National Bank’s wealth management boosts profit by 31% in Q3

National Bank reports net income from wealth management of $106 million in the third quarter of 2017, a 31% increase from $81 million in the third quarter of last year.

Also in wealth management, total revenues for Q3 were $403 million, compared to $361 million in the same quarter of 2016 — a $42-million or 12% increase driven by growth in net interest income and fee-based revenues.

In total for all segments, National Bank reports $518 million of net income in Q3, up 8% from last year and ahead of analyst estimates.

The Montreal-based company’s total revenue was also up 8% at $1.68 billion.

“For the third quarter of 2017, the bank posted excellent results owing to solid performance across all its business segments,” National Bank CEO Louis Vachon said Wednesday in a report to shareholders.

The profit was equal to $1.37 per common share of net income or $1.39 per share after excluding certain items.

Analyst John Aiken of Barclay’s Capital writes in a note that the adjusted earnings were in line with his estimates, but above consensus of $1.32 per share.

He adds that there may be some skepticism about a rise in the average loan size at Credigy, a specialty finance subsidiary that operates exclusively outside Canada.

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“That said, [National’s] domestic operations are benefiting from its exposure to the Quebec economy, and we would expect the performance in its retail banking platform to be repeatable in the near term,” Aiken writes.

Net income at National’s personal and commercial banking arm rose 21% from last year to $240 million.

National Bank continues a trend that began last week when Royal Bank and CIBC began the industry’s third-quarter earnings season with results that were above analyst estimates. CIBC’s wealth management profit fell 73%, however, as expenses rose.

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Strong results were also issued by Scotiabank and Bank of Montreal on Tuesday. Toronto-Dominion Bank issues its results on Thursday before markets open.

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