National Bank of Canada Reports Increased Fourth-Quarter Profit

(Reuters) – The National Bank of Canada reported a rise in fourth-quarter profit on Wednesday, aided by strong performance in its wealth management unit.

In October, the Bank of Canada cut interest rates for the fourth consecutive time, marking a shift towards a low inflation era. This has boosted banks' loan growth as lower rates encourage consumers to take more loans. Additionally, lower interest rates reduce the likelihood of loan defaults.

The results from the National Bank of Canada (OTC:NTIOF) mirrored those of the country's largest bank, the Royal Bank of Canada, which also reported an increase in quarterly profit due to strength in wealth management.

Adjusted net income from the National Bank of Canada's wealth management unit totaled C$219 million in the fourth quarter, an increase of 17% from C$187 million a year earlier.

The bank's adjusted profit climbed to C$928 million ($659.93 million), or C$2.58 per share, for the three months ending October 31, up from C$850 million, or C$2.39 per share, the previous year.

> Note: ($1 = 1.4062 Canadian dollars)