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National Bank Reports Q2 Adjusted Earnings Beat, Revenue Growth; Raises Dividend

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National Bank of Canada (NA.TO) on Wednesday lodged a beat in adjusted earnings and revenues for the second quarter, citing "good performance across the business segments and lower provisions for credit losses", while the lender also announced an increased dividend.

For the second quarter, National Bank reported adjusted net income of $1,303 million, up 12% from $1,166 million in the same period of 2025. It excluded specified items recorded in the second quarters of 2026 and 2025 mainly related to the acquisition of Canadian Western Bank, the bank said.

Adjusted diluted earnings per share stood at $3.23 compared with $2.85 a year earlier. FactSet estimated $3.13.

The bank also reported a net income of $1,234 million, up 38% from $896 million in the second quarter of 2025, the increase being attributable to "good performance across the business segments and lower provisions for credit losses, particularly due to the initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired Canadian Western Bank (CWB) loans". Diluted earnings per share stood at $3.06, up 41% from $2.17 in the second quarter of 2025.

Total revenue climbed 7% to $3,907 million in three-month period ended on April 30, ahead of the FactSet estimate of $3,813.5 million.

In Personal and Commercial, provisions for credit losses were down $257 million, mainly due to initial provisions for credit losses of $230 million on acquired non-impaired CWB loans recorded in 2025.

The bank's board also declared dividend of $1.32 per common share, up $0.08 or 6%, payable on August 1, 2026, to shareholders of record on June 29, 2026.

"We delivered strong growth in the second quarter, reflecting the diversification of our business and continued client activity across our franchises. Our performance was further supported by credit discipline, CWB-related synergies and share buybacks," said Laurent Ferreira, CEO of National Bank of Canada.

"In the context of heightened macroeconomic uncertainty, we remain well positioned to support our clients, and continue delivering strong earnings growth and return on equity, while maintaining robust capital levels," concluded added Ferreira.

Shares closed down $0.98 at $212.40 in Toronto on Tuesday.

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