National Bank reports its results for the First Quarter of 2026
Executive Summary
- National Bank of Canada reported Q1 2026 net income of C$1,254 million, a 26% increase versus the same period last year.
- Diluted earnings per share rose to C$3.08, up 11% YoY; adjusted diluted EPS was C$3.25.
- The Bank announced an amendment to its normal‑course issuer bid, increasing the repurchase limit to 14.5 million shares, and declared a regular dividend of C$1.24 per share payable May 1, 2026.
Key Details
- Financial Performance
- Net income: C$1,254 M (↑26% YoY)
- Adjusted net income: C$1,320 M (↑26% YoY)
- Diluted EPS: C$3.08 (↑11% YoY)
- Adjusted diluted EPS: C$3.25 (↑11% YoY)
- Total revenues: C$3,893 M (↑22% YoY)
- Income before provisions & taxes: C$1,882 M (↑22% YoY)
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Return on common shareholders’ equity: 15.7% (down from 16.7%)
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Segment Highlights (millions of CAD)
- Personal & Commercial: Net income C$427 M (+47%); revenues C$1,528 M (+27%).
- Wealth Management: Net income C$272 M (+12%); revenues C$899 M (+16%).
- Capital Markets: Net income C$443 M (+6%); revenues C$990 M (+9%).
- U.S. Specialty Finance & International: Net income C$185 M (+1%); revenues C$434 M (+7%).
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Other: Net loss narrowed to C$73 M from C$135 M.
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Capital Management
- CET1 ratio: 13.7% (slightly down from 13.8%).
- Leverage ratio: 4.3% (down from 4.5%).
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Normal‑course issuer bid amendment – up to 14.5 million shares may be repurchased, pending regulatory approval.
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Dividends
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Board declared a cash dividend of C$1.24 per share on preferred series and common, payable May 1, 2026 (record date March 30, 2026).
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Strategic Transactions
- Laurentian Bank of Canada (LBC) transactions:
- Asset purchase agreement for retail & SME portfolios – closing expected late 2026, contingent on Fairstone’s acquisition of LBC.
- Loan purchase agreement for syndicated loan portfolio – preliminary purchase price C$646 million (fair‑value estimate).
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Syndicated loan transaction closed February 17, 2026 at the stated preliminary price.
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Conference Call & Webcast
- Call scheduled for Feb 25, 2026, 11:00 a.m. ET; webcast available on nbc.ca/investorrelations.
Notable Quotes
“The first quarter marks a strong start to the year for the Bank… we are executing on our financial objectives with discipline, driving organic growth and operational efficiency…” – Laurent Ferreira, President & CEO
Materiality Assessment: Material – Positive (significant earnings uplift, dividend increase, share‑repurchase amendment, and disclosed strategic acquisitions.)