National Bank of Canada

Stable core profitability and capital adequacy Leading overall market position in Quebec Relatively higher-than-peers' share of revenue from wealth- and asset-management activities Significant concentration of exposures in Quebec Higher proportion of capital markets-related revenues relative to that of peers The stable outlook on National Bank of Canada (NBC) reflects S&P Global Ratings' view that NBC enjoys a stable retail depositor base and relatively strong client loyalty, more generally, particularly in its home province of Quebec, a reasonably diverse portfolio of business lines, and a well-established strategy, all of which contribute to the stability of its credit quality. In other words, we see upside and downside risks as relatively balanced. We could lower our ratings on NBC if revenues from capital

...Outlook: Stable The stable outlook on National Bank of Canada (NBC) reflects S&P Global Ratings' view that NBC enjoys a stable retail depositor base and relatively strong client loyalty, more generally, particularly in its home province of Quebec, a reasonably diverse portfolio of business lines, and a well-established strategy, all of which contribute to the stability of its credit quality. In other words, we see upside and downside risks as relatively balanced. We could lower our ratings on NBC if revenues from capital markets were to substantially and consistently exceed those of peers, higher-risk international activities were to become material, or asset quality metrics were to deteriorate to levels that are significantly less favorable than those of the other Canadian domestic systemically important banks (DSIBs), or the risk-adjusted capital (RAC) ratio were to fall below 7% and we expected it to stay there. Any of these factors could lead to a lower stand-alone credit profile (SACP)...

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