In a three-year period, the National Bank of Canada climbed the most after its third-quarter report, beating analysts’ estimates on the lender’s gains in its consumer-lending and capital markets businesses.
The lender’s gains advanced to 3.1% to a record of C$50. 91 in Toronto, which was considered the highest since August 2011. It was also the best performance in the 8-company Standard & Poor’s or TSX Commercial banks Index. Excluding some items, its profit was at C$1. 20 per share within a period that ended in July 31. Thus, the Montreal-based lender had surpassed the average estimate C$1. 11 of 11 analysts who were surveyed by Bloomberg.
One of Barclay’s Plc analysts John Aiken said in a statement addressed to investors, “Financial Markets had a stand-out quarter.” He also added that the performance of both personal and commercial banking was very solid.
The National Bank of Canada is considered the sixth largest lender based on assets. The lender benefited from a rise in profits in its capital markets business. The profit rise was fueled by higher investment-banking fees, as well as surging revenue of the company’s Credigy consumer-finance unit. Largely centered in Quebec, the personal and commercial banking earnings rose by 6.1%, outperforming larger, domestic lending rivals such as the Bank of Nova Scotia and the Royal Bank of Canada.