1) | 26.9 % | 26.3 % | ||||
Average assets(2) | 35,393 | 33,101 | 7 | 35,106 | 32,134 | 9 |
Average loans and receivables(2) | 25,418 | 24,126 | 5 | 25,268 | 23,771 | 6 |
Net impaired loans(1) | 1,259 | 1,114 | 13 | 1,259 | 1,114 | 13 |
Average deposits(2) | 17,956 | 16,500 | 9 | 17,663 | 15,811 | 12 |
Efficiency ratio(1) | 32.0 % | 30.0 % | 29.7 % | 30.2 % |
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
Represents an average of the daily balances for the period.
For the second quarter of 2026, net income totalled $186 million compared to $169 million in 2025, up 10%. Total revenues totalled $410 million compared to $390 million, an increase of 5%, attributable to the ABA Bank subsidiary. For the first six-month period of 2026, net income totalled
$371 million, up 5% from $352 million in 2025.
CredigySecond quarter of 2026 versus second quarter of 2025
The Credigy subsidiary reported net income of $62 million, up $5 million or 9%. Total revenues of $140 million were relatively stable compared to
$141 million last year. Non-interest expenses were $36 million, down $3 million due to compensation and employee benefits and the impact of exchange rate fluctuations. Provisions for credit losses were down by $5 million due to lower provisions for credit losses on POCI loans, partly offset by an increase in provisions for credit losses on non-impaired loans.
First six-month period of 2026 versus first six-month period of 2025
The Credigy subsidiary reported net income of $126 million, up 9%. Total revenues amounted to $300 million, up 5% from $286 million in 2025. This increase was due to growth in loan volumes and to revenues recognized in the first quarter of 2026 following the prepayments on credit facilities, partly offset by the impact of exchange rate fluctuations. Non-interest expenses were down $6 million compared to 2025, mainly due to compensation and employee benefits and the impact of exchange rate fluctuations. Provisions for credit losses were up $7 million due to the increase in provisions for credit losses on non-impaired loans.
ABA BankSecond quarter of 2026 versus second quarter of 2025
The ABA Bank subsidiary recorded net income totalling $121 million, up $8 million or 7% from last year. Total revenues rose 6%, mainly attributable to sustained growth in assets and lower interest expenses on deposits, both partly offset by the impact of exchange rate fluctuations. Non-interest expenses stood at $94 million, up 22%, an increase attributable to higher compensation and employee benefits, occupancy expenses driven by the subsidiary's business growth and the opening of new branches, partly offset by the impact of exchange rate fluctuations. The subsidiary reported provisions for credit losses totalling $19 million, down $10 million. This decrease was mainly due to lower provisions for credit losses on non-impaired loans.
First six-month period of 2026 versus first six-month period of 2025
The ABA Bank subsidiary recorded net income totalling $239 million, up $12 million or 5% from 2025. The subsidiary's business growth, notably sustained asset growth, lower interest expense on deposits, as well as the impact of exchange rate fluctuations explain the 8% increase in total revenues. Non-interest expenses totalling $177 million, up 11% from 2025, due to the same reasons provided above for the quarter. Provisions for credit losses totalled $57 million, up $7 million, owing to higher provisions for credit losses on non-impaired loans.
Other(millions of Canadian dollars) Quarter ended April 30 Six months ended April 30
2026 | 2025 | 2026 | 2025 | |
Operating results Net interest income Non-interest income | (34) 64 | (22) (26) | (20) 92 | (82) (75) |
Total revenues Non-interest expenses | 30 129 | (48) 142 | 72 277 | (157) 216 |
Income before provisions for credit losses and income taxes Provisions for credit losses | (99) 3 | (190) (3) | (205) 4 | (373) - |
Income before income taxes (recovery) Income taxes (recovery) | (102) (33) | (187) (49) | (209) (67) | (373) (100) |
Net loss Non-controlling interests | (69) − | (138) - | (142) − | (273) - |
Net loss attributable to the Bank's shareholders and holders of other equity instruments | (69) | (138) | (142) | (273) |
Less: Specified items after income taxes(1) | (46) | (83) | (95) | (136) |
Net loss - Adjusted(1) | (23) | (55) | (47) | (137) |
Average assets(2) | 89,435 | 74,605 | 87,155 | 71,627 |
See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded integration and transaction-related charges of $46 million net of income taxes ($95 million net of income taxes for the six-month period ended April 30, 2026). During the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $83 million net of income taxes
($102 million net of income taxes for the six-month period ended April 30, 2025). In addition, during the six-month period ended April 30, 2025, the Bank had recorded the amortization of the subscription receipt issuance costs of $20 million net of income taxes, a gain of $4 million resulting from the remeasurement at fair value of the CWB common shares already held by the Bank and the impact of managing fair value changes, representing a loss of $17 million net of income taxes.
Represents an average of the daily balances for the period.
Second quarter of 2026 versus second quarter of 2025
For the Other heading of segment results, a net loss of $69 million was posted compared to a net loss of $138 million last year. The change in net loss was due to a higher contribution from Treasury activities as well as lower non-interest expenses, stemming mainly from the decrease in integration charges related to the CWB acquisition. These items were partly offset by higher compensation and employee benefits as well as by a $22 million reversal in second-quarter 2025 of the provision for property taxes related to the Bank's head office building. The specified items mainly related to the acquisition of CWB had a $46 million unfavourable impact on the net loss in 2026, compared to an $83 million unfavourable impact in 2025. The adjusted net loss stood at $23 million, compared to $55 million in 2025.
First six-month period of 2026 versus first six-month period of 2025
The net loss stood at $142 million compared to a net loss of $273 million in 2025. The change in net loss was due to a higher contribution from Treasury activities and higher gains on investments, partly offset by the increase in non-interest expenses that resulted mainly from higher compensation and employee benefits as well as from a $22 million reversal in second-quarter 2025 of the provision for property taxes. The specified items mainly related to the acquisition of CWB had an unfavourable impact of $95 million on the net loss compared to an unfavourable impact of
$136 million in 2025. The adjusted net loss amounted to $47 million compared to $137 million in 2025.
Consolidated Balance Sheet
Consolidated Balance Sheet Summary(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 | % Change |
Assets | |||
Cash and deposits with financial institutions | 43,431 | 27,916 | 56 |
Securities | 199,627 | 188,747 | 6 |
Securities purchased under reverse repurchase agreements and | |||
securities borrowed | 31,481 | 27,091 | 16 |
Loans, net of allowances | 311,987 | 302,623 | 3 |
Other | 31,208 | 30,542 | 2 |
617,734 | 576,919 | 7 | |
Liabilities and equity | |||
Deposits | 450,711 | 428,003 | 5 |
Other | 130,010 | 111,715 | 16 |
Subordinated debt | 3,429 | 3,432 | - |
Equity attributable to the Bank's shareholders and holders of other | |||
equity instruments | 33,584 | 33,769 | (1) |
Non-controlling interests | − | - | |
617,734 | 576,919 | 7 |
The Bank had total assets of $617.7 billion, up $40.8 billion or 7% from $576.9 billion. Cash and deposits with financial institutions stood at
$43.4 billion, up $15.5 billion, owing primarily to an increase in deposits with the Bank of Canada and in deposits with regulated financial institutions, including the Federal Reserve.
Securities have risen $10.9 billion owing to a $6.7 billion or 5% increase in securities at fair value through profit or loss driven by securities issued or guaranteed by the Canadian government, securities issued or guaranteed by provincial and municipal governments of Canada, securities issued or guaranteed by U.S. Treasury, other U.S. agencies, other foreign governments as well as other debt securities, offset by a decrease in equity securities. In addition, securities other than those measured at fair value through profit or loss rose $4.2 billion. Securities purchased under reverse repurchase agreements and securities borrowed increased by $4.4 billion, driven primarily by the Capital Markets segment and Treasury activities.
Loans, net of allowances for credit losses, totalled $312.0 billion, up $9.4 billion. The following table provides a breakdown of the main loan portfolios.
(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 |
Loans | ||
Residential mortgage and home equity lines of credit | 150,599 | 145,509 |
Personal | 18,582 | 18,593 |
Credit card | 3,099 | 3,022 |
Business and government | 141,970 | 137,630 |
314,250 | 304,754 | |
Allowances for credit losses | (2,263) | (2,131) |
311,987 | 302,623 |
Residential mortgages (including home equity lines of credit) rose $5.1 billion, due to sustained demand for mortgage credit in Personal Banking, partly offset by lower activity in the Capital Markets segment. Personal loans and credit card receivables were relatively stable. Business and government loans rose $4.3 billion or 3%, mainly due to business growth in Commercial Banking and Capital Markets segment.
Impaired loans include all loans classified in Stage 3 of the expected credit loss model and POCI loans. Gross impaired loans stood at $3,904 million compared to $3,712 million as at October 31, 2025. Net impaired loans totalled $2,969 million compared to $2,904 million. This increase was due to higher net impaired loans in the loan portfolios of Personal Banking and Commercial Banking, as well as ABA Bank subsidiary, partly offset by a decrease in net impaired loans in the loan portfolios of Wealth Management and Capital Markets segments, as well as Credigy subsidiary.
Other assets stood at $31.2 billion, up $0.7 billion or 2% that resulted mainly from an increase in derivative financial instruments.
LiabilitiesThe Bank had total liabilities of $584.2 billion compared to $543.2 billion, up $41.0 billion or 8%.
Deposits stood at $450.7 billion compared to $428.0 billion, up $22.7 billion or 5%. Personal deposits amounted to $127.8 billion, up $3.4 billion. This increase was driven primarily by the business growth in the Wealth Management and Capital Markets segments.
Business and government deposits totalled $317.3 billion, up $19.8 billion or 7%. The increase is explained by the business growth in Commercial Banking, Capital Markets segment as well as financing activities in Treasury, including a $3.7 billion increase in deposits subject to bank recapitalization (bail-in) conversion regulations. Deposits from deposit-taking institutions stood at $5.5 billion, down $0.5 billion due to a decrease in Treasury activities.
Other liabilities stood at $130.0 billion, up $18.3 billion, resulting essentially from a $17.9 billion increase in obligations related to securities sold under repurchase agreements and securities loaned, a $2.0 billion in derivative financial instruments and a $0.6 billion in other liabilities. This increase is offset by decreases of $1.5 billion in obligations related to securities sold short and $0.8 billion in liabilities associated with transferred receivables.
EquityEquity attributable to the Bank's shareholders and holders of other equity instruments totalled $33.6 billion, down $0.2 billion. This decrease was mainly attributable to the repurchase of common shares for cancellation, the redemption of outstanding Limited Recourse Capital Notes Series 1 (LRCN - Series 1), totalling $500 million and foreign currency translation adjustments. This decrease was offset by net income, net of dividends.
Laurentian Bank of Canada (LBC) Transactions
On December 2, 2025, the Bank entered into a definitive asset purchase agreement with LBC pursuant to which it will assume certain liabilities and acquire certain assets related to LBC's retail and SME business banking portfolios (Retail/SME Transaction), and the Bank will assume LBC's distribution agreement for certain mutual funds. Consideration of cash and cash equivalents to be received from LBC will be determined in reference to the value of liabilities assumed net of assets acquired, at the closing date.
The closing of the Retail/SME Transaction, expected to occur in late 2026, is conditional on all conditions precedent to the closing of the acquisition of LBC by Fairstone Bank (Acquisition Transaction) having been satisfied or waived, and to the closing of the Acquisition Transaction immediately following the Retail/SME Transaction. The Retail/SME Transaction is subject to customary closing conditions, including receipt of key regulatory approvals.
Separately, concurrently with the execution of the Retail/SME Transaction agreement, the Bank and LBC had also entered into a definitive loan purchase agreement in respect of the purchase by the Bank of LBC's syndicated loan portfolio (Syndicated Loan Transaction). On February 17, 2026, the closing of the Syndicated Loan Transaction occurred. The purchase price of $647 million was allocated between the acquired assets and the assumed liabilities based on their relative fair values as at the acquisition date, comprising loans and deposits totaling $657 million and $10 million, respectively.
Related Party Transactions
The Bank's policies and procedures regarding related party transactions have not significantly changed since October 31, 2025. For additional information, see Note 28 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Securitization and Off-Balance-Sheet Arrangements
In the normal course of business, the Bank is party to various financial arrangements that, under IFRS, are not required to be recorded on the Consolidated Balance Sheet or are recorded under amounts other than their notional or contractual values. These arrangements include, among others, transactions with structured entities, derivative financial instruments, the issuance of guarantees, credit instruments, and financial assets received as collateral. A complete analysis of these types of arrangements, including their nature, business purpose, and importance, is provided on pages 60 and 61 of the 2025 Annual Report.
For additional information on financial assets transferred but not derecognized, guarantees, commitments, and structured entities, see Notes 9, 26, and 27 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Income Taxes
Notice of AssessmentIn March 2026, the Bank was reassessed by the Canada Revenue Agency (CRA) for additional income tax and interest of approximately $120 million (including estimated provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2021 taxation year.
In prior fiscal years, the Bank had been reassessed for additional income tax and interest of approximately $1.2 billion (including provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2012-2020 taxation years.
In the reassessments, the CRA alleges that the dividends were received as part of a "dividend rental arrangement".
In October 2023, the Bank filed a notice of appeal with the Tax Court of Canada, and the matter is now in litigation. The CRA may issue reassessments to the Bank for taxation years subsequent to 2021 in regard to certain activities similar to those that were the subject of the above-mentioned reassessments. The Bank remains confident that its tax position was appropriate and intends to vigorously defend its position. As at result, no amount has been recognized in the Consolidated Financial Statements as at April 30, 2026.
Capital Management
Capital management has a dual role of ensuring a competitive return to the Bank's shareholders while maintaining a solid capital foundation that covers the risks inherent to the Bank's business, supports its business segments, and protects its clients. The Bank manages its capital in accordance with the capital management framework as described in the Capital Management section on pages 62 to 71 of the Bank's 2025 Annual Report.
Basel AccordThe Bank and all other major Canadian banks have to maintain the following minimum capital ratios established by OSFI: a CET1 capital ratio of at least 11.5%, a Tier 1 capital ratio of at least 13.0%, and a Total capital ratio of at least 15.0%. For additional information on the ratio calculations, see pages 63 to 65 of the 2025 Annual Report. All of these ratios include a capital conservation buffer of 2.5% established by the BCBS and OSFI, a 1.0% surcharge applicable solely to Domestic Systemically Important Banks (D-SIBs), and a 3.5% domestic stability buffer (DSB) established by OSFI. The DSB, which can vary from 0% to 4.0% of risk-weighted assets (RWA), consists exclusively of CET1 capital. A D-SIB that fails to meet this buffer requirement will not be subject to automatic constraints to reduce capital distributions but will have to provide a remediation plan to OSFI. The Bank also has to meet the requirements of the capital output floor which is set at 67.5%, under which its total RWA must not be lower than the capital output floor of the total RWA as calculated under the Basel III Standardized Approaches. If the capital requirement is less than the capital output floor requirement after applying the floor factor, the difference is added to the total RWA. Lastly, OSFI requires D-SIBs to maintain a Basel III leverage ratio of at least 3.5%, which includes a Tier 1 capital buffer of 0.5% applicable only to D-SIBs. For additional information on the leverage ratio calculation, see page 64 of the 2025 Annual Report.
In addition, OSFI requires that regulatory capital instruments other than common equity must have a non-viability contingent capital (NVCC) clause to ensure that investors bear losses before taxpayers should the government determine that rescuing a non-viable financial institution is in the public interest. The Bank's regulatory capital instruments, other than common shares, all have an NVCC clause.
OSFI requires D-SIBs to maintain a risk-based Total Loss Absorbing Capacity (TLAC) ratio of at least 25.0% (including the DSB) of RWA and a TLAC leverage ratio of at least 7.25%. The TLAC ratio is calculated by dividing available TLAC by RWA, and the TLAC leverage ratio is calculated by dividing available TLAC by total exposure. As at April 30, 2026, outstanding liabilities of $29.8 billion ($26.1 billion as at October 31, 2025) were subject to conversion under the bail-in regulations.
Requirements - Regulatory Capital(1), Leverage(1), and TLAC(2) RatiosThe following table provides the minimum capital requirements set by OSFI.
Requirements as at April 30, 2026 | Ratios as at April 30, 2026 | ||||||||
Minimum | Capital conservation buffer | Minimum set by BCBS | D-SIB surcharge | Minimum set by OSFI | Domestic stability buffer(3) | Minimum set by OSFI, including the domestic stability buffer | |||
Capital ratios | |||||||||
CET1 | 4.5 % | 2.5 | % | 7.0 % | 1.0 % | 8.0 % | 3.5 % | 11.5 % | 13.5 % |
Tier 1 | 6.0 % | 2.5 | % | 8.5 % | 1.0 % | 9.5 % | 3.5 % | 13.0 % | 14.9 % |
Total | 8.0 % | 2.5 | % | 10.5 % | 1.0 % | 11.5 % | 3.5 % | 15.0 % | 17.0 % |
Leverage ratio | 3.0 % | n.a. | 3.0 % | 0.5 % | 3.5 % | n.a. | 3.5 % | 4.3 % | |
TLAC ratio | 21.5 % | n.a. | 21.5 % | n.a. | 21.5 % | 3.5 % | 25.0 % | 31.5 % | |
TLAC leverage ratio | 6.75 % | n.a. | 6.75 % | 0.5 % | 7.25 % | n.a. | 7.25 % | 9.0 % | |
n.a. Not applicable
The capital ratios and the leverage ratio are calculated in accordance with the Basel III rules, as set out in OSFI's Capital Adequacy Requirements Guideline and Leverage Requirements Guideline.
The TLAC ratio and the TLAC leverage ratio are calculated in accordance with OSFI's Total Loss Absorbing Capacity Guideline.
On December 18, 2025, OSFI confirmed that the domestic stability buffer was being maintained at 3.5%.
The Bank ensures that its capital levels are always above the minimum capital requirements set by OSFI, including the DSB. By maintaining a strong capital structure, the Bank can cover the risks inherent to its business activities, support its business segments, and protect its clients.
Other disclosure requirements pursuant to Pillar 3 of the Basel Accord and a set of recommendations defined by the Enhanced Disclosure Task Force (EDTF) are presented in the Supplementary Regulatory Capital and Pillar 3 Disclosure report published quarterly and available on the Bank's website at nbc.ca. Furthermore, a complete list of capital instruments and their main features is also available on the Bank's website.
Regulatory DevelopmentsThe Bank closely monitors regulatory developments and participates actively in various consultative processes. For additional information about the regulatory context as at October 31, 2025, refer to page 65 of the Capital Management section in the 2025 Annual Report. In addition, since November 1, 2025, the below-described regulatory developments should also be considered.
OSFI finalized the Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) Guideline, replacing the interim advisory and establishing a comprehensive framework aligned with Basel standards and introduces differentiated capital treatment based on asset classification, conservative requirements for higher-risk exposures, exposure limits relative to regulatory capital, and enhanced risk management, notification and disclosure expectations. The guideline and the disclosure requirements pursuant to Pillar 3 became effective November 1, 2025.
In addition, OSFI's Capital Adequacy Requirements (CAR) Guideline (2026) came into effect on November 1, 2025, incorporating clarifications and targeted adjustments across credit, market and counterparty credit risk frameworks. These changes include refinements to the treatment of certain residential real estate and combined loan products, updates to risk weights for selected exposure classes, and technical enhancements intended to improve consistency and risk alignment, without materially altering the overall capital framework.
Management ActivitiesOn September 25, 2025, the Bank began a normal course issuer bid to repurchase for cancellation up to 8,000,000 common shares (representing approximately 2.04% of its then outstanding common shares) over a 12-month period ending no later than September 24, 2026. On March 12, 2026, an amendment to the issuer bid took effect. This amendment increased the maximum number of issued and outstanding Bank common shares that can be redeemed for cancellation up to 14,500,000 common shares (representing approximately 3.70% of the outstanding common shares as at September 11, 2025) during the 12-month period ending September 24, 2026. During the six-month period ended April 30, 2026, the Bank repurchased 6,965,400 common shares at a price of $1,241 million, which reduced Common share capital by $176 million and Retained earnings by
$1,065 million. Under this program, the Bank repurchased a total of 8,350,800 common shares at a price of $1,454 million.
On November 17, 2025, the Bank redeemed all of the issued and outstanding LRCN - Series 1, the redemption price was $1,000 each, plus interest accrued and unpaid. The Bank redeemed 500,000 LRCN - Series 1 for a total amount of $500 million. As part of the redemption of the LRCN - Series 1, the Bank redeemed all of the issued and outstanding Non-Cumulative 5-year Fixed Rate-Reset Series 44 First Preferred Shares issued by the Bank in conjunction with the LRCN - Series 1 and which were held by an independent trustee in a consolidated limited recourse trust.
DividendsOn May 26, 2026, the Board of Directors declared regular dividends on the various series of first preferred shares and a dividend of $1.32 per common share, up 8 cents or 6%, payable on August 1, 2026 to shareholders of record on June 29, 2026.
Shares, Other Equity Instruments, and Stock OptionsAs at April 30, 2026 | ||
Number of shares or LRCN(1) | $ million | |
First preferred shares | ||
Series 30 | 14,000,000 | 350 |
Series 38 | 16,000,000 | 400 |
Series 40 | 12,000,000 | 300 |
Series 42 | 12,000,000 | 300 |
Series 47 | 5,000,000 | 128 |
Series 49 | 5,000,000 | 136 |
64,000,000 | 1,614 | |
Other equity instruments | ||
LRCN - Series 2 | 500,000 | 500 |
LRCN - Series 3 | 500,000 | 500 |
1,000,000 | 1,000 | |
65,000,000 | 2,614 | |
Common shares | 385,633,934 | 9,824 |
Stock options | 10,017,815 | |
Limited Recourse Capital Notes (LRCN).
As at May 22, 2026, there were 385,142,589 common shares and 9,969,096 stock options outstanding. NVCC provisions require the conversion of capital instruments into a variable number of common shares should OSFI deem a bank to be non-viable or should the government publicly announce that a bank has accepted or agreed to accept a capital injection. If an NVCC trigger event were to occur, all of the Bank's preferred shares, LRCNs, medium-term notes and subordinated debentures which are NVCC capital instruments, would be converted into common shares of the Bank according to an automatic conversion formula at a conversion price corresponding to the greater of the following amounts: (i) a $5.00 contractual floor price; or (ii) the market price of the Bank's common shares on the date of the trigger event (10-day weighted average price). Based on a $5.00 floor price and including an estimate for accrued dividends and interest, these NVCC capital instruments would be converted into a maximum of 1,559 million Bank common shares, which would have an 80.2% dilutive effect based on the number of Bank common shares outstanding as at
April 30, 2026.
Movement in Regulatory Capital(1)(millions of Canadian dollars) | Six months ended April 30, 2026 |
Common Equity Tier 1 (CET1) capital | |
Balance at beginning | 25,962 |
Issuance of common shares (including Stock Option Plan) | 95 |
Impact of shares purchased or sold for trading | 22 |
Repurchase of common shares | (1,241) |
Other contributed surplus | 58 |
Dividends on preferred and common shares and distributions on other equity instruments | (1,045) |
Net income attributable to the Bank's shareholders and holders of other equity instruments | 2,488 |
Removal of own credit spread (net of income taxes) | (33) |
Regulatory adjustment related to contractual service margin(2) | 148 |
Other | 24 |
Movements in accumulated other comprehensive income | |
Translation adjustments | (185) |
Debt securities at fair value through other comprehensive income | 12 |
Other | − |
Change in goodwill and intangible assets (net of related tax liability) | 45 |
Other, including regulatory adjustments | |
Change in defined benefit pension plan asset (net of related tax liability) | (4) |
Change in amount exceeding 15% threshold | |
Deferred tax assets | − |
Significant investments in common shares of financial institutions | − |
Deferred tax assets, unless they result from temporary differences (net of related tax liability) | (1) |
Other deductions or regulatory adjustments to CET1 implemented by OSFI | 1 |
Change in other regulatory adjustments | (21) |
Balance at end | 26,325 |
Additional Tier 1 capital | |
Balance at beginning | 2,597 |
New Tier 1 eligible capital issuances | − |
Redeemed capital(3) | − |
Other, including regulatory adjustments | 3 |
Balance at end | 2,600 |
Total Tier 1 capital | 28,925 |
Tier 2 capital | |
Balance at beginning | 4,098 |
New Tier 2 eligible capital issuances | − |
Redeemed capital | − |
Tier 2 instruments issued by subsidiaries and held by third parties | − |
Change in certain allowances for credit losses | 8 |
Other, including regulatory adjustments | (25) |
Balance at end | 4,081 |
Total regulatory capital | 33,006 |
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
The contractual service margin related to our insurance company subsidiaries is included in the CET1 capital as permitted by the OSFI guideline.
The redemption of LRCN - Series 1 completed on November 17, 2025, was included in the October 31, 2025 ratios.
Risk-weighted assets (RWA) amounted to $194.5 billion as at April 30, 2026 compared to $188.8 billion as at October 31, 2025, a $5.7 billion increase resulting from organic growth in RWA and a deterioration in the credit quality of the loan portfolio, offset by foreign exchange movement. The changes in the Bank's RWA by risk type are presented in the following table.
Movement of Risk-Weighted Assets by Key Drivers(1)(millions of Canadian dollars) Quarter ended
April 30, 2026 | January 31, 2026 | October 31, 2025 | |||
Non-counterparty credit risk | Counterparty credit risk | Total | Total | Total | |
Credit risk - Risk-weighted assets at beginning | 154,208 | 7,346 | 161,554 | 162,354 | 156,537 |
Book size | 2,335 | 739 | 3,074 | 407 | 5,216 |
Book quality | 472 | (86) | 386 | 116 | 234 |
Model updates | − | − | − | - | - |
Methodology and policy | − | − | − | - | - |
Acquisitions and disposals | − | − | − | - | - |
Foreign exchange movements | (103) | (13) | (116) | (1,323) | 367 |
Credit risk - Risk-weighted assets at end | 156,912 | 7,986 | 164,898 | 161,554 | 162,354 |
Market risk - Risk-weighted assets at beginning | 9,616 | 8,724 | 9,208 | ||
Movement in risk levels(2) | 1,214 | 892 | (484) | ||
Model updates | − | - | - | ||
Methodology and policy | − | - | - | ||
Acquisitions and disposals | − | - | - | ||
Market risk - Risk-weighted assets at end | 10,830 | 9,616 | 8,724 | ||
Operational risk - Risk-weighted assets at beginning | 18,184 | 17,678 | 17,365 | ||
Movement in risk levels | 579 | 506 | 313 | ||
Methodology and policy | − | - | - | ||
Acquisitions and disposals | − | - | - | ||
Operational risk - Risk-weighted assets at end | 18,763 | 18,184 | 17,678 | ||
Risk-weighted assets at end | 194,491 | 189,354 | 188,756 | ||
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Also includes foreign exchange rate movements that are not considered material.
The table above provides risk-weighted asset movements by the key drivers underlying the different risk categories.
The Book size item reflects organic changes in book size and composition (including new loans and maturing loans). RWA movements attributable to book size include increases or decreases in exposures, measured by exposure at default, assuming a stable risk profile.
The Book quality item is the Bank's best estimate of changes in book quality related to experience, such as underlying customer behaviour or demographics, including changes resulting from model recalibrations or realignments and including risk mitigation factors.
The Model updates item is used to reflect implementations of new models, changes in model scope, or any other change applied to address model malfunctions.
The Methodology and policy item presents the impact of changes in calculation methods resulting from changes in regulatory policies or from new regulations.
Regulatory Capital Ratios, Leverage Ratio, and TLAC RatiosAs at April 30, 2026, the Bank's CET1, Tier 1, and Total capital ratios were, respectively, 13.5%, 14.9%, and 17.0% compared to ratios of 13.8%, 15.1% and 17.3%, respectively, as at October 31, 2025. All of the capital ratios decreased since October 31, 2025. The decrease was primarily driven by the repurchases of common shares for cancellation and the growth in RWA offset by the net income, net of dividends.
As at April 30, 2026, the leverage ratio was 4.3% compared to 4.5% as at October 31, 2025. The decrease in the leverage ratio was mainly attributable to an increase in total exposure, partially offset by the growth in Tier 1 capital.
As at April 30, 2026, the Bank's TLAC ratio and TLAC leverage ratio were 31.5% and 9.0%, respectively, compared to 29.7% and 8.8%, respectively, as at October 31, 2025. The TLAC ratio and the TLAC leverage ratio increase primarily due to net issuances of instruments that met all of the TLAC eligibility criteria during the period.
During the quarter and six-month period ended April 30, 2026, the Bank was compliant with all of OSFI's regulatory capital, leverage, and TLAC requirements.
Regulatory Capital(1), Leverage Ratio(1) and TLAC(2)(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 |
Capital | ||
CET1 | 26,325 | 25,962 |
Tier 1(3) | 28,925 | 28,559 |
Total(3) | 33,006 | 32,657 |
Risk-weighted assets | 194,491 | 188,756 |
Total exposure | 678,630 | 633,494 |
Capital ratios | ||
CET1 | 13.5 % | 13.8 % |
Tier 1(3) | 14.9 % | 15.1 % |
Total(3) | 17.0 % | 17.3 % |
Leverage ratio(3) | 4.3 % | 4.5 % |
Available TLAC | 61,308 | 55,993 |
TLAC ratio | 31.5 % | 29.7 % |
TLAC leverage ratio | 9.0 % | 8.8 % |
Capital, risk-weighted assets, total exposure, the capital ratios, and the leverage ratio are calculated in accordance with the Basel III rules, as set out in OSFI's Capital Adequacy Requirements Guideline and Leverage Requirements Guideline.
Available TLAC, the TLAC ratio, and the TLAC leverage ratio are calculated in accordance with OSFI's Total Loss Absorbing Capacity Guideline.
Data as at October 31, 2025 included the redemption of LRCN - Series 1 completed on November 17, 2025.
Risk Management
Risk-taking is intrinsic to a financial institution's business. The Bank views risk as an integral part of its development and the diversification of its activities. It advocates a risk management approach that is consistent with its business strategy. The Bank voluntarily exposes itself to certain risk categories, particularly credit and market risk, in order to generate revenue. It also assumes certain risks that are inherent to its activities-to which it does not choose to expose itself-and that do not generate revenue, i.e., mainly operational risks.
Risks Description
Emerging risks -Conflict in the Middle East
Further to the geopolitical risks outlined in the 2025 Annual Report, although the Bank has no significant direct exposure to the Middle East region, the conflict could still affect it through broader macroeconomic and financial market channels, especially if it were to persist for a long period of time. Prolonged or recurring disruptions to the Strait of Hormuz could continue to restrict global supplies of key commodities, including oil, natural gas, fertilizers and helium. This, in turn, could lead to ongoing inflationary pressures across global energy, agriculture, transportation and manufacturing sectors, potentially resulting in higher interest rates and tighter funding conditions for businesses and consumers alike. The potential impact on the Bank and its clients is contingent upon the nature and duration of these evolving conditions. The Bank continues to monitor these developments closely, assessing both direct and indirect potential implications for its financial position and that of its clients.
Emerging risks -Technology and Frontier AI development
Recent advances in generative artificial intelligence (AI), referred to as Frontier AI, including tools capable of rapidly identifying and exploiting software vulnerabilities, may increase the probability, the impact and the sophistication of potential cyber incidents, challenging traditional detection, remediation, and response frameworks. Beyond the risk of isolated events, Frontier AI capabilities raise the potential for more systemic impacts in a highly interconnected financial system, including operational disruption and broader confidence effects.
The Bank continues to assess these developments as an emerging, transversal risk and is integrating AI-related considerations across cybersecurity, third-party risk management, model risk governance, and enterprise resilience planning. Management's approach emphasizes vulnerability remediation, enhanced threat intelligence, strengthened oversight of critical service providers, and a focus on resilience, with the objective of maintaining the safety and soundness of operations and protecting client trust as the risk landscape evolves.
Despite the exercise of stringent risk management and existing mitigation measures, risk cannot be eliminated entirely, and residual risks may occasionally cause losses. Certain risks are discussed hereafter. For additional information, see the Risk Management section on pages 72 to 118 of the 2025 Annual Report. Risk management information is also provided in Note 6 to the Consolidated Financial Statements, which covers loans.
Credit Risk
Credit risk is the risk of incurring a financial loss if an obligor does not fully honour its contractual commitments to the Bank. Obligors may be borrowers, issuers, guarantors or counterparties. General economic and market conditions in Canada, the U.S. and other countries in which the Bank operates are currently difficult to predict due in part to measures affecting trade relations between Canada and its partners. The imposition of tariffs and the measures taken in response, as well as the possible impacts on our customers, could have an impact on a debtor's ability to repay. Credit risk is the most significant risk facing the Bank in the normal course of its business.
Regulatory Developments
The Bank closely monitors regulatory developments and is actively involved in the various consultation processes. For additional information about the regulatory context as at October 31, 2025, see page 87 of the Risk Management section of the 2025 Annual Report. In addition, since November 1, 2025, there have been no new regulatory developments to consider.
The amounts in the following tables represent the Bank's maximum exposure to credit risk as at the financial reporting date without considering any collateral held or any other credit enhancements. These amounts do not include allowances for credit losses nor amounts pledged as collateral. The tables also exclude equity securities.
Maximum Credit Risk Exposure Under the Basel Asset Categories(1) As at April 30, 2026(millions of Canadian dollars)
Drawn(2) | Undrawn commitments | Repo-style transactions(3) | Derivative financial instruments | Other off-balance-sheet items(4) | Total | Standardized Approach(5) | IRB Approach | |||
Retail Residential mortgages Qualifying revolving retail Other retail | 103,019 4,617 24,082 | 10,028 13,948 3,033 | − − − | − − − | − − 39 | 113,047 18,565 27,154 | 18 − 29 | % % % | 82 100 71 | % % % |
131,718 | 27,009 | − | − | 39 | 158,766 | |||||
Non-retail Corporate Sovereign Banks | 130,900 93,501 15,366 | 38,425 6,430 1,308 | 78,312 123,119 190,339 | 158 233 2,648 | 10,570 623 2,710 | 258,365 223,906 212,371 | 27 % 2 % 20 % | 73 % 98 % 80 % | ||
239,767 | 46,163 | 391,770 | 3,039 | 13,903 | 694,642 | |||||
Trading portfolio Securitization | − 3,203 | − − | − − | 19,152 − | − 7,860 | 19,152 11,063 | 2 % 100 % | 98 % − % | ||
Total - Gross credit risk | 374,688 | 73,172 | 391,770 | 22,191 | 21,802 | 883,623 | 18 % | 82 % | ||
Standardized Approach(5) IRB Approach | 79,599 295,089 | 2,911 70,261 | 63,016 328,754 | 2,629 19,562 | 8,997 12,805 | 157,152 726,471 | ||||
Total - Gross credit risk | 374,688 | 73,172 | 391,770 | 22,191 | 21,802 | 883,623 | 18 % | 82 % | ||
(millions of Canadian dollars) As at October 31, 2025
Drawn(2) | Undrawn commitments | Repo-style transactions(3) | Derivative financial instruments | Other off-balance-sheet items(4) | Total | Standardized Approach(5) | IRB Approach | |||
Retail Residential mortgages Qualifying revolving retail Other retail | 97,507 4,487 24,250 | 9,715 13,454 2,974 | - - - | - - - | - -47 | 107,222 17,941 27,271 | 18 -30 | % % % | 82 100 70 | % % % |
126,244 | 26,143 | - | - | 47 | 152,434 | |||||
Non-retail Corporate Sovereign Banks | 126,772 74,412 14,229 | 36,857 6,281 1,227 | 66,245 104,954 192,041 | 81 -3,146 | 9,956 535 2,625 | 239,911 186,182 213,268 | 28 % 3 % 23 % | 72 % 97 % 77 % | ||
215,413 | 44,365 | 363,240 | 3,227 | 13,116 | 639,361 | |||||
Trading portfolio Securitization | - 3,029 | - - | - - | 18,250 - | - 7,561 | 18,250 10,590 | 3 % 100 % | 97 % - % | ||
Total - Gross credit risk | 344,686 | 70,508 | 363,240 | 21,477 | 20,724 | 820,635 | 19 % | 81 % | ||
Standardized Approach(5) IRB Approach | 79,532 265,154 | 3,196 67,312 | 64,806 298,434 | 3,387 18,090 | 8,629 12,095 | 159,550 661,085 | ||||
Total - Gross credit risk | 344,686 | 70,508 | 363,240 | 21,477 | 20,724 | 820,635 | 19 % | 81 % | ||
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Excludes equity securities and certain other assets such as investments in deconsolidated subsidiaries and joint ventures, right-of-use properties and assets, goodwill, deferred tax assets, and intangible assets.
Securities purchased under reverse repurchase agreements and sold under repurchase agreements as well as securities loaned and borrowed.
Letters of guarantee, documentary letters of credit, and securitized assets that represent the Bank's commitment to make payments in the event that an obligor cannot meet its financial obligations to third parties.
Includes exposures to qualifying central counterparties (QCCP).
To meet OSFI's mortgage loan disclosure requirements, additional information has been provided in the documents Supplementary Financial Information - Second Quarter 2026 and Supplementary Regulatory Capital and Pillar 3 Disclosure - Second Quarter 2026, which are available on the Bank's website at nbc.ca.
Market Risk
Market risk is the risk of financial losses arising from movements in market prices. The Bank is exposed to market risk through its participation in trading, investment, and asset/liability management activities.
The following tables provide a breakdown of the Bank's Consolidated Balance Sheet into assets and liabilities by those that carry market risk and those that do not carry market risk, distinguishing between trading positions whose main risk measures are Value-at-Risk (VaR) and non-trading positions that use other risk measures.
Reconciliation of Market Risk with Consolidated Balance Sheet Items As at April 30, 2026(millions of Canadian dollars)
Market risk measures | |||||
Balance sheet | Trading(1) | Non-trading(2) | Not subject to market risk | Non-traded risk primary risk sensitivity | |
Assets | |||||
Cash and deposits with financial institutions | 43,431 | 254 | 32,816 | 10,361 | Interest rate(3) |
Securities | |||||
At fair value through profit or loss | 154,771 | 152,108 | 2,663 | − | Interest rate(3) and equity |
At fair value through other comprehensive income | 23,812 | − | 23,812 | − | Interest rate(3) and equity(4) |
At amortized cost | 21,044 | − | 21,044 | − | Interest rate(3) |
Securities purchased under reverse repurchase | |||||
agreements and securities borrowed | 31,481 | − | 31,481 | − | Interest rate(3)(5) |
Loans, net of allowances | 311,987 | 13,647 | 298,340 | − | Interest rate(3) |
Derivative financial instruments | 13,282 | 12,853 | 429 | − | Interest rate and exchange rate |
Defined benefit asset | 450 | − | 450 | − | Other |
Other | 17,476 | 3,053 | − | 14,423 | |
617,734 | 181,915 | 411,035 | 24,784 | ||
Liabilities | |||||
Deposits | 450,711 | 44,625 | 406,086 | − | Interest rate(3) |
Obligations related to securities sold short | 11,846 | 11,846 | − | − | |
Obligations related to securities sold under | |||||
repurchase agreements and securities loaned | 59,330 | − | 59,330 | − | Interest rate(3)(5) |
Derivative financial instruments | 17,949 | 17,155 | 794 | − | Interest rate and exchange rate |
Liabilities related to transferred receivables | 29,817 | 11,781 | 18,036 | − | Interest rate(3) |
Defined benefit liability | 94 | − | 94 | − | Other |
Other | 10,974 | − | − | 10,974 | Interest rate(3) |
Subordinated debt | 3,429 | − | 3,429 | − | Interest rate(3) |
584,150 | 85,407 | 487,769 | 10,974 | ||
Trading positions whose risk measure is total VaR. For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect.
Non-trading positions that use other risk measures.
For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect, as well as the table that shows the interest rate sensitivity.
The fair value of equity securities designated at fair value through other comprehensive income is presented in Notes 3 and 5 to the Consolidated Financial Statements.
These instruments are recorded at amortized cost and are subject to credit risk for capital management purposes. For trading-related transactions with maturities of more than one day, interest rate risk is included in the VaR.
(millions of Canadian dollars) As at October 31, 2025
Market risk measures | |||||
Balance sheet | Trading(1) | Non-trading(2) | Not subject to market risk | Non-traded risk primary risk sensitivity | |
Assets | |||||
Cash and deposits with financial institutions | 27,916 | 627 | 20,274 | 7,015 | Interest rate(3) |
Securities | |||||
At fair value through profit or loss | 148,118 | 145,420 | 2,698 | - | Interest rate(3) and equity(4) |
At fair value through other comprehensive income | 24,024 | - | 24,024 | - | Interest rate(3) and equity(5) |
At amortized cost | 16,605 | - | 16,605 | - | Interest rate(3) |
Securities purchased under reverse repurchase | |||||
agreements and securities borrowed | 27,091 | - | 27,091 | - | Interest rate(3)(6) |
Loans, net of allowances | 302,623 | 15,097 | 287,526 | - | Interest rate(3) |
Derivative financial instruments | 12,515 | 12,182 | 333 | - | Interest rate(7) and exchange rate(7) |
Defined benefit asset | 441 | - | 441 | - | Other(8) |
Other | 17,586 | 3,735 | - | 13,851 | |
576,919 | 177,061 | 378,992 | 20,866 | ||
Liabilities | |||||
Deposits | 428,003 | 39,898 | 388,105 | - | Interest rate(3) |
Obligations related to securities sold short | 13,257 | 13,257 | - | - | |
Obligations related to securities sold under | |||||
repurchase agreements and securities loaned | 41,356 | - | 41,356 | - | Interest rate(3)(6) |
Derivative financial instruments | 15,984 | 15,138 | 846 | - | Interest rate(7) and exchange rate(7) |
Liabilities related to transferred receivables | 30,577 | 12,713 | 17,864 | - | Interest rate(3) |
Defined benefit liability | 98 | - | 98 | - | Other(8) |
Other | 10,443 | - | - | 10,443 | Interest rate(3) |
Subordinated debt | 3,432 | - | 3,432 | - | Interest rate(3) |
543,150 | 81,006 | 451,701 | 10,443 | ||
Trading positions whose risk measure is total VaR. For additional information, see the table on the following page and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect.
Non-trading positions that use other risk measures.
For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect, as well as the table that shows the interest rate sensitivity.
For additional information, see Note 7 to the audited annual consolidated financial statements for the year ended October 31, 2025.
The fair value of equity securities designated at fair value through other comprehensive income is presented in Notes 3 and 5 to the Consolidated Financial Statements.
These instruments are recorded at amortized cost and are subject to credit risk for capital management purposes. For trading-related transactions with maturities of more than one day, interest rate risk is included in the VaR.
For additional information, see Notes 17 and 18 to the audited annual consolidated financial statements for the year ended October 31, 2025.
For additional information, see Note 23 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Trading Activities
The table below shows the VaR distribution of trading portfolios by risk category and their diversification effect.
VaR of Trading Portfolios(1)(2)(millions of Canadian dollars) Quarter ended Six months ended
April 30, 2026 | Janu | ary 31, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | |||||
Low | High | Average | Period end | Average | Period end | Average | Period end | Average | Average | |
Interest rate | (10.4) | (19.7) | (15.3) | (16.3) | (16.7) | (15.7) | (12.4) | (12.7) | (16.0) | (12.6) |
Exchange rate | (0.5) | (3.4) | (1.4) | (1.8) | (2.3) | (1.1) | (1.5) | (1.7) | (1.9) | (1.8) |
Equity | (3.9) | (8.2) | (6.1) | (3.9) | (5.9) | (6.3) | (6.2) | (5.6) | (6.0) | (5.5) |
Commodity | (1.3) | (2.9) | (1.8) | (1.5) | (1.5) | (1.5) | (1.3) | (1.1) | (1.7) | (1.4) |
Diversification effect(3) | n.m. | n.m. | 11.1 | 8.9 | 12.0 | 10.8 | 8.7 | 9.2 | 11.7 | 8.9 |
Total trading VaR | (9.9) | (17.1) | (13.5) | (14.6) | (14.4) | (13.8) | (12.7) | (11.9) | (13.9) | (12.4) |
n.m. Computation of a diversification effect for the high and low is not meaningful, as highs and lows may occur on different days and be attributable to different types of risk.
See the Glossary section on pages 45 to 48 for details on the composition of these measures.
Amounts are presented on a pre-tax basis and represent one-day VaR using a 99% confidence level.
The total trading VaR is less than the sum of the individual risk factor VaR results due to the diversification effect.
The average total trading VaR decreased between the first and second quarter of 2026, mainly due to a decrease in interest rate risk.
Daily Trading and Underwriting Revenues
The following chart shows daily trading and underwriting revenues and VaR. During the quarter ended April 30, 2026, daily trading and underwriting revenues were positive on 90% of the days. In addition, six days were marked by net daily trading and underwriting losses in excess of $1 million.
None of these losses exceeded VaR.
Quarter Ended April 30, 2026(millions of Canadian dollars)
44
40
36
32
28
24
20
16
12
8
4
0
(4)
(8)
(12)
(16)
(20)
February
2026
March
2026
April
2026
Trading and underwriting revenues
VaR
Interest Rate Sensitivity - Non-Trading Activities (Before Tax)
The following table presents the potential before-tax impact of an immediate and sustained 100-basis-point increase or of an immediate and sustained 100-basis-point decrease in interest rates on the economic value of equity and on the net interest income of the Bank's non-trading portfolios for the next 12 months, assuming no further hedging is undertaken and using a constant balance sheet.
As at April 30, 2026(millions of Canadian dollars) As at October 31, 2025
Canadian dollar | Other currencies | Total | Canadian dollar | Other currencies | Total | |
Impact on equity | ||||||
100-basis-point increase in the interest rate | (626) | (139) | (765) | (601) | (82) | (683) |
100-basis-point decrease in the interest rate | 645 | 113 | 758 | 605 | 83 | 688 |
Impact on net interest income | ||||||
100-basis-point increase in the interest rate | 96 | (31) | 65 | 132 | (46) | 86 |
100-basis-point decrease in the interest rate | (99) | 35 | (64) | (148) | 49 | (99) |
Liquidity and Funding Risk
Liquidity and funding risk is the risk that the Bank will be unable to honour daily cash and financial obligations without resorting to costly and untimely measures. Liquidity and funding risk arises when sources of funds become insufficient to meet scheduled payments under the Bank's commitments.
Liquidity risk refers to the possibility that an institution may not be able to meet its financial obligations as they fall due, due to a mismatch between cash inflows and outflows, without incurring unacceptable losses.
Funding risk is defined as the risk to the Bank's ongoing ability to raise sufficient funds to finance actual or proposed business activities on an unsecured or secured basis at an acceptable price. The funding management priority is to achieve an optimal balance between deposits, securitization, secured funding, and unsecured funding. This brings optimal stability to the funding and reduces vulnerability to unpredictable events.
Regulatory Developments
The Bank continues to closely monitor regulatory developments and participates actively in various consultative processes. For additional information about the regulatory context as at October 31, 2025, refer to page 101 of the Risk Management section in the 2025 Annual Report. Furthermore, since November 1, 2025, the new regulatory development below is to be considered.
The revised guidelines for Chapters 2, 3 and 4 of the Liquidity Adequacy Requirements were published by the OSFI on January 29, 2026. This version clarifies which types of deposits-particularly those arising from partnerships-may be classified as retail funding and therefore benefit from preferential treatment under the liquidity standards. It also introduces two new retail structured note categories, as well as additional guidance on the assessment of the maturity of structured notes with early redemption features and on the circumstances in which contingent funding obligations must be applied. These revised guidelines will come into effect on May 1, 2026.
Liquidity ManagementLiquid Assets
To protect depositors and creditors from unexpected crisis situations, the Bank holds a portfolio of unencumbered liquid assets that can be readily liquidated to meet financial obligations. The majority of the unencumbered liquid assets are held in Canadian or U.S. dollars. Moreover, all assets that can be quickly monetized are considered liquid assets. The Bank's liquidity reserves do not factor in the availability of the emergency liquidity facilities of central banks. The following tables provide information on the Bank's encumbered and unencumbered assets.
Liquid Asset Portfolio(1)(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 | |||
Bank-owned | Liquid assets | Total | Encumbered Unencumbered | Unencumbered | |
liquid assets(2) | received(3) | liquid assets | liquid assets(4) liquid assets | liquid assets | |
Cash and deposits with financial institutions Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments Issued or guaranteed by Canadian provincial and municipal governments Other debt securities Equity securities Loans Securities backed by insured residential mortgages | 43,431 | − | 43,431 | 14,695 28,736 | 13,359 |
57,097 | 85,422 | 142,519 | 83,766 58,753 | 54,180 | |
19,196 | 13,874 | 33,070 | 21,180 11,890 | 14,032 | |
8,226 | 4,718 | 12,944 | 5,732 7,212 | 7,814 | |
115,108 | 70,990 | 186,098 | 118,020 68,078 | 71,776 | |
19,306 | − | 19,306 | 9,378 9,928 | 8,798 | |
As at April 30, 2026 | 262,364 | 175,004 | 437,368 | 252,771 184,597 | |
As at October 31, 2025 234,925 164,738 399,663 229,704 169,959
(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 |
Unencumbered liquid assets by entity National Bank (parent) Domestic subsidiaries Foreign subsidiaries and branches | 126,203 11,350 47,044 | 117,051 14,102 38,806 |
184,597 | 169,959 |
(millions of Canadian dollars) | As at April 30, 2026 | As at October 31, 2025 |
Unencumbered liquid assets by currency | ||
Canadian dollar | 91,494 | 73,309 |
U.S. dollar | 75,913 | 83,713 |
Other currencies | 17,190 | 12,937 |
184,597 | 169,959 |
(millions of Canadian dollars) Quarter ended
April 30, 2026 | October 31, 2025 | ||||
Bank-owned | Liquid assets | Total | Encumbered Unencumbered | Unencumbered | |
liquid assets(2) | received(3) | liquid assets | liquid assets(4) liquid assets | liquid assets | |
Cash and deposits with financial institutions Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments Issued or guaranteed by Canadian provincial and municipal governments Other debt securities Equity securities Loans Securities backed by insured residential mortgages | 38,285 | − | 38,285 | 14,608 23,677 | 17,374 |
60,003 | 88,196 | 148,199 | 90,475 57,724 | 56,036 | |
20,462 | 14,025 | 34,487 | 22,149 12,338 | 12,431 | |
9,461 | 4,787 | 14,248 | 5,652 8,596 | 8,888 | |
124,669 | 73,770 | 198,439 | 118,537 79,902 | 67,211 | |
18,973 | − | 18,973 | 9,687 9,286 | 9,211 | |
271,853 | 180,778 | 452,631 | 261,108 191,523 | 171,151 | |
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Bank-owned liquid assets include assets for which there are no legal or geographic restrictions.
Securities received as collateral with respect to securities financing and derivative transactions and securities purchased under reverse repurchase agreements and securities borrowed.
In the normal course of its funding activities, the Bank pledges assets as collateral in accordance with standard terms. Encumbered liquid assets include assets used to cover short sales, obligations related to securities sold under repurchase agreements and securities loaned, guarantees related to security-backed loans and borrowings, collateral related to derivative financial instrument transactions, asset-backed securities, and liquid assets legally restricted from transfers.
The average is based on the sum of the end-of-period balances of the three months of the quarter divided by three.
(millions of Canadian dollars)
Encumbered assets(2) | Unencumbered assets | Total | Encumbered assets as a % of total assets | |||
Pledged as collateral | Other(3) | Available as collateral | Other(4) | |||
Cash and deposits with financial institutions | − | 14,695 | 28,736 | − | 43,431 | 2.4 |
Securities | 73,329 | − | 126,298 | − | 199,627 | 11.9 |
Securities purchased under reverse repurchase | ||||||
agreements and securities borrowed | − | 11,846 | 19,635 | − | 31,481 | 1.9 |
Loans, net of allowances | 41,718 | − | 9,928 | 260,341 | 311,987 | 6.8 |
Derivative financial instruments | − | − | − | 13,282 | 13,282 | − |
Premises and equipment | − | − | − | 2,174 | 2,174 | − |
Goodwill | − | − | − | 3,098 | 3,098 | − |
Intangible assets | − | − | − | 1,688 | 1,688 | − |
Other assets | 2,690 | − | − | 8,276 | 10,966 | 0.4 |
117,737 | 26,541 | 184,597 | 288,859 | 617,734 | 23.4 | |
(millions of Canadian dollars) As at October 31, 2025
Encumbered assets(2) | Unencumbered assets | Total | Encumbered assets as a % of total assets | |||
Pledged as collateral | Other(3) | Available as collateral | Other(4) | |||
Cash and deposits with financial institutions | - | 14,557 | 13,359 | - | 27,916 | 2.5 |
Securities | 54,779 | - | 133,968 | - | 188,747 | 9.5 |
Securities purchased under reverse repurchase | ||||||
agreements and securities borrowed | - | 13,257 | 13,834 | - | 27,091 | 2.3 |
Loans, net of allowances | 40,971 | - | 8,798 | 252,854 | 302,623 | 7.1 |
Derivative financial instruments | - | - | - | 12,515 | 12,515 | - |
Premises and equipment | - | - | - | 2,162 | 2,162 | - |
Goodwill | - | - | - | 3,101 | 3,101 | - |
Intangible assets | - | - | - | 1,748 | 1,748 | - |
Other assets | 3,158 | - | - | 7,858 | 11,016 | 0.5 |
98,908 | 27,814 | 169,959 | 280,238 | 576,919 | 21.9 | |
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
In the normal course of its funding activities, the Bank pledges assets as collateral in accordance with standard terms. Encumbered assets include assets used to cover short sales, obligations related to securities sold under repurchase agreements and securities loaned, guarantees related to security-backed loans and borrowings, collateral related to derivative financial instrument transactions, asset-backed securities, residential mortgage loans securitized and transferred under the Canada Mortgage Bond program, assets held in consolidated trusts supporting the Bank's funding activities, and mortgage loans transferred under the covered bond program.
Other encumbered assets include assets for which there are restrictions and that cannot therefore be used for collateral or funding purposes as well as assets used to cover short sales.
Other unencumbered assets are assets that cannot be used for collateral or funding purposes in their current form. This category includes assets that are potentially eligible as funding program collateral (e.g., mortgages insured by the Canada Mortgage and Housing Corporation that can be securitized into mortgage-backed securities under the National Housing Act (Canada)).
Liquidity Coverage Ratio
The liquidity coverage ratio (LCR) was introduced primarily to ensure that banks could withstand periods of severe short-term stress. LCR is calculated by dividing the total amount of high-quality liquid assets (HQLA) by the total amount of net cash outflows. OSFI has been requiring Canadian banks to maintain a minimum LCR of 100%. An LCR above 100% ensures that banks are holding sufficient high-quality liquid assets to cover net cash outflows given a severe, 30-day liquidity crisis. The assumptions underlying the LCR scenario are established by the BCBS and OSFI's Liquidity Adequacy Requirements Guideline.
The table on the following page provides average LCR data calculated using the daily figures in the quarter. For the quarter ended April 30, 2026, the Bank's average LCR was 170%, well above the 100% regulatory requirement and demonstrating the Bank's solid short-term liquidity position.
LCR Disclosure Requirements(1)(2)(millions of Canadian dollars) Quarter ended
April 30, 2026 | January 31, 2026 | ||
Total unweighted value(3) (average) | Total weighted value(4) (average) | Total weighted value(4) (average) | |
High-quality liquid assets (HQLA) | |||
Total HQLA | n.a. 116,644 | 109,759 | |
Cash outflows | |||
Retail deposits and deposits from small business customers, of which: | 89,182 8,251 | 8,084 | |
Stable deposits | 31,731 952 | 944 | |
Less stable deposits | 57,451 7,299 | 7,140 | |
Unsecured wholesale funding, of which: | 148,719 80,522 | 77,308 | |
Operational deposits (all counterparties) and deposits in networks of cooperative banks | 46,808 11,482 | 11,303 | |
Non-operational deposits (all counterparties) | 94,210 61,228 | 58,639 | |
Unsecured debt | 7,701 7,812 | 7,366 | |
Secured wholesale funding | n.a. 36,815 | 36,110 | |
Additional requirements, of which: | 97,172 26,995 | 23,070 | |
Outflows related to derivative exposures and other collateral requirements | 35,248 16,292 | 13,180 | |
Outflows related to loss of funding on secured debt securities | 2,186 2,209 | 1,540 | |
Backstop liquidity and credit enhancement facilities and commitments to extend credit | 59,738 8,494 | 8,350 | |
Other contractual commitments to extend credit | 4,616 1,876 | 1,230 | |
Other contingent commitments to extend credit | 220,270 2,600 | 2,614 | |
Total cash outflows | n.a. | 157,059 | 148,416 |
Cash inflows | |||
Secured lending (e.g., reverse repos) | 194,446 | 38,731 | 41,450 |
Inflows from fully performing exposures | 13,572 | 7,754 | 7,951 |
Other cash inflows | 38,932 | 38,842 | 37,072 |
Total cash inflows | 246,950 | 85,327 | 86,473 |
Total adjusted value(5) | Total adjusted value(5) | ||
Total HQLA | 116,644 | 109,759 | |
Total net cash outflows | 71,732 | 61,943 | |
Liquidity coverage ratio (%)(6) | 170 % | 189 % | |
n.a. Not applicable
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
OSFI prescribed a table format in order to standardize disclosure throughout the banking industry.
Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for cash inflows and outflows).
Weighted values are calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates.
Total adjusted values are calculated after the application of both haircuts and inflow and outflow rates and any applicable caps.
The data in this table is calculated using averages of the daily figures in the quarter.
As at April 30, 2026, Level 1 liquid assets represented 81% of the Bank's HQLA, which includes cash, central bank deposits, and bonds issued or guaranteed by the Canadian government and Canadian provincial governments.
Cash outflows arise from the application of OSFI-prescribed assumptions on deposits, debt, secured funding, commitments and additional collateral requirements. The cash outflows are partly offset by cash inflows, which come mainly from secured loans and performing loans. The Bank expects some quarter-over-quarter variation between reported LCRs without such variation being necessarily indicative of a trend. The variation between the quarter ended April 30, 2026 and the preceding quarter was a result of normal business operations. The Bank's liquid asset buffer is well in excess of its total net cash outflows.
The LCR assumptions differ from the assumptions used for the liquidity disclosures presented in the tables on the previous pages or those used for internal liquidity management rules. While the liquidity disclosure framework is prescribed by the EDTF, the Bank's internal liquidity metrics use assumptions that are calibrated according to its business model and experience.
Net Stable Funding Ratio
The BCBS has developed the net stable funding ratio (NSFR) to promote a more resilient banking sector. The NSFR requires institutions to maintain a stable funding profile in relation to the composition of their assets and off-balance-sheet activities. A viable funding structure is intended to reduce the likelihood that disruptions to an institution's regular sources of funding would erode its liquidity position in a way that would increase the risk of its failure and potentially lead to broader systemic stress. The NSFR is calculated by dividing available stable funding by required stable funding. OSFI has been requiring Canadian banks to maintain a minimum NSFR of 100%.
The following table provides the available stable funding and required stable funding in accordance with OSFI's Liquidity Adequacy Requirements Guideline. As at April 30, 2026, the Bank's NSFR was 118%, well above the 100% regulatory requirement and demonstrating the Bank's solid long-term liquidity position.
NSFR Disclosure Requirements(1)(2) | ||
(millions of Canadian dollars) | As at April 30, 2026 | As at January 31, 2026 |
Unweighted value by residual maturity | Weighted value(3) | Weighted value(3) | ||||
No maturity | 6 months or less | Over 6 months to 1 year | Over 1 year | |||
Available Stable Funding (ASF) Items | ||||||
Capital: | 34,119 | − | − | 3,429 | 37,548 | 37,206 |
Regulatory capital | 34,119 | − | − | 3,429 | 37,548 | 37,206 |
Other capital instruments | − | − | − | − | − | - |
Retail deposits and deposits from small business customers: | 86,638 | 14,413 | 10,834 | 34,113 | 135,216 | 133,758 |
Stable deposits | 32,172 | 4,779 | 4,029 | 9,341 | 48,271 | 47,852 |
Less stable deposits | 54,466 | 9,634 | 6,805 | 24,772 | 86,945 | 85,906 |
Wholesale funding: | 101,907 | 124,811 | 45,487 | 75,084 | 169,435 | 169,197 |
Operational deposits | 49,311 | − | − | − | 24,655 | 22,927 |
Other wholesale funding | 52,596 | 124,811 | 45,487 | 75,084 | 144,780 | 146,270 |
Liabilities with matching interdependent assets(4) | − | 3,445 | 1,653 | 24,719 | − | - |
Other liabilities(5): | 15,556 | 24,007 | 1,029 | 1,029 | ||
NSFR derivative liabilities(5) | n.a. | 9,352 | n.a. | n.a. | ||
All other liabilities and equity not included in the above categories | 15,556 | 6,293 | 294 | 8,068 | 1,029 | 1,029 |
Total ASF | n.a. | n.a. | n.a. | n.a. | 343,228 | 341,190 |
Required Stable Funding (RSF) Items Total NSFR high-quality liquid assets (HQLA) Deposits held at other financial institutions for operational purposes Performing loans and securities: Performing loans to financial institutions secured by Level 1 HQLA Performing loans to financial institutions secured by non-Level-1 HQLA and unsecured performing loans to financial institutions Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk Performing residential mortgages, of which: With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk Securities that are not in default and do not qualify as HQLA, including exchange-traded equities Assets with matching interdependent liabilities(4) | n.a. | n.a. | n.a. | n.a. | 39,131 | 40,836 |
− | − | − | − | − | - | |
94,373 | 79,985 | 39,174 | 119,903 | 214,319 | 206,794 | |
100 | 11,946 | 119 | − | 662 | 807 | |
6,300 | 11,483 | 1,513 | 1,433 | 5,442 | 6,013 | |
44,731 | 41,427 | 25,048 | 45,586 | 109,613 | 107,048 | |
677 | 2,514 | 562 | 1,344 | 2,852 | 2,954 | |
9,651 | 13,762 | 11,973 | 71,002 | 67,454 | 65,939 | |
9,651 | 13,762 | 11,973 | 71,002 | 67,454 | 65,939 | |
33,591 | 1,367 | 521 | 1,882 | 31,148 | 26,987 | |
− | 3,445 | 1,653 | 24,719 | − | - | |
Other assets(5): | 12,753 | 47,028 | 32,725 | 31,740 | ||
Physical traded commodities, including gold | 2,685 | n.a. | n.a. | n.a. | 2,496 | 1,781 |
Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs(5) | n.a. | 14,827 | 12,603 | 12,613 | ||
NSFR derivative assets(5) | n.a. | 4,476 | − | - | ||
NSFR derivative liabilities before deduction of the variation margin posted(5) | n.a. | 19,845 | 992 | 838 | ||
All other assets not included in the above categories | 10,068 | 2,955 | 617 | 4,308 | 16,634 | 16,508 |
Off-balance-sheet items(5) | n.a. | 151,463 | 5,836 | 5,704 | ||
Total RSF | n.a. | n.a. | n.a. | n.a. | 292,011 | 285,074 |
Net Stable Funding Ratio (%) | n.a. | n.a. | n.a. | n.a. | 118 % | 120 % |
n.a. Not applicable
See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
OSFI prescribed a table format in order to standardize disclosure throughout the banking industry.
Weighted values are calculated after application of the weightings set out in OSFI's Liquidity Adequacy Requirements Guideline.
As per OSFI's specifications, liabilities arising from transactions involving the Canada Mortgage Bond program and their corresponding encumbered mortgages are given ASF and RSF weights of 0%, respectively.
As per OSFI's specifications, there is no need to differentiate by maturity.