- National Bank of Canada (TSX:NA) reported third-quarter net income of C$1.31 billion, up 23% year-over-year, with diluted earnings per share rising 26 per cent to C$3.25
- Strong results were driven by growth across all major business segments, particularly Capital Markets (+32 per cent net income) and Wealth Management (+21 per cent net income)
- For the first nine months of fiscal 2026, net income increased 28 per cent to C$3.80 billion, and the bank raised its quarterly common share dividend to C$1.32 per share
- National Bank stock (TSX:NA) last traded at C$222.53
National Bank of Canada (TSX:NA) reported strong third-quarter financial results for fiscal 2026, posting a 23 per cent increase in net income as broad-based growth across its banking, wealth management, and capital markets divisions helped drive record earnings.
The bank reported net income of C$1.307 billion for the quarter ended July 31, 2026, up from C$1.065 billion in the same period a year earlier. Diluted earnings per share rose 26 per cent to C$3.25, compared with C$2.58 in the third quarter of 2025.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Excluding specified items related to the acquisition of Canadian Western Bank (CWB) and transactions involving Laurentian Bank of Canada (LBC), adjusted net income reached C$1.362 billion, a 23 per cent increase from C$1.104 billion a year earlier. Adjusted diluted earnings per share climbed 26 per cent to C$3.39 from C$2.68.
The strong quarterly performance continued a trend seen throughout the fiscal year. For the first nine months of 2026, National Bank generated C$3.795 billion in net income, an increase of 28 per cent from C$2.958 billion during the corresponding period in 2025. Diluted earnings per share increased 25 per cent to C$9.39, up from C$7.50.
Adjusted net income for the nine-month period totalled C$3.985 billion, up 20 per cent from C$3.320 billion a year earlier, while adjusted diluted earnings per share rose 17 per cent to C$9.88 from C$8.46.
National Bank said the year-to-date growth reflected strong performance across all business segments, lower provisions for credit losses, and a greater contribution from Canadian Western Bank following its acquisition.
Personal and commercial banking delivers steady growth
National Bank’s Personal and Commercial Banking division reported net income of C$421 million, up 14 per cent from C$370 million in the third quarter of 2025.
Revenue increased 7 per cent to C$1.546 billion, driven primarily by higher net interest income as loan and deposit volumes expanded. Personal lending rose 13 per cent, while commercial lending increased 4 per cent year-over-year.
The segment’s efficiency ratio improved to 54.9 per cent, compared with 55.6 per cent a year ago, while provisions for credit losses declined by C$17 million, reflecting lower provisions on non-impaired loans.
Wealth management posts strong revenue gains
The Wealth Management division delivered one of its strongest quarters, reporting net income of C$296 million, a 21 per cent increase from C$244 million in the prior-year period.
Revenue climbed 18 per cent to C$955 million, fueled by growth across all revenue categories, particularly fee-based business. Expenses rose 16 per cent to C$553 million, reflecting higher activity levels and business growth.
The segment’s efficiency ratio improved to 57.9 per cent, down from 58.8 per cent a year earlier.
Capital markets leads earnings growth
Capital Markets was a standout performer during the quarter, with net income surging 32 per cent to C$442 million from C$334 million in the third quarter of 2025.
Revenue jumped 34 per cent to C$1.041 billion, supported by strong performance in global markets activities.
Operating expenses increased to C$436 million from C$347 million, reflecting higher compensation costs and investments to support business expansion. Provisions for credit losses rose to C$50 million, compared with C$24 million a year earlier.
Despite the higher costs, the unit improved its efficiency ratio to 41.9 per cent, compared with 44.7 per cent last year.
International operations show resilience
The U.S. Specialty Finance and International segment reported net income of C$184 million, up 3 per cent from C$178 million a year ago.
Revenue increased 10 per cent to C$441 million, driven by continued growth at subsidiaries Credigy and ABA Bank. Non-interest expenses declined 4 per cent to C$130 million, largely due to lower costs at Credigy.
However, provisions for credit losses increased by C$37 million, mainly reflecting activity within the Credigy business.
The segment achieved an efficiency ratio of 29.5 per cent, improving significantly from 33.6 per cent in the previous year.
Other segment narrows losses
The bank’s “Other” segment reported a net loss of C$36 million, compared with a loss of C$61 million in the third quarter of 2025.
National Bank attributed the improvement to stronger treasury activities, higher investment gains, and lower non-interest expenses.
Capital position remains strong
As of July 31, 2026, National Bank’s Common Equity Tier 1 (CET1) capital ratio stood at 13.5 per cent, down slightly from 13.8 per cent at the end of fiscal 2025. The bank said it continues to maintain a strong capital position under Basel III requirements.
Dividend Increased
The Board of Directors declared a quarterly common share dividend of C$1.32 per share, payable on November 1, 2026, to shareholders of record as of September 28, 2026. Regular dividends were also declared on the bank’s various series of preferred shares.
The results underscore National Bank’s continued momentum following its acquisition of Canadian Western Bank, with all major business segments contributing to earnings growth and helping the lender deliver another quarter of record profitability.
Leadership insights
“Despite trade and geopolitical uncertainty, Canada’s resilience and the retooling of its economy are creating opportunities for growth,” National Bank’s president and CEO, Laurent Ferreira, said in a news release. “We remain focused on supporting our clients and advancing the country’s economic priorities to create long-term value for all our stakeholders.”
Traders now wait for Royal Bank of Canada (TSX:RY), CIBC (TSX:CM), and Toronto-Dominion Bank (TSX:TD) report their quarterly results on Thursday.
About National Bank of Canada
National Bank of Canada operates through four segments: Personal and commercial, wealth management, financial markets and U.S. specialty finance and international.
National Bank stock (TSX:NA) closed trading 2.52 per cent higher at C$222.53 and has risen nearly 30 per cent since the beginning of the year.
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