NTIOF - National Bank Of Canada: Above-Normal Provision Expense Likely For Another Quarter
Earnings of National Bank of Canada (NTIOF) declined to C$1.01 in the April-ending quarter, down 40% from the first quarter of the fiscal year 2020. The earnings decline was attributable to a surge in provision expense due to expected credit losses. A jump in loan balances partially offset the pressure on earnings from provision expense in the second quarter. Earnings will likely recover in the remainder of the year due to a decline in provision expense from the second quarter’s peak. However, I’m expecting the provision expense to remain above normal in the