National Bank of Canada (NA) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $1,234 million, up 38% year-over-year, with diluted EPS up 41% to $3.06 and adjusted EPS up 13% to $3.23, reflecting strong segment performance and lower credit loss provisions.

• ROE was 15.9% reported and 16.8% adjusted for Q2 2026; CET1 ratio stood at 13.54%.

• Quarterly dividend increased by 8 cents to $1.32 per share, a 6% rise.

• Continued realization of cost and revenue synergies from the Canadian Western Bank (CWB) acquisition, with $215 million in cost and funding synergies realized and annualized synergy target increased to $300 million.

• Maintained positive operating leverage and disciplined expense management.

Financial highlights

• Total revenues for Q2 2026 were $3,907 million, up 7% year-over-year; adjusted non-interest expenses up 10% year-over-year.

• Pre-tax pre-provision profit (PTPP) grew 5% year-over-year adjusted, 8% reported.

• Efficiency ratio was 50.4% adjusted; expenses rose 9.5% year-over-year, adjusted expense growth was 7.4%.

• Net interest income (excluding trading) grew 7% year-over-year; NIM was 2.16%, down 8 bps sequentially.

• Loans increased 9% year-over-year and 3% quarter-over-quarter; deposits up 13% year-over-year and 3% sequentially.

Outlook and guidance

• Management expects continued strong earnings growth and robust capital levels despite macroeconomic uncertainty.

• Expense growth anticipated to moderate to low single digits, supporting positive operating leverage.

• ROE target of approximately 16% for fiscal 2026 remains on track; guidance for 17%+ ROE in 2027.

• CET1 ratio targeted to converge toward 13% by year-end 2027.

• On track to achieve $270 million in annualized cost and funding synergies from the CWB acquisition by end of FY 2026, targeting $300 million annualized.