Aug 30, 2023
National Bank Slides on Credit, Trading-Driven Earnings Miss
Bloomberg News
,(Bloomberg) -- National Bank of Canada’s profit slipped as it increased set-asides for risky loans, trading revenue tumbled and expenses rose. The shares fell to the lowest since early July.
The Montreal-based bank earmarked C$111 million in provisions for credit losses in a more difficult economic environment, about 13% more than expected by analysts in a Bloomberg survey.
Adjusted earnings of C$2.21 per share fell short of the consensus estimate of C$2.36.
Revenue from trading activity in the bank’s financial markets segment dropped to C$123 million, with declines across equities, fixed income, commodities and foreign exchange. That was 59% lower than a year earlier.
Overall, the bank’s profit fell to C$790 million on an adjusted basis in the three months ending July 31, down 4% from a year earlier.
Shares of the bank were down 3% to C$97.42 at 10:23 a.m. in Toronto.
(Updates with share price change.)
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