Stable core profitability and capital adequacy Strong presence in retail and midmarket commercial lending the province of Quebec Dependence on Quebec for revenue growth and margins 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, particularly in its home province of Quebec, a reasonably diverse portfolio of business lines, and a well-established strategy. Our stable outlook also incorporates our expectation that the bank's credit metrics and earnings performance will likely deteriorate due to COVID-19 pandemic-related economic disruptions and lower interest rates. We expect asset quality metrics to weaken further over the
