The bank reported higher earnings driven by revenue growth, client activity, and credit performance amid macroeconomic uncertainty.
National Bank of Canada posted a 13% year-over-year increase in second-quarter adjusted earnings per share to CAD 3.23, with a return on equity of 16.8%. The bank’s common equity tier 1 ratio stood at 13.54% at quarter-end, reflecting strong capital levels.
Revenue grew 7% year over year, while pre-tax pre-provision earnings rose 5%. The efficiency ratio was 50.4%, though expenses increased 9.5%, partly due to CAD 15 million in litigation costs. The bank also raised its quarterly dividend by 6% to CAD 1.32 per share.
Management highlighted active client demand, balance sheet growth, and synergies from Canadian Western Bank as key drivers. The bank repurchased 8.8 million shares under its normal course issuer bid, which was expanded to allow up to 14.5 million shares.