National Bank of Canada beats profit estimates on capital markets, wealth management strength (updated)

National Bank of Canada

26/08/2026 11:45

Adds profit comparison, CEO comments
Aug 26 (Reuters) - National Bank of Canada NA.TO on Wednesday beat analysts' estimates for quarterly profit, driven by robust performances in its capital markets and wealth management segments.
Net income at its capital markets segment rose 32% from a year ago to C$442 million ($318.70 million) in the quarter, while its wealth management unit's profit grew 21% to C$296 million. Its personal and commercial banking business also saw a 14% rise in earnings to C$370 million, as loan loss provisions, or the money banks set aside for potentially souring loans, fell. 
Canadian banks are seeing a moderation in loan-loss provisions after building strong reserves over the past year against potential credit deterioration. 
Some banks have said their clients are weathering the uncertainty from the trade tensions between the U.S. and Canada after the two countries walked away from talks on a landmark trade deal earlier this month. The United States imposed tariffs on certain Canadian goods and Canada responded with duties on U.S. steel and aluminum.
     "Despite trade and geopolitical uncertainty, Canada's resilience and the retooling of its economy are creating opportunities for growth," National Bank CEO Laurent Ferreira said. 
Canada's economy has held up despite prolonged trade friction with the U.S. Stronger-than-expected job growth and lower unemployment in July point to resilient domestic activity, helping cushion banks against tariff-related risks.
Peers Bank of Nova Scotia BNS.TO beat profit estimates on Tuesday, also driven by strength in capital markets. 
On an adjusted basis, National Bank of Canada's net interest income, the difference between what banks make on loans and pay out on deposits, was C$1.25 billion in the third quarter, compared with C$1.17 billion in the year-ago period.
The Canadian lender posted an adjusted profit of C$1.36 billion ($980.75 million), or C$3.39 per share, in the three months ended July 31, compared with a profit of C$1.1 billion, or C$2.68 per share, a year ago.
Analysts had estimated earnings of C$3.22 per share, according to LSEG data. 
     
($1 = 1.3869 Canadian dollars)

 (Reporting by Prakhar Srivastava in Bengaluru and Nivedita Balu in Toronto; Editing by Sahal Muhammed and Louise Heavens)
 ((Prakhar.srivastava2@thomsonreuters.com;))