National Bank Posts 8% Net Income Jump In Q1 2025 Post-Canadian Western Acquisition

National Bank of Canada (TSX: NA) posted its results for fiscal 2025, reporting quarterly revenue of $3.18 billion, a 17.5% jump from $2.71 billion in the same quarter last year.

Net income rose to $997 million, an 8% increase over the prior-year period. Meanwhile, adjusted net income stood at $1.05 billion, up 14% from the year-ago quarter, which translated into adjusted diluted earnings per share of $2.93—13% higher than the $2.59 achieved in Q1 2024 and beating analysts’ projection of $2.66 per share on average.

The Personal and Commercial segment saw revenue jump 4% year-over-year to $1.20 billion, propelled by a 4% increase in personal lending and a 13% rise in commercial lending. However, net income in this segment declined 14% to $290 million, weighed down by a significant jump in provisions for credit losses.

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Wealth Management posted net income up 23% year-over-year to $242 million while revenue also jumped 18% to $776 million. Financial Markets notched 35% growth in net income, reaching $417 million, and segment revenue surged 40% year-over-year to $907 million. US Specialty Finance and International segment reported a 22% increase in net income to $183 million and saw its revenue climb 24% to $405 million.

However, provisions for credit losses still climbed to $254 million from $120 million a year ago, largely driven by higher impairments in Personal and Commercial, as well as Financial Markets.

In early February, National Bank completed its acquisition of Canadian Western Bank with a total transaction value, including the settlement of pre-existing relationships and share-based compensation, of $7.7 billion. While management anticipates synergies and accelerated growth from this deal, the bank’s Common Equity Tier 1 capital ratio dipped slightly from 13.7% to 13.6% over the quarter, reflecting the near-term capital impact of the acquisition.

The company declared a quarterly dividend of $1.14 per common share, up from $1.06 last year, payable on May 1, 2025.

National Bank last traded at $127.44 on the TSX.

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