Q2 2025 National Bank of Canada Earnings Call Transcript
Key Points
- National Bank of Canada (NTIOF) reported a 12% year-over-year increase in earnings per share, reaching $2.85.
- The bank's return on equity was strong at 15.6%, reflecting robust financial performance.
- The acquisition of CWB is progressing well, with early momentum in cost and funding synergies.
- Wealth management saw a 15% increase in net income year-over-year, driven by strong organic growth.
- The bank's CET1 ratio stands at a solid 13.4%, supporting business growth and allowing for a dividend increase.
- Macroeconomic uncertainty, including global trade tensions and geopolitical instability, poses challenges to forecasting growth and inflation.
- Operating leverage was negative in the wealth management segment due to the integration of CWB's wealth business.
- The bank faces competitive pressures in deposit pricing, impacting net interest margins.
- The integration of CWB is expected to temporarily slow growth in certain segments, such as commercial loans.
- The bank's gross impaired loan ratio increased, driven by the CWB transaction, indicating potential credit quality concerns.
Good morning and welcome to National Bank of Canada's second quarter results conference call. I would now like to turn a meeting over to Marianne Ratte, Vice President and Head of Investor Relations. Please go ahead, Marianne.
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. Also present for the Q&A session are Lucie Blanchet, EVP, Personal Banking; Judith Ménard, EVP, Commercial and Private Banking; Michael Denham, EVP and Vice Chair, responsible for the integration of CWB; Nancy Paquet, EVP, Wealth Management; Ãtienne Dubuc, EVP, Financial Markets; and Bill Bonnell, EVP International, responsible for ABA Bank.
Before we begin, please refer to slide 2 of our presentation for information on forward-looking statements. The bank uses non-GAAP measures such as adjusted results to assess its performance. Management will be referring
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