National Bank of Canada Surpasses Q3 Earnings Expectations with Strong Performance

National Bank of Canada (NTIOF) released its Q3 2026 earnings call highlights, showing strong performance across various segments. Earnings per share (EPS) grew 26% year-over-year to $3.39, with revenues increasing by 18%. The bank's balance sheet growth was also evident, with loans up 11% and deposits up 11% year-over-year.

Wealth Management and Capital Markets delivered strong results, with net income up 22% and 32% year-over-year, respectively. Credit performance remained resilient, with impaired provisions within guidance and a stable gross impaired loan ratio. The CWB integration is on track, with $238 million in synergies captured and revenue synergy target achieved ahead of schedule.

However, the P&C Banking Net Income declined 7 basis points sequentially due to competitive mortgage pricing and deposit mix shifts. The bank expects continued pressure on NIM. Additionally, the AIRB transition for CWB portfolios has been deferred to fiscal 2027, with the expected CET1 benefit now tracking to the lower end of the 35-55 basis points range.

CEO Laurent Ferreira emphasized that capital priorities remain unchanged: organic growth, strategic tuck-ins in P&C and Wealth, dividend growth, and buybacks as an add-on. The bank aims to achieve a 17%-plus ROE target by 2027 through broad-based growth across all segments, revenue synergies from the CWB acquisition, and share buybacks.