National Bank of Canada's Q3 profit beats estimates on lower provisions

National Bank of Canada

26/08/2026 11:43

Overview
Canada banking group's Q3 adjusted EPS rose 26% yr/yr, beating analyst expectations
Q3 adjusted net income increased 23% to C$1.36 bln
Q3 revenue grew 18% yr/yr to C$4.05 bln

Outlook
National Bank says Canada's economic resilience is creating opportunities for growth
Company remains focused on supporting clients and advancing Canada's economic priorities
National Bank notes ongoing momentum and robust capital levels amid uncertainty

Result Drivers
LOAN AND DEPOSIT VOLUME - Co said higher net interest income was mainly due to growth in loan and deposit volumes, partly offset by lower net interest margin
GLOBAL MARKETS REVENUE - Capital Markets segment revenue grew 34%, driven by strong growth in global markets revenues
LOWER CREDIT LOSS PROVISIONS - Co said provisions for credit losses were down, mainly due to a decrease in provisions for credit losses on non-impaired loans

Company press release: ID:nCNWrZw93a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
C$4.05 bln
 
Q3 Adjusted EPS
Beat
C$3.39
C$3.22 (11 Analysts)
Q3 EPS
 
C$3.25
 
Q3 Adjusted Net Income
 
C$1.36 bln
 
Q3 Net Income
 
C$1.31 bln
 
Q3 Adjusted Credit Loss Provision
 
C$246 mln
 
Q3 Adjusted Net Interest Income
 
C$1.25 bln
 
Q3 CET1 Capital Ratio
 
13.50%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for National Bank of Canada is C$225.25, about 1.2% above its August 25 closing price of C$222.53
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 25 - Canadian lenders BMO, Scotiabank beat profit estimates, brush aside tariff worries
Aug 25 - Canada's Scotiabank Q3 adjusted profit beats estimates
Aug 25 - Bank of Montreal Q3 profit up on improved credit performance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)