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National Bank releases its results for the Fourth Quarter of 2012 and raises its quarterly dividend by 5% to 83 cents per share

National Bank releases its results for the Fourth Quarter of 2012 and raises 
its quarterly dividend by 5% to 83 cents per share 
 _____________________________________________________________________
|Highlights:                                                          |
|                                                                     |
|                                                                     |
|    --  $351 million in net income for the fourth quarter of 2012, up|
|        20% from $292 million in the same quarter of 2011;           |
|    --  Diluted earnings per share of $1.97 for the fourth quarter of|
|        2012, up 22% from $1.62 in the same quarter of 2011;         |
|    --  $1,634 million in net income for 2012, up 26% from           |
|        $1,296 million last year;                                    |
|    --  Diluted earnings per share of $9.32 for 2012, up 35% from    |
|        $6.92 last year;                                             |
|    --  Pro forma Common Equity Tier 1 ratio under Basel III of 7.3% |
|        as at October 31, 2012.                                      |
|                                                                     |
|Highlights Excluding Specified Items((1)):                           |
|                                                                     |
|                                                                     |
|    --  $343 million in net income for the fourth quarter of 2012, up|
|        13% from $303 million in the same quarter of 2011;           |
|    --  Diluted earnings per share of $1.93 for the fourth quarter of|
|        2012, up 15% from $1.68 in the same quarter of 2011;         |
|    --  $1,396 million in net income for 2012, up 7% from            |
|        $1,305 million last year;                                    |
|    --  At $7.86 for 2012, diluted earnings per share was up 9% from |
|        $7.18 last year.                                             |
|                                                                     |
|(1)  The financial reporting method is explained in detail on page 2.|
|_____________________________________________________________________| 
This press release presents unaudited financial information that is based on 
the Bank's unaudited interim consolidated financial statements and on its 
audited annual consolidated financial statements, both of which have been 
prepared in accordance with International Financial Reporting Standards 
(IFRS). It should be read in conjunction with the Bank's 2012 Annual Report 
(which includes the audited annual consolidated financial statements and the 
accompanying management's discussion and analysis) available on the Bank's 
website at nbc.ca. Additional information about National Bank of Canada, 
including the Annual Information Form, can be obtained from the SEDAR website 
at sedar.com or on the Bank's website at nbc.ca. 
MONTREAL, Dec. 6, 2012 /CNW Telbec/ - National Bank reports $351million in 
net income for the fourth quarter of 2012, a 20% increase from $292million 
in the same quarter of 2011. Diluted earnings per share for the quarter ended 
October31, 2012 stood at $1.97, up 22% from $1.62 in the same quarter of 
2011. Excluding the specified items described on page 2, fourth-quarter net 
income totalled $343million, up 13% from $303million in the fourth quarter 
of 2011, and fourth-quarter diluted earnings per share stood at $1.93, up 15% 
from $1.68 in the same quarter of 2011. 
For 2012, the Bank's net income totalled $1,634million, up 26% from 
$1,296million in 2011. Diluted earnings per share stood at $9.32 for 2012, 
up $2.40 or 35% from $6.92 in 2011. Excluding the specified items described on 
page 2, the 2012 net income totalled $1,396million, up 7% from 
$1,305million in 2011, and diluted earnings per share stood at $7.86, up 9% 
from $7.18 in 2011. 
"For the fourth quarter of 2012 and the year as a whole, the Bank performed 
well on the strength of personal loan growth, financial market trading, and 
contributions from the Wealth Management acquisitions. Our loan portfolio 
maintained its excellent quality, placing the Bank among the industry's best. 
In the quarters ahead, we will continue to invest in a prudent, targeted 
manner while ensuring sound management of costs and capital," said Louis 
Vachon, President and Chief Executive Officer. 


                                                                       

Financial                   Results                       Results
Indicators                excluding                     excluding
              Results     specified         Results     specified
              Q4 2012         items ((1))     2012          items ((1))
                                                                       

Growth in         22  %         15      %       35  %          9      %
diluted
earnings per
common share

Return on       19.8  %       19.2      %     24.5  %       20.7      %
common
shareholders'
equity

Dividend          33  %         39      %       33  %         39      %
payout ratio

Tier 1          12.0  %                       12.0  %                  
capital ratio
under Basel
II

Pro forma        7.3  %                        7.3  %                  
Common Equity
Tier 1 ratio
under Basel
III
                                                                       

(1)  See the Financial Reporting Method section on page 2.

FINANCIAL REPORTING METHOD

(unaudited) (millions of Canadian dollars)

The Bank uses certain measures that do not comply with International Financial 
Reporting Standards (IFRS) to assess results. Securities regulators require 
companies to caution readers that net income and other measures adjusted using 
non-IFRS criteria are not standard under IFRS and cannot be easily compared 
with similar measures used by other companies.

Financial Information
                                          Quarter ended                                Year ended
                                                                   October 31,                    
                        October 31,     October 31,          %                     October 31,          %
                               2012            2011     Change            2012            2011     Change

Excluding specified                                                                               
items                                                                                                    

  Personal and                                                                                    
  Commercial                    168             157          7             693             627         11

  Wealth Management              45              50       (10)             166             187       (11)

  Financial Markets             124              79         57             501             420         19

  Other                           6              17                         36              71           

Net income excluding                                                                              
specified items                 343             303         13           1,396           1,305          7

  Plus: Items related                                                                             
  to the Natcan
  transaction((1))                1         −                        198         −           

  Plus: Items related                                                                             
  to holding
  restructured notes(
  (2))                           81         −                        113         −           

  Plus: Reversal of                                                                               
  provisions for
  income tax
  contingencies((3))        −         −                         29              21           

  Plus: Reversal of                                                                               
  allowances for
  credit losses((4))        −        −                     −              11           

  Less:                                                                                           
  Acquisition-related
  items((5))                   (10)             (6)                       (27)            (14)           

  Less: Severance pay                                                                             
  and lease
  terminations((6))            (51)             (5)                       (62)            (19)           

  Less: Write-offs of                                                                             
  intangible assets(
  (7))                         (13)         −                       (13)         −           

  Less: Litigation                                                                                
  provisions((8))           −         −                    −             (8)           

Net income                      351             292         20           1,634           1,296         26

Diluted earnings per                                                                              
share excluding
specified items       $        1.93   $        1.68         15   $        7.86   $        7.18          9

  Plus: Items related                                                                             
  to the Natcan
  transaction((1))             0.01         −                       1.22         −           

  Plus: Items related                                                                             
  to holding
  restructured notes(
  (2))                         0.50         −                       0.70         −           

  Plus: Reversal of                                                                               
  provisions for
  income tax
  contingencies((3))        −         −                       0.18            0.13           

  Plus: Reversal of                                                                               
  allowances for
  credit losses((4))        −         −                    −            0.06           

  Less:                                                                                           
  Acquisition-related
  items((5))                 (0.07)          (0.03)                     (0.17)          (0.08)           

  Less: Severance pay                                                                             
  and lease
  terminations((6))          (0.31)          (0.03)                     (0.38)          (0.11)           

  Less: Write-offs of                                                                             
  intangible assets(
  (7))                       (0.09)         −                     (0.09)         −           

  Less: Litigation                                                                                
  provisions((8))           −         −                    −          (0.05)           

  Less: Premium paid                                                                              
  on preferred shares
  repurchased for
  cancellation((9))         −         −                    −          (0.21)           

Diluted earnings per                                                                              
share                 $        1.97   $        1.62         22   $        9.32   $        6.92         35

Return on common                                                                                  
shareholders' equity                                                                                     

  Including specified               %               %                                          %  
  items                        19.8            18.3                       24.5 %          20.2           

  Excluding specified               %               %                                          %  
  items                        19.2            19.0                       20.7 %          20.9           

(1) On April 2, 2012, the Bank sold the operations of Natcan Investment
    Management Inc. (Natcan) and acquired a 35% interest in Fiera
    Capital Corporation (Fiera). During the quarter ended October 31,
    2012, the Bank recorded $1 million ($1 million net of income taxes)
    for its share of the integration costs incurred by Fiera and
    $2 million ($2 million net of income taxes) in recoveries of costs
    related to this transaction. During the year ended October 31,
    2012, the Bank recorded the following: a gain of $246 million
    ($212 million net of income taxes), which consisted of a
    $275 million sale price less $29 million in goodwill, intangible
    assets and direct charges; $16 million ($11 million net of income
    taxes) in other charges related to this transaction; and $3 million
    ($3 million net of income taxes) for its share of the integration
    costs incurred by Fiera.

(2) During the quarter ended October 31, 2012, $111 million
    ($81 million net of income taxes) in revenue was recorded given a
    change in the fair value of restructured notes. During the year
    ended October 31, 2012, $155 million in revenues ($113 million net
    of income taxes) was recorded, of which $111 million came from a
    change in the fair value of restructured notes, $34 million from a
    change in the fair value of commercial paper not included in the
    Pan-Canadian restructuring plan, and $10 million from gains
    following capital repayments on restructured notes classified as
    Available-for-sale securities.

(3) During the year ended October 31, 2012, income tax provisions
    totalling $29 million ($21 million for the year ended October 31,
    2011) were reversed as a result of a revaluation of income tax
    contingencies.

(4) During the year ended October 31, 2011, the Bank had recorded a
    reversal of $15 million ($11 million net of income taxes) in
    allowances for credit losses taken for loans and credit facilities
    secured by restructured notes of the MAV conduits.

(5) During the quarter ended October 31, 2012, $14 million ($10 million
    net of income taxes) in charges was recorded relative to the
    acquisitions of Wellington West Holdings Inc. (Wellington West) and
    the full-service investment advisory business of HSBC Securities
    (Canada) Inc. The charges consisted mainly of retention bonuses.
    During the quarter ended October 31, 2011, $8 million ($7 million
    net of income taxes) in charges had been recorded following the
    acquisition of Wellington West, as was a $1 million gain on the
    revaluation of the initial investment in Wellington West. During
    the year ended October 31, 2012, $38 million ($27 million net of
    income taxes) in charges was recorded and consisted mainly of
    retention bonuses. During the year ended October 31, 2011, the Bank
    had recorded $29 million in charges ($23 million net of income
    taxes) as well as a $9 million gain on the revaluation of the
    initial interest in Wellington West.

(6) During the quarter ended October 31, 2012, the Bank recorded
    $65 million ($48 million net of income taxes) in severance pay  as
    well as $4 million ($3 million net of income taxes) in lease
    terminations in order to optimize certain organizational
    structures. During the quarter ended October 31, 2011, $8 million
    ($5 million net of income taxes) in severance pay had been
    recorded. During the year ended October 31, 2012, the Bank recorded
    $80 million ($59 million net of income taxes) in severance pay and
    $4 million ($3 million net of income taxes) in lease terminations
    (2011: $27 million and $19 million net of income taxes).

(7) During the quarter ended October 31, 2012, $18 million ($13 million
    net of income taxes) in intangible assets were written off for
    internal technology developments considered obsolete.

(8) During the year ended October 31, 2011, the Bank had recorded
    $11 million ($8 million net of income taxes) in litigation
    provisions.

(9) During the year ended October 31, 2011, a $34 million premium had
    been paid on the Series 21, 24 and 26 First Preferred Shares
    repurchased for cancellation.

HIGHLIGHTS

(unaudited) (millions of Canadian dollars)
                                  Quarter ended                                Year ended
                October 31,     October 31,          %     October 31,     October 31,          %
                       2012            2011     Change            2012            2011     Change
                                                                                                 

Operating                                                                                 
results( )                                                                                       

Total         $               $                          $               $                
revenues              1,350           1,169         15           5,313           4,666         14

Net income              351             292         20           1,634           1,296         26

Net income                                                                              
attributable
to the Bank's
shareholders
( )                     333             274         22           1,561           1,224         28

Return on                                                                                 
common
shareholders'
equity( )              19.8 %          18.3 %                     24.5 %          20.2 %         

Per common                                                                                
share
(dollars)( )                                                                                     

Earnings -    $               $                          $               $                
Basic                  1.99            1.63         22            9.40            7.00         34

Earnings -                                                                                
Diluted                1.97            1.62         22            9.32            6.92         35
                                                                                                 

EXCLUDING                                                                                 
SPECIFIED
ITEMS((1))                                                                                       

Operating                                                                                 
results                                                                                          

Total         $               $                          $               $                
revenues              1,240           1,168          6           4,915           4,657          6

Net income              343             303         13           1,396           1,305          7

Net income                                                                              
attributable
to the Bank's
shareholders            325             285         14           1,323           1,233          7

Return on                                                                                 
common
shareholders'
equity                 19.2 %          19.0 %                     20.7 %          20.9 %         

Per common                                                                                
share
(dollars)                                                                                        

Earnings -    $               $                                          $                
Basic                  1.94            1.70         14   $        7.93            7.26          9

Earnings -                                                                                
Diluted                1.93            1.68         15            7.86            7.18          9
                                                                                                 

Per common                                                                                
share
(dollars)( )                                                                                     

Dividends                                                                $                
declared      $        0.79   $        0.71              $        3.08            2.74           

Book value                                                       40.04           35.65           

Stock trading                                                                             
range                                                                                            

  High                77.51           73.51                      81.27           81.44           

  Low                 73.89           66.65                      63.27           64.86           

  Close               77.18           71.14                      77.18           71.14           
                                                                                                 
                                                                                                 
                                                                                        
                                                                As at            As at    
                                                           October 31,     October 31,          %
                                                                  2012            2011     Change
                                                                                                 

Financial position                                                                               

Total assets                                             $     177,903   $     166,854          7

Loans and acceptances                                           90,922          80,758         13

Deposits                                                        93,249          85,562          9

Subordinated debt and equity                                    10,710           9,505         13

Pro forma Common Equity Tier 1 ratio under Basel III(                  %               %  
(2))                                                               7.3             7.6           

Capital ratios under Basel II((2))                                                               

  Tier 1                                                          12.0 %          13.6 %         

  Total                                                           15.9 %          16.9 %         

Capital ratios under Basel I((2))                                                                

  Tier 1                                                          11.0 %          11.1 %         

  Total                                                           14.6 %          14.1 %         

Impaired loans, net of individual and collective                                          
allowances                                                       (190)           (201)           

  as a % of loans and acceptances                                (0.2) %         (0.2) %         

Assets under administration and under management               232,953         242,995           

Total personal savings                                         149,755         138,536           

Interest coverage                                                12.23           10.60           

Asset coverage                                                    3.45            3.83           
                                                                                                 

Other information                                                                                

Number of employees                                             19,920          19,431          3

Number of branches in Canada                                       451             448          1

Number of banking machines                                         923             893          3

(1) See the Financial Reporting Method section on page 2.

(2) The 2011 figures have not been restated to reflect the changeover
    to IFRS.

Analysis of Results

Total Revenues 
For the fourth quarter of 2012, the Bank's revenues amounted to 
$1,350million, up $181million or 15% from the same quarter in 2011. Net 
interest income from the Personal and Commercial segment rose $12million in 
the fourth quarter of 2012, as growth in personal loan volume helped offset 
narrower net interest margins.

Also contributing to the total revenue growth were trading activity revenues, 
both net interest income and other income, mainly due to a $111million 
change in the fair value of restructured notes and to revenues from 
fixed-income securities. Gains on available-for-sale securities increased 
$20million, mainly because of a disposal gain on the investments sold during 
the TMX transaction.

Underwriting and advisory fees and revenues from trust services and mutual 
funds increased by $27million owing to the integration of Wellington West 
Holdings Inc. (Wellington West) and the full-service investment advisory 
business of HSBC Securities (Canada) Inc., and an $11million increase in 
revenues from acceptances, letters of credit and letters of guarantee came 
from volume growth.

For 2012, total revenues amounted to $5,313million, a year-over-year 
increase of 14% that was attributable to a gain on the sale of the operations 
of Natcan Investment Management Inc. (Natcan), to revenues related to holding 
restructured notes, to growth in personal loan volume, revenues from 
acceptances, the acquisitions in the Wealth Management segment, trading 
activity revenues, and the share in the net income of associate Maple 
Financial Group Inc.

Operating Expenses 
For the fourth quarter of 2012, operating expenses stood at $869million, a 
$105million year-over-year increase that was primarily attributable to 
$65million in severance pay and $4million in lease terminations incurred 
to optimize certain organizational structures in addition to $18million in 
intangible asset write-offs for internal technology developments considered 
obsolete. Salaries and staff benefits also increased, as new branches were 
opened and variable compensation was incurred as part of the acquisitions of 
Wellington West and the full-service investment advisory business of HSBC 
Securities (Canada) Inc.

For 2012, operating expenses stood at $3,173million, a $262million or 9% 
year-over-year increase that is explained mostly by the above-described 
reasons for the quarter and by charges incurred as part of the two Wealth 
Management acquisitions and certain charges related to the sale of Natcan's 
operations.

Provisions for Credit Losses 
For the fourth quarter of 2012, the Bank recorded $46million in provisions 
for credit losses, $4million less than in the same quarter of 2011 as fewer 
provisions were taken for losses on credit card receivables and business loans.

For 2012, the Bank recorded $180million in provisions for credit losses, 
slightly less than in 2011. A $28million reduction in the provisions for 
credit losses in the Personal and Commercial segment was offset by higher 
provisions in the Financial Markets segment and by the reversal of allowances 
for credit losses that had been recorded in 2011.

As at October31, 2012, gross impaired loans stood at $387million, a 
$20million decrease from October31, 2011 that was attributable mainly to 
business loans offset by an increase in corporate loans. Impaired loans 
represent 7.5% of the tangible capital adjusted for the allowances as at 
October31, 2012 compared to 8.6% as at October31, 2011. As at October31, 
2012, the allowances for credit losses exceeded gross impaired loans by 
$190million compared to $201million as at October31, 2011.

Income Taxes
Income taxes for the fourth quarter of 2012 rose $21million year over year. 
The tax rate stood at 19% for this fourth quarter compared to 18% in the same 
quarter of 2011. For 2012 and 2011, the effective income tax rates were 17% 
and 18%, respectively. Excluding the reversals of provisions for tax 
contingencies, the effective tax rate would have been 18% and 19%, 
respectively, for 2012 and 2011.

Results by Segment

Personal and Commercial 
In the Personal and Commercial segment, fourth-quarter net income totalled 
$157million, unchanged from the same quarter in 2011. Excluding $14million 
($11million net of income taxes) in severance pay incurred to optimize the 
segment's structure, net income was $168million, rising 7% attributable to 
sustained business growth and stringent control of operating expenses. 
Fourth-quarter total revenues increased by $7million owing to higher net 
interest income, which rose $12million, tempered by a $5million decrease 
in other income. The higher net interest income came mainly from growth in 
personal loan volume, tempered by a narrowing of the net interest margin, 
which was 2.12% in the fourth quarter of 2012 compared to 2.26% in the same 
quarter of 2011, mainly due to a decline in the spreads on loans. The decrease 
in other income was mainly attributable to the higher cost of loyalty programs 
for certain types of credit cards and a decrease in foreign exchange 
transaction volume.

Personal Banking's total revenues rose $8million, mainly due to higher loan 
volumes, especially consumer and mortgage loans and home equity lines of 
credit, partly offset by a narrowing of net interest margins. Commercial 
Banking's total revenues were down $1million, mainly due to a decrease in 
foreign exchange revenues.

The Personal and Commercial segment's fourth-quarter operating expenses 
increased $13million year over year, resulting mainly from the severance pay 
recorded during the quarter. Excluding this item, operating expenses were 
stable and, at 58%, the fourth-quarter efficiency ratio improved by 1% when 
compared to the same quarter last year. The segment recorded $4million less 
in provisions for credit losses, as lower provisions for losses on business 
loans and credit card receivables offset higher provisions for personal credit 
losses.

For 2012, the segment's net income rose $55million or 9% from 2011. 
Excluding the severance pay charge, net income totalled $693million and was 
up 11%. Total revenues increased 3%, essentially for the same reasons as those 
provided for the quarter. Personal Banking's total revenues were up 
$73million or 4%, mainly due to higher volumes for consumer loans, mortgage 
loans and home equity lines of credit. Commercial Banking's total revenues 
were up $7million or 1%. The segment took lower provisions for credit losses 
than in 2011, with the reduction being attributable to the same reasons 
provided for the quarter. At 57%, the efficiency ratio for 2012 was unchanged 
from 2011.

Wealth Management 
In the Wealth Management segment, net income totalled $30million in the 
fourth quarter of 2012, down from $44million in the same quarter last year. 
Fourth-quarter total revenues amounted to $252million compared to 
$243million in the fourth quarter of 2011, an increase that stems mainly 
from the acquisitions of Wellington West Holdings Inc. and the full-service 
investment advisory business of HSBC Securities (Canada) Inc.

For the fourth quarter of 2012, the segment's operating expenses stood at 
$211million, a $27million increase that came from the operating expenses 
of acquired companies, including the charges classified as specified items 
that consisted mainly of retention bonuses and severance pay.

For 2012, the Wealth Management segment generated net income of $331million 
compared to $173million in 2011. Its total revenues amounted to 
$1,229million compared to $911million in 2011, and its operating expenses 
were $818million compared to $679million in 2011. These revenue and 
expense increases were driven by the same factors provided for the quarter as 
well as by the gain on the sale of Natcan's operations.

Financial Markets 
In the Financial Markets segment, net income totalled $107million in the 
fourth quarter of 2012, up $33million from $74million in the same quarter 
of 2011. Excluding the severance pay incurred to optimize the organizational 
structure, the segment's net income totalled $124million, up 57%. On a 
taxable equivalent basis, fourth-quarter total revenues amounted to 
$337million compared to $280million in the fourth quarter of 2011. The 
increase came mainly from fourth-quarter trading activity revenues, which rose 
$44million year over year on the strength of greater fixed-income securities 
revenues. Revenues from financial market fees and banking services increased 
by 8% after greater capital issuance and credit financing activity. Other 
income increased by $4million owing to a higher contribution from associate 
Maple Financial Group Inc.

The segment's fourth-quarter operating expenses increased $17million year 
over year, as severance pay was incurred in the fourth quarter of 2012 to 
optimize the segment's structure. This segment's provisions for credit losses 
balance were nil for the fourth quarters of 2012 and 2011.

For 2012, the segment's net income totalled $473million, up $58million 
from 2011. Excluding specified items, the segment's net income was up 
$81million or 19% from 2011. On a taxable equivalent basis, total revenues 
amounted to $1,365million versus $1,257million, a $108million 
year-over-year increase that was mainly due to higher trading activity 
revenues from fixed-income securities, mitigated by lower revenues from 
commodities and foreign exchange transactions. Other income was up, mainly 
because of a higher contribution from associate Maple Financial Group Inc. and 
increased business activity at Credigy Ltd. Twelve-month operating expenses 
stood at $712million, a $40million year-over-year increase that stems from 
severance pay recorded during 2012. For 2012, the segment recorded $4million 
in provisions for credit losses, $9million more than in 2011 when 
$5million had been recovered.

Financial Market Revenues 
(taxable equivalent basis)((1))
(millions of Canadian dollars)
                                                   Q4     Fiscal Year
                                          2012   2011    2012    2011
                                                                     

Trading activity revenues                                            

  Equity                                    61     51     249     241

  Fixed income                              68     19     212     130

  Commodity and foreign exchange            16     31      73      92
                                           145    101     534     463

Financial market fees                       71     66     278     271

Gains on available-for-sale securities,    (3)    (2)      49      62
net

Banking services                            67     62     252     241

Other                                       57     53     252     220

Total                                      337    280   1,365   1,257

(1)See the Financial Reporting Method section on page 2.

Other 
For the Other heading of segment results, fourth-quarter net income totalled 
$57million compared to $17million in the same quarter of 2011. Specified 
items, net of income taxes, in the fourth quarter of 2012, included 
$81million in revenues related to a change in the fair value of restructured 
notes, $17million in charges incurred to optimize some of the Bank's 
organizational structures, and $13million in intangible asset write-offs. 
During the fourth quarter of 2011, no specified item had been recorded. 
Excluding specified items, net income was down $11million due to a higher 
contribution from Treasury in the fourth quarter of 2011.

For 2012, net income was up $67million, mainly reflecting the specified 
items recorded in 2012 and 2011. The 2012 specified items, net of income 
taxes, include $113million in revenues related to holding restructured 
notes, $17million in severance pay and lease terminations incurred to 
optimize certain organizational structures, and $13million in intangible 
asset write-offs. In 2011, the specified items, net of income taxes, had 
included $8million in litigation provisions, $14million in severance pay 
and an $11million reversal of allowances for credit losses taken for loans 
and credit facilities secured by restructured notes of the MAV conduits. 
Reversals of provisions for income tax contingencies amounting to $29million 
and $21million were recorded in 2012 and 2011, respectively.

Balance Sheet

As at October31, 2012, the Bank had total assets of $177.9billion compared 
to $166.9billion as at October31, 2011. Cash and deposits with financial 
institutions, securities, and securities purchased under reverse repurchase 
agreements and securities borrowed rose $1.7billion since October31, 2011, 
mainly due to an increase in securities purchased under reverse repurchase 
agreements and securities borrowed. Loans and acceptances rose $10.2billion 
due to sustained growth in residential mortgages and personal loans. As at 
October31, 2012, goodwill rose $80million since October31, 2011 due to 
the first-quarter acquisition of the full-service investment advisory business 
of HSBC Securities (Canada) Inc. offset mainly by a write-off from the sale of 
the operations of the Natcan Investment Management Inc. subsidiary during the 
second quarter of 2012.

Since October31, 2011, deposits rose $7.6billion, reflecting both personal 
and business deposits. The growth in other financing activities came mainly 
from liabilities related to transferred receivables, which were up 
$2.5billion, following new securitizations in 2012.

As at October31, 2012, the Bank's equity was $8.2billion, up from 
$7.5billion as at October31, 2011 due mainly to an increase in retained 
earnings.

Shares and Stock Options as at October31, 2012
                            Number      
                         of shares       $ million
                                                  

First Preferred Shares                            

  Series 15              8,000,000             200

  Series 16              8,000,000             200

  Series 20              6,900,000             173

  Series 21              3,410,861              85

  Series 24              2,425,880              61

  Series 26              1,724,835              43
                        30,461,576             762

Common shares          161,308,273 ((1))     2,054

Stock options            7,794,218 ((1))       ( )

(1)As at November 30, 2012, there were 161,133,246 common shares and 
7,786,925 stock options outstanding.

The table below presents the main portfolios:

Average Monthly Volumes 
(millions of Canadian dollars)
                                 October   October
                                 2012      2011

Loans and acceptances                          

Consumer loans                 9,710     9,503 

Residential mortgages         46,614    40,817 

Credit card receivables        1,902     1,904 

SME loans                     20,558    19,586 

Corporate loans                8,903     6,860 
                              87,687    78,670 
                                               

Personal savings (balance)                     

Deposits                      43,905    40,433 
                                               

Full-service brokerage        87,272    79,490 

Mutual funds                  15,027    13,659 

Other                          3,551     4,954 
                             105,850    98,103 

Business deposits             18,797    16,906 

As at October31, 2012, loan and acceptance volumes totalled $87.7billion, 
up $9.0billion or 11% since October31, 2011. Year over year, consumer 
loans rose 2%, especially as a result of indirect consumer loans. Residential 
mortgage volumes continued to experience sustained growth, rising 14% since 
last year, with the strongest increase coming from home equity line of credit 
products. Credit card receivables remained relatively stable over the past 
year. SME loans advanced 5% since October31, 2011 mainly due to higher 
acceptances. Corporate loans grew by a significant 30% after a rebound in 
activity, particularly in the energy industry.

At $43.9billion as at October31, 2012, personal deposits were up 
$3.5billion or 9% since October31, 2011, owing essentially to 
transactional deposits and to the CashPerformer account. Personal savings 
included in assets under administration and under management were up 8% since 
the beginning of the fiscal year. This increase was attributable to the 
acquisition of the full-service investment advisory business of HSBC 
Securities (Canada) Inc. and growth in private wealth management activities. 
Business deposits were also up 11% since October31, 2011.

Capital

The Bank considers credit risk, operational risk and market risk in its 
approach to managing capital. In accordance with Basel II, the Bank uses the 
Advanced Internal Rating-Based (AIRB) Approach to manage credit risk and the 
Standardized Approach for operational risk. For market risk, the Bank mainly 
uses an approach based on internal models but also uses the Standardized 
Approach for certain exposures. Detailed information is provided in the 
Capital Management section of the 2012 Annual Report. The new Basel III 
capital standards will gradually come into force from January 1, 2013 to 
January 1, 2019. The Bank expects to achieve compliance with these new 
standards without resorting to the regulatory event redemption clause included 
in the capital instruments in question. As at October31, 2012, the pro forma 
Common Equity Tier 1 ratio under Basel III was 7.3%, slightly less than the 
7.6% ratio as at October31, 2011.

According to the rules of Basel II, the Tier 1 and total capital ratios stood 
at 12.0% and 15.9%, respectively, as at October31, 2012, compared to 13.6% 
and 16.9% as at October31, 2011. The lower Tier 1 capital ratio was 
attributable to the application of IFRS, to the acquisition of a 35% interest 
in Fiera, to a repurchase of onemillion common shares and to an increase in 
credit-risk weighted assets due mainly to organic growth. These factors were 
partly mitigated by net income, net of dividends, the sale of Natcan's 
operations and the common share issuance related primarily to stock options 
exercised. The total capital ratio remained steady given the $1billion 
issuance of subordinated debt.

The risk-weighted assets calculated under the rules of Basel II increased and 
amounted to $55.9billion as at October31, 2012 compared to $50.4billion 
as at October31, 2011.

Transaction - TMX Group Limited

On July 31, 2012, Maple Group Acquisition Corporation (Maple), now TMX Group 
Limited, a corporation whose investors comprise the Bank and 11 other leading 
Canadian financial institutions and pension funds, announced that all of the 
conditions to Maple's offer to acquire up to 80% of TMX Group Inc. (TMX) 
shares for $50 per share were satisfied.

On August 1, 2012, Maple completed the acquisitions of Alpha Trading Systems 
Inc., Alpha Trading Systems Limited Partnership and The Canadian Depository 
for Securities Limited. The Bank recognized a gain of $25million 
($18million after taxes) on the sale of its interests in these three 
companies.

On August 1, 2012, as part of its commitments as an equity participant in 
Maple, the Bank, through a subsidiary, subscribed $190million in Maple 
securities. In addition, the Bank acted as co-underwriter, joint bookrunner 
and administrative agent on the acquisition financing. As a lender, the Bank 
granted a $210million unsecured loan to Maple. Concurrent to the financing, 
the Bank also arranged and entered into interest rate swaps, retaining a total 
notional amount of $300million as at October31, 2012.

On September 13, 2012, the court approved the plan of arrangement under which 
TMX shares not acquired by Maple at that date would be exchanged for common 
shares of Maple on a one-for-one basis. On September 14, 2012, Maple held all 
of the shares in TMX.

The Bank, mainly because of its equity interest, debt financing, and presence 
on Maple's board of directors, has concluded that it exercises significant 
influence over Maple. The interest in Maple (now TMX GroupLimited) has 
been accounted for using the equity method since August1,2012.

Events After the Consolidated Balance Sheet Date

Issuance of Preferred shares
On October 30, 2012, the Bank announced the issuance of 7million 
non-cumulative 5-year rate reset Series 28 First Preferred Shares at a price 
equal to $25.00 per share, for gross proceeds of $175million.The Bank also 
granted the underwriters an option to purchase up to an additional 
onemillion Series 28 preferred shares. Before the offering closed, the 
underwriters agreed to purchase an additional onemillion shares under the 
terms of this option, bringing the total issuance to 8million shares and 
$200million in gross proceeds. On November 7,2012, the Bank completed this 
issuance.

Repurchase of Preferred shares
On December 5, 2012, the Bank's Board of Directors approved the repurchase of 
all of the issued and outstanding non-cumulative fixed-rate Series 15 First 
Preferred Shares. This repurchase is subject to the approval of the Office of 
the Superintendent of Financial Institutions.

Dividends

The Board of Directors declared regular dividends on the various 
seriesoffirst preferred shares and a dividend of 83 cents per common 
share,payable on February 1, 2013 to shareholders of record on 
December27,2012.   

CONSOLIDATED BALANCE SHEETS

(unaudited) (millions of Canadian dollars)
                                     As at October 31,   As at October 31,
                                               2012                2011

ASSETS                                                                 

Cash and deposits with financial              3,249               2,851
institutions
                                                                       

Securities                                                             

At fair value through profit or              44,524              47,450
loss

Available-for-sale                           10,374               9,142
                                             54,898              56,592
                                                                       

Securities purchased under                           
reverse repurchase agreements
and securities borrowed                      15,529              12,507
                                                                       

Loans                                                                  

Residential mortgage                         33,538              28,921

Personal and credit card                     26,529              24,274

Business and government                      23,182              20,777
                                             83,249              73,972

Allowances for credit losses                  (577)               (608)
                                             82,672              73,364
                                                                       

Other assets                                                           

Customers' liability under                    8,250               7,394
acceptances

Fair value of derivative                      6,696               8,224
financial instruments

Due from clients, dealers and                 1,661               1,779
brokers

Investments in associates and                   625                 201
joint ventures

Premises and equipment                          440                 418

Goodwill                                      1,063                 983

Intangible assets                               778                 607

Other                                         2,042               1,934
                                             21,555              21,540
                                            177,903             166,854
                                                     

LIABILITIES AND EQUITY                                                 

Deposits                                                               

Personal                                     43,905              40,433

Business and government                      46,223              40,524

Deposit-taking institutions                   3,121               4,605
                                             93,249              85,562
                                                                       

Other liabilities                                                      

Acceptances                                   8,250               7,394

Obligations related to securities            18,124              18,146
sold short

Obligations related to securities                    
sold under repurchase agreements
and securities loaned                        19,539              20,268

Fair value of derivative                      5,600               7,470
financial instruments

Due to clients, dealers and                   1,959               1,351
brokers

Liabilities related to                       15,398              12,905
transferred receivables

Other                                         5,074               4,253
                                             73,944              71,787

Subordinated debt                             2,470               2,000
                                                     

EQUITY                                                                 

Equity attributable to the Bank's                                      
shareholders

Preferred shares                                762                 762

Common shares                                 2,054               1,970

Contributed surplus                              58                  46

Retained earnings                             4,091               3,366

Accumulated other comprehensive                 255                 337
income
                                              7,220               6,481

Non-controlling interests                     1,020               1,024
                                              8,240               7,505
                                            177,903             166,854
    CONSOLIDATED INCOME STATEMENTS

(unaudited) (millions of Canadian dollars)
                               Quarter ended                  Year ended
                   October 31,   October 31,   October 31,   October 31,
                          2012          2011          2012          2011

Interest income                                                         

Loans                      775           749         3,037         2,917

Securities at fair         217           213           926           880
value through
profit or loss

Available-for-sale          43            38           147           157
securities

Deposits with                4             4            17            15
financial
institutions 
                         1,039         1,004         4,127         3,969

Interest expense                                                        

Deposits                   195           159           805           627

Liabilities                123           110           427           431
related to
transferred
receivables

Subordinated debt           25            23            87            92

Other                      103           126           470           489
                           446           418         1,789         1,639

Net interest               593           586         2,338         2,330
income
                                                                        

Other income                                                            

Underwriting and            85            71           318           308
advisory fees

Securities                  82            89           343           327
brokerage
commissions

Deposit and                 58            58           229           228
payment service
charges

Trading revenues           135           (9)           233          (25)
(losses)

Gains on                    27             7           123           105
available-for-sale
securities, net 

Card revenues               26            33           113           116

Credit fees                 40            42           166           169

Insurance revenues          27            27           111           111

Revenues from               56            45           203           166
acceptances,
letters of credit
and guarantee

Foreign exchange            23            27            94           105
revenues, other
than trading

Revenues from              125           112           480           426
trust services and
mutual funds

Share in the net             4           (3)            29             2
income of
associates and
joint ventures 

Other                       69            84           533           298
                           757           583         2,975         2,336

Total revenues           1,350         1,169         5,313         4,666

Provisions for              46            50           180           184
credit losses
                         1,304         1,119         5,133         4,482

Operating expenses                                                      

Salaries and staff         543           449         1,953         1,729
benefits

Occupancy                   55            49           205           190

Technology                 111           101           414           405

Communications              17            19            70            74

Professional fees           52            56           195           185

Other                       91            90           336           328
                           869           764         3,173         2,911

Income before              435           355         1,960         1,571
income taxes 

Income taxes                84            63           326           275

Net income                 351           292         1,634         1,296

Non-controlling             18            18            73            72
interests

Net income                 333           274         1,561         1,224
attributable to
the Bank's
shareholders

  Dividends on              11            11            43            53
  preferred shares

  Premium paid on      −       −       −            34
  preferred shares
  repurchased for
  cancellation

  Net income               322           263         1,518         1,137
  attributable to
  common
  shareholders

Number of common                                                        
shares outstanding
(thousands)

  Average - Basic      161,763       161,112       161,387       162,425

  Average -            163,190       162,771       162,873       164,255
  Diluted

Earnings per                                                            
common share
(dollars)

  Basic                   1.99          1.63          9.40          7.00

  Diluted                 1.97          1.62          9.32          6.92

Dividends per             0.79          0.71          3.08          2.74
common share
(dollars)
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited) (millions of Canadian dollars)
                                     Quarter ended                  Year ended
                         October 31,   October 31,   October 31,   October 31,
                                2012          2011          2012          2011
                                                                              

Net income                       351           292         1,634         1,296
                                                                    

Other comprehensive                                               
income, net of income
taxes                                                                         
                                                                              

  Items that will be                                                          
  reclassified
  subsequently to net
  income                                                          
                                                                    
    Net unrealized                                                
    foreign currency
    gains (losses) on
    translating
    financial
    statements of
    foreign operations            5            54           (20)          (34)
    Impact of hedging                                                       37
    net foreign
    currency
    translation gains
    (losses)                     (4)          (45)             5

  Net change in
  unrealized foreign
  currency translation
  gains (losses), net
  of hedging
  activities                       1             9          (15)             3
                                                                    
    Net unrealized                                                         118
    gains (losses) on
    available-for-sale
    securities                     2             3            63
    Reclassification                                              
    to net income of
    net (gains) losses
    on
    available-for-sale
    securities                  (20)          (23)          (79)         (125)

  Net change in
  unrealized gains
  (losses) on
  available-for-sale
  securities, net of
  fair value hedge
  transactions                  (18)          (20)          (16)           (7)
                                                                              
    Net gains (losses)                                            
    on derivative
    financial
    instruments
    designated as cash
    flow hedges                  (3)            34           (2)            32
    Reclassification                                              
    to net income of
    net (gains) losses
    on designated
    derivative
    financial
    instruments                 (11)          (22)          (54)          (87)

  Net change in gains
  (losses) on
  derivative financial
  instruments
  designated as cash
  flow hedges                   (14)            12          (56)          (55)
                                                                              

  Items that will not                                                         
  be reclassified
  subsequently to net
  income                                                          
                                                                              

Actuarial gains and             (69)           (9)         (233)          (65)
losses on employee
benefit plans                                                     
                                                                              

Share in the other                                                
comprehensive income
of associates and
joint ventures                   (1)             2             1             1
                                                                              

Total other                                                       
comprehensive income,
net of income taxes            (101)           (6)         (319)         (123)
                                                                              

Total comprehensive                                               
income                           250           286         1,315         1,173
                                                                              

Total comprehensive                                               
income attributable
to:                                                                           

  Shareholders of the            232           268         1,246         1,101
  Bank                                                            

  Non-controlling                 18            18            69            72
  interests                                                       
    INCOME TAXES - OTHER COMPREHENSIVE INCOME

The income tax expense or recovery for each component of other comprehensive 
income is presented in the following table:
                                    Quarter ended                  Year ended
                        October 31,   October 31,   October 31,   October 31,
                               2012          2011          2012          2011
                                                                             

Net unrealized                                                   
foreign currency
gains (losses) on
translating financial
statements of foreign
operations                 −             9            (1)           (5)

Impact of hedging net                                            
foreign currency
translation gains
(losses)                         2           (15)            6            11 

Net unrealized gains                                             
(losses) on
available-for-sale
securities                       6            (8)           26            42 

Reclassification to                                              
net income of net
(gains) losses on
available-for-sale
securities                     (12)           (3)          (34)          (43)

Net gains (losses) on                                            
derivative financial
instruments
designated as cash
flow hedges                     (2)            7            (1)            4 

Reclassification to                                              
net income of net
(gains) losses on
designated derivative
financial instruments           (4)           (5)          (20)          (32)

Actuarial gains and                                              
losses on employee
benefit plans                  (26)           (4)          (86)          (24)

Total income taxes                                               
(recovery)                     (36)          (19)         (110)          (47)
    CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY

(unaudited) (millions of Canadian dollars)
                                                             

Year ended October 31                                    2012      2011
                                                                       

Preferred shares at beginning                             762     1,089

Repurchase of Series 21, 24 and 26 preferred shares            
for cancellation                                      −     (327)

Preferred shares at end                                   762       762
                                                                       

Common shares at beginning                              1,970     1,777

Issuances of common shares                                             

  Stock Option Plan                                        93       100

  Acquisition of Wellington West Holdings Inc.              2       169

  Other                                                     2       (2)

Repurchase of common shares for cancellation             (13)      (74)

Common shares at end                                    2,054     1,970
                                                                       

Contributed surplus at beginning                           46        39

Stock option expense                                       15        17

Stock options exercised                                  (10)       (1)

Other                                                       7       (9)

Contributed surplus at end                                 58        46
                                                                       

Retained earnings at beginning                          3,366     3,139

Net income attributable to the Bank's shareholders      1,561     1,224

Dividends                                                              

  Preferred shares                                       (43)      (53)

  Common shares                                         (498)     (445)

Premium paid on common shares repurchased for                  
cancellation                                             (62)     (399)

Premium paid on preferred shares repurchased for               
cancellation                                          −      (34)

Share issuance and other expenses, net of income               
taxes                                                 −       (2)

Actuarial gains and losses on employee benefit                 
plans                                                   (233)      (65)

Other                                                 −         1

Retained earnings at end                                4,091     3,366
                                                                       

Accumulated other comprehensive income at beginning       337       395

Net change in unrealized foreign currency                      
translation gains (losses), net of hedging
activities                                               (15)         3

Net change in unrealized gains (losses) on                     
available-for-sale securities, net of fair value
hedge transactions                                       (16)       (7)

Net change in gains (losses) on derivative                     
financial instruments designated as cash flow
hedges                                                   (52)      (55)

Share in the other comprehensive income of                     
associates and joint ventures                               1         1

Accumulated other comprehensive income at end             255       337
                                                                       

Equity attributable to the Bank's shareholders          7,220     6,481
                                                                       

Non-controlling interests at beginning                  1,024     1,022

Net income attributable to non-controlling                     
interests                                                  73        72

Other comprehensive income attributable to                     
non-controlling interests                                 (4)   −

Change in non-controlling interests                      (73)      (70)

Non-controlling interests at end                        1,020     1,024
                                                                       

Equity                                                  8,240     7,505
    ACCUMULATED OTHER COMPREHENSIVE INCOME
    As at October 31                                            2012   2011
                                                                       

Accumulated other comprehensive income                                 

Unrealized foreign currency gains (losses), net of          (12)      3
hedging activities

Unrealized gains (losses) on available-for-sale              164    180
securities, net of fair value hedge transactions

Gains (losses) on derivative financial instruments           101    153
designated as cash flow hedges

Share in the other comprehensive income of associates and      2      1
joint ventures
                                                             255    337
    SEGMENT DISCLOSURES

(unaudited) (millions of Canadian dollars)

The presentation of segment disclosures is consistent with the presentation 
adopted by the Bank for the year beginning November 1, 2011. It reflects the 
fact that treasury operations, including the Bank's asset and liability 
management activities, which had previously been presented in the Financial 
Markets segment, are now presented in the Other heading. The Bank made this 
change to align the monitoring of its activities with its management 
structure. Prior period results have been restated to reflect this change.
                                                                                                           
                     Personal and              Wealth           Financial                                        
                       Commercial          Management             Markets               Other               Total

Quarter ended                                                                                            
October 31         2012      2011      2012      2011      2012      2011      2012      2011      2012      2011
                                                                                                                 

Net interest                                                                                             
income((1))         412       400        49        40       164       135      (32)        11       593       586

Other income        237       242       203       203       173       145       144       (7)       757       583

Total revenues      649       642       252       243       337       280       112         4     1,350     1,169

Operating                                                                                                
expenses            389       376       211       184       191       174        78        30       869       764

Contribution        260       266        41        59       146       106        34      (26)       481       405

Provisions for                                                                                           
credit losses        46        50   −   −   −   −   −   −        46        50

Income before                                                                                            
income taxes
(recovery)          214       216        41        59       146       106        34      (26)       435       355

Income taxes                                                                                             
(recovery)((1))      57        59        11        15        39        32      (23)      (43)        84        63

Net income          157       157        30        44       107        74        57        17       351       292

Non-controlling                                                                                          
interests       −   −   −         1         1   −        17        17        18        18

Net income                                                                                               
attributable to
the Bank's
shareholders        157       157        30        43       106        74        40   −       333       274
                                                                                                           

Average assets   77,448    70,115     1,238     1,029    77,696    78,432    29,312    20,178   185,694   169,754
                                                                                                           
                     Personal and              Wealth           Financial                                        
                       Commercial          Management             Markets               Other               Total

Year ended                                                                                               
October 31         2012      2011      2012      2011      2012      2011      2012      2011      2012      2011
                                                                                                                 

Net interest                                                                                             
income((2))       1,629     1,572       179       145       613       608      (83)         5     2,338     2,330

Other income        962       939     1,050       766       752       649       211      (18)     2,975     2,336

Total revenues    2,591     2,511     1,229       911     1,365     1,257       128      (13)     5,313     4,666

Operating                                                                                                
expenses          1,484     1,437       818       679       712       672       159       123     3,173     2,911

Contribution      1,107     1,074       411       232       653       585      (31)     (136)     2,140     1,755

Provisions for                                                                                           
credit losses       176       204   −   −         4       (5)   −      (15)       180       184

Income before                                                                                            
income taxes
(recovery)          931       870       411       232       649       590      (31)     (121)     1,960     1,571

Income taxes                                                                                             
(recovery)((2))     249       243        80        59       176       175     (179)     (202)       326       275

Net income          682       627       331       173       473       415       148        81     1,634     1,296

Non-controlling                                                                                          
interests       −   −         1         4         3       (1)        69        69        73        72

Net income                                                                                               
attributable to
the Bank's
shareholders        682       627       330       169       470       416        79        12     1,561     1,224
                                                                                                           

Average assets   74,792    67,025     1,157     1,026    78,385    73,998    27,010    23,893   181,344   165,942
     

(1) Net interest income and income taxes (recoveries) of the operating
    segments are presented on a taxable equivalent basis. Taxable
    equivalent basis is a calculation method that consists in grossing
    up certain tax-exempt income by the amount of income tax that would
    have been otherwise payable. For the operating segments as a whole,
    Net interest income was grossed up by $43 million ($38 million in
    2011). An equivalent amount was added to Income taxes (recovery).
    The impact of these adjustments is reversed in the Other heading.

(2) For the year ended October 31, 2012, Net interest income was
    grossed up by $172 million ($176 million in 2011). An equivalent
    amount was added to Income taxes (recovery). The impact of these
    adjustments is reversed in the Other heading.

Personal and Commercial
The Personal and Commercial segment comprises the branch network, payment 
solutions, insurance, business banking services, and real estate.

Wealth Management
The Wealth Management segment comprises full-service retail brokerage, direct 
brokerage, mutual funds, intermediary services, trust services, and 
third-party financial services.

Financial Markets
The Financial Markets segment encompasses corporate financing and lending, 
trading activities, corporate brokerage and investing activities.

Other
This heading comprises treasury operations, including the Bank's asset and 
liability management activities, certain non-recurring items and the 
unallocated portion of corporate services.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

From time to time, National Bank of Canada (the Bank) makes written and oral 
forward-looking statements, such as those contained in the Major Economic 
Trends and Outlook for National Bank sections of the 2012 Annual Report, and 
in other filings with Canadian securities regulators and in other 
communications, for the purpose of describing the economic environment in 
which the Bank will operate during 2013 and the objectives it has set for 
itself for that period. These forward-looking statements are made pursuant to 
applicable securities legislation. They include, among others, statements with 
respect to the economy—particularly the Canadian and U.S. economies—market 
changes, observations regarding the Bank's objectives and its strategies for 
achieving them, Bank projected financial returns and certain risks faced by 
the Bank. These forward-looking statements are typically identified by future 
or conditional verbs or words such as "outlook," "believe," "anticipate," 
"estimate," "project," "expect," "intend," "plan," and terms and expressions 
of similar import.

By their very nature, such forward-looking statements require assumptions to 
be made and involve inherent risks and uncertainties, both general and 
specific. Assumptions about the performance of the Canadian and U.S. economies 
in 2013 and how that will affect the Bank's business are among the main 
factors considered in setting the Bank's strategic priorities and objectives 
and in determining its financial targets, including the allowance for credit 
losses. In determining its expectations for economic growth, both broadly and 
in the financial services sector in particular, the Bank primarily considers 
historical economic data provided by the Canadian and U.S. governments and 
their agencies. Tax laws in the countries in which the Bank operates, 
primarily Canada and the United States, are major factors it considers when 
establishing its effective tax rate.

There is a strong possibility that express or implied projections contained in 
these forward-looking statements will not materialize or will not be accurate. 
The Bank recommends that readers not place undue reliance on these statements, 
as a number of factors, many of which are beyond the Bank's control, could 
cause actual future results, conditions, actions or events to differ 
materially from the targets, expectations, estimates or intentions expressed 
in the forward-looking statements. These factors include credit risk, market 
risk, liquidity risk, operational risk, regulatory risk, reputation risk, and 
environmental risk (all of which are described in greater detail in the Risk 
Management section that begins on page 57 of the 2012 Annual Report); the 
general economic environment and financial market conditions in Canada, the 
United States and certain other countries in which the Bank conducts business, 
including the effects of the debt crisis in certain European countries; the 
lowering of the U.S. long-term sovereign debt rating by Standard & Poor's; the 
lowering of the sovereign debt rating of certain European countries and the 
impact of changes that affect the Bank's credit ratings; the situation with 
respect to the restructured notes of the master asset vehicle (MAV) conduits, 
in particular the realizable value of underlying assets; changes in the 
accounting policies and methods the Bank uses to report its financial 
condition, including uncertainties associated with critical accounting 
assumptions and estimates; changes to capital and liquidity guidelines and to 
the manner in which these items are to be presented and interpreted.

The foregoing list of risk factors is not exhaustive. Additional information 
about these factors can be found in the Risk Management and Other Risk Factors 
sections of the 2012 Annual Report. Investors and others who base themselves 
on the Bank's forward-looking statements should carefully consider the above 
factors as well as the uncertainties they represent and the risk they entail. 
The Bank also cautions readers not to place undue reliance on these 
forward-looking statements.

The forward-looking information contained in this document is presented for 
the purpose of interpreting the information contained herein and may not be 
appropriate for other purposes.

INFORMATION FOR SHAREHOLDERS AND INVESTORS

 _______________________________________________________________________________
|Disclosure of Fourth Quarter 2012 Results                                      |
|                                                                               |
|Conference Call                                                                |
|                                                                               |
|    --  A conference call for analysts and institutional investors will be held|
|        on December 6, 2012 at 1:30 p.m. ET.                                   |
|    --  Access by telephone in listen-only mode: 1-866-226-1792 or             |
|        416-340-2216.                                                          |
|    --  A recording of the conference call can be heard until December 15, 2012|
|        by dialing 1-800-408-3053 or 905-694-9451.                             |
|        The access code is 7648660#.                                           |
|                                                                               |
|Webcast                                                                        |
|                                                                               |
|    --  The conference call will be webcast live at                            |
|        nbc.ca/investorrelations.|
|    --  A recording of the webcast will also be available on National Bank's   |
|        website after the call.                                                |
|                                                                               |
|Financial Documents                                                            |
|                                                                               |
|    --  The quarterly financial statements are available at all times on       |
|        National Bank's website at                                             |
|        nbc.ca/investorrelations.|
|    --  Supplementary Financial Information and a slide presentation will be   |
|        available on the Investor Relations page of National Bank's website    |
|        shortly before the start of the conference call.                       |
|    --  The 2012 Annual Report (which includes the audited annual consolidated |
|        financial statements and the accompanying management's discussion and  |
|________analysis)_is_also_available_on_National_Bank's_website.________________|











Ghislain Parent Chief Financial Officer and Executive Vice-President Finance 
and Treasury 514-394-6807

Jean Dagenais Senior Vice-President Finance, Taxation and Investor Relations 
514-394-6233

Claude Breton Senior Director Public Affairs 514-394-8644

Hélène Baril Senior Director Investor Relations 514-394-0296 

SOURCE: National Bank of Canada

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/December2012/06/c6203.html

CO: National Bank of Canada
ST: Quebec
NI: FIN ERN DIV CONF 

-0- Dec/06/2012 12:21 GMT