National Bank reports its 2025 fourth-quarter and annual results and raises its quarterly dividend by 6 cents to $1.24 per share

Executive Summary

• National Bank of Canada reported Q4 2025 net income of C$1,059 million (up 11% YoY) and full‑year 2025 net income of C$4,017 million (up 5%).
• The Board declared a regular dividend of C$1.24 per common share, an increase of C$0.06 (5%) payable February 1 2026.
• Results reflect the integration of the Canadian Western Bank (CWB) acquisition completed on Feb 3 2025, which contributed materially to revenue growth across all segments and increased assets, deposits, and equity.

Key Details

• Quarterly Financial Highlights (Q4 2025)
• Net income: C$1,059 M (+11% YoY)
• Adjusted net income (ex‑CWB items): C$1,159 M (+25%)
• Diluted EPS: C$2.57 (down 3% YoY) – adjusted diluted EPS: C$2.82 (+9%)
• Total revenues: C$3,698 M (+26% YoY) – driven by Personal & Commercial (+25%), Wealth Management (+19%), Capital Markets (+38%) and USSF&I (+12%).

• Non‑interest expenses: C$2,087 M (+31% YoY), of which acquisition & integration charges were C$114 M.

• Annual Financial Highlights (FY 2025)

• Net income: C$4,017 M (+5% YoY)
• Adjusted net income: C$4,479 M (+21%)
• Diluted EPS: C$10.07 (down 6% YoY) – adjusted diluted EPS: C$11.28 (+9%).
• Total revenues: C$13,980 M (+23% YoY).

• Non‑interest expenses: C$7,600 M (+26% YoY); acquisition & integration charges totaled C$352 M for the year.

• Dividend

• Declared dividend per common share: C$1.24, up C$0.06 (5%) from prior C$1.18.

• Payable on February 1 2026 to shareholders of record December 29 2025.

• CWB Acquisition Impact

• Total consideration: C$7.7 billion (including C$5.3 B for shares at a 0.450 exchange ratio, C$1.4 B settlement of pre‑existing relationships, C$0.1 B share‑based payment awards).
• Purchase price allocation: assets C$45.4 B, liabilities C$37.7 B; goodwill C$1.6 B (synergy related).

• Added C$302.6 B in loans, C$428.0 B in deposits, and increased equity by C$8.2 B (largely from common‑share issuances of C$6.3 B).

• Capital & Regulatory Ratios (as of Oct 31 2025)

• CET1: 13.8% (up from 13.7%)
• Tier 1: 15.1% (down from 15.9%)
• Total capital: 17.3% (up from 17.0%)

• Leverage ratio: 4.5% (up from 4.4%)

• Other Notable Items

• Provision for credit losses increased to C$1,246 M (year) due largely to initial provisions on non‑impaired loans acquired from CWB (C$230 M).
• Income tax rate rose to 22% (year) reflecting Pillar 2 global minimum tax impact (+1.8 ppt).
• Redemption of Limited Recourse Capital Notes – Series 1: C$500 M on Nov 17 2025.

Notable Quotes

“In 2025, we delivered strong financial performance – meeting all our medium‑term financial objectives – as we also completed the largest acquisition in our history,” – Laurent Ferreira, President & CEO, National Bank of Canada.