National Bank of Canada posts 8% rise in Q1 net income

MONTREAL - National Bank of Canada (OTC:NTIOF) reported an 8% increase in net income to $997 million for the first quarter of 2025, up from $922 million in the same period last year. Diluted earnings per share for the quarter stood at $2.78, compared to $2.59 in the first quarter of 2024.

The bank attributed the growth to revenue increases across all business segments, which was partially offset by higher non-interest expenses and provisions for credit losses. Notably, the Financial Markets and Wealth Management segments showed particularly strong performance.

Adjusted net income, which excludes items related to the acquisition of Canadian Western Bank (TSX:CWB), was $1,050 million, representing a 14% increase from the previous year’s first quarter. Adjusted diluted earnings per share rose 13% to $2.93.

Laurent Ferreira, CEO of National Bank, remarked on the strong financial results and the recent completion of CWB’s acquisition, emphasizing the bank’s commitment to disciplined credit, capital, and cost management amid macroeconomic and geopolitical uncertainties.

The bank’s acquisition of CWB, completed on February 3, 2025, marked a significant step in expanding its domestic growth and banking capabilities across Canada. The transaction was valued at $6.8 billion and is expected to enhance customer service by offering a full range of products and services nationwide.

As of January 31, 2025, the Common Equity Tier 1 (CET1) capital ratio under Basel III stood at 13.6%, slightly down from 13.7% as of October 31, 2024. The bank’s Basel III leverage ratio was 4.3%, a slight decrease from 4.4% in the previous quarter.

The Board of Directors declared dividends on various series of preferred shares and a dividend of $1.14 per common share, payable on May 1, 2025, to shareholders of record as of March 31, 2025.

This financial update is based on a press release statement and the unaudited interim condensed Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

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