National Bank of Canada reported adjusted diluted earnings per share of $3.39 for the third quarter of 2026, a 26% increase from the prior year and exceeding analyst estimates of $3.18. Reported diluted EPS rose 26% to $3.25. Total revenue grew 18% year-over-year to $4.05 billion, driven by broad-based gains across segments.
The bank’s adjusted return on equity reached 16.8%, surpassing its 16% target for fiscal 2026 and tracking toward 17% or higher in fiscal 2027. Its adjusted efficiency ratio improved to 49.8%, down 260 basis points year-over-year. However, the Common Equity Tier 1 ratio edged down to 13.51% from 13.54% in the prior quarter, reflecting asset growth and model refinements.
Net interest income totaled $2.13 billion with a net interest margin of 2.18%, while adjusted net interest income excluding trading rose 10% year-over-year to $1.25 billion. Personal and commercial banking revenue increased 7%, with personal mortgages up 14% year-over-year to average balances of $108 billion. Wealth management revenue grew 18%, with assets under administration up 21% and assets under management up 19%. Capital markets revenue exceeded $1 billion, a 34% year-over-year increase.
Total loans reached $324.5 billion, up 11% year-over-year, while total deposits excluding wholesale funding rose 11% to $337 billion. Provisions for credit losses totaled $246 million, or 31 basis points, within the full-year guidance range of 25–35 basis points. Gross impaired loans stood at $3.74 billion, representing 114 basis points of total loans.
The bank’s mortgage portfolio totaled $123.5 billion as of July 31, 2026, with 54% concentrated in Quebec and 29% in Ontario. Uninsured mortgages accounted for 45% of the portfolio, HELOCs for 28%, and insured mortgages for 27%. High-risk uninsured borrowers represented roughly 1% of the portfolio, while 2.7% had remaining amortizations of 30 years or more.
Integration of Canadian Western Bank contributed $238 million in realized cost and funding synergies as of Q3 2026, annualized at $277 million and tracking toward $300 million by fiscal 2028. Revenue synergies reached $52 million year-to-date, beating the fiscal 2026 target of $50 million. The expected CET1 capital benefit from CWB’s AIRB portfolio conversion is now expected in late 2027, with additional refinements projected to add about 20 basis points in Q4 2026.
National Bank repurchased approximately 2.3 million shares during the quarter. Capital generation from adjusted net income was offset by dividends and buybacks, each accounting for 26 basis points of capital impact. Risk-weighted assets grew by $4.3 billion, partially offset by model refinements adding 15 basis points of capital benefit.
President and CEO Laurent Ferreira noted that the unresolved trade conflict with the U.S. continues to create economic uncertainty for Canadian businesses. The bank’s shares fell 5.15% to $210.45 following the results.
