National Bank Q3 Profit Surges 23% on Strong Lending Volumes

National Bank of Canada reported a significant increase in its third-quarter profit, with net income rising by 23% to $1.307 billion compared to the same period last year.

The Montreal-headquartered lender attributed this growth to strong lending volumes, particularly in personal lending which climbed by 13%. Commercial lending also saw an increase of 4%, driven by solid organic growth.

While net interest margin edged lower to 2.19% due to intense competition for mortgage business, provisions for credit losses fell $17 million year-over-year, indicating that borrowers are broadly meeting their obligations.

The bank's capital markets and wealth management segments also contributed to the strong earnings, with net income jumping by 32% and 21%, respectively. For the nine-month period ended July 31, National Bank's net income totalled $3.795 billion, up 28% from $2.958 billion a year earlier.