Favorable net operating earnings Stable credit trends and retail margin Successful midmarket commercial lending operations in Quebec Geographic concentration of loans and deposits in Quebec Returns slightly below the Canadian bank peer group The ratings on Montreal, Que.-based National Bank of Canada (National Bank), including the P-2(High) Canadian national scale preferred share and A-1(Mid) Canadian national scale CP ratings, reflect the bank's market share in the Province of Quebec and overall performance as compared with both Canadian and global peers'. The strengths of the institution lie primarily in its retail operations with a focus on midmarket commercial lending. The diversification of loans and deposits in the Province of Ontario is targeted through various distribution channels with partners. The bank also
