MONTREAL - National Bank of Canada (OTC:NTIOF) (the "Bank") has reported a significant increase in total assets and improved capital ratios for the fiscal year ended October 31, 2024. The Bank's total assets reached CAD 462.2 billion, marking a 9% rise from the previous year's CAD 423.5 billion. This growth was attributed to a broad expansion across various asset categories, including a notable rise in securities and loans.
The Bank's Common Equity Tier 1 (CET1), Tier 1, and Total (EPA:TTEF) capital ratios also saw an uptick, registering at 13.7%, 15.9%, and 17.0% respectively, compared to 13.5%, 16.0%, and 16.8% in the previous year. The CET1 capital ratio's increase was primarily due to contributions from net income net of dividends and common share issuances under the Stock Option Plan. These factors were partially offset by organic growth in risk-weighted assets (RWA) and the impact of new market risk framework requirements.
Deposits at the Bank grew to CAD 333.5 billion, a 16% increase from CAD 288.2 billion in the previous year, driven by growth in personal and commercial banking. Loans and acceptances, net of allowances, also rose by 8% to CAD 243.0 billion, reflecting strong demand for mortgage credit and business growth in commercial banking.
The Bank's leverage ratio remained stable at 4.4%, reflecting a balance between growth in total exposure and Tier 1 capital. Additionally, the Bank's Total Loss Absorbing Capacity (TLAC) ratio and TLAC leverage ratio improved to 31.2% and 8.6%, respectively. This was due to the net issuance of instruments meeting TLAC eligibility criteria during the fiscal year.
In line with regulatory requirements, the Bank maintained its capital ratios above the minimum thresholds set by the Office of the Superintendent of Financial Institutions (OSFI), including a domestic stability buffer (DSB) of 3.5%. The Bank's regulatory capital, leverage, and TLAC ratios were all in compliance with OSFI standards.
For the fiscal year 2024, the Bank declared CAD 1,468 million in dividends to common shareholders, which represented 40.1% of net income attributable to common shareholders and 41.2% of adjusted net income attributable to common shareholders. These figures fall within the Bank's target payout range, reflecting a prudent capital distribution approach given the economic conditions during the fiscal year.
The Bank's capital management activities included a normal course issuer bid, although no common shares were repurchased for cancellation during the fiscal year. Furthermore, the Bank issued CAD 500 million in medium-term notes, contributing to the overall strengthening of its capital base.
This financial summary is based on a press release statement from the National Bank of Canada.
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