- Quarterly Performance: National Bank of Canada reported an adjusted EPS of C$2.54, surpassing estimates of C$2.41.
- Common Equity Tier 1 Ratio: The ratio stood at 13.2%, matching expectations.
- Return on Equity: Achieved a return on equity of 16.9%, with an adjusted ROE of 16.9%, exceeding the estimated 16.2%.
- Adjusted Revenue: Recorded adjusted revenue of C$2.84 billion, higher than the forecasted C$2.77 billion.
- Wealth Management: Net income was C$205 million, topping the estimate of C$197.9 million.
- Financial Markets: Posted net income of C$322 million, outperforming the projected C$278.5 million.
- Personal & Commercial Banking: Net income came in at C$311 million, slightly below the expectation of C$320.9 million.
- Net Interest Margin: Stood at 2.36%, in line with estimates.
- Adjusted Efficiency Ratio: Recorded an efficiency ratio of 51.9%, close to the estimated 51.7%.
- Provision for Credit Losses: Allocated C$138 million for credit losses, exceeding the estimate of C$130.5 million.
- Book Value Per Share: Reached C$62.28, higher than the estimated C$61.12.
- Executive Comment: Laurent Ferreira, the President and CEO, highlighted the strong financial results and disciplined execution of strategy across business segments.
- Stock Ratings: The current ratings include 5 buys, 7 holds, and 2 sells.
A look at National Bank of Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, National Bank of Canada appears to have a promising long-term outlook. With a Growth score of 4 and Momentum score of 4, the bank is positioned well for future expansion and market performance. This indicates that the company shows strong potential for growth and upward movement in the market.
While National Bank of Canada scores moderately in terms of Value and Dividend at 3 each, its Resilience score of 2 suggests some vulnerability to economic fluctuations. However, with a solid foundation in retail, corporate, and investment banking, along with subsidiaries in various financial services, including insurance and wealth management, the bank is diversified and may navigate challenges effectively.
Summary: National Bank of Canada provides a full array of banking services, including retail, corporate, and investment banking, as well as securities brokerage, insurance, wealth management, and mutual fund and retirement plan management.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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