National Bank of Canada's Stock Declines Despite Strong Quarterly Earnings
National Bank of Canada's stock has been declining over the past month, down about 8%, despite the bank reporting strong quarterly earnings. The bank delivered a net income of CA$1.3 billion and revenue of CA$3.8 billion in Q3 2026.
The bank's return on equity (ROE) held steady at 16.8%, while earnings per share rose 26% to CA$3.29. Revenue grew 17.3% year-over-year, with positive operating leverage of about 6%. The bank also reported improved efficiency, with a cost-to-income ratio of 49.8% compared to 52.4% in the same period last year.
The bullish case for National Bank of Canada suggests that the bank can turn its CWB deal, wealth growth, and tech spend into faster, higher-quality earnings. Management has reported CA$238 million in cost and funding synergies captured so far, with a target of CA$270 million by the end of 2026.