National Bank of Canada (NTIOF): Slowing Business Activity in Uncertain Times
Quick Summary
National Bank of Canada (OTCPK:NTIOF, TSX:NA:CA) has outperformed other major Canadian banks over the past two to three years. In the most recent fiscal quarter, the bank reported solid results with topline revenue increasing by 9.0% YoY and pre-tax pre-provision earnings increasing by 11.4%. Operating leverage was positive at 2.1% as expenses increased by only 6.9%. Despite the impressive results, earnings were down 4% YoY due to an increase in provisions for credit losses. Going forward, the bank is well-positioned and capitalized, offering potential for further growth.
Full Story – National Bank of Canada (NTIOF): Things Are Slowing Down
Dear readers/followers,
As you may know by now, I am mainly a Real Estate guy, but I like to diversify my real estate investment trust (“REIT”) exposure into other sectors. One of those sectors that I have been fairly bullish on since last fall is Financials. I already own a handful of U.S. banks, but recently I became interested in diversifying my exposure into Canada, as I view some Canadian banks are extremely well-positioned and capitalized.
I already own Bank of Nova Scotia (BNS, BNS:CA), but looking at the price action of major Canadian banks, I couldn’t help but notice that the National Bank of Canada (OTCPK:NTIOF, TSX:NA:CA) has outperformed all others over the past two to three years. In this article, I want to analyze its past performance and see how it’s positioned going forward.
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Financials
The National Bank of Canada reported solid fiscal Q4 2022 results, growing their topline revenue by 9.0% YoY while their PTPP Earnings (pre-tax pre-provision) increased by 11.4% YoY. These increases were driven by overall good results across all four segments that the bank operates in. Disciplined cost management resulted in positive operating leverage of 2.1% as expenses increased by only 6.9%.
National Bank Q4 2022 Report
Those are pretty good overall results, but when we look closer, we actually see things slowing down. In particular, in Q4 2022, earnings were down about 4% YoY ($2.08 vs $2.17 per share in Q4 2021) largely because of an increase in…
