National Bank of Canada earned $1.07 billion in the third quarter, up 3% from last year, as revenue jumped 15% to $3.45 billion. Adjusted earnings held steady at $2.68 per share, while provisions for credit losses rose to $203 million.
The bank pointed to “strong revenue fundamentals and credit performance, combined with synergy momentum from the CWB acquisition,” according to president and CEO Laurent Ferreira.
National Bank Q3 earnings at a glance
- Net income: $1.07B (+3% YoY; +2% QoQ)
- Diluted EPS: $2.58 (vs. $2.89 last year; $2.55 in Q2)
- Adjusted EPS: $2.68 (flat YoY; $2.76 in Q2)
- Revenue: $3.45B (+15% YoY; +2% QoQ)
- Provisions for credit losses: $203M (vs. $149M last year; $208M in Q2)
- CET1 capital ratio: 13.9% (vs. 13.7% at Oct. 31, 2024)
- Share buyback: Up to 8M shares (≈2% of outstanding), pending approval
- Roughly half of National Bank’s fixed-rate mortgages are set to renew over the next two fiscal years, with payments expected to rise an average of 11%.
Mortgage portfolio shows resilience amid renewals
National Bank’s residential mortgage portfolio stood at $78.1 billion in Q3 2025, up from $74.8 billion in the previous quarter and $64.7 billion a year earlier. That’s up 4% increase quarter-over-quarter and 21% year-over-year.
The bank’s home equity line of credit (HELOC) portfolio totalled $30.8 billion, up from $29.6 billion in Q3 2024.
About 75% of the Canadian mortgage book has already repriced since late 2022, including all variable-rate loans and 65% of fixed-rate mortgages.
Looking ahead, roughly half of fixed-rate mortgages are set to renew over the next two fiscal years — 16% by the end of this year and 33% next year. Borrowers facing renewal this year are expected to see average monthly payment increases of about 11%, while those renewing next year are expected to see monthly payments increase 10%.
Variable-rate mortgage clients have absorbed an average payment shock of roughly 30%, but the bank said they continue to demonstrate resilience, with average monthly payments now down from last year’s peak.
CWB integration advancing with synergies ahead of schedule
Ferreira said the CWB integration remains on track, with the first wave of client migrations completed in early August.
The bank has already realized $69 million in annualized cost and funding synergies, representing about 64% of its three-year target. It expects to achieve $270 million by 2027.
National Bank completed its $5-billion acquisition of Canadian Western Bank in February. The deal expanded its footprint in Western Canada, adding roughly $37 billion in loans and a network of 39 branches, while positioning the bank as a stronger competitor to the country’s largest lenders in that region.
National Bank ended the quarter with a Common Equity Tier 1 capital ratio of 13.9%. The board also approved a buyback of up to eight million shares, pending regulatory approval.
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Last modified: August 27, 2025