Read Larry Connors' blog – Short Term Trading Strategies
In a statement, president and chief executive officer, Louis Vachon said, "Excellent performance in the Financial Markets segment and the quality of our credit portfolios contributed greatly to these exceptional results for the third quarter of 2009. As planned, the Bank continued to invest significantly in its 'One client, one bank' program, which will enhance the network in the Personal and Commercial and Wealth Management segments, among other things."
Third Quarter Results
The Montreal, Quebec-based bank reported net income of C$303 million for the third quarter, up 6% from C$286 million in the prior-year quarter. On a per share basis, earnings grew 3% to C$1.78 from C$1.73 in the year-ago quarter.
The results for the latest quarter include C$1 million in after-tax costs related to holding asset-backed commercial paper or ABCP, while the year-ago quarter included C$24 million in after-tax ABCP-related charges, including a provision for credit losses, impairment charge, a gain on economic hedge transactions, financing costs, and professional fees. Further, the year-ago quarter also included a C$57 million after-tax gain related to the merger between the Montreal Exchange Inc. and TSX Group Inc.
Excluding specified items, net income for the quarter rose to C$304 million or C$1.79 per share from C$253 million or C$1.52 per share reported in the corresponding quarter last year.
Total revenues for the quarter grew 7% to C$1.13 billion from C$1.06 billion in the same quarter last year, helped by an increase in other income owing to higher securitization revenues, trading revenues and lending fees.
Total revenues, adjusted for non-controlling interest, increased 5% to C$1.14 billion from C$1.09 billion in the comparable quarter a year ago. Excluding specified items, total revenues for the quarter grew 16% to C$1.14 billion from C$981 million in the corresponding quarter last year.
Net interest income for the quarter was C$454 million, up from C$446 million in the year-ago quarter. Other income for the third quarter stood at C$678 million, compared to C$611 million for the same quarter of 2008.
Segmental Details
Personal and commercial revenues for the third quarter rose 4% to C$588 million from C$568 million in the same period last year. Segment net income edged up 1% to C$134 million from last year. Business growth was tempered by a narrowing of the segment's net interest margin to 2.47% from last year's 2.65%. The segment comprises the branch network, credit cards, insurance, business banking services and real estate.
Wealth Management, revenues dropped to C$187 million from C$203 million in the comparable quarter a year ago, due to lower transaction volume, the narrower spread on deposits, and lower assets under management and administration. Segment net income declined 19% to C$25 million from a year ago. The segment comprises full-service retail brokerage, direct brokerage, mutual funds, trust services, investment management services and portfolio management.
Financial Markets generated revenues of C$404 million for the quarter, up from C$362 million in the prior year quarter. Segment net income edged up 1% to C$167 million from last year. Revenues from banking services were 50% higher than a year ago. The segment encompasses corporate financing and lending, treasury operations, including asset and liability management for the Bank, and corporate brokerage.
Other segment reported negative revenues of C$47 million, compared to negative revenues of C$76 million in the prior-year quarter. Net loss narrowed to C$23 million from last year's C$43. The other segment comprises securitization transactions, certain non-recurring items, and the unallocated portion of centralized services.
Other Metrics
Return on common shareholders' equity for the quarter stood at 22.1%, compared to 23.7% last year. Excluding specified items, return on equity was 21.3%. As at July 31, 2009, the Tier 1 capital ratio was 10.5% and total capital ratio 14.1%, compared to 9.4% Tier 1 capital ratio and 13.2% as total capital ratio as at October 31, 2008. Assets under administration / management totaled C$191.81 million.
In the third quarter of 2009, The Bank recorded a C$46 million provision for credit losses for the quarter, C$16 million more than during the same quarter of 2008. Total operating expenses edged up 1% to C$663 million from C$659 million in the year-ago quarter. Income tax expense totaled C$110 million, up from C$95 million in the same quarter last year.
The company ended the third quarter with cash and cash equivalents of C$1.90 billion, compared to C$2.89 billion at end of the prior-year quarter.
Additionally, National Bank declared a regular dividend of C$0.62 per common share for the fourth quarter, payable on November 1 to shareholders of record on September 24, 2009. Further, the company also declared quarterly dividends on series of first preferred shares, payable on November 15, to shareholders of record on October 9, 2009.
Nine Month Highlights
For the nine months, National Bank reported net income of C$613 million or C$3.55 per share, down from C$706 million or C$4.30 per share in the prior-year period. Excluding specified items, net income for the period increased to C$818 million or C$4.83 per share from C$719 million or C$4.39 per share in the year-ago period.
Total revenues for the year-to-date period increased 6% to C$3.04 billion from C$2.87 billion in the same period last year. Excluding specified items, total revenues grew 12% to C$3.22 billion from C$2.87 billion a year ago.
Stock Quote
On the Toronto Stock Exchange, NA.TO is currently trading at C$60.14, up C$1.63 or 2.79% on a volume of 0.32 million shares. The stock has been trading in a range of C$24.25 to C$60.39 in the past 52 weeks.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
