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 growth across all business segments and the consolidation of Canadian Western Bank (CWB) results.

• Adjusted net income was $1,320 million, up 26%, and adjusted diluted EPS rose 11% to $3.25, driven by robust segment performance, CWB synergies, and share buybacks.

• Annualized CWB synergies are tracking at $247 million, nearing the $270 million target for FY 2026, with cost and funding synergies exceeding year-one targets.

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

• The quarter marked a strong start to the year, with disciplined execution of financial objectives, organic growth, and operational efficiency.

Financial highlights

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

• Net income was $1,254 million reported, up 26% year-over-year; adjusted net income was $1,320 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 leverage ratio at 4.3% and LCR at 189%.

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 2027, supported by organic earnings growth, CWB synergies, Laurentian transaction, and share buybacks.

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

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

• Revenue synergies from CWB targeted at $200-250 million by FY 2028.

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