National Bank reports its results for the Third Quarter of 2026

The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter and the nine-month period ended July 31, 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, Aug. 26, 2026 /CNW/ -- For the third quarter of 2026, National Bank is reporting net income of $1,307 million, up 23% from $1,065 million in the third quarter of 2025. Diluted earnings per share stood at $3.25, up 26% from $2.58 a year earlier, driven by strong performance across all business segments. Excluding specified items(1) recorded in the third quarters of 2026 and 2025, related to the acquisition of Canadian Western Bank (CWB) and transactions with Laurentian Bank of Canada (LBC), adjusted net income(1) stood at $1,362 million, up 23% from $1,104 million in the corresponding quarter of 2025. Adjusted diluted earnings per share(1) stood at $3.39, up 26% from $2.68 a year earlier.

For the nine-month period ended July 31, 2026, the Bank's net income totalled $3,795 million, up 28% from $2,958 million for the corresponding period of 2025. Diluted earnings per share stood at $9.39 compared to $7.50 for the corresponding period of 2025, an increase of 25%. This growth reflected strong performance across all business segments, lower provisions for credit losses, particularly due to initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired CWB loans, as well as the increased contribution from CWB in 2026, which included an additional quarter of results compared with 2025. Excluding specified items(1) recorded during the nine-month periods ended July 31, 2026 and 2025, adjusted net income(1) totalled $3,985 million, up 20% from $3,320 million for the corresponding period of 2025, while adjusted diluted earnings per share(1) stood at $9.88, up 17% from $8.46 for the nine-month period ended July 31, 2025.

"We delivered strong earnings and revenue growth, as well as a high return on equity, continuing the momentum achieved since the beginning of the year. Our results also reflected positive operating leverage and resilient credit performance, while we maintained robust capital levels," said Laurent Ferreira, President and Chief Executive Officer of National Bank of Canada.

"Despite trade and geopolitical uncertainty, Canada's resilience and the retooling of its economy are creating opportunities for growth. We remain focused on supporting our clients and advancing the country's economic priorities to create long-term value for all our stakeholders," concluded Mr. Ferreira.

Highlights

Third quarter of 2026 versus third quarter of 2025

Personal and Commercial

• Net income totalled $421 million versus $370 million in 2025, a 14% increase.

• At $1,546 million, third-quarter total revenues rose $97 million or 7% 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 13% and commercial lending grew 4%, driven by solid organic growth.

• Net interest margin(1) stood at 2.19%, down from 2.25%. 

• Non-interest expenses stood at $848 million, up 5%.

• Provisions for credit losses were down $17 million, mainly due to a decrease in provisions for credit losses on non-impaired loans.

• At 54.9%, the efficiency ratio(1) improved compared to 55.6%.

Wealth Management

• Net income totalled $296 million, a 21% increase from $244 million in 2025.

• Total revenues amounted to $955 million compared to $811 million last year, a $144 million or 18% increase driven by growth in all types of revenues, mainly fee-based revenues.

• Non-interest expenses stood at $553 million versus $477 million in 2025, a 16% increase associated with revenue growth.

• At 57.9%, the efficiency ratio(1) improved compared to 58.8%.

Capital Markets

• Net income totalled $442 million versus $334 million in 2025, a 32% increase.

• Total revenues amounted to $1,041 million, a 34% increase, driven by strong growth in global markets revenues.

• Non-interest expenses stood at $436 million compared to $347 million, an increase reflecting higher compensation and employee benefits, as well as expenses related to business growth in the segment.

• Provisions for credit losses were $50 million compared to $24 million in 2025.

• At 41.9%, the efficiency ratio(1) improved compared to 44.7%, reflecting strong revenue growth.

U.S. Specialty Finance and International (USSF&I)

• Net income totalled $184 million, up 3% from $178 million last year.

• Total revenues amounted to $441 million, a 10% increase attributable to revenue growth at the Credigy and ABA Bank subsidiaries. 

• Non-interest expenses stood at $130 million, a 4% decrease mainly attributable to the Credigy subsidiary.

• Provisions for credit losses were up $37 million, an increase mainly attributable to the Credigy subsidiary.

• At 29.5%, the efficiency ratio(1) improved compared to 33.6%.

Other

• The Other heading reported a net loss of $36 million compared to a net loss of $61 million in 2025, owing mainly to a higher contribution from Treasury activities, higher gains on investments, as well as a decrease in non-interest expenses.

Capital Management

• As at July 31, 2026, the Common Equity Tier 1 (CET1) capital ratio under Basel III(2) stood at 13.5%, down from 13.8% as at October 31, 2025.

Dividends

• On August 25, 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, payable on November 1, 2026 to shareholders of record on September 28, 2026.

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.

Non-GAAP Financial 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 4 to 6. It should be noted that, for the quarter and nine-month period ended July 31, 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 transaction-related charges and amortization of intangible assets related to the CWB acquisition. In addition, for the nine-month period ended July 31, 2026, initial provisions for credit losses on non-impaired loans acquired from LBC were excluded from results. For the quarter and nine-month period ended July 31, 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 the income tax recovery related to a change in tax treatment). In addition, for the nine-month period ended July 31, 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 and the initial provisions for credit losses on acquired non-impaired CWB loans were excluded from results.

For additional information on non-GAAP financial measures, non-GAAP ratios, supplementary financial measures, and capital management measures, see the Financial Reporting Method section and the Glossary section, on pages 5 to 12 and 45 to 48 respectively, of the Report to Shareholders – Third Quarter 2026, which is available on the Bank's website at nbc.ca or the SEDAR+ website at sedarplus.ca.

Reconciliation of Non-GAAP Financial Measures

Presentation of Results – Adjusted