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 Higher proportion of revenues related to capital markets relative to that of peers The stable outlook reflects Standard&Poor's Ratings Services' expectation that National Bank of Canada will maintain its solid franchise position in Quebec, a risk-adjusted capital (RAC) ratio above 7%, strong asset quality metrics that continue to compare favorably with those of peers, and sufficient liquidity to support current levels of wholesale funding. We could lower the ratings if asset quality metrics (nonperforming assets [NPAs] and net
