Net income for the three-month period ending April 30 slipped to $ 379 million from $ 558 million a year earlier. Per share, the bank’s earnings were in line with analysts’ average estimate of $ 1.01.
National established a provision for credit losses (PCL) of $ 504 million, compared to $ 89 million in the first quarter of the year and $ 84 million a year earlier.
Preparing loans that could go wrong during the COVID-19 pandemic had a particularly noticeable impact on National’s main personal and commercial banking division, where profits fell to $ 65 million from $ 230 million. dollars a year earlier. At the same time, profits remained stable in its Financial Markets division and up 21% in Wealth Management.
The bank also confirmed that it maintains its quarterly dividend at 71 cents per share.
“At this point, the severity and duration of the COVID-19 pandemic and its impact on the economy are impossible to predict,” said CEO Louis Vachon in a statement. “I am convinced that the resilience of the bank’s franchise, our defensive positioning, the quality of our credit portfolios and our solid balance sheet will be useful to us in our management in these uncertain times. “