National Bank records $608-million profit in ‘solid’ quarter

MONTREAL — National Bank of Canada reported that its third-quarter profit climbed to $608 million, helped by growth across the bank.

The company said Wednesday the profit amounted to $1.66 per diluted share for the quarter ended July 31.

The result compared with a profit of $569 million, or $1.52 per diluted share, in the same quarter last year.

Excluding specified items, National Bank says it earned $606 million, or $1.66 per diluted share, up from $569 million ($1.52 per share) a year ago.

Analysts on average had expected a profit of $1.59 per share, according to the financial markets data firm Refinitiv.

National Bank chief executive Louis Vachon said each business segment contributed to earnings growth, to help the bank to post “solid performance” for the quarter.

“In an environment of economic and geopolitical uncertainty, the bank will maintain its disciplined approach to managing costs, credit and capital,” Vachon said in a statement.

National Bank’s personal and commercial banking division earned $277 million in the quarter, up from $250 million in the same quarter last year, helped by a growth in mortgage and commercial lending. The wealth management business earned $126 million, up from $120 million a year ago, while the bank’s financial markets arm earned $182 million, up from $178 million. The bank’s U.S. specialty finance and international division earned $69 million, up from $54 million in the same quarter of 2018.

National Bank’s common equity tier 1 capital ratio, a key measure of its financial health, was 11.7 per cent at July 31 compared with 11.7 per cent at Oct. 31, 2018.