National Bank of Canada (NA) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong earnings growth, with net income of $997 million (up 8% year-over-year), adjusted net income of $1,050 million (up 14%), and adjusted EPS of $2.93 (up 13%), reflecting robust revenue growth and strong execution across segments.

• Return on equity was 16.7% reported and 17.6% adjusted, with positive operating leverage and a solid capital position.

• Acquisition of Canadian Western Bank (CWB) completed in February 2025, accelerating domestic growth, expanding capabilities, and with integration underway.

• Revenues increased 17% reported and 19% adjusted year-over-year, with double-digit growth in Wealth Management and Financial Markets.

• Strong organic growth and diversified earnings power supported by disciplined cost and risk management.

Financial highlights

• Total revenues reached $3,183 million, up 17% year-over-year; adjusted revenues were $3,230 million, up 19%.

• Pre-tax pre-provision earnings (PTPP) up 22% reported and 28% adjusted year-over-year.

• Provisions for credit losses increased to $254 million (41 bps), with impaired PCL at $196 million (32 bps).

• Efficiency ratio improved to 51.7% reported and 50.2% adjusted.

• CET1 ratio at quarter-end was 13.6%, with a dividend payout ratio of 40.1%.

Outlook and guidance

• FY 2025 adjusted EPS expected to grow mid-single digits, excluding amortization of the fair value mark from the CWB acquisition.

• Adjusted ROE for 2025 targeted at approximately 15%, with positive operating leverage.

• Impaired PCLs, including CWB, expected in the range of 25–35 basis points for the full year.

• Revenue synergies from CWB integration anticipated to accelerate in 2026, with full benefits by 2027.

• Management remains focused on disciplined credit, capital, and cost management amid macroeconomic and geopolitical uncertainty.