National Bank reports $881M Q1 profit, down from $930M a year earlier

MONTREAL –

National Bank of Canada reported a first-quarter revenue of $881 million, down from $930 million within the first quarter of 2022, as its provisions for credit score losses ticked up.

The Montreal-based financial institution says the revenue amounted to $2.49 per diluted share for the quarter ended Jan. 31, down from a revenue of $2.64 per diluted share a 12 months earlier.

Revenue totalled $2.58 billion, up from $2.47 billion in the identical quarter final 12 months.

Provisions for credit score losses within the financial institution’s first quarter amounted to $86 million in contrast with a restoration of $2 million in its first quarter of 2022.

On an adjusted foundation, National Bank says it earned $2.56 per diluted share, down from an adjusted revenue of $2.64 per diluted share in the identical quarter final 12 months.

Analysts on common had anticipated a revenue of $2.37 per share, in response to estimates compiled by monetary markets information agency Refinitiv.

“The bank is starting the year on solid footing with robust results across all business segments and strong margin performance,” National Bank chief government Laurent Ferreira mentioned in assertion.

“In a highly uncertain macroeconomic environment, we are maintaining a defensive positioning. Our credit portfolios continue to perform well, and we have substantial allowances for credit losses.”

National Bank mentioned its private and industrial banking business earned $331 million in its newest quarter, up from $300 million a 12 months earlier as income development was partly offset by larger provisions for credit score losses.

The financial institution’s wealth administration division earned $198 million within the quarter, up from $170 million in the identical quarter final 12 months

National Bank’s monetary markets division reported a revenue of $298 million, down from $305 million a 12 months earlier, whereas its U.S. specialty finance and worldwide operations earned $147 million, down from $148 million in the identical quarter final 12 months.

The financial institution’s “other” class reported a lack of $93 million in contrast with a revenue of $7 million within the first quarter of 2022.