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.
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.