National Bank narrowly beats expectations as revenue climbs #CanadaFinance

Boosted by revenue growth in all business segments, National Bank of Canada on Wednesday reported a higher fourth-quarter profit than last year, narrowly beating analyst expectations in the process.

On an adjusted basis, the bank earned $928 million, up from $850 million a year ago, resulting in earnings per share of $2.61. Analysts had expected the bank to earn $2.57 per share, according to Canaccord Genuity Corp.

Net income for the three-month period ending Oct. 31 was $955 million, up from $751 million during the same period last year, resulting in net earnings per share of $2.69.

The lender said the increase was due to “good performance in all of the business segments owing to revenue growth.” The results were, however, affected by increases in non-interest expenses, provisions for credit losses (PCL) — the amount of money banks keep aside to tackle potential bad loans — and income taxes.

“Through disciplined execution, strong organic growth and resilient credit performance, we met all of our medium-term financial objectives in 2024,” National Bank chief executive Laurent Ferreira said in a statement. “Looking ahead to 2025 in what will remain a complex environment, we will continue to leverage our diversified business model and disciplined approach to credit, capital and costs as we pursue our growth path.”

The bank’s total PCL increased to $162 million, from $115 million during the same period last year.

Recommended from Editorial

1. 

   Canadians can take banking complaints to one place

2. 

   National Bank gets approval to buy CWB

The Montreal-based bank increased its quarterly dividend by four cents to $1.14.