National Bank of Canada

Strong quarter / profitability up sharply (and operating leverage): Q3/26 EPS $3.39 (+26% YoY) on revenue +18% YoY (supported by wealth/personal banking/capital markets and balance-sheet growth). PTPP +24% YoY with positive operating leverage ~5.8%; ROE 16.8%. Management sees positive operating leverage continuing into FY26, with expense growth moderating in Q4.

Capital strength + shareholder returns (with buyback plan): CET1 13.51% (strong capital generation of +41 bps, partially offset by RWA expansion +19 bps and credit risk RWA consumption -35 bps). ~2.3M shares repurchased in Q3 (CET1 impact -26 bps). Plans to complete current NCIB in September 2026 and launch a new NCIB at that time (subject to regulatory approval). Dividend payout 38.8% (reviewed each quarter).

NIM/Net interest income: mortgage growth helped volumes but pressured margin: All-bank NIM 2.18% (+2 bps QoQ), but P&C NIM down 7 bps sequentially due largely to strong personal mortgage growth and commercial deposit mix/seasonality. Management expects P&C margin to remain roughly stable at Q3 levels in Q4, with deposit mix dynamics continuing to offset deposit-margin improvements. Mortgage growth remains central to the franchise strategy, but investors should watch whether competitive pricing keeps compressing spreads.