Q3 2026 National Bank of Canada Earnings Call Transcript
Key Points
- EPS grew 26% year-over-year to $3.39, with revenues up 18% and positive operating leverage of nearly 6%.
- Strong balance sheet growth: loans up 11% and deposits up 11% year-over-year, with record mortgage originations.
- Wealth Management and Capital Markets delivered strong results, with net income up 22% and 32% year-over-year, respectively.
- Credit performance remained resilient, with impaired provisions within guidance and stable gross impaired loan ratio.
- CWB integration is on track, with $238 million in synergies captured and revenue synergy target achieved ahead of schedule.
- Capital position remains strong with CET1 ratio at 13.51%, supporting a new share buyback program and a 17%-plus ROE target by 2027.
- P&C Banking NIM declined 7 basis points sequentially due to competitive mortgage pricing and deposit mix shifts, with expectations of continued pressure.
- AIRB transition for CWB portfolios has been deferred to fiscal 2027, with the expected CET1 benefit now tracking to the lower end of the 35-55 basis points range.
- Trade conflict with the US creates economic uncertainty, impacting business investment and consumer affordability.
- Impaired provisions increased 2 basis points quarter-over-quarter, with lumpiness in wholesale credit and higher defaults in the CWB portfolio.
- Expenses rose 11.7% year-over-year, driven by higher variable compensation and continued investments in talent and technology.
- Credigy and ABA Bank showed slower growth, with ABA net income up only 1% due to slower economic growth and higher provisions.
Good morning, and welcome to National Bank of Canada's third quarter 2026 earnings call.
I would now like to turn the meeting over to Marianne Ratté, Senior Vice President and Head of Investor Relations. Please go ahead.
Merci, and welcome everyone. We will begin the call with remarks from Laurent Ferreira, President and CEO; Marie Chantal Gingras, CFO; and Jean-Sébastien Grisé, Chief Risk Officer. Our business heads are also present for the Q&A session, including Julie Lévesque, Personal Banking; Judith Ménard, Commercial and Private Banking; Nancy Paquet, Wealth Management; Ãtienne Dubuc, Capital Markets; and Bill Bonnell, International.
Before we begin, please refer to slide 2 of our presentation for forward-looking statements and non-GAAP measures. Management will refer to adjusted results unless otherwise noted.
I will now pass the call to Laurent.
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