National Bank of Canada (NA) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was $1,254 million, up 26% year-over-year, with adjusted net income at $1,320 million, driven by strong segment performance and the consolidation of Canadian Western Bank (CWB) results.

• Diluted EPS rose 11% to $3.25, supported by robust retail and business segments, CWB synergies, and share buybacks.

• Double-digit revenue and net income growth across all major business segments, with CWB contributing $300 million in revenues.

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

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

Financial highlights

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

• Pre-tax pre-provision earnings (PTPP) grew 23% year-over-year; net income was $1,254 million, up 26%.

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

• Efficiency ratio at 51.7% reported, 49.3% adjusted; operating leverage (adjusted) improved to 2.0%.

• CET1 capital ratio was 13.74% at quarter-end, with LCR at 189% and NSFR at 120%.

Outlook and guidance

• EPS growth for 2026 is expected at the top end of the 5%-10% range, with a path to 17%+ ROE by FY 2027.

• 2026 ROE target raised to around 16%, with organic earnings growth, CWB synergies, Laurentian transaction, and share buybacks as key drivers.

• CET1 ratio targeted to converge to 13% by end of 2027.

• 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.