The National Bank presented Wednesday its end-of-year financial performance relatively in line with market expectations.
Posted at 7:28 a.m.
Net profits generated by Quebec’s largest bank amounted to 955 million for the months of August, September and October, the equivalent of an increase of 27% over one year.
Adjusted profits per share for the quarter reached $2.58, while analysts’ consensus as established by financial data firm Refinitiv is around $2.57.
The quarterly dividend paid to shareholders is increased by 4% to $1.14 per share.
Provisions for credit losses – that is, funds set aside to cover loans that may not be repaid – amount to 162 million.
This amount is up compared to 115 million at the same period last year and compared to 149 million three months ago.
“We have achieved all of our medium-term financial objectives in 2024,” comments the CEO of the National Bank, Laurent Ferreira.
“Looking ahead to 2025, in an environment that will remain complex, we will continue to rely on our diversified business model and our disciplined approach to credit, capital and costs in order to continue our growth. »
The presentation of this performance comes while the National Bank’s stock is at a historic high on the Toronto Stock Exchange. The lender’s stock is up 40% since 1is January.
The second portion of the stock market surge recorded this year was achieved after the unveiling in June of an agreement surrounding the purchase of the Canadian Western Bank. Valued at $5 billion, this is the largest acquisition project in the history of the National Bank.
The transaction was approved in early September by the shareholders of Canadian Western Bank before obtaining the green light from the Competition Bureau a few weeks later.
To come to fruition, the proposed transaction must now be supported by the Canadian banking regulator – that is to say the Office of the Superintendent of Financial Institutions – which must provide a recommendation to the Canadian Minister of Finance, Chrystia Freeland.
If the arrangement obtains all necessary approvals, the National Bank can hope to conclude this transaction in 2025.
