National Bank reports 10% increase in Q3 profit over last year

National Bank has reported an increase in third-quarter profit of 10% year over year, with growth across all business segments. The bank’s net income for the quarter ended July 31 was $569 million, up from $518 million from the same quarter last year. The quarter’s diluted earnings per share were $1.52 compared to $1.37 in the third quarter […]

By Staff | August 29, 2018 | Last updated on August 29, 2018

2 min read

National Bank has reported an increase in third-quarter profit of 10% year over year, with growth across all business segments.

The bank’s net income for the quarter ended July 31 was $569 million, up from $518 million from the same quarter last year. The quarter’s diluted earnings per share were $1.52 compared to $1.37 in the third quarter of 2017. Adjusted diluted earnings per share stood at $1.53, up 10% from $1.39 in the same quarter last year.

Commenting on the third-quarter results in a release, Louis Vachon, National Bank president and CEO, noted “another quarter of excellent performance in each business segment thanks to sustained revenue growth and effective cost management.”

Wealth management results

In wealth management, net income totalled $126 million in the third quarter, a 22% increase from $103 million in the third quarter of 2017.

The segment’s third-quarter total revenues amounted to $442 million compared to $402 million in the same quarter of 2017, a $40-million or 10% year-over-year increase. The increase was driven by growth in net interest income, owing to improved margins, and by growth in fee-based revenues given net inflows across all solutions and “sound” stock market performance, says National Bank in its report to shareholders.

Assets under administration and under management increased by $68.4 billion or 16% from a year ago due to net inflows into various solutions and stock market performance, says the shareholders report.

Other earnings highlights

The bank’s personal and commercial banking segment had earnings totalling $248 million in the third quarter of 2018, up 6% from $235 million in the third quarter of 2017. Personal lending was up 3%, particularly due to mortgage lending, says shareholders report, while commercial lending grew 8% from a year ago.

In the financial markets segment, net income totalled $178 million in the third quarter, an 8% increase from $165 million in the third quarter of 2017.

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