National Bank of Canada, the lender that’s expanded through takeovers of investment advisers, seeks to earn a quarter of its revenue from wealth management by 2017, Chief Executive Officer Louis Vachon said.
Vachon set the new target today during an investor-day event, up from its previous target of 22 percent, which the Montreal-based lender has already met, he said. Last year’s goal was 20 percent, which the company also exceeded, Vachon said.
National Bank has expanded in wealth management in the last three years, acquiring Winnipeg-based Wellington West Holdings Inc. and the Canadian investment-advisory business of HSBC Holdings Plc. In November, the bank bought Toronto-Dominion Bank’s institutional-services unit.
“Wealth management will play a critical role in creating value in the upcoming years,” Vachon said at today’s event.