National Bank of Canada (NA) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $1,254 million, up 26% year-over-year, with strong performance across all business segments and the consolidation of Canadian Western Bank (CWB) results.

• Adjusted net income was $1,320 million, up 26% from Q1 2025, with adjusted diluted EPS rising 11% to $3.25.

• Double-digit revenue and net income growth across all major business segments, supported by organic balance sheet expansion and CWB integration.

• Annualized synergies from the CWB transaction are tracking at $247 million, nearing the $270 million target for cost and funding synergies by FY 2026.

• Disciplined capital deployment, including share repurchases and a strong CET1 ratio of 13.74%.

Financial highlights

• Total revenues rose 22% year-over-year to $3,893 million, with CWB contributing 9% of the increase.

• Net interest income increased 43% to $1,394 million; non-interest income grew 13% to $2,499 million.

• Non-interest expenses rose 22% to $2,011 million, with $167 million attributable to CWB.

• Return on common shareholders’ equity was 15.7% (adjusted: 16.6%).

• CET1 capital ratio was 13.74%, leverage ratio 4.3%, TLAC ratio 32.5%, and LCR 189%.

Outlook and guidance

• Path to 17%+ adjusted ROE by FY 2027, supported by organic earnings growth, CWB revenue synergies, and planned share buybacks to reduce CET1 to 13%.

• EPS growth for 2026 is expected at the top end of the 5%-10% range.

• Full cost and funding synergy target from CWB expected by end of FY 2026; revenue synergies of $200-250 million targeted by FY 2028.

• Management emphasized continued focus on organic growth, operational efficiency, and pan-Canadian expansion.

• Economic forecasts anticipate Canadian GDP growth of 1.1% in 2026, with ongoing trade and geopolitical uncertainties.