National Bank of Canada outlined its growth and capital plans at the Scotiabank 27th Annual Financials Summit on Wednesday, emphasizing disciplined expansion over aggressive market-share gains.
Chief Executive Laurent said the bank is targeting a CET1 ratio of approximately 13% and a return on equity above 17% by the end of fiscal 2027. Capital Markets is expected to grow 5% to 10% annually, he said.
Mortgage book growth totaled C$5.2 billion in the quarter, with Quebec accounting for more than 70%, or roughly C$3.7 billion. Insured mortgages rose 8% quarter-over-quarter overall, with Ontario up 9% and Quebec up 6%. Canadian Western Bank contributed about C$450 million to quarterly mortgage growth; Alberta and British Columbia together accounted for close to 10% of total growth through the CWB integration.
Pricing had approximately a 1 basis point impact on P&C margins. Over 40 commercial banking centers acquired through the CWB deal are being converted into a proprietary retail channel in western Canada, Laurent noted.
On technology, the bank has equipped 3,500 technologists with agentic AI tools. Call-center volume has fallen 43% over the past year, and process automation and data extraction have cut time by up to 90% in certain areas.
Laurent drew strict boundaries around AI deployment. "AI is not a strategy," he said. "It's how you use it." He said the bank will impose reinforced guardrails preventing AI from making pricing decisions, allocating capital, or advising clients on major decisions without human involvement.
Regarding the broader economic environment, Laurent flagged concerns about U.S.-Canada trade relations. "The current situation with the U.S. is not good," he said, adding that prolonged trade conflict is harmful to investment and labor-market conditions.
He also criticized interprovincial trade barriers, calling for improved labor mobility so that skilled tradespeople — electricians, welders, plumbers — can work across provinces without restriction.
National Bank has maintained dividend payments for 48 consecutive years and raised its dividend for 16 straight years. Zero-commission brokerage trading was introduced five years ago. The bank announced an extended fourth-quarter earnings call for Friday, December 4, focusing on retail performance and medium-term objectives beyond 2027.
