National Bank of Canada

Good morning and welcome to National Bank of Canada's third quarter 2026 earnings call. I would now like to turn the meeting over to Marianne Roddy, Senior Vice President and Head of Investor Relations. Please go ahead.

Thank you and welcome everyone. We will begin the call with remarks from Laurent Ferreira, President and CEO, Marie Chantal Gingras, CFO, and Jean-Sébastien Griset, Chief Risk Officer. Our business heads are also present for the Q&A session, including Julie Levesque, Personal Banking, Josette Menard, Commercial and Private Banking, Nancy Paquet, Wealth Management, Etienne Dubuc, Capital Markets, and Bill Bonnell International. Before we begin, please refer to slide 2 of our presentation for forward-looking statements and non-GAAP measures. Management will refer to adjusted results unless otherwise noted. I will now pass the call to Laurent.

Merci Marianne and thank you everyone for joining us. Before turning to our results, let me say a few words about the latest developments affecting Canada. The Canadian economy has demonstrated resilience over the past 18 months. But the unresolved and escalating trade conflict with the U.S. continues to create economic uncertainty and challenges for businesses across the country. At this point, it is difficult to forecast outcome, but new tariffs on both sides of the border will impact additional industries, business investments and affordability for consumers. Yesterday's announcement on business and worker support is welcome and should provide relief for those impacted. Alongside government support, National Bank will be there for affected clients. Ongoing discussions with clients and partners point to one conclusion. Canada is taking the right steps to strengthen the foundations of its economy, and it has fiscal room to continue doing so. While business confidence and investment are difficult in the current context, I am encouraged by the way governments and business leaders are mobilizing around Canada's economic priorities. And significant investments are being made in strategic infrastructure across the country. Thank you. Thank you. Thank you. and the recent icebreaker contract announcement are great examples of our country moving in the right direction. And Aussie's decision to lower the range for the domestic stability buffer provides additional flexibility to support Canadian businesses as they are dealing with a challenging environment. Turning now to our financial results. EPS for the third quarter of 2026 was $3.39 up 26% year over year. Revenues increased 18% supported by favorable market conditions across our fee-based businesses and strong balance sheet growth. We generated positive operating leverage of nearly 6% and our credit performance remained resilient. Return on equity was 16.8% continuing The solid performance we have delivered since the beginning of the year. Our CET1 ratio stood at 13.51%. We maintained a strong capital position while generating strong organic growth and buying back shares. We intend to complete our current NCIB in September and launch a new one at that time, subject to regulatory approvals. Our dividend payout currently stands at 38.8%. As per usual practice, we will review the dividend next quarter. Finally, on the Laurentian Bank transaction, last quarter we completed the acquisition of the syndicated loan portfolio and the Minister of Finance has since approved the acquisition of Laurentian Bank by Fairstone. We expect our acquisition of the retail and SME banking portfolios to be completed by late 2026 as previously announced. Turning now to our business segments. P&C Banking generated net income growth of 13% year-over-year. Results reflect strong growth in personal mortgages and fee-based income as well as solid balance sheet growth in commercial banking. This was further supported by positive operating leverage of 1% and strong credit performance. Personal banking mortgages grew 14% year over year, continuing the momentum of recent quarters. This was driven by renewal activity, a resilient housing market in Quebec, and market share gains. Deposits were stable sequentially while rising equity markets continued to drive client demand for investment solutions. This contributed to a 7% increase in total personal savings year over year. In commercial banking, deposits were up 12% year-over-year. This reflects the usual seasonal inflows from government clients as well as higher balances in our commercial business. Commercial loans were up 4% year-over-year. Activity remained solid within the National Bank-originated loan portfolio, which grew 10% year-over-year. The CWB legacy book was relatively stable sequentially. Our integration is going well and our pipeline is strengthening. In wealth management, net income was $299 million, up 22% year-over-year. Results reflect strength across the franchise, including higher fee-based income and transaction volumes. Segment performance was further supported by positive operating leverage above 2%. Capital markets generated net income of $442 million, up 32% year over year. Global markets revenue were $578 million, consistent with the strong performance of recent order and supported by healthy client activity. Rising equity markets continued to support structured product origination, while attractive funding opportunities benefited our securities finance business. Corporate and investment banking revenues increased 13% year-over-year. Corporate banking loans grew 13% over the same period, reflecting continued opportunities across sectors. Investment banking maintained its strong performance supported by M&A activity and continuous investment in our franchise. Favorable market conditions drove solid debt capital market activity across both corporate and government issuers. CreditG generated net income of $39 million. Revenue growth of 13% year-over-year was primarily driven by a gain on the sale of a portfolio, while credit performance reflected a build in performing loan provisions and average assets grew 8% year-over-year. Against a competitive market and pricing backdrop, we remain selective in pursuing deals as we continue to benefit from recurring flows from established partnerships. At ABA Bank, net income was up 1% year-over-year, reflecting slower economic growth in the country. Revenue growth of 6% was partly offset by higher efficiency ratio and PCLs. Loans were up 11% year-over-year and deposits grew 7% over the same period. I will now pass the call to Marie Chantal.