National Bank of Canada reported a first-quarter profit of $1.25 billion, up from $997 million a year earlier, helped by its acquisition of Canadian Western Bank.
The bank’s results followed the trend so far that has seen banks beating expectations for the first quarter thanks to a boost from capital markets, though National Bank stood out for how strong its domestic banking segment also performed.
National Bank reported a net income of $427 million for its personal and commercial segment, up 47% from a year ago.
The jump was in part thanks to the closing of its Canadian Western Bank acquisition, but even excluding CWB, it showed personal banking loans up 11% from a year earlier and commercial banking up 12%.
The result was in contrast to the low-to-mid single digit loan growth in the segments other banks have so far reported.
“Obviously we’re doing something better,” chief financial officer Marie Chantal Gingras said with a laugh on the analyst call Wednesday.
The bank has benefited from a Quebec housing market that has kept more active than elsewhere and less exposure to the notable slowdowns in markets like Toronto and Vancouver.
It’s also seeing its market share climb in the province despite pricing discipline, Gingras said.
“In Quebec, our market share continues to expand, supported by strong brand positioning and deep, long-standing real estate relationship.”
Revenue totalled $3.89 billion, up from $3.18 billion a year earlier.
National Bank’s provision for credit losses amounted to $244 million for the quarter, down from $254 million a year earlier.
On an adjusted basis, the bank reported a net income of $1.32 billion, or $3.25 per diluted share, up from $1.05 billion last year or $2.93 per share a year earlier.
Analysts on average had expected an adjusted profit of $2.99 per share, according to LSEG Data & Analytics.
Jefferies analyst John Aiken said the bank’s results were impressive.
“While capital markets contributed, we note the strong results in its domestic banking operations as well as wealth management,” he said in a note.
He noted the bank has also increased its return-on-equity guidance by a full percentage point to 16% and is confident it could achieve 17% in 2027 to further underline its financial health.
National Bank chief executive Laurent Ferreira said in a statement that the quarter was driven by its diversified and complementary franchises, as well as its prudent approach to capital and credit.
“We are executing on our financial objectives with discipline, driving organic growth and operational efficiency as we reinforce our Pan-Canadian reach, and creating long-term value for our shareholders,” Ferreira said.
National Bank’s wealth management business earned $272 million in the first quarter, up from $242 million a year earlier. This came mainly from growth in fee-based revenues, net interest income and transactions and other revenues from increased client activity.
As of Jan. 31, 2026, the bank had $899 billion in assets under administration (up from $874 billion the year prior) and $198 billion in assets under management (up from $194 billion).
Its capital markets business earned $443 million in the quarter, up from $417 million the previous year, mainly attributable to growth in corporate and investment banking revenues, which was partially offset by a decrease in global markets revenues.
National Bank’s U.S. specialty finance and international business earned $185 million, up from $183 million in the same quarter last year.