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C$27.21 -0.2  -0.8%

Last Trade - 18/09/20

Mid Cap
Market Cap £1.39bn
Enterprise Value £3.23bn
Revenue £517.0m
Position in Universe 162nd / 2689

National Bank of Canada's Q2 provision for bad energy loans soars

Thu 5th May, 2016 2:00pm
May 5 (Reuters) - National Bank of Canada  NA.TO  estimated 
that it would set aside C$250 million ($195 million), before 
taxes, in the quarter ended April to cover bad loans to the oil 
and gas industry. 
    The lender said on Thursday it expects provisions for credit 
losses, which totals C$183 million after tax, to reduce earnings 
per share by about 54 Canadian cents in the second quarter.*:nCNWpD8Cta 
    The provision is much higher than C$17 million National Bank 
had set aside to cover bad energy loans in the first quarter. 
    The bank also said it will revise downward its annual credit 
loss forecast to 20-30 basis points from 25-35 basis points of 
total loans when it reports second-quarter results on June 1. 
    RBC Capital Markets said the new provision accounts for 8 
percent of National Bank's oil and gas portfolio and brings the 
total provisions so far to about 10 percent of its energy 
portfolio, closer to U.S. bank levels of reserving. 
    Canadian Western Bank's  CWB.TO  said on Tuesday it set 
aside more money to cover bad loans to oil companies. 
    A slide in oil prices since mid-2014 has forced banks to cut 
credit lines for oil and gas companies. 
 ($1 = C$1.28) 
 (Reporting by Amrutha Gayathri in Bengaluru; Editing by Savio 
 ((; within U.S. +1 646 223 
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