National Bank of Canada (NA) Q3 2026 earnings summary

Executive summary

• Q3 2026 diluted EPS was $3.39, up 26% year-over-year, with net income of $1,307 million, up 23%, and revenues up 18% driven by strong fee-based businesses and balance sheet growth.

• Return on equity reached 16.8%, and CET1 ratio stood at 13.51%, reflecting a robust capital position and strong organic growth.

• The bank is on track to complete its current NCIB by September 2026 and plans to launch a new one, subject to regulatory approval.

• Integration of CWB and Laurentian Bank portfolios is progressing, with synergy targets being met ahead of schedule and retail/SME portfolio acquisition expected to close by late 2026.

• Year-to-date EPS grew 16.8%, supported by broad-based revenue growth and realized CWB synergies.

Financial highlights

• Q3 2026 total revenues were $4,053 million, up 18% year-over-year, with strong performance in Capital Markets, Wealth Management, and Personal Banking.

• Pre-tax pre-provision earnings (PTPP) grew 24% year-over-year, with positive operating leverage of nearly 6%.

• Expenses increased 11.7% year-over-year, mainly due to higher variable compensation and ongoing investments in talent and technology.

• Net interest income (excluding trading) increased 7% sequentially, with all-bank NIM up 2 bps to 2.18%.

• Loans and deposits both grew 11% year-over-year.

Outlook and guidance

• Expectation for positive operating leverage for the full year, with expense growth moderating in Q4 and stable P&C margin and all-bank NIM.

• ROE target of 17%+ by 2027, with CET1 ratio converging toward 13% by year-end 2027.

• AIRB transition for CWB portfolios deferred to fiscal 2027, with CET1 benefit expected at the lower end of the 35-55 bps range, materializing late 2027.

• Enhanced segment disclosure, including separate reporting for Personal and Commercial Banking, to begin in Q4 2026.

• Impaired provisions for fiscal 2026 expected within the 25 to 35 basis point range.