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Research Alert: National Bank Of Canada: Q2 Earnings Beat On Strong Balance Sheet Growth

BY MT Newswires | ECONOMIC | 09:45 AM EDT

09:45 AM EDT, 05/27/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

NA reported Q2 FY26 EPS of CAD3.23 vs CAD2.85 a year ago, CAD0.10 above consensus, though credit quality showed mixed results with provisions declining to CAD233M but gross impaired loans hitting a cyclical high of 114 bps. Adjusted ROE improved to 16.8% from 15.6%, positioning NA well within management's 15%-20% target range and reflecting successful CWB integration alongside strong organic momentum. Management raised the quarterly dividend by CAD0.08 to CAD1.32 (+6%), demonstrating confidence in earnings trajectory, while completing the Laurentian Bank syndicated loan transaction with retail/SME closing expected in late 2026. Balance sheet growth remains excellent with loans up 9% and deposits surging 13%, driven by strength across Personal Banking, Credigy, and ABA. We believe NA's strong capital position with a CET1 ratio of 13.5% provides ample flexibility for continued growth initiatives and strategic expansion across Canada.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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