By Ketki Saxena
Investing.com -- The National Bank of Canada (TSX:NA) became the third of Canada’s big six banks to report Q3 earnings and the first that did not fall short of analyst estimates, in what is an expectedly weak quarter for Canadian Banks.
As expected, the smallest of the big six banks boosted Provisions for Credit Loss (PCL) to protect against potential future loan losses but bucked the trend on capital markets despite the past quarter’s volatility, and reported resilient results from retail banking supported by robust residential mortgage demand.
The Montreal-based bank earned $826 million, or $2.35 per share, in line with analyst expectations, and compared to earnings of $ 839 million, or $2.36 per share this time last year. National Bank also kept its quarterly dividend unchanged at 92 cents per share.
As expected, the bank increased its provision for credit losses to $57 million to protect against potential future bad loans, in the context of a more pessimistic economic outlook. The bank set aside $ 33 million in provisions against loans that are still being repaid.
Unlike Scotiabank (TSX:BNS) and RBC (TSX:RY), National bank reported increased profits from its capital markets division, up 12% year over year to $ 280 million, as revenues from equity and fixed income increased. Profit from wealth management also rose, up 10% to $ 181 million.
Profit from the Bank’s core personal and commercial banking division rose 11% year over year to $ 335 million, boosted by rising interest income and robust residential mortgage demand despite a cooldown in housing.