MONTREAL, May 5, 2016 /CNW Telbec/ – National Bank announces that it expects to record specific provisions of $12 million ($17 million before taxes) as well as a sectoral provision for credit losses of $183 million ($250 million before taxes) on its oil and gas producers and services loan portfolio in the second quarter 2016. The sectoral provision will reduce earnings per share by approximately 54 cents and common equity tier 1 ratio (CET1) by approximately 16 basis points in the second quarter 2016. The Bank expects its CET1 ratio to stand at approximately 9.7% at the end of that same quarter.
In addition, the Bank will revise downward its annual credit loss guidance set previously this year at 25 to 35 basis points, back to a range of 20 to 30 basis points of the total loans and BA’s. The credit performance of the overall loan portfolio, excluding the oil and gas producers and services loan portfolio, remains within expectations.
The Bank will release its second quarter 2016 results on June 1st, 2016 and a conference call for analysts and institutional investors will be held at 1 PM EDT on June 1st, 2016.