National Bank of Canada Climbs as Profit Beats Estimates
By Doug Alexander
(Bloomberg) — National Bank of Canada jumped the most in 17 months after reporting third-quarter profit that beat analysts’ estimates on gains in domestic banking and wealth management.
Shares of the Montreal-based lender rose 3.6 percent to C$57.40 at 11:33 a.m. in Toronto, the most intraday since March 2016 and the best performance in the eight-company S&P/TSX Commercial Banks Index. The stock has gained 5.2 percent this year, compared with the index’s 0.2 percent decline.
Net income for the period ended July 31 increased 8.4 percent to C$518 million ($413 million), or C$1.37 a share, from C$478 million, or C$1.31 a year earlier, National Bank said Wednesday in a statement. Profit excluding some items was C$1.39 a share, beating the C$1.32 average estimate of 12 analysts surveyed by Bloomberg.
“Overall, we view Q3 positively,” Darko Mihelic, an analyst with RBC Capital Markets, said in a note to clients. “Capital was very strong and revenue, efficiency and credit all came in better relative to our expectations.”
National Bank joins five other Canadian lenders in topping analysts’ net income expectations for the quarter, with the group’s earnings fueled primarily by domestic banking operations and wealth management. Profit from National Bank’s domestic banking division increased 21 percent to C$240 million and wealth management climbed 29 percent to C$112 million.
Toronto-Dominion Bank, Canada’s largest lender, and Edmonton, Alberta-based Canadian Western Bank are scheduled to report results on Thursday.