Q3 Earnings At National Bank Financial Keep The Firm Optimistic

Vanessa Doctor

27 August 2010

Net earnings at Montreal-based National Bank Financial Group dropped 11 per cent in the third quarter, from $303 million in Q3 2009 to $271 million.

While decline was attributed to weak trading activity and market volatility during the period, the results still exceeded analysts expectations. Net income for the first nine months of the year was up 22 per cent to $747 million, helped mostly by strong performances at its wealth management businesses.

Earnings from the personal and commercial segment went up 32 per cent to $162 million in the quarter, while revenues grew by $35 million to $621 million. In the wealth management segment, net income rose 8 per cent from the same quarter of 2009 to $28 million, due mostly to an increase in the value of assets under management.

"Despite less favourable conditions for trading activities, the financial markets segment maintained sound profitability," Louis Vachon, the bank's president and chief executive, said in a statement.

National Bank Financial is the sixth largest bank in Canada.