Naimul Karim

The Montreal-based bank's total provisions for credit losses increased to $149 million

Advertisement 1 Share this Story : National Bank reports higher profit, net income climbs 24% National Bank reports higher profit, net income climbs 24% The Montreal-based bank's total provisions for credit losses increased to $149 million Author of the article: Article content The National Bank of Canada reported a higher profit in its third quarter and beat analysts' expectations as it reported higher results in all of its business segments. Advertisement 2 Article content National Bank reports higher profit, net income climbs 24% Back to video The Montreal-based bank's adjusted net income was $960 million for the three-month period that ended on July 31, 23 per cent higher than the $781 million it reported last year. The higher profit resulted in adjusted earnings per share of $2.68, up from $2.18 during the same period last year Its reported net income, which excludes the bank's agreement to acquire Canadian Western Bank , was around $1 billion, up 24 per cent from last year, leading to earnings per share of $2.89. National's total provisions for credit losses, or the money kept aside for potential bad loans, increased to $149 million for the quarter, compared to $111 million during the same period last year. “Results for the third quarter reflect our diversified earnings mix and solid credit profile as well as disciplined execution across the bank,” Laurent Ferreira, the bank's chief executive, said in a statement on Wednesday. Advertisement 3 Article content Matthew Lee, an analyst at Canaccord Genuity Group Inc, said in a note on Wednesday that the bank's adjusted earnings per share of $2.68 was higher than the consensus estimate of $2.47. “The beat against our estimates was due to higher revenue, while expenses were slightly higher than expected,” he said. • Email: [email protected] Bookmark our website and support our journalism: Don't miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here Article content Share this article in your social network Share this Story : National Bank reports higher profit, net income climbs 24% Comments Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Latest National Stories News Near Elliot Lake Featured Local Savings

The bank's adjusted net income was $1.8 billion, up 28% from last year

CIBC beat analysts’ expectations and reported a higher profit as the bank posted gains in most of its business segments. Find out more.

Post relatively stable earnings performance in Q3 Canada's top banks may still be facing credit headwinds, but analysts say that the relatively

Published Aug 30, 2024 • Last updated 8 minutes ago • 4 minute read

Current economic situation is 'foggy,' but 'getting easier' with rates coming down Article content

Advertisement 1 Share this Story : Canadians have handled mortgage debt 'exceptionally well,' says RBC's McKay Canadians have handled mortgage debt 'exceptionally well,' says RBC's McKay Current economic situation is 'foggy,' but 'getting easier' with rates coming down Author of the article: Article content Canadians have been resilient during the high interest rate regime of the past couple of years and have handled their mortgage debt “exceptionally well,” Royal Bank of Canada 's chief executive Dave McKay said on the same day the Bank of Canada announced a third consecutive 25-basis point rate cut. Advertisement 2 Article content Canadians have handled mortgage debt 'exceptionally well,' says RBC's McKay Back to video While the current economic situation is still difficult and “foggy,” it is “getting easier” with rates coming down, the head of Canada's largest bank said. “Every 25 basis points is roughly $7 billion of cash flow in a Canadian economy,” McKay said during the 25th Annual Scotiabank Financials Summit in Toronto. “So, it releases that debt service into consumption into savings and that is very meaningful to the economy.” Most of Canada's Big Six lenders posted better-than-expected results when they released their quarterly results last week. The banks' ability to earn amidst a challenging economy bolstered the outlook for a soft landing in the economy, according to some analysts. From a rate-cycle perspective, the “worst is behind us,” McKay said. Advertisement 3 Article content Although rising unemployment levels are a matter of concern, he said that there will be more construction activity and more properties sold when interest rates come down another 100 points. The rate is now 4.25 per cent after the cut on Tuesday. “They need rates to come down into that three-to-3.5 per cent range to make it cost-effective to buy a unit,” he said. “We are well on our way to doing that. You are going to see better growth in the mortgage portfolio.” McKay said there was a lot more activity in the corporate end as well, with companies getting ready to take on more debt and make more investments, as well as a lot more talk about mergers and acquisitions. Shares of Royal Bank of Canada hit new all-time highs last Wednesday after it reported higher profits and beat analysts' expectations in its first full quarter since it completed the purchase of HSBC Holdings PLC's Canadian business. The inclusion of HSBC helped increase the bank's net income by $239 million. Advertisement 4 Article content Going forward, McKay said that there's still lots of room for RBC, which currently dominates 23 per cent of the market, to grow in Canada. “When you have 23 per cent market share, there's not a case out there that you are anywhere close to your ceiling; there's so much runway for us to continue,” he said. “We are not going to run out of room in Canada. This is an amazing marketplace with a lot of new immigrants coming in; they are going to create growth.” • Email: [email protected] Bookmark our website and support our journalism: Don't miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here Article content Share this article in your social network Share this Story : Canadians have handled mortgage debt 'exceptionally well,' says RBC's McKay Comments Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Latest National Stories News Near Elliot Lake Featured Local Savings

Current economic situation is 'foggy,'but'getting easier' with rates coming down

'Getting bigger for the sake of bigger is not the objective,' says RBC's McKay Article content