MONTREAL — National Bank of Canada’s third-quarter profit topped expectations even as it increased its provisions for bad loans compared with a year ago due to the COVID-19 pandemic.
The bank says it earned $602 million or $1.66 per diluted share for the quarter ended July 31 compared with a profit of $608 million or $1.66 per diluted share in the same quarter last year.
Revenue totalled $2.02 billion, down from $2.04 billion.
Provisions for credit losses amounted to $143 million, up from $86 million a year ago.
Excluding specified items, National Bank says it earned $1.66 per diluted share, the same as a year ago.
Analysts on average had expected an adjusted profit of $1.30 per share, according to financial markets data firm Refinitiv.
“Since the gradual reopening of the economy, many indicators have improved, but the situation remains uncertain, especially given the potential for a second wave of the COVID-19 pandemic,” National Bank chief executive Louis Vachon said in a statement.
“While it’s still too early to predict how the COVID-19 pandemic will affect the economy in the long term, the bank is in a strong position with a solid balance sheet, defensive positioning, quality credit portfolios, and a prudent approach to provisioning.”
This report by The Canadian Press was first published Aug. 26, 2020.
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