National Bank of Canada

Strong Q3 performance / capital & ROE - EPS: $3.39, +26% YoY. - Revenues: +18% YoY, supported by favorable market conditions (fee-based businesses) and strong balance sheet growth. - Operating leverage: nearly +6%; PTPP +24% YoY with positive operating leverage of 5.8%. - ROE: 16.8% for the quarter; YTD ROE 16.7%, on track to exceed 16% ROE target for FY26. - Capital: CET1 13.51%; positive capital generation (+41 bps) partially offset by RWA expansion (-19 bps) and credit risk RWA (-35 bps). Share buyback: 2.3M shares in Q3 (reduced CET1 by 26 bps).

Net interest margin (NIM) pressure despite growth—guidance: stable - All-bank NIM: 2.18%, +2 bps QoQ (helped by Treasury (+3 bps) and accounting/realignment items (+4 bps)). - P&C banking NIM: -7 bps QoQ, mainly from strong mortgage growth (mix/competitive spreads) and commercial deposit mix dynamics (seasonal government inflows). - Q4 outlook (important): expects P&C margin roughly stable vs Q3; all-bank NIM also relatively stable in Q4 as deposit margin gains are offset by mix dynamics.

Credit remains resilient; provisions within guidance - Total PCL: $240M (31 bps), stable QoQ. - Impaired PCL: $224M (28 bps), +2 bps QoQ but within FY26 guidance (25–35 bps). - Allowances: $2.7B total, 5.3x coverage of net charge-offs; performing ACL $1.7B (~2x performing coverage). - Impaired loan ratios: gross impaired 114 bps, stable; GILs ex-POCI 82 bps, down 2 bps QoQ. - Risk framing: expects retail to be driven by unemployment; wholesale remains lumpy and can be affected by macro/tariffs/geopolitics.