Strong asset quality and credit risk profile Stable core profitability and capital adequacy Strong presence in retail and midmarket commercial lending in the province of Quebec Geographic concentration of loans and deposits in Quebec Competitive challenges expanding outside of Quebec Relatively high proportion of revenues related to capital markets The stable outlook reflects Standard&Poor's Ratings Services' expectation that National Bank of Canada will maintain its solid franchise position in the province of Quebec, a risk-adjusted capital (RAC) ratio above 7%, strong asset quality that continues to compare favorably with that of peers, and sufficient liquidity to support current levels of wholesale funding. The outlook or ratings could come under pressure if asset quality were to deteriorate significantly, if
