Acquisition of Canadian Western Bank strengthens expansion strategy, CEO says
National Bank of Canada posted solid first-quarter earnings for 2025, reporting a net income of $997 million, an 8% increase from the same period last year.
Despite higher provisions for credit losses and rising expenses, strong performance across its business segments, particularly in financial markets and wealth management, helped drive profitability.
Earnings per share rose to $2.78, compared to $2.59 a year earlier. Adjusted net income, which excludes costs related to the acquisition of Canadian Western Bank (CWB), reached $1.05 billion, while adjusted earnings per share climbed 13% to $2.93.
CEO Laurent Ferreira said the results reflect "solid execution across business segments and the bank’s diversified earnings power." He also highlighted the recent completion of the CWB acquisition as a key milestone in the bank’s domestic expansion strategy.
National Bank’s personal and commercial banking division faced some pressure, with net income dropping 14% to $290 million due to a sharp increase in provisions for credit losses. Despite this, overall revenues in the segment rose 4% to $1.2 billion, fuelled by loan and deposit growth.
Meanwhile, the financial markets division had a particularly strong quarter, with net income surging 35% to $417 million and revenues jumping 40% to $907 million. Increased activity in global markets helped offset higher provisions for credit losses, which nearly doubled from the previous year.
In the bank’s US specialty finance and international segment, net income rose 22% to $183 million, supported by a 24% increase in revenue to $405 million. The bank’s Credigy and ABA Bank subsidiaries continued to drive growth, though provisions for credit losses also increased.
National Bank’s other operations posted a net loss of $135 million, widening from $71 million a year earlier, due to lower earnings from Treasury activities and increased non-interest expenses.
Read next: How BMO and Scotiabank fared in Q1 2025
National Bank completed its acquisition of Canadian Western Bank on February 3, expanding its footprint across Canada. Ferreira described the deal as a "significant step forward" that will help accelerate growth and enhance service offerings.
As of January 31, 2025, the bank reported a Common Equity Tier 1 (CET1) capital ratio of 13.6%, slightly down from 13.7% in the previous quarter. The Basel III leverage ratio also edged lower to 4.3% from 4.4%.
“In a context of heightened macroeconomic and geopolitical uncertainty and an evolving credit cycle, we remain committed to maintaining our usual discipline regarding credit, capital and costs,” Ferreira said in the report to shareholders.
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