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 expanding presence in rest of Canada Compared with peers, higher revenue contribution from capital markets operations, which could be more volatile during periods of economic uncertainty Record of strong risk-adjusted returns above the peer averages, which contribute to solid capital ratios Concentration of risk exposures in Quebec despite continued geographic diversification Strong asset quality metrics with low net charge-offs (NCOs) despite modest deterioration Heightened trade tensions between Canada and the U.S. could put downside pressure on National Bank of Canada’s (NBC) solid asset
