New elements of uncertainty urging caution have appeared in recent weeks in the macroeconomic and geopolitical landscape, said Friday the big boss of the National Bank.
Posted at 7:01 a.m.
Updated at 4:25 p.m.
“Interest rates should now rise faster than expected and the likelihood of an economic slowdown has increased,” Laurent Ferreira said during a conference call with analysts on the sidelines of the company’s quarterly results presentation. organization he leads.
“Although this eventuality is not our base scenario, these risks are more present and we take them into account in our decision-making process. »
In the current context, Laurent Ferreira says he is comfortable with the bank’s strategic positioning. He stresses in particular that “the fundamentals are solid” in Canada.
“Our economy is well positioned on a relative basis due to several factors, including the importance of natural resources, high commodity prices and an unemployment rate at an all-time low. »
Caution remains, however, he said, promising that management will remain disciplined in its management of risk, capital and costs.
The Montreal financial institution generated profits of 893 million during the months of February, March and April. Adjusted earnings per share rose 13% year on year to $2.55 per share, compared to analyst consensus of $2.25 per share.
All of the bank’s operating segments recorded increases in revenue compared to the previous quarter.
The profits generated by the financial markets sector in an environment of intense volatility notably jumped by 17%, to 289 million over one year, while those generated by the specialized financing sector in the United States and internationally, which notably includes the activities of the Credigy subsidiaries and the Cambodian bank ABA, increased by 18%, to 152 million.
A bonus of 6% of the dividend paid to shareholders is announced, bringing it to 92 cents per share.
The environment in which we operated during the quarter was marked by increased uncertainty and volatility in the markets.
Laurent Ferreira, CEO of National Bank
National Bank performs
The sixth largest bank in the country is the latest among the “Big 6” of major Canadian banks to report quarterly results this week.
“The National Bank has just presented the best overall results among the banks in the country,” commented analyst Paul Holden of CIBC in a note sent to its clients.
The bank’s stock rose 2% on Friday to close at $97.10 on the Toronto Stock Exchange. The stock market value of the financial institution has now appreciated 8% so far in May.
INFOGRAPHIC THE PRESS
“The bank’s strong results over the past year and so far this year reflect strong execution as well as an advantageous business mix relative to other major banks,” said TD analyst Mario Mendonca in a report released Friday afternoon.
The bank repurchased two million of its shares during the most recent quarter. The CEO recalled that share buybacks, like dividend increases, continue to be “complementary” to the bank’s focus, which remains organic growth.
Investors received the results released by the National Bank rather well and pushed the stock up during the last session of the week.
Six of the thirteen analysts who officially follow the activities of the National Bank recommend buying the stock.