By Adriano Marchese
National Bank of Canada on Wednesday reported a rise in profit in its third quarter, while revenue and adjusted earnings missed expectations as provisions for credit losses mount.
The Canadian financial institution reported higher net income of 839 million Canadian dollars ($619 million), or C$2.36 a share for the three months ended July 31, compared with C$826 million, or C$2.35 a year earlier.
On an adjusted basis, net income fell to C$2.21 a share from C$2.35 a share, while analysts expected a slight rise to C$2.37 a share, according to a poll on FactSet.
Total revenue rose to C$2.51 billion from C2.41 billion, missing analyst expectations of a greater rise to C$2.65 billion.
National Bank of Canada posted growth across all of its business segments, aside from the financial markets segment, which saw a decline of 27% in net income to C$205 million. The growth was partly offset by higher provisions for credit losses, which rose to C$75 million from C$1 million a year prior.
Tier 1 common capital ratio, a measurement of a bank’s core capital compared with its riskier assets like loans and mortgages, rose to 13.5% from 12.7% a year earlier.
Write to Adriano Marchese at [email protected]
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