National Bank of Canada Prioritizes Profitable Growth with Discipline

National Bank of Canada's CEO Laurent outlined the bank's strategy for growth at Scotiabank's 27th Annual Financials Summit, stating that the bank is targeting profitable growth through high-quality clients, not aggressive pricing or market share grabs.

The bank aims to reach a Common Equity Tier 1 (CET1) ratio of about 13% by the end of fiscal 2027 and maintain an Return on Equity (ROE) target above 17%. Capital Markets delivered record results for a third straight quarter, while Canadian P&C Banking saw some margin pressure due to faster mortgage growth than deposit growth.

National Bank is also expanding its presence in Quebec, where it has seen strong market share gains without changing pricing or risk standards. The bank's financial stability is underscored by its consistent shareholder returns, with 48 consecutive years of maintaining dividend payments and 16 consecutive years of raising its dividend.