National Bank of Canada (TSX: NA) posted Q3 2026 net income of $1.31 billion, up from $1.07 billion a year earlier, as revenue growth across its businesses outweighed another increase in impaired-loan provisions.
On an adjusted basis, net income reached $1.36 billion, compared with $1.10 billion a year earlier. Adjusted diluted EPS was $3.39, up from $2.68 last year, beating the $3.22 consensus estimate reported by Reuters, citing LSEG.
Revenue climbed to $4.05 billion from $3.45 billion last year. Net interest income was $1.25 billion, versus $1.17 billion last year, while non-interest income rose to $2.80 billion from $2.28 billion.
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Based on the bank’s cumulative cash-flow statements, operating activities generated $6.14 billion during Q3, compared with $863.0 million a year earlier.
The bank’s reported efficiency ratio improved to 51.6% from 55.8% last year. The adjusted ratio fell to 49.8% from 52.4% while the adjusted operating leverage reached 5.8%, compared with 1.7% last year.
Breaking it down, Personal and Commercial Banking earned $421.0 million, up from $370.0 million last year. Wealth Management increased to $296.0 million from $244.0 million last year while Capital Markets rose to $442.0 million from $334.0 million a year earlier.
Provision for credit losses increased to $246.0 million from $203.0 million last year. Impaired-loan provisions excluding Credigy purchased or originated credit-impaired loans rose to $224.0 million from $150.0 million. Gross impaired loans on the same basis also jumped to $3.74 billion, up from $2.99 billion a year ago.
National Bank maintained its full-year impaired provision guidance of 25 to 35 basis points, with Q3 at 28 basis points. It also kept its fiscal 2027 adjusted ROE target above 17%.
The CET1 ratio was 13.5%, unchanged from Q2 but down from 13.9% a year earlier. National Bank also said the expected CET1 benefit from converting CWB portfolios to its advanced internal ratings-based approach is now likely toward the lower end of its previously disclosed 35-to-55-basis-point range, with benefits expected to begin in late 2027 subject to regulatory approvals.
The bank repurchased about 2.3 million shares during Q3 and declared a quarterly dividend of $1.32 per share, up from $1.18 a year earlier and $1.24 in the previous quarter.
