www.nbc.ca
National Bank of Canada is a Canada-based company. It operates in three business segments: Personal and Commercial, Wealth Management, and Financial Markets.
National Bank tops analyst estimates with strong personal and commercial segment performance
Montreal-based National Bank Financial Group (TSX:NA) reported a decline of nearly 11% in its Q3 profits from the same period last year, but it is still the highest quarterly profit since that period, beating analyst expectations.
Net income for Q3 stood at $271 million, compared to $303 million in Q3 2009, but its net income for the first nine months of the year increased by 22% to $747 million, due to strong performance in the personal and commercial and wealth management segments.
Profits from the personal and commercial segment rose 32% to total $162 million in the third quarter of 2010, while revenues increased by $35 million to total $621 million, mainly due to the segment's growth in net interest income on account of a solid increase in personal and commercial loans.
Net income from wealth management totalled $28 million in Q3 this year, up 8% from the same quarter of 2009 due to a rise in the value of assets under management.
"The third quarter results demonstrated excellent performance in the personal and commercial segment and a credit portfolio of good quality. Despite less favourable conditions for trading activities, the financial markets segment maintained sound profitability," said president and CEO Louis Vachon.
Indeed, like banks reporting before it, National Bank also saw a decline in its financial markets segment due to volatile trading conditions. The department posted net income of $98 million, down $72 million from Q3 2009. Total revenues stood at $313 million compared to $405 million in the same period a year earlier, impacted by a decline in trading activity revenues, which fell $78 million to $88 million from the year-earlier quarter.
Still, for Q3 2010, the segment recorded a $4 million recovery in the provision for credit losses compared to an $8 million provision in the year-earlier quarter, due to the recovery of manufacturing sector loans.
The company`s diluted earnings per share for the quarter were $1.56, versus $1.78 for the same quarter last year. Its Tier 1 capital ratio stood at 13.0% as at July 31, 2010 compared to 10.7% as at October 31, 2009.
National Bank`s stock was up 1.55% to $56.51 by 11am ET on the Toronto Stock Exchange.
National Bank Financial provides financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services elsewhere in the world. It offers a full array of banking services, including corporate and investment banking and is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management. The company is the sixth largest bank in Canada and has branches in almost every province in Canada as well as numerous representative offices, subsidiaries and partnerships, through which it can serve clients in the United States, Europe and other parts of the world.
