Christine Dobie
(Bloomberg) National Bank of Canada’s capital markets unit’s better-than-expected fourth-quarter results were a resurgence after the unit posted strong results earlier this year but missed expectations last quarter.
The Montreal-based bank posted adjusted earnings of $2.82 per share in the three months to October, above analysts’ average estimate of $2.63, according to a statement Wednesday. Net profit from National Bank’s financial markets business totaled $432 million, higher than the $340 million average forecast of three analysts polled by Bloomberg.
“In 2025, we delivered a strong financial performance and achieved all medium-term financial targets while also completing the largest acquisition in our history,” CEO Laurent Ferreira said in a statement, referring to the company’s acquisition of Edmonton-based Canada West Bank, which it completed in February.
Companywide provisions for loan losses totaled $244 million, above the average estimate of $215 million.
National Bank will announce a three-way deal on Tuesday to take over Laurentian Bank of Canada’s retail and small business deposit and loan books. Under the agreement, Fairstone Bank of Canada will spend $1.9 billion to acquire all shares of Laurentian and refocus the company on commercial lending.
The deal provides an exit path for Laurentian after more than two years of uncertainty following a strategic review that failed to find a buyer. Analysts say it’s a compelling deal for the national bank, allowing it to further expand the Quebec market without acquiring any branches, employees or technology from Laurentian Bank.
Laurentian is one of the few small banks that remained in Canada after National Bank acquired CWB.
National said Wednesday it expects the deal to generate $200 million to $250 million in revenue synergies. It also updated the risk weights assigned to CWB’s loan portfolio – moving to its own risk model – a process expected to reduce its regulatory capital requirements. It said some of these benefits should be realized by the end of fiscal 2026.
The company, Canada’s sixth-largest bank, announced on Wednesday it would raise its quarterly dividend by 5 per cent, taking its dividend per share up 6 cents to $1.24, to be paid on February 1.
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Last modified: December 3, 2025
