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National Bank of Canada quarterly profit falls on higher expenses, provisions

Published 11/30/2022, 06:46 AM
Updated 11/30/2022, 07:01 AM
© Reuters. FILE PHOTO: The National Bank of Canada logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo

(Reuters) - National Bank of Canada (OTC:NTIOF) posted a lower fourth-quarter profit on Wednesday, as the Canadian lender set aside higher provisions in the face of an economic downturn.

The company recorded $87 million in provisions for the three months ended Oct 31, compared to $41 million a year ago.

The Canadian lender's personal and commercial unit saw net income jump 13% on strong lending as the central bank pumps up interest rates to combat decades-high inflation.

Wealth management pretax, pre-provisions earnings rose 23% from a year earlier, while that of financial markets jumped 10% as higher trading revenue offset a decline in investment banking income from a record quarter a year ago.

The Canadian lender joined Bank of Nova Scotia in reporting a lower profit as fees from advisory and deals tank due to escalating worries of an economic downturn.

National Bank of Canada's net income, excluding one-off items, fell to C$738 million ($546 million), or C$2.08 per share, in the three months ended Oct 31, from C$776 million, or C$2.19 per share, a year earlier.

© Reuters. FILE PHOTO: The National Bank of Canada logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo

Analysts on average had expected earnings of C$2.24 a share, according to Refinitiv data.

($1 = 1.3526 Canadian dollars)

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