National Bank profit plunges as it writes off stake in Maple Financial

MONTREAL -- National Bank (TSX:NA) saw a 37 per cent drop in its first-quarter profit due in large part to a decision to write off its investment in Maple Financial Group.

See Full Article

The Montreal-based bank -- the smallest of Canada's six major banks -- says its net income for the quarter totalled $261 million, down from $415 million a year earlier.

Diluted earnings per share were 67 cents for the three months ended Jan. 31, down from $1.16 a year earlier.

National Bank announced on Feb. 7 that it would write off the value of its 24.9 per cent interest in Maple Financial after a German financial regulator shut down its Maple Bank subsidiary.

The decision cost the bank $145 million after taxes.

Excluding several specified items, including the Maple Bank loss, National Bank says it would have earned $427 million or $1.17 per share in the quarter -- up four per cent from $410 million or $1.14 per share a year ago.

The bank's personal and commercial operations contributed $184 million of net income, up eight per cent from last year.

Net income from wealth management was up four per cent to $77 million from $74 million while its financial markets arm contributed $41 million of net income, down from $177 million a year earlier -- mainly because of Maple Financial.

Maple Financial Group is unrelated to Maple Acquisition Group, which bought the TMX in 2012.



Advertisements

Latest Economic News

  • Guide to 'fake news' wins $30,000 National Business Book Award

    Economic CTV News
    TORONTO -- A timely guide to distinguishing fact from fiction in the era of "fake news" was announced Monday as the winner of the $30,000 National Business Book Award. Neuroscientist Daniel J. Levitin said he was prompted to write "A Field Guide to Lies: Critical Thinking in the Information Age" (Allen Lane Canada) as a response to the "Balkanization of the news over the last 15 years. Source
  • Montreal couple hid winning $55M lottery ticket in daughter's toy box

    Economic CTV News
    MONTREAL -- A Montreal couple who won $55 million in a lottery jackpot hid the winning ticket in their daughter's toy box over the weekend. Nathalie Langlais and Gilles Rosnen picked up their winnings at Loto-Quebec headquarters in Montreal on Monday, three days after the Lotto Max draw. Source
  • Capital markets not a place for 2nd chances, OSC lawyers tell Drabinsky hearing

    Economic CBC News
    Lawyers for Ontario's securities regulator said today in their closing statements that Garth Drabinsky, who defrauded investors of an estimated $500 million, should not be allowed to participate in the capital markets. Pamela Foy, senior litigation counsel with the Ontario Securities Commission, says the capital markets are not the place for second chances and the commission cannot allow Drabinsky to be in a position where he could do more damage. Source
  • Luxury shoe brand Jimmy Choo goes up for sale

    Economic CTV News
    LONDON -- Shares in Jimmy Choo have leapt 11 per cent after its board put the luxury shoe brand up for sale. The gains bring the market value of the firm that began in east London to over 700 million pounds ($896 million). Source
  • Hertz and Thrifty to pay $1.25M fine following probe into their advertising

    Economic CTV News
    OTTAWA - Car rental companies Hertz Canada Ltd. and Dollar Thrifty Automotive Group Canada Inc. have agreed to pay a total of $1.25 million in penalties following an investigation into their advertising by the federal Competition Bureau. Source
  • U.S. Supreme Court rejects GM appeal to block ignition switch lawsuits

    Economic CBC News
    The United States Supreme Court has turned away an appeal from General Motors Co. seeking to block dozens of lawsuits over faulty ignition switches that could expose the company to billions of dollars in additional claims. Source
  • Qatar Airways sees 'manageable' decline in flights to U.S.

    Economic CTV News
    DUBAI, United Arab Emirates -- The CEO of one of the Middle East's largest carriers said Monday passenger numbers to the United States have dipped slightly over fears by some Muslim passengers that their visas may be rejected upon arrival, but expressed confidence in President Donald Trump as a "very good businessman. Source
  • Extra EI help to hard-hit regions tops $1 billion, surpassing budget estimates

    Economic CTV News
    OTTAWA -- The federal government says it has paid out more than $1 billion in extra employment insurance benefits to out-of-work Canadians in the hardest-hit economic regions of the country, blowing past what the Liberals estimated the program would cost. Source
  • Home Capital says founder Gerald Soloway to leave board, CFO to change role

    Economic CBC News
    Home Capital Group Inc. said Monday that two people named in an Ontario Securities Commission action against the company will be moving out of their roles. The embattled mortgage lender said chief financial officer Robert Morton will shift out of that role after the company files its first-quarter results. Source
  • Notley says Canada will have lots of allies if Trump goes after energy trade

    Economic CTV News
    GUANGZHOU, China -- Alberta Premier Rachel Notley says U.S. President Donald Trump is likely to have some unhappy supporters south of the border if he goes after Canadian energy with trade sanctions. Notley, who is on a trade mission in China, says she doesn't know what Trump was talking about last week when he lumped energy in with other trade irritants, including softwood lumber and dairy. Source