National Bank of Canada reports robust second quarter results

MONTREAL - National Bank of Canada (OTC:NTIOF) (the "Bank") has announced its financial results for the second quarter of 2025, revealing a solid performance across its segments. The Bank’s comprehensive income reached $696 million for the quarter, with a notable net income of $896 million, despite a slight decrease from the previous year’s $906 million.

The Personal and Commercial segment contributed a net income of $132 million, while Wealth Management and Financial Markets reported $232 million and $501 million, respectively. The U.S. Specialty Finance and International segment added $169 million. However, the ’Other’ category showed a net loss of $138 million, primarily due to acquisition-related expenses.

The Bank completed the acquisition of Canadian Western Bank (TSX:CWB) on February 3, 2025, for a total consideration of $6.8 billion, which included common shares, settlement of pre-existing relationships, and issuance of replacement share-based payment awards. The acquisition is expected to enhance the Bank’s national presence and generate significant synergies.

The Bank’s assets grew to $536.2 billion as of April 30, 2025, compared to $462.2 billion as of October 31, 2024. The increase in assets reflects the inclusion of CWB’s operations and continued organic growth. Total (EPA:TTEF) liabilities also rose to $503.3 billion, up from $433.5 billion in the previous period.

Provisions for credit losses amounted to $545 million for the quarter, reflecting the Bank’s cautious approach to risk management and the initial provisions for credit losses on non-impaired loans acquired from CWB.

The Bank’s CET1 capital ratio stood at 13.4%, demonstrating a strong capital position and compliance with regulatory requirements. The leverage ratio was reported at 4.7%, and the Total Loss Absorbing Capacity (TLAC) ratio was 28.2%, both well above the minimum regulatory thresholds.

During the quarter, the Bank issued a total of 50.3 million common shares related to the CWB acquisition, increasing Common share capital by $6.3 billion. The Bank also exchanged preferred shares and redeemed other equity instruments as part of the acquisition process.

Earnings per share (EPS) for the quarter were $2.17 on a diluted basis, compared to $2.54 in the same period last year. The Bank declared dividends of $1.14 per common share for the quarter.

National Bank’s performance in the second quarter of 2025 reflects its strategic growth initiatives, robust risk management practices, and the successful integration of CWB. The Bank remains well-positioned to continue its growth trajectory and deliver value to its shareholders.

This information is based on a press release statement.

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