National Bank of Canada says it moved the first batch of clients from newly acquired Canadian Western Bank onto its platform this month, a key milestone as the Montreal-based bank continues to integrate the $5-billion acquisition that closed earlier this year.
“The next waves are planned over the upcoming months and the majority of clients will migrate over this period. The ongoing migration continues to drive momentum in the realization of our synergies,” chief financial officer Marie Chantal Gingras told analysts on a conference call Wednesday to discuss third-quarter results.
Gingras said cost savings and efficiencies are materializing at a faster pace than expected — $69 million to date.
“With this momentum, we anticipate achieving our Year 1 target of $135 million in December 2025.”
The takeover of Edmonton-based lender CWB was part of National Bank’s efforts to expand its footprint in the West. CWB had about 65,000 clients and 39 branches — 30 in British Columbia and Alberta. National only had three branches in each of those provinces, compared with 280 in Quebec.
The company reported a third-quarter profit of $1.07 billion, up from $1.03 billion a year earlier.
It said the profit amounted to $2.58 per diluted share for the quarter ended July 31, compared with $2.89 per diluted share a year ago.
Revenue for the quarter totalled $3.45 billion, up from $3 billion in the same quarter last year. The CWB transaction added $284 million in revenues.
Chief executive Laurent Ferreira told the call that the Canadianeconomyhas shown some resilience, but it’s been strained by tariff uncertainty that’s resulted in an overall softer labour market.
He called the Canada-U.S.-Mexico trade agreement an “effective safeguard” against U.S. President Donald Trump’s tariff onslaught for so far.
“The full impact of tariffs is still unfolding and will continue to shape business confidence and investments,” Ferreira said.
“While the path of inflation and of long-term rates remain uncertain due to tariffs and growing government deficits, we have a more constructive view on theeconomynow that the initial tariff shock is behind us and that trade tensions are de-escalating.”
Ferreira said the bank is also encouraged by the federal and provincial focus on making structural changes to boost productivity and economic resilience.
“Investments in energy, security, and nation-building infrastructure will stimulate growth and put us on the right path,” he said.
“As we look ahead, geopolitics and geo-economics remain a source of instability, but we are encouraged by some of the positive outcomes of trade negotiations and the government focus on the Canadian economy.”
National Bank’s provisions for credit losses amounted to $203 million, up from $149 million.
The bank said its adjusted profit amounted to $2.68 per diluted share, unchanged from a year ago.
Analysts on average had expected an adjusted profit of $2.69 per share, according to LSEG Data & Analytics.
National Bank shares dropped 3.7% to $144.86 in afternoon trading on the Toronto Stock Exchange.
The bank’s personal and commercial banking segment reported net income of $370 million, up 1% from $366 million a year earlier.
Its wealth management segment reported net income of $244 million, a 12% increase from $217 million last year. Financial markets profit was $334 million, up 5% from $318 million last year.
Net interest income was up 7% from $235 million in the same quarter in 2024, driven by higher loan and deposit volumes and the favourable impact of the deposit composition changes. Fee-based revenue rose 18% to $482 million from a rise in stock markets and positive net inflows. Transaction and other revenues ($94 million) rose 7% compared to the third quarter of 2024 from increased client activity.
National Bank’s wealth management arm had $818 billion in assets under administration and $183 billion in assets under management as of July 31, up 10% and 22%, respectively, from last year’s comparable quarter.
Net insurance revenue totalled $19 million, down 5% from $20 million in last year’s third quarter.
The bank’s U.S. specialty finance and international segment reported net income of $178 million, up 13% from $158 million in the same quarter of 2024.
The bank also announced Wednesday that its board of directors has authorized a normal course issuer bid to purchase up to eight million, or about 2%, of its common shares for cancellation. It expects to begin the process around Sept. 25 and conclude a year later.
The bid is subject to the approval of the Office of the Superintendent of Financial Institutions Canada and the TSX.
— With files from IE.