Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • National Bank reported net income of CAD 1.07 billion (USD 0.79 billion) in Q3 2025, up 3% year-over-year, with adjusted net income rising 15% to CAD 1.10 billion (USD 0.82 billion).

  • Total revenues increased 21% year-over-year to CAD 1.45 billion (USD 1.07 billion) in Personal and Commercial Banking, supported by CWB’s inclusion and higher loan and deposit volumes.

  • The Bank declared a dividend of CAD 1.18 (USD 0.87) per common share, payable November 1, 2025.

National Bank of Canada (TSX:NA) announced financial results for the third quarter of fiscal 2025, ended July 31, 2025. The Bank reported year-over-year growth in adjusted net income, supported by contributions from its acquisition of Canadian Western Bank (CWB) and expansion across business segments.

Consolidated Results

For the third quarter of 2025, net income was CAD 1.07 billion (USD 0.79 billion), compared with CAD 1.03 billion (USD 0.76 billion) in the prior year. Diluted earnings per share stood at CAD 2.58 (USD 1.90) versus CAD 2.89 (USD 2.13) a year earlier.

Excluding specified items related to the acquisition of CWB, adjusted net income rose 15% year-over-year to CAD 1.10 billion (USD 0.82 billion), while adjusted diluted earnings per share remained steady at CAD 2.68 (USD 1.97).

For the nine-month period ended July 31, 2025, net income reached CAD 2.96 billion (USD 2.18 billion), up 3% year-over-year. Adjusted net income totaled CAD 3.32 billion (USD 2.45 billion), representing a 19% increase.

Segment Results

  • Personal and Commercial Banking reported net income of CAD 370 million (USD 273 million), up 1% year-over-year. Revenues rose 21% to CAD 1.45 billion (USD 1.07 billion), driven by CWB’s integration and higher loan and deposit volumes. Lending activity grew, with personal loans up 12% and commercial loans up 61%.

  • Wealth Management posted net income of CAD 244 million (USD 180 million), an increase of 12% compared with the prior year. Revenues grew 13% to CAD 811 million (USD 597 million), reflecting fee-based revenue growth and CWB contributions.

  • Financial Markets delivered net income of CAD 334 million (USD 246 million), up 5% year-over-year, supported by a 13% increase in revenues to CAD 777 million (USD 572 million), primarily from corporate and investment banking activities.

  • U.S. Specialty Finance and International reported net income of CAD 178 million (USD 131 million), up 13% year-over-year, driven by growth at the ABA Bank subsidiary.

The “Other” segment posted a net loss of CAD 61 million (USD 45 million) compared with a net loss of CAD 26 million (USD 19 million) a year earlier, largely due to items related to the CWB acquisition.

Capital and Dividends

As at July 31, 2025, the Bank’s Common Equity Tier 1 (CET1) ratio under Basel III was 13.9%, compared with 13.7% as of October 31, 2024. The Basel III leverage ratio stood at 4.7%, up from 4.4% at the end of fiscal 2024.

The Bank’s Board of Directors declared a dividend of CAD 1.18 (USD 0.87) per common share, payable on November 1, 2025, to shareholders of record on September 29, 2025.

Additionally, the Bank announced a normal course issuer bid to repurchase up to 8 million common shares, subject to regulatory approval.