The results arrive in an "increasingly complex backdrop," says bank's CEO
National Bank of Canada’s profit for Q3 2022 came in lower than the same time last year, with net income dropping from $839 million in 2021’s third quarter to $826 million this time around.
That meant diluted earnings per share were $2.35 in the quarter ended July 31 compared with $2.36 last Q3, with higher provisions for credit losses in an uncertain economic climate largely behind the lower figures.
Still, the bank narrowly surpassed the expectations of analysts who had on average anticipated an adjusted profit of $2.34, according to Refinitiv, a financial markets data firm.
Its revenue was up from $2.3 billion to $2.4 billion year over year, with provisions for credit losses, coming in at $57 million, marking a sharp change from the same time last year when the bank announced a reversal of $43 million set aside for credit losses.
On the personal and commercial side, the bank saw 11% growth to $335 million over the same time last year, caused largely by higher revenues thanks to loan growth and higher net interest margins because of the rising-interest-rate environment.
Its financial markets division posted 12% growth, rising to $280 million on an annual basis, with wealth management also seeing double-digit growth (10%, to $181 million).
Laurent Ferreira, National Bank’s chief executive officer, said it had achieved “excellent results” in the third quarter and strong growth across its business segments.
“We continue to operate in an increasingly complex backdrop,” he said. “Despite these challenges, the bank is in a solid position with strong capital levels and substantial allowances for credit losses which, along with our prudent positioning, gives us comfort in the current environment.”
