Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What assumptions are included in the updated guidance for 2025, particularly regarding tariffs and their impact on impaired PCL and EPS? A: Jean-Sebastien Gris, Chief Risk Officer, explained that the PCL guidance includes the acquisition of CWB and reflects increased uncertainty due to potential tariffs. The top two files accounted for 10 basis points of impaired loan losses, indicating lumpiness. Marie Gingras, CFO, added that the EPS outlook, excluding the amortization of the fair value mark, still expects mid-single-digit growth, with no material impact from tariffs factored in yet.
Q: When will National Bank of Canada provide guidance on revenue synergies related to the CWB acquisition? A: Marie Gingras, CFO, stated that they plan to provide guidance on revenue synergies later in the year as the integration progresses. Michael Denham, EVP of Commercial and Private Banking, added that some revenue synergies, like using their balance sheet to support CWB clients, are already underway.
Q: How does National Bank of Canada view the potential impact of tariffs on commercial credit and PCLs? A: Jean-Sebastien Gris, Chief Risk Officer, noted that while there is uncertainty around tariffs, the commercial credit portfolio remains resilient. The watchlist levels are stable, and the lumpiness observed in Q1 was due to a few specific files. The bank continues to monitor the situation closely.
Q: What is the outlook for National Bank of Canada's capital management and share buybacks post-CWB acquisition? A: Marie Gingras, CFO, mentioned that the bank is comfortable with its capital levels post-acquisition, with a CET1 ratio of 13.6%. Share buybacks are planned for 2026, and a detailed capital deployment strategy will be shared in Q4. Laurent Ferreira, CEO, emphasized the importance of maintaining optionality given the current economic environment.
Q: How does National Bank of Canada expect the P&C margin to evolve with the addition of CWB and the impact of the fair value mark amortization? A: Lucie Blanchet, EVP of Personal Banking and Client Experience, explained that asset spreads are expected to remain healthy, but deposit spreads are under pressure. Marie Gingras, CFO, noted that the fair value mark amortization will impact NII and NIM, and more guidance will be provided in the next quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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