Strong credit risk profile No high-risk U.S. retail lending exposure Strong presence in midmarket commercial and retail lending in Quebec Stable core profitability and capital adequacy Geographic concentration of loans and deposits in Quebec Competitive challenges expanding outside of Quebec Higher proportion of revenues related to capital markets relative to that of peers The stable outlook reflects our expectation National Bank of Canada will continue to demonstrate stable operating performance and capital adequacy as measured by Standard&Poor's Ratings Services' risk-adjusted capital (RAC) ratio, supported by strong asset quality. The ratings or outlook could come under pressure if asset quality were to deteriorate significantly, resulting in a rise in loan losses and decreased profitability. An outlook revision to positive
