National Bank of Canada (NA) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $1,234 million, up 38% year-over-year, with diluted EPS up 41% to $3.06 and adjusted EPS up 13% to $3.23, reflecting strong segment performance and lower credit loss provisions.

• ROE was 15.9% reported and 16.8% adjusted for Q2 2026.

• CET1 capital ratio stood at 13.54%, supported by capital generation and share buybacks.

• Dividend increased by 8 cents (6%) to $1.32 per share for Q3 2026.

• Strong topline growth driven by balance sheet expansion and diversified business segments.

Financial highlights

• Total revenues for Q2 2026 were $3,907 million, up 7% year-over-year; six-month revenues were $7,800 million, up 13-14%.

• Pre-tax pre-provision profit (PTPP) grew 5% year-over-year; efficiency ratio at 50.4% adjusted.

• Net interest income (excluding trading) grew 7% year-over-year; all-bank NIM was 2.16%, down 8 bps sequentially.

• Loans increased 8-9% year-over-year and deposits up 13% year-over-year.

• Provisions for credit losses were $233 million (Q2), with adjusted PCL at $227 million or 30 bps.

Outlook and guidance

• Management expects continued strong earnings growth and robust capital levels despite macroeconomic uncertainty.

• Expense growth expected to moderate to low single digits in the second half, supporting positive operating leverage.

• EPS growth for the second half expected to align with year-to-date performance.

• ROE target of approximately 16% for fiscal 2026 and 17%+ for 2027 remains unchanged.

• CET1 ratio targeted to converge toward 13% by year-end 2027.