This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Well-established retail and midmarket commercial lending franchise in Quebec, and meaningful diversification in rest of Canada over the past decade Potential integration and operational risk with Canadian Western Bank as the bank?s largest acquisition in its history Record of strong risk-adjusted returns and capital ratios Reliance on wholesale funding but not dissimilar to that of domestic peers Historically, strong asset quality metrics with low net charge-offs Higher revenue contribution from capital markets operations than that of peers. National Bank of Canada (NBC)?s track record of peer-leading risk-adjusted returns and strong capital ratios, including
