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(Bloomberg) — National Bank of Canada beat analyst expectations in its fiscal second quarter on strength across its major segments while also setting aside less than anticipated for bad loans.
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The Montreal-based lender earned C$3.23 per share on an adjusted basis in the three months through April, more than the C$3.14 forecast by analysts in a Bloomberg survey.
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National Bank’s personal and commercial banking net income grew 169% from a year earlier to C$355 million ($257 million), falling short of the C$392 million analysts had predicted. The growth was due in part to the inclusion of results from Canadian Western Bank, a purchase that closed in February 2025.
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The bank is conducting a strategic review of the personal and commercial business after Chief Executive Officer Laurent Ferreira acknowledged on a call with analysts last quarter that its 13% return on equity at the time was lower than peers.
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The segment’s return on equity in the second quarter was 11%.
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“In the context of heightened macroeconomic uncertainty, we remain well positioned to support our clients, and continue delivering strong earnings growth and return on equity, while maintaining robust capital levels,” Ferreira said in a statement.
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Its capital markets segment posted net income of C$488 million, down 3% from a year ago but more than the C$443 million analysts predicted.
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National Bank set aside C$233 million for credit losses during the quarter, less than the C$251 million analysts forecast. The lender’s wealth management segment delivered C$274 million in net income, an 18% increase from the year before.
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The bank posted overall net income of C$1.23 billion, in line with analyst expectations. It also announced an increase to its quarterly dividend Wednesday, boosting it by 8 Canadian cents to C$1.32 a share.
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The lender agreed in December to acquire Laurentian Bank of Canada’s retail banking and small-business assets and liabilities.
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(Adds return on equity detail in the fifth paragraph.)
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