National Bank is taking advantage of its clients’ hyperactivity in the capital markets. The Montreal financial institution unveiled results that exceeded expectations. The Financial Markets division posted net income of 307 million in the first quarter (ended January 31), which represents a growth of 20% compared to the same period last year.
While market volatility caused clients to be more active in the capital market, management was repeatedly questioned about the possibility that heightened volatility in the wake of the invasion in Ukraine could become a headwind at a conference to discuss the most recent financial results.
“It’s hard to say,” replies Denis Girouard, Senior Vice-President, Financial Markets. The market is so erratic and volatile. It’s going to be hard to say what to expect for the current quarter. It is correct for the moment. I can’t really say more. In the current context, tomorrow could be very different from today. »
Most segments of the bank performed better than expected, but it was the Capital Markets division that was largely responsible for the better-than-expected financial results, summarizes Mike Rizvanovic of Stifel GMP. “However, we believe that the outliers in capital markets will moderate in the future. »
Adjusted earnings per share were $2.65, compared to $2.15 for the same period last year. Analysts had expected adjusted earnings per share of $2.23, according to Refinitiv. Net profit reached 932 million in the first quarter of 2022, compared to 761 million in the corresponding quarter of fiscal 2021.
During the call, Laurent Ferreira, President and Chief Executive Officer, said he is closely monitoring the economic and geopolitical situation, but he believes that the economic outlook remains favorable in Quebec. “Québec remains in good shape with a savings rate above the Canadian average, a low unemployment rate and a diversified economy. »
Sign of the recovery, the value of transactions on personal credit cards has reached a three-year high, reports Lucie Blanchet, senior vice-president of the direction of Individuals and customer experience. She notes that the share of payment on the balance continues to be high. “It is at the same threshold as during the pandemic. There is still plenty of cash in the savings accounts that are used for this purpose, and consumers remain cautious. »