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Bloomberg
National Bank of Canada’s fiscal second-quarter results got a boost from a surge in trading as recession fears roiled the markets.
Revenue in the financial-markets unit rose 7.7% to C$632 million ($496 million) in the three months through April, the Montreal-based lender said. That beat analysts’ C$524.4 million average projection. Overall profit also topped estimates.
Escalating concerns that global central banks’ aggressive rate increases will hurt the economy have hammered equity and bond markets this year. While that has put a chill on financing transactions, it has caused a surge in trading volume that has benefited firms like National Bank. The company’s trading revenue rose 40% to C$349 million.
National Bank’s stock has gained 1.1% this year, compared with a 2.6% drop for the S&P/TSX Commercial Banks Index. National Bank took C$3 million in provisions for credit losses. Analysts estimated the lender would set aside C$44.8 million in provisions.