National Bank of Canada’s profit rises on wealth management, markets strength

By Thomson Reuters May 29, 2024 | 5:45 AM

(Reuters) -National Bank of Canada reported a rise in second-quarter net profit on Wednesday, helped by strong performance in its wealth management and financial markets units.

Easing fears of a recession have encouraged investors to venture back into stocks and other fixed-income products, boosting wealth management units and trading desks of lenders.

Profit at the bank’s wealth management unit rose 15% in the second quarter to C$205 million.

Net income of its financial markets segment came in at C$322 million, up 20% from a year earlier.

The upbeat results contrast with rival BMO Financial Group, which reported a drop in quarterly adjusted profit, hurt by weakness in its U.S. business.

National Bank of Canada’s profit rose to C$906 million ($662.9 million), or C$2.54 per share, for the three months ended April 30, from C$832 million, or C$2.34 per share, a year earlier.

($1 = 1.3667 Canadian dollars)

(Reporting by Pritam Biswas in Bengaluru; Editing by Shailesh Kuber)