National Bank of Canada in Toronto’s financial district; National Bank of Canada is sixth largest commercial bank in Canada.

National Bank of Canada reported its third-quarter profit fell compared with a year ago as it was hit by higher provisions for credit losses due to a less favourable economic outlook.

The Montreal-based bank said Wednesday it earned net income of $826 million or $2.35 per diluted share for the quarter ended July 31, down from $839 million or $2.36 per diluted share a year ago.

Revenue totalled $2.4 billion, up from $2.3 billion in the same quarter last year.

Provisions for credit losses amounted to $57 million for the quarter compared with a reversal of provisions for credit losses of $43 million a year earlier.

On an adjusted basis, National Bank said it earned $2.35 per diluted share compared with an adjusted profit of $2.36 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $2.34 per share, according to financial markets data firm Refinitiv.

The bank’s wealth management business earned $181 million, up 10% from $164 million a year ago. Revenue in the division increased 8% year over year as higher rates contributed to a 44% increase in net interest income. Fee-based revenue was up 3% due to higher assets under management, which increased 1% year over year to $113.9 billion.

Financial markets dragged on securities brokerage commissions, though, leading to a 15% year-over-year reduction in transaction-based revenue.

National Bank chief executive Laurent Ferreira said sustained loan and deposit growth contributed to the bank’s performance this quarter.

“We continue to operate in an increasingly complex backdrop,” Ferreira said in a statement.

“Despite these challenges, the bank is in a solid position with strong capital levels and substantial allowances for credit losses, which, along with our prudent positioning, gives us comfort in the current environment.”

National Bank said its personal and commercial banking business earned $335 million, up from $303 million in the same quarter last year, while its financial markets operations earned $280 million, up from $249 million a year earlier.

National Bank’s U.S. specialty finance and international business earned $125 million, down from $161 million in the third quarter of 2021.