(Bloomberg) -- National Bank of Canada’s capital-markets division finally succumbed to a broader slowdown, hurting the lender’s results in the fiscal fourth quarter.
Profit in the financial-markets division slumped 14% to C$205 million ($152 million) in the three months through October, the Montreal-based bank said Wednesday. Analysts had projected C$252.3 million. Overall profit also missed analysts’ estimates.
National Bank’s financial-markets business has posted stronger results than peers in recent quarters, defying a broader slowdown in Canada’s capital markets, helped by a heavier focus on trading. That trend ended last quarter, with revenue from trading activity sliding 24%.
National Bank shares have risen 2.1% this year, compared with a 7.6% drop for the S&P/TSX Commercial Banks Index.
Also in the results:
- Net income fell 4% to C$738 million, or C$2.08 a share.
- Excluding some items, profit was also C$2.08 a share. Analysts estimated C$2.24, on average.
- National Bank set aside C$87 million in provisions for credit losses. Analysts projected C$95.5 million.
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