National Bank of Canada quarterly profit rises on financial markets unit strength
Business
National Bank of Canada quarterly profit rises on financial markets unit strength
(Reuters) - National Bank of Canada (NA.TO), opens new tab reported a higher first-quarter profit on Wednesday as robust performance at its financial markets unit cushioned the hit from an increase in loan loss provisions.
First-quarter revenue at the lender's financial markets unit jumped 10% to C$755 million ($556.09 million).
However, an uncertain economic environment and high borrowing costs have raised the threat of more borrowers falling behind on their loan repayments, prompting lenders to set aside bigger rainy-day funds.
Montreal-based National Bank's provisions for credit losses in the first quarter rose to C$120 million from C$86 million.
The windfall from high interest rates has also tapered off as banks pay out more on deposits to retain customers from chasing higher-yielding alternatives.
National Bank's net interest income, or the difference between what banks earn on loans and pay out on deposits, fell 31.7% to C$751 million in the first quarter.
