National Bank of Canada Third-Quarter Profit Falls on Investment Banking

National Bank of Canada, the country’s sixth-largest bank by assets, said profit fell for the first time in six quarters on lower fees from capital markets- related businesses.

Net income in the period ended July 31 dropped 11 percent to C$271 million ($256.7 million), or C$1.56 a share, from C$303 million, or C$1.78, a year earlier, the Montreal-based bank said today in a statement.

National Bank said profit at its Financial Markets business, which includes investment banking, dropped 42 percent to C$98 million as trading revenue declined.

“Last year, management achieved strong results, primarily driven by trading,” BMO Capital Markets analyst John Reucassel wrote in a note before results were released. “We are reluctant to assume this is sustainable.”

Before one-time items, National Bank earned C$1.57 a share. That exceeded the C$1.52-a-share average estimate of 14 analysts surveyed by Bloomberg News.

National Bank rose 12 cents to C$55.65 in trading yesterday on the Toronto Stock Exchange.

(National Bank will hold a conference call at 1:30 p.m. Toronto time. To listen, dial +1-416-340-8018 or +1-866-223-7781.)

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

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