Yahoo Finance

• Earnings Per Share (EPS): $2.93 for Q1 2025, up 13% year over year.

• Return on Equity (ROE): 17.6% for Q1 2025.

• CET1 Ratio: 13.6% at the end of Q1 2025.

• Dividend Payout Ratio: 40.6% in Q1 2025.

• P&C Banking Net Income: $290 million in Q1 2025.

• Personal Mortgages Growth: 3% year over year.

• Commercial Loans Growth: 13% year over year.

• Wealth Management Net Earnings Growth: 23% year over year in Q1 2025.

• Financial Markets Net Income Growth: 35% year over year in Q1 2025.

• Credigy Net Income Growth: 8% year over year.

• ABA Bank Loan Book Growth: 9% year over year in Q1 2025.

• ABA Bank Client Base Growth: 31% year over year in Q1 2025.

• ABA Bank Deposit Growth: 19% year over year in Q1 2025.

• Revenue Growth: 19% year over year in Q1 2025.

• Pre-Tax Pre-Provision (PTPP) Growth: 28% year over year.

• Efficiency Ratio: 50% in Q1 2025.

• Expenses Growth: 12% year over year.

• Effective Tax Rate: 22.6% in Q1 2025.

• Non-Trading Net Interest Income (NII) Growth: 3% sequentially.

• Loans Growth: 7% year over year, 1% quarter over quarter.

• Deposits Growth (excluding wholesale funding): 12% year over year, 4% quarter over quarter.

• Total Provisions for Credit Losses (PCLs): $254 million, 41 basis points.

• Gross Impaired Loan Ratio: 79 basis points, up 11 basis points sequentially.

• Warning! GuruFocus has detected 4 Warning Signs with NTIOF.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• National Bank of Canada (NTIOF) reported a strong earnings per share of $2.93 for Q1 2025, marking a 13% increase year-over-year.

• The bank achieved a return on equity of 17.6%, reflecting strong execution across business segments.

• The acquisition of Canadian Western Bank (CWB) is expected to enhance National Bank's domestic growth and expand its banking capabilities.

• Wealth Management segment saw a 23% increase in net earnings year-over-year, driven by market appreciation and strong net entries.

• Financial Markets exceeded expectations with a 35% year-over-year net income growth, benefiting from strong issuance volumes and securities finance opportunities.

Negative Points

• Canada's economic performance is lagging behind the US and other G7 nations, with declining productivity and GDP per capita.

• The threat of US tariffs creates increased uncertainty, potentially impacting economic growth and prolonging the credit cycle.

• Total provisions for credit losses (PCLs) increased to $254 million, reflecting heightened uncertainty and potential tariff impacts.

• The bank's effective tax rate increased due to the application of Pillar 2 rules, impacting financial results.

• ABA Bank continues to face challenges with lower tourism spend impacting customer activity, despite a 9% loan book growth year-over-year.