National Bank of Canada (TSX: NA) reported Q3 2025 net income of $1.07 billion, up 3% year over year from $1.03 billion, on revenue of $3.45 billion, up 15% from $3.00 billion. Diluted EPS fell 11% to $2.58.
Provisions for credit losses rose to $203 million from $149 million. ROE slid to 13.6% from 18.4% and the efficiency ratio deteriorated to 55.8% from 51.4%. Operating leverage turned negative at 9.8% vs. a positive 10.5% a year ago.
On a non-GAAP basis, adjusted net income rose 15% to $1.10 billion and adjusted pre-provision, pre-tax income rose 21% to $1.64 billion. Adjusted diluted EPS held at $2.68, flat year over year.
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Personal & Commercial net income rose 1% to $370 million as revenue jumped 21% to $1.45 billion, with CWB contributing $228 million or 19%. Wealth Management net income increased 12% to $244 million on 13% revenue growth to $811 million.
Financial Markets net income rose 5% to $334 million as revenue increased 13% to $777 million. US Specialty Finance & International net income advanced 13% to $178 million on 11% revenue growth to $402 million. The Other segment posted a $61 million net loss vs. a $26 million loss, mainly on CWB-related specified items.
Balance sheet strength improved with CET1 at 13.9% from 13.7% last year and the leverage ratio at 4.7% from 4.4%. Loans grew 20% to $292.7 billion and deposits rose 21% to $402.3 billions.
The board declared a $1.18 common dividend, payable Nov. 1, 2025 to holders of record Sept. 29, 2025, and announced an NCIB to repurchase up to 8 million shares.
National Bank last traded at $150.41 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
