The bank saw robust results across all business segments
Driven by across-the-board increases in total revenues, National Bank reported net income of $839 million in the third quarter, versus $602 million in Q3 2020.
Lower provisions for credit losses in the third quarter, stemming from a better macroeconomic outlook, also spurred the growth, National Bank said. Income before provisions for credit losses and income taxes amounted to $1.038 billion, compared to $894 million a year prior.
“The bank’s strong performance since the beginning of the fiscal year has continued in the third quarter of 2021. The continued improvement in the economic environment was conducive to growth, as demonstrated by a sustained increase in our revenues,” said Louis Vachon, president and CEO of the National Bank of Canada.
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In the nine months ending July 31, the bank saw $2.401 billion in net income, significantly higher than the $1.591 million during the same time last year.
“This significant increase was driven by net income growth across all of the business segments, i.e., increases that were notably due to strong revenue growth and to lower provisions for credit losses recorded in the first nine months of fiscal 2021 given a year-over-year improvement in the macroeconomic outlook,” National Bank said.
For this period, income before provisions for credit losses and income taxes amounted to $3.121 billion, again driven by revenue growth across all of the business segments and imparting substantial momentum for remainder of the year.
“We remain focused on our strategic objectives in order to deliver solid returns for our shareholders, while maintaining prudent allowances for credit losses and a high level of capital,” Vachon said.
National Bank’s personal and commercial business saw net income of $330 million in Q3 2021, versus $223 million in Q3 2020. On an annual basis, personal lending grew 10% and commercial lending grew 14%.
Meanwhile, its wealth management business had a net income of $165 million, compared to $127 million in Q3 2020. Efficiency ratio improved from 61.2% last year to 58.9%.
The financial markets arm saw $227 million in net income during the third quarter, up from $188 million in Q3 2020. Recoveries of credit losses totalled $10 million, compared to the $41 million in provisions for credit losses during Q3 2020.
