Posted at 6:00 a.m.
Revealing a performance at the start of the fiscal year that was more robust than expected, the big boss of the National Bank said that he was keeping a “close eye” on the development of geopolitical events on the international scene as well as on the challenges related to supply chains. .
The outbreak of war in Ukraine obviously worries Laurent Ferreira.
“It’s sad,” he said in a telephone interview. “We have Ukrainian employees across the country who have family members in Ukraine. Our thoughts are with them. »
Beyond the human tragedies, he sees impacts on the economy. “Wars are inflationary. It could have an impact on the prices of energy and natural resources. »
The CEO of the National Bank, however, does not believe that the war in Ukraine will delay the anticipated hike in interest rates due to begin next month in Canada and the United States.
PHOTO PROVIDED BY THE NATIONAL BANK
Laurent Ferreira, CEO of National Bank
That [la guerre] could delay the rate hike in Europe, but I don’t believe that will be the case in North America.
Laurent Ferreira, CEO of National Bank
Generally speaking, interest rate increases have a positive impact on bank results, both on deposits and on margins. Clearly, an increase of 100 basis points in the Bank of Canada’s key rate, therefore of 1%, would add just over $100 million to the National Bank’s annual revenue.
Results up
National Bank’s profits for the months of November, December and January jumped 22% year on year to $932 million, the equivalent of $2.65 per share.
This result exceeds the forecasts of analysts whose consensus hinged on a profit per share of $2.23.
National Bank shares rose 2% on Friday to close at $102.78 on the Toronto Stock Exchange. Like that of the other major Canadian banks, the title of the National is up sharply since its low of $ 38 reached at the start of the pandemic, in March 2020.
Earlier this week, analyst Gabriel Dechaine of National Bank Financial pointed out in a research report that while there are many things to appreciate in the financial sector, the shares of the country’s six major banks grew an average of 34% last year and that valuations exceeded expectations.
As a result, this expert believes that investors have an advantage in reducing their exposure to the banking sector.
Only 4 of the 12 analysts who officially cover the activities of the National Bank offered to buy the title before the publication of the results on Friday.
Change in management
Significant changes to the senior management of the Quebec financial institution are made. After more than 10 years as Chief Financial Officer, Ghislain Parent will take up the new position of Senior Vice-President, International Sector, as of April.
PHOTO PROVIDED BY THE NATIONAL BANK
Marie Chantal Gingras is appointed Chief Financial Officer at National Bank.
In this role, he will be responsible for the Credigy subsidiary in the United States and ABA bank in Cambodia. The creation of this new management position does not indicate a change in strategy, but rather reflects the growth and importance of the bank’s activities on the international scene.
To fill the important post of treasurer at the bank, Marie Chantal Gingras is appointed chief financial officer. She has worked at the National Bank for 24 years and has been acting for nearly a year as Senior Vice-President of Financial Accounting.