National Bank of Canada (NA.TO) missed analysts’ earnings estimates on Wednesday, hurt by higher costs and money set aside for bad loans amid a meltdown in the U.S. banking sector and souring economy.
Shares of the Montreal-based bank were down more than 1% in morning trading, tracking broader market declines.
The results come after Canada’s top four banks reported lower-than-expected earnings as they had to set aside more money for bad loans and incurred higher expenses related to workforce and other tech investments.
National Bank, like its peers, has also set aside rainy-day funds, signaling fears that the economy is set for challenging times that could see more Canadians defaulting on their loans.
“Our defensive posture with strong capital and liquidity positions and prudent levels of allowances for credit losses will continue to support profitable growth and help us navigate the uncertainty that may lie ahead,” bank CEO Laurent Ferreira said.