Q1 2025 National Bank of Canada Earnings Call Transcript
Key Points
- National Bank of Canada (NTIOF) reported a strong earnings per share of $2.93 for Q1 2025, marking a 13% increase year-over-year.
- The bank achieved a return on equity of 17.6%, reflecting strong execution across business segments.
- The acquisition of Canadian Western Bank (CWB) is expected to enhance National Bank's domestic growth and expand its banking capabilities.
- Wealth Management segment saw a 23% increase in net earnings year-over-year, driven by market appreciation and strong net entries.
- Financial Markets exceeded expectations with a 35% year-over-year net income growth, benefiting from strong issuance volumes and securities finance opportunities.
- Canada's economic performance is lagging behind the US and other G7 nations, with declining productivity and GDP per capita.
- The threat of US tariffs creates increased uncertainty, potentially impacting economic growth and prolonging the credit cycle.
- Total provisions for credit losses (PCLs) increased to $254 million, reflecting heightened uncertainty and potential tariff impacts.
- The bank's effective tax rate increased due to the application of Pillar 2 rules, impacting financial results.
- ABA Bank continues to face challenges with lower tourism spend impacting customer activity, despite a 9% loan book growth year-over-year.
Good morning, and welcome to National Bank of Canada's first-quarter results conference call.
I would now like to turn the meeting over to Marianne Ratté, Vice President and Head of Investor Relations. Please go ahead, Marianne.
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Merci, and welcome, everyone. We will begin the call with remarks from Laurent Ferreira, President and CEO; Marie Chantal Gingras, CFO; and Jean-Sébastein Grisé, Chief Risk Officer. Also present for the Q&A session are Lucie Blanchet, Head of Personal Banking and Client Experience; Michael Denham, Head of Commercial and Private Banking; Nancy Paquet, Head of Wealth Management; Etienne Dubuc, Head of Financial Markets; and Stephane Achard, Head of International.
Before we begin, I would like to refer you to slide 2 of our presentation for information on forward-looking statements and non-GAAP financial measures. The bank uses non-GAAP measures such as adjusted results to assess its performance.
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