The National Bank of Canada reports £348 million of net income in Q3
- The National Bank of Canada reports £348 million of net income in Q3.
- The bank’s revenue in the fiscal third quarter came in at £1.54 billion.
- Its credit loss provisions climbed to £82.53 million from £49.64 million.
The National Bank of Canada (TSE: NA) said on Wednesday that its profit in the fiscal third quarter came in higher than what the analysts had anticipated. The bank also highlighted that its provisions for loan losses due to the Coronavirus pandemic that has so far infected just under 126 thousand people in Canada and caused over 9 thousand deaths, were lower than expected.
The National Bank of Canada is currently 5% down in the stock market on a year to date basis. At the time of writing, it is valued at £13.18 billion and has a price to earnings ratio of 11.32. Looking for an easier way to choose a stockbroker and start trading online? Here’s a comparison of a top few to choose from.
The bank’s revenue in Q3 came in at £1.54 billion
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Canada’s 6th largest commercial bank also said that its financial markets business showed signs of improvement in recent months after COVID-19 driven disruptions that further contributed to its hawkish performance in Q3.
The Montreal-based bank reported £348 million of net income in the three months that concluded on 31st July. In the comparable quarter of last year, its net income was recorded at a slightly higher £350.92 million. The bank’s revenue in Q3 came in at £1.54 billion versus the year-ago figure of £1.55 billion.
In terms of diluted EPS (earnings per share), the National Bank of Canada printed 96 pence that remained unchanged on a year over year basis. Experts, however, had forecast a much lower 74 pence of diluted earnings per share for the bank in the fiscal third quarter.
The bank values credit loss provisions at £82.53 million in Q3
In Q3 of 2019, the National Bank of Canada had valued its provisions for credit losses at £49.64 million. In its report on Wednesday, it said that provisions jumped to £82.53 million in the recent quarter attributed to the economic blow from the ongoing health crisis. But its provisions were still significantly lower than £160.45 million that the experts had predicted.
The bank’s board declared 54.02 pence of quarterly dividend on Wednesday. According to CEO Louis Vachon:
“Since the gradual reopening of the economy, many indicators have improved, but the situation remains uncertain, especially given the potential for a second wave of the COVID-19 pandemic. While it’s still too early to predict how the COVID-19 pandemic will affect the economy in the long term, the bank is in a strong position with a solid balance sheet, defensive positioning, quality credit portfolios, and a prudent approach to provisioning.”