National Bank of Canada (NA) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $1,065 million, up 3% year-over-year; adjusted net income was $1,104 million, up 15%, reflecting strong segment performance and the impact of the CWB acquisition, which closed in February 2025.

• Diluted EPS for Q3 2025 was $2.58, down from $2.89 in Q3 2024 due to share issuance for the CWB acquisition; adjusted diluted EPS was stable at $2.68.

• ROE was 13.6% reported and 14.1% adjusted; strong revenue fundamentals and successful CWB integration contributed to results.

• The first wave of CWB client migration was completed, with cost and funding synergies ahead of schedule.

• Announced intention to repurchase up to 8 million shares, with dividend review next quarter.

Financial highlights

• Q3 2025 total revenues were $3,449 million, up 15% year-over-year; adjusted total revenues up 19%.

• Total loans reached $293B, up 22% year-over-year (7% ex. CWB); deposits at $303B, up 23% year-over-year (11% ex. CWB).

• CET1 capital ratio was 13.9% as of July 31, 2025, up from 13.7% at October 31, 2024.

• Provisions for credit losses in Q3 2025 were $203 million (28 bps), down 17 bps sequentially; impaired PCL at $150M (21 bps).

• Efficiency ratio was 55.8% (adjusted: 52.4%), with operating leverage at 1.7% adjusted.

Outlook and guidance

• Management expects continued synergy realization from the CWB integration, with $69M realized YTD and annualized at $173M; three-year synergy target of ~$270M remains on track.

• Excluding fair value mark amortization, full-year EPS growth expected slightly above mid-single digits; full-year ROE anticipated around 15%.

• Impaired PCL expected to end near the middle of the 25-35 bps range for the full year.

• Focus remains on disciplined credit and efficiency management amid evolving market and macroeconomic conditions.

• Canadian GDP growth forecast at 1.3% for 2025, with unemployment at 7.0% and housing price index expected to decline 6.1%.