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National Bank Holdings Corp — report shareholder q1 2026 (company IR deck)
National Bank Holdings Corp (NBHC) · 84 slides · Filed Oct 27, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All NBHC deck slides
Slide 1 — Report to Shareholders
Report to Shareholders First Quarter 2026 National Bank reports its results for the First Quarter of 2026 The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter ended January 31, 2026 and is prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). All amounts are presented in Canadian dollars. MONTREAL, February 25, 2026 – For the first quarter of 2026, National Bank is reporting net income of $1,254 million, up 26% from $997 million in the first quarter of 2025, the increase being attributable to good performance in all business segments, as well as the inclusion of the results of Canadian Western Bank (CWB)(1). Diluted earnings per share stood at $3.08, up 11% from $2.78 in the first quarter of 2025. Excluding specified items(2) recorded in the first quarters of 2026 and 2025 mainly related to the acquisition of CWB, adjusted net income(2) stood at $1,320 million, up 26% from $1,050 million in the corresponding quarter of 2025. Adjusted diluted earnings per share(2) stood at $3.25, up 11% from $2.93 in the first quarter of 2025. “The first quarter marks a strong start to the year for the Bank, driven by our diversified and complementary franchises, as well as our prudent approach to capital and credit,” said Laurent Ferreira, President and Chief Executive Officer of National Bank of Canada. “We are executing on our financial objectives with discipline, driving organic growth and operational efficiency as we reinforce our pan-Canadian reach, and creating long-term value for our shareholders,” concluded Mr. Ferreira. Highlights (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Net income 1,254 997 26 Diluted earnings per share (dollars) $ 3.08 $ 2.78 11 Income before provisions for credit losses and income taxes 1,882 1,537 22 Return on common shareholders’ equity(3) 15.7 % 16.7 % Dividend payout ratio(3) 45.1 % 40.1 % Operating results – Adjusted(2) Net income – Adjusted 1,320 1,050 26 Diluted earnings per share – Adjusted (dollars) $ 3.25 $ 2.93 11 Income before provisions for credit losses and income taxes – Adjusted 1,973 1,610 23 Return on common shareholders’ equity – Adjusted(4) 16.6 % 17.6 % As at January 31, 2026 As at October 31, 2025 CET1 capital ratio under Basel III(5) 13.7 % 13.8 % Leverage ratio under Basel III(5) 4.3 % 4.5 % (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. (3) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (4) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP ratios. (5) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures.
Slide 2 — Report to Shareholders
National Bank of Canada 2 Report to Shareholders, First Quarter 2026 Report to Shareholders First quarter of 2026 versus first quarter of 2025 Personal and Commercial(1) Net income totalled $427 million versus $290 million in 2025, a 47% increase. Adjusted net income(2) totalled $442 million, up 52%. At $1,528 million, first-quarter total revenues rose $324 million or 27% due to the inclusion of CWB, which represents $237 million or 20%. The remaining increase came from growth in loan and deposit volumes, partly offset by a lower net interest margin. Compared to a year ago, personal lending grew 17% and commercial lending grew 54%, due to the inclusion of CWB loans and strong organic growth. Net interest margin(3) stood at 2.27%, down from 2.28%. Non-interest expenses stood at $800 million, up 25%, of which the inclusion of CWB drove a 20% increase. Provisions for credit losses were down $23 million, mainly due to the provisions for credit losses on non-impaired loans. At 52.4%, the efficiency ratio(3) improved compared to 53.2%. Wealth Management(1) Net income totalled $272 million, a 12% increase from $242 million in 2025. Total revenues amounted to $899 million compared to $776 million last year, a $123 million or 16% increase driven mainly by growth in fee-based revenues. Non-interest expenses stood at $531 million versus $441 million in 2025, a 20% increase associated with revenue growth and the inclusion of CWB. At 59.1%, the efficiency ratio(3) deteriorated compared to 56.8%. Capital Markets(1) Net income totalled $443 million, up 6% from $417 million in 2025. Total revenues amounted to $990 million, a 9% increase that was mainly due to growth in corporate and investment banking revenues. Non-interest expenses stood at $412 million compared to $367 million, an increase that was due to compensation and employee benefits as well as expenses related to the segment’s business growth. Provisions for credit losses were $26 million compared to $36 million. At 41.6%, the efficiency ratio(3) compares to 40.5%. U.S. Specialty Finance and International (USSF&I) Net income totalled $185 million, up 1% from $183 million last year. Total revenues amounted to $434 million, a 7% increase attributable to revenue growth at the Credigy and ABA Bank subsidiaries. Non-interest expenses stood at $120 million, a 2% decrease attributable to the Credigy subsidiary. Provisions for credit losses were up $29 million, an increase attributable to the Credigy and ABA Bank subsidiaries. At 27.6%, the efficiency ratio(3) improved from 30.4%. Other(1) The Other heading reported a net loss of $73 million compared to a net loss of $135 million in 2025, owing mainly to a higher contribution from Treasury activities, partly offset by the increase in non-interest expenses. Capital Management As at January 31, 2026, the Common Equity Tier 1 (CET1) capital ratio under Basel III(4) stood at 13.7%, down from 13.8% as at October 31, 2025. The Bank announced an amendment to its normal course issuer bid to increase the maximum number of the Bank’s issued and outstanding common shares that may be repurchased for cancellation of up to 14,500,000 common shares. This amendment to the normal course issuer bid is subject to the approval of the Office of the Superintendent of Financial Institutions (Canada) and the Toronto Stock Exchange. (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. (3) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (4) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures.
Slide 3 — and Analysis
National Bank of Canada 3 Report to Shareholders, First Quarter 2026 Management’s Discussion and Analysis February 24, 2026 The following Management’s Discussion and Analysis (MD&A) presents the financial condition and operating results of National Bank of Canada (the Bank). This analysis was prepared in accordance with the requirements set out in National Instrument 51-102, Continuous Disclosure Obligations, released by the Canadian Securities Administrators (CSA). This MD&A should be read in conjunction with the unaudited interim condensed consolidated financial statements (the Consolidated Financial Statements) and accompanying notes for the quarter ended January 31, 2026 and with the audited annual consolidated financial statements for the year ended October 31, 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise indicated. IFRS represent Canadian generally accepted accounting principles (GAAP). All amounts are presented in Canadian dollars. Additional information about the Bank, including the Annual Information Form, can be obtained from the Bank’s website at nbc.ca and SEDAR+’s website at sedarplus.ca. The information found in the various documents and reports published by the Bank or the information available on the Bank's website and mentioned herein is not and should not be considered incorporated by reference into the Report to Shareholders, the Management's Discussion and Analysis, or the consolidated financial statements, unless expressly stated otherwise. Acquisition 4 Capital Management 24 Economic Review and Outlook 5 Risk Management 31 Financial Reporting Method 6 Risk Disclosures 46 Highlights 13 Accounting Policies and Financial Disclosure 47 Financial Analysis 14 Material Accounting Policies and Accounting Estimates 47 Consolidated Results 14 Future Accounting Policy Changes 47 Results by Segment 16 Financial Disclosure 47 Consolidated Balance Sheet 21 Quarterly Financial Information 48 Laurentian Bank of Canada (LBC) Transactions 23 Glossary 49 Event After the Consolidated Balance Sheet Date 23 Related Party Transactions 23 Securitization and Off-Balance-Sheet Arrangements 23 Caution Regarding Forward-Looking Statements Certain statements in this document are forward-looking statements. These statements are made in accordance with applicable securities legislation in Canada and the United States. The forward-looking statements in this document may include, but are not limited to, statements in the messages from management, as well as other statements about the economy, the Bank’s objectives, outlook, and priorities for fiscal 2026 and beyond, the strategies or actions that the Bank will take to achieve them, expectations for the Bank’s financial condition and operations, the regulatory environment in which it operates, the potential impacts of increased geopolitical uncertainty on the Bank and its clients, its environmental, social, and governance targets and commitments, the impacts and benefits of the acquisition of Canadian Western Bank (CWB), and of the proposed acquisition of certain portfolios of the Laurentian Bank of Canada (LBC), and certain risks to which the Bank is exposed. The Bank may also make forward-looking statements in other documents and regulatory filings, as well as orally. These forward-looking statements are typically identified by verbs or words such as “outlook”, “believe”, “foresee”, “forecast”, “anticipate”, “estimate”, “project”, “expect”, “intend” and “plan”, the use of future or conditional forms, notably verbs such as “will”, “may”, “should”, “could” or “would”, as well as similar terms and expressions. These forward-looking statements are intended to assist the security holders of the Bank in understanding the Bank’s financial position and results of operations as at the dates indicated and for the periods then ended, as well as the Bank’s vision, strategic objectives, and performance targets, and may not be appropriate for other purposes. These forward-looking statements are based on current expectations, estimates, assumptions and intentions that the Bank deems reasonable as at the date thereof and are subject to uncertainty and risks, many of which are beyond the Bank’s control. There is a strong possibility that the Bank’s express or implied predictions, forecasts, projections, expectations, or conclusions will not prove to be accurate, that its assumptions will not be confirmed, and that its vision, strategic objectives, and performance targets will not be achieved. The Bank cautions investors that these forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from the expectations, estimates, or intentions expressed in these forward-looking statements due to a number of factors. Therefore, the Bank recommends that readers not place undue reliance on these forward-looking statements. Investors and others who rely on the Bank’s forward-looking statements should carefully consider the factors listed below as well as other uncertainties and potential events and the risks they entail. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. Assumptions about the performance of the Canadian and U.S. economies in 2026, in particular in the context of increased geopolitical uncertainty, and how that performance will affect the Bank’s business are among the factors considered in setting the Bank’s objectives, outlooks and priorities. These assumptions appear in the Economic Review and Outlook section and, for each business segment, in the Economic and Market Review sections of the 2025 Annual Report and the Economic Review and Outlook section of this document, and may be updated in the quarterly reports to shareholders filed thereafter. The forward-looking statements made in this document are based on a number of assumptions and their future outcome is subject to a variety of factors, many of which are beyond the Bank's control and the impacts of which are difficult to predict. These risk factors include, among others, the general economic environment and business and financial market conditions in Canada, the United States, and the other countries where the Bank operates, including recession risk; geopolitical and sociopolitical uncertainty; the measures affecting trade relations between Canada and its partners, including the imposition of tariffs and any measures taken in response to such tariffs, as well as the possible impacts on our clients, our operations and, more generally, the economy; exchange rate and interest rate fluctuations; inflation; global supply chain disruptions; higher funding costs and greater market volatility; changes to fiscal, monetary, and other public policies; regulatory oversight and changes to regulations that affect the Bank’s business; the Bank’s ability to successfully integrate CWB and the undisclosed costs or liabilities associated with the acquisition; the possibility that the acquisition of certain LBC portfolios may not happen, or not at the expected time, and that the expected benefits of the transaction may not be realized, or not within the expected timeframe; climate change, including physical risks and risks related to the transition to a low-carbon economy; stakeholders engagement and the Bank’s ability to meet their expectations on environmental and social issues; the availability of comprehensive and high-quality information from customers and other third parties, including on greenhouse gas emissions; the ability of the Bank to identify climate-related opportunities as well as to assess and manage climate-related risks; significant changes in consumer behaviour; the housing situation, the real estate market, and household indebtedness in Canada; the Bank’s ability to achieve its key short-term priorities and long-term strategies; the timely development and launch of new products and services; the ability of the Bank to recruit and retain key personnel; technological innovation, including open banking and the use of artificial intelligence; heightened competition from established companies and from competitors offering non-traditional services; model risk; changes in the performance and creditworthiness of the Bank’s clients and counterparties; the Bank’s exposure to significant regulatory issues or litigation; changes made to the accounting policies used by the Bank to report its financial position, including the uncertainty related to assumptions and significant accounting estimates; changes to tax legislation in the countries where the Bank operates; changes to capital and liquidity guidelines as well as to the instructions related to the presentation and interpretation thereof; changes to the credit ratings assigned to the Bank by financial and extra-financial rating agencies; potential disruptions to key suppliers of goods and services to the Bank; third-party risk, including failure by third parties to fulfil their obligations to the Bank; the potential impacts of disruptions to the Bank’s information technology systems due to cyberattacks and theft or disclosure of data, including personal information and identity theft; the risk of fraudulent activity; the possible impacts of major events on the economy, market conditions, or the Bank's outlook, including international conflicts, natural disasters, public health crises, and the measures taken in response to these events; and the ability of the Bank to anticipate and successfully manage risks arising from all of the foregoing factors. The foregoing list of risk factors is not exhaustive, and the forward-looking statements made in this document are also subject to risks detailed in the Risk Management section of the 2025 Annual Report as well as in the Risk Management section of the Report to Shareholders for the first quarter of 2026 and may be updated in the quarterly reports to shareholders filed thereafter.
Slide 4 — Acquisition
Management’s Discussion and Analysis National Bank of Canada 4 Report to Shareholders, First Quarter 2026 Acquisition Canadian Western Bank (CWB) Acquisition On February 3, 2025, the Bank completed the acquisition of CWB, a diversified financial services institution based in Edmonton, Alberta, in which the Bank had already been holding a 5.9% equity interest. This transaction will enable the Bank to accelerate its growth across Canada. The business combination brings together two complementary Canadian banks with growing businesses, thereby enhancing customer service by offering a full range of products and services nationwide, with a regionally focused service model. The following table presents the impacts of the CWB acquisition on the results of Personal and Commercial, the main segment impacted and the Bank's consolidated results. (millions of Canadian dollars) Quarter ended January 31, 2026 Results Personal and Commercial Consolidated results Excluding CWB CWB impact(1) Total Excluding CWB CWB impact(1) Total Operating results Net interest income 1,019 221 1,240 1,142 252 1,394 Non-interest income 272 16 288 2,451 48 2,499 Total revenues 1,291 237 1,528 3,593 300 3,893 Non-interest expenses 675 125 800 1,844 167 2,011 Income before provisions for credit losses and income taxes 616 112 728 1,749 133 1,882 Provisions for credit losses 114 25 139 219 25 244 Income before income taxes (recovery) 502 87 589 1,530 108 1,638 Income taxes (recovery) 138 24 162 355 29 384 Net income 364 63 427 1,175 79 1,254 Operating results – Adjusted(2) Net interest income – Adjusted 1,019 221 1,240 1,142 252 1,394 Non-interest income – Adjusted 272 16 288 2,451 48 2,499 Total revenues – Adjusted 1,291 237 1,528 3,593 300 3,893 Non-interest expenses – Adjusted 675 104 779 1,785 135 1,920 Income before provisions for credit losses and income taxes – Adjusted 616 133 749 1,808 165 1,973 Provisions for credit losses – Adjusted 114 25 139 219 25 244 Income before income taxes (recovery) – Adjusted 502 108 610 1,589 140 1,729 Income taxes (recovery) – Adjusted 138 30 168 371 38 409 Net income – Adjusted 364 78 442 1,218 102 1,320 (1) Refers to the impact of the CWB transaction on the results. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures.
Slide 5 — Economic Review and Outlook(1)
Management’s Discussion and Analysis National Bank of Canada 5 Report to Shareholders, First Quarter 2026 Economic Review and Outlook(1) Global Economy Although the year has only just begun, many globally significant events have already taken place. These include heightened tensions between Iran and the United States, Washington's military operation to remove Venezuelan President Nicolás Maduro from power, and deteriorating relations between North Atlantic Treaty Organisation (NATO) allies, triggered by the Trump administration's threats to take control of Greenland. Uncertainty therefore remains high. Fortunately, this does not seem to be having too much effect on the global economy, which continues to grow at a steady pace. Things could even improve in the future, as the governments of several advanced economies appear willing to loosen their purse strings. Examples include Japan, where the re-elected Prime Minister's program includes tax cuts, and Germany, where spending on infrastructure and defence is steadily rising. Conversely, China could experience a slowdown this year. Although the world's second-largest economy achieved its 5.0% growth target for 2025 as a whole, vulnerabilities remain, starting with the property market, which has now been weak for four years. The adverse effects of falling housing prices have been exacerbated by a further decline in the population: 2025 marked the fifth consecutive year that China's population has been in decline, and a sixth year of decline now appears inevitable. However, under our baseline scenario, the slowdown in the Chinese economy is predicted to be more than offset by a sustained expansion in other regions of the world. This is why, after growth of 3.3% in 2025, we expect a 3.5%(2) increase in global gross domestic product (GDP) in 2026. In the US, it would be easy to forget that the longest federal government shutdown in history occurred during the fourth quarter in 2025. The fact that 650,000 federal employees were forced to take unpaid leave appears to have had only a minimal impact on this new quarter in 2026 of solid economic growth. This expansion certainly reflected a considerable improvement in the trade balance, which could be reversed in the coming quarters, but it was also due to strong business investment spending and household consumption. Demographics could limit economic growth in the future, but we believe that its effects will be largely offset by the many factors likely to support growth, starting with favourable financial conditions. The rush toward artificial intelligence is another factor worth considering: large technology companies have announced intentions to increase their investment in this sector to close to US$650 billion in 2026, an increase of US$250 billion (0.8% of GDP) on the already colossal figure for 2025. Add to that the One Big Beautiful Bill (OBBB), whose effects on the economy will soon be felt. Budget support could be increased, especially since the start of an election year has traditionally encouraged incumbent leaders to increase spending, a dynamic from which the Trump administration is unlikely to deviate. What is more, the administration already seems to be entertaining other ideas, including capping credit card interest rates. All of these initiatives, whether implemented or potential, are certainly likely to stimulate growth—we forecast growth rates of 2.7%(2) and 2.2%(2), in 2026 and 2027, respectively—but they could also reignite concerns about where the US budget is headed. They also risk keeping inflation above the central bank's target for a fifth consecutive year. Canadian Economy Despite the ongoing uncertainty around trade relations with the United States, the Canadian economy performed better than expected in the second half of 2025. With this economic upturn, labour market conditions have improved in recent months, with the unemployment rate falling from 7.1% in September 2025 to 6.5% in January 2026. It would appear that Canada has so far been spared by the United States in terms of customs duties, with the actual overall tariff rate at less than 4% according to the most recent data due to the protections afforded by the Canada–United States–Mexico Agreement (CUSMA). This compares with an average for America’s trading partners that is substantially higher, at 10%. Undoubtedly the central bank's interest rate cuts and the federal government's tax cuts (carbon tax, income tax) have also contributed to this economic resilience. It is too early to say that the risks have completely disappeared. The extent of the labour market’s recovery remains to be confirmed, as the improvement suggested by employment data contrasts with other indicators that point to ongoing fragility, such as weak hiring intentions. Rather than easing, trade tensions with the United States escalated at the start of this crucial year for the renewal of the CUSMA. This could increase concerns among many companies about the access to the US market. Furthermore, in this unstable environment, interest rates in Canada do not appear particularly stimulating, as evidenced by the weakness of the real estate sector, moderate credit growth and the shock expected in 2026 for mortgage borrowers due to higher interest payments. The good news is that core inflation has declined in recent months, which means that the central bank has room to provide additional support should economic conditions deteriorate unexpectedly. We anticipate GDP growth will be limited to 1.1%(2) in 2026, held back by demographics (with GDP potentially at around 0.6%(2)), compared with 1.7% in 2025. However, this performance assumes an easing of trade tensions, which would allow for a rebound in investment, stimulated by Ottawa's new policies, such as deregulation, accelerated depreciation and the opening up of the natural resource sector. Quebec Economy Data on Quebec's economy are sending somewhat mixed signals about the impact of trade tensions with the US. Given the importance of Quebec's manufacturing sector and the fact that the province is subject to the highest tariff rate in the federation (9.4% versus 5.6% for Canada), one might expect the Quebec economy to be experiencing difficulties. This is indeed what the GDP data seem to indicate, since in October 2025, the province's output was 1.1% below its January 2025 level, before tariffs intensified. This represents underperformance compared to the Canadian economy, which was rather stagnant over the same period. However, the picture is quite different in the labour market. After rising somewhat in previous months, the unemployment rate fell back to 5.2% in January 2026, a level that is relatively close to what was recorded at the start of the trade war and the lowest in the country. In this context, we believe that the data on Quebec's economic output could recover in the coming months, especially since the province remains well-positioned to face the current challenges. First, it is less vulnerable to sectoral shocks. In fact, Quebec is the fourth most diversified economy in North America, after Manitoba, Pennsylvania and Texas. In addition, consumers have been less affected by the fight against inflation since 2022 and the resulting restrictive monetary policy, as they are less indebted than other Canadians, while the province’s housing prices are more affordable. Moreover, despite the current uncertainty, we note a more resilient Quebec real estate market, when compared with Ontario and British Columbia. Quebec households have a higher savings rate than elsewhere in the country, which could enable them to better withstand potential headwinds. Our growth forecast for the province is 1.1%(2) in 2026, after 0.7% in 2025. The province is expected to continue to have one of the lowest unemployment rates in the federation, averaging 5.1%(2) in 2026, compared to 5.6% in 2025 (6.6%(2) and 6.8%, respectively, for Canada). (1) The quarters used in the Economic Review and Outlook section are calendar quarters. (2) Growth forecasts for real GDP or unemployment rate, National Bank Financial’s Economics and Strategy group.
Slide 6 — Financial Reporting Method
Management’s Discussion and Analysis National Bank of Canada 6 Report to Shareholders, First Quarter 2026 Financial Reporting Method The Bank’s Consolidated Financial Statements are prepared in accordance with IFRS, as issued by the IASB and represent Canadian GAAP. On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026 in the Personal and Commercial, Wealth Management, and Capital Markets segments and in the Other heading of segment disclosures. For additional information on the impact of the CWB acquisition on the Bank’s results, see the Acquisition section. Non-GAAP and Other Financial Measures The Bank uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with GAAP. Regulation 52-112 Respecting Non-GAAP and Other Financial Measures Disclosure (Regulation 52-112) prescribes disclosure requirements that apply to the following measures used by the Bank: non-GAAP financial measures; non-GAAP ratios; supplementary financial measures; capital management measures. Non-GAAP Financial Measures The Bank uses non-GAAP financial measures that do not have standardized meanings under GAAP and that therefore may not be comparable to similar measures used by other companies. Presenting non-GAAP financial measures helps readers to better understand how management analyzes results, shows the impacts of specified items on the results of the reported periods, and allows readers to better assess results without the specified items if they consider such items not to be reflective of the underlying performance of the Bank’s operations. The key non-GAAP financial measures used by the Bank to analyze its results are described below, and a quantitative reconciliation of these measures is presented in the tables in the Reconciliation of Non-GAAP Financial Measures section on pages 11 and 12 and in the Consolidated Results table on page 14. It should be noted that, for the quarter ended January 31, 2026, as part of the CWB acquisition and the LBC transactions, related items have been excluded from results since, in the opinion of management, they do not reflect the underlying performance of the Bank’s operations, in particular, integration and transaction-related charges, as well as amortization of intangible assets related to the CWB acquisition. For the quarter ended January 31, 2025, several CWB acquisition-related items have been excluded from results (in particular, the amortization of the subscription receipt issuance costs, the gain resulting from the remeasurement at fair value of the CWB common shares already held by the Bank, the loss resulting from the impact of managing fair value changes and integration and transaction-related charges). Adjusted Net Interest Income This item represents net interest income excluding specified items. Specified items are excluded so that net interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Non-Interest Income This item represents non-interest income excluding specified items. Specified items are excluded so that non-interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Total Revenues This item represents total revenues excluding specified items. It consists of adjusted net interest income and adjusted non-interest income. Specified items are excluded so that total revenues can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Slide 7 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 7 Report to Shareholders, First Quarter 2026 Adjusted Non-Interest Expenses This item represents non-interest expenses excluding specified items. Specified items are excluded so that non-interest expenses can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Income Before Provisions for Credit Losses and Income Taxes This item represents income before provisions for credit losses and income taxes excluding specified items. It also represents the difference between adjusted total revenues and adjusted non-interest expenses. Specified items are excluded so that income before provisions for credit losses and income taxes can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Provisions for Credit Losses This item represents provisions for credit losses excluding specified items. Specified items are excluded so that provisions for credit losses can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Income Taxes (Recovery) This item represents income taxes excluding income taxes (recovery) on specified items. Adjusted Net Income This item represents net income excluding specified items. Specified items are excluded so that net income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Net Income Attributable to the Bank's Shareholders and Holders of Other Equity Instruments This item represents net income attributable to the Bank’s shareholders and holders of other equity instruments excluding specified items. Specified items are excluded so that net income attributable to Bank’s shareholders and holders of other equity instruments can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Net Income Attributable to Common Shareholders This item represents net income attributable to common shareholders excluding specified items. Specified items are excluded so that net income attributable to common shareholders can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Basic Earnings Per Share This item represents basic earnings per share excluding specified items. Specified items are excluded so that basic earnings per share can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Diluted Earnings Per Share This item represents diluted earnings per share excluding specified items. Specified items are excluded so that diluted earnings per share can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. The Bank also uses the below-described measures to assess its results, and a quantitative reconciliation of these non-GAAP financial measures is presented in the document entitled Supplementary Financial Information – First Quarter 2026 on page 7 available on the Bank’s website at nbc.ca. Adjusted Non-Trading Net Interest Income This item represents non-trading net interest income excluding specified items. It includes revenues related to financial assets and financial liabilities associated with non-trading activities, net of interest expenses and interest income related to the financing of these financial assets and financial liabilities, and is used to calculate adjusted non-trading net interest margin. Specified items are excluded so that non-trading net interest income can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Net Interest Income Related to Trading Activities This item represents net interest income related to trading activities which comprises dividends related to financial assets and liabilities associated with trading activities and certain interest income related to the financing of these financial assets and liabilities, net of interest expenses.
Slide 8 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 8 Report to Shareholders, First Quarter 2026 Non-Interest Income Related to Trading Activities This item represents non-interest income related to trading activities which consists of realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss, income from held-for-trading derivative financial instruments, changes in the fair value of loans at fair value through profit or loss, changes in the fair value of financial instruments designated at fair value through profit or loss, realized and unrealized gains and losses as well as interest expense on obligations related to securities sold short, certain commission income as well as other trading activity revenues, and any applicable transaction costs. Trading Activity Revenues This item represents trading activity revenues which comprise dividends related to financial assets and financial liabilities associated with trading activities; certain interest income related to the financing of these financial assets and liabilities, net of interest expenses; realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss; income from held-for-trading derivative financial instruments; changes in the fair value of loans at fair value through profit or loss; changes in the fair value of financial instruments designated at fair value through profit or loss; realized and unrealized gains and losses as well as interest expense on obligations related to securities sold short; certain commission income as well as other trading activity revenues, and any applicable transaction costs. Given that the subsidiary Credigy Ltd. conducts specialized lending activities, whose business model and risk profile differ from those of the Bank’s other business segments, the Bank excludes purchased or originated credit-impaired (POCI) loans of this subsidiary, as well as related items, from the following non-GAAP financial measures. These exclusions are intended to better reflect the underlying financial performance of the Bank’s operations. The quantitative reconciliation of these non-GAAP financial measures is presented in the document entitled Supplementary Financial Information – First Quarter 2026 on pages 24, 25, 28, 29 and 32. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans This item represents the amount charged to income to bring the allowances for credit losses to a level deemed appropriate by management and is comprised of provisions for credit losses on impaired financial assets excluding the Credigy subsidiary’s POCI loans. Gross loans excluding Credigy’s POCI loans This item represents gross loans excluding the Credigy subsidiary’s POCI loans. Gross impaired loans excluding Credigy’s POCI loans This item represents all loans classified in Stage 3 of the expected credit loss model and POCI loans excluding the Credigy subsidiary’s POCI loans. Net impaired loans excluding Credigy’s POCI loans This item represents gross impaired loans excluding the Credigy subsidiary’s POCI loans presented net of allowances for credit losses on amounts drawn on Stage 3 loans granted by the Bank and POCI loans excluding the Credigy subsidiary’s POCI loans. Allowances for credit losses on impaired loans excluding Credigy’s POCI loans This item represents allowances for credit losses on amounts drawn on Stage 3 loans granted by the Bank and POCI loans excluding the Credigy subsidiary’s POCI loans. Non-GAAP Ratios The Bank uses non-GAAP ratios that do not have standardized meanings under GAAP and that may therefore not be comparable to similar measures used by other companies. A non-GAAP ratio is a ratio in which at least one component is a non-GAAP financial measure. The Bank uses non-GAAP ratios to present aspects of its financial performance or financial position. The key non-GAAP ratios used by the Bank are described below. Adjusted Return on Average Assets (ROA) This item represents ROA excluding specified items. It is adjusted net income expressed as a percentage of average assets. This ratio is used to measure the Bank’s efficiency in using all its assets to generate profits. Specified items are excluded so that ROA can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations.
Slide 9 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 9 Report to Shareholders, First Quarter 2026 Adjusted Return on Common Shareholders’ Equity (ROE) This item represents ROE excluding specified items. It is adjusted net income attributable to common shareholders expressed as a percentage of average equity attributable to common shareholders. Adjusted ROE for the business segments is calculated using adjusted net income attributable to common shareholders of the business segment expressed as a percentage of average allocated capital. It is a general measure of the Bank’s and the business segments’ efficiency in using equity. Specified items are excluded so that ROE can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Dividend Payout Ratio This item represents the dividend payout ratio excluding specified items. It is dividends on common shares (per share amount) expressed as a percentage of adjusted basic earnings per share. This ratio is a measure of the proportion of earnings that is paid out to shareholders in the form of dividends. Specified items are excluded so that the dividend payout ratio can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Operating Leverage This item represents operating leverage excluding specified items. It is the difference between the growth rate of adjusted total revenues and the growth rate of adjusted non-interest expenses, and it measures the sensitivity of the Bank's results to changes in its revenues. Specified items are excluded so that the operating leverage can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Efficiency Ratio This item represents the efficiency ratio excluding specified items. The ratio represents adjusted non-interest expenses expressed as a percentage of adjusted total revenues. It measures the efficiency of the Bank’s operations. Specified items are excluded so that the efficiency ratio can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Adjusted Net Interest Margin, Non-Trading This item represents the non-trading net interest margin excluding specified items. It is calculated by dividing adjusted non-trading net interest income by average non-trading interest-bearing assets. This ratio is a measure of the profitability of non-trading activities. Specified items are excluded so that the net interest margin, non-trading can be better evaluated by excluding items that management believes do not reflect the underlying financial performance of the Bank's operations. Given that the subsidiary Credigy Ltd. conducts specialized lending activities, whose business model and risk profile differ from those of the Bank’s other business segments, the Bank excludes POCI loans of this subsidiary, as well as related items, from the following non-GAAP ratios. These exclusions are intended to better reflect the underlying financial performance of the Bank’s operations, taking into account Credigy Ltd.’s distinct business model. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans as a percentage of average loans or provisions for credit losses on impaired loans excluding Credigy’s POCI loans This item represents the provisions for credit losses on impaired loans excluding the Credigy subsidiary’s POCI loans expressed as a percentage of average loans. Gross impaired loans excluding Credigy’s POCI loans as a percentage of total loans This item represents gross impaired loans excluding the Credigy subsidiary’s POCI loans expressed as a percentage of the balance of loans. Net impaired loans excluding Credigy’s POCI loans as a percentage of total loans This item represents net impaired loans excluding the Credigy subsidiary’s POCI loans presented as a percentage of the balance of loans. Net charge-off excluding Credigy’s POCI loans presented as a percentage of average loans This item represents the net write-off, excluding the Credigy subsidiary’s POCI loans (net of recoveries) expressed as a percentage of average loans. Provisioning rate excluding Credigy’s POCI loans This item represents the allowances for credit losses on impaired loans excluding the Credigy subsidiary’s POCI loans expressed as a percentage of gross impaired loans excluding the Credigy subsidiary’s POCI loans.
Slide 10 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 10 Report to Shareholders, First Quarter 2026 Supplementary Financial Measures A supplementary financial measure is a financial measure that: (a) is not reported in the Bank’s Consolidated Financial Statements, and (b) is, or is intended to be, reported periodically to represent historical or expected financial performance, financial position, or cash flows. The composition of these supplementary financial measures is presented in table footnotes or in the Glossary section on pages 49 to 52 of this MD&A. Capital Management Measures The financial reporting framework used to prepare the financial statements requires disclosure that helps readers assess the Bank’s capital management objectives, policies, and processes, as set out in IFRS under IAS 1 – Presentation of Financial Statements. The Bank has its own methods for managing capital and liquidity, and IFRS does not prescribe any particular calculation method. These measures are calculated using various guidelines and advisories issued by the Office of the Superintendent of Financial Institutions (Canada) (OSFI), which are based on the standards, recommendations, and best practices of the Basel Committee on Banking Supervision (BCBS), as presented in the following table. OSFI guideline or advisory Measure Capital Adequacy Requirements Common Equity Tier 1 (CET1) capital ratio Tier 1 capital ratio Total capital ratio CET1 capital Tier 1 capital Tier 2 capital Total capital Risk-weighted assets Maximum credit risk exposure under the Basel asset classes Leverage Requirements Leverage ratio Total exposure Total Loss Absorbing Capacity (TLAC) Key indicators – TLAC requirements Available TLAC TLAC ratio TLAC leverage ratio Liquidity Adequacy Requirements Liquid asset portfolio Encumbered assets and unencumbered assets Liquidity coverage ratio (LCR) High-quality liquid assets (HQLA) Cash inflows/outflows and net cash outflows Net stable funding ratio (NSFR) Available stable funding items Required stable funding items Global Systemically Important Banks (G-SIBs) – Public Disclosure Requirements G-SIB indicators
Slide 11 — Reconciliation of Non-GAAP Financial Measures
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 11 Report to Shareholders, First Quarter 2026 Reconciliation of Non-GAAP Financial Measures Presentation of Results – Adjusted (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 Personal and Commercial Wealth Management Capital Markets USSF&I Other Total Total Operating results Net interest income 1,240 240 (497) 397 14 1,394 972 Non-interest income 288 659 1,487 37 28 2,499 2,211 Total revenues 1,528 899 990 434 42 3,893 3,183 Non-interest expenses 800 531 412 120 148 2,011 1,646 Income before provisions for credit losses and income taxes 728 368 578 314 (106) 1,882 1,537 Provisions for credit losses 139 (2) 26 80 1 244 254 Income before income taxes (recovery) 589 370 552 234 (107) 1,638 1,283 Income taxes (recovery) 162 98 109 49 (34) 384 286 Net income 427 272 443 185 (73) 1,254 997 Items that have an impact on results Net interest income Amortization of the subscription receipt issuance costs(2) − − − − − − (28) Impact on net interest income − − − − − − (28) Non-interest income Gain on the fair value remeasurement of an equity interest(3) − − − − − − 4 Management of the fair value changes related to the CWB acquisition(4) − − − − − − (23) Impact on non-interest income − − − − − − (19) Non-interest expenses Integration and transaction-related charges(5) − − − − 67 67 26 Amortization of intangible assets related to the CWB acquisition(6) 21 3 − − − 24 − Impact on non-interest expenses 21 3 − − 67 91 26 Income taxes Income taxes on the amortization of the subscription receipt issuance costs(2) − − − − − − (8) Income taxes on the gain on the fair value remeasurement of an equity interest(3) − − − − − − 1 Income taxes on management of the fair value changes related to the CWB acquisition(4) − − − − − − (6) Income taxes on the integration and transaction-related charges(5) − − − − (18) (18) (7) Income taxes on the amortization of intangible assets related to the CWB acquisition(6) (6) (1) − − − (7) − Impact on income taxes (6) (1) − − (18) (25) (20) Impact on net income (15) (2) − − (49) (66) (53) Operating results – Adjusted Net interest income – Adjusted 1,240 240 (497) 397 14 1,394 1,000 Non-interest income – Adjusted 288 659 1,487 37 28 2,499 2,230 Total revenues – Adjusted 1,528 899 990 434 42 3,893 3,230 Non-interest expenses – Adjusted 779 528 412 120 81 1,920 1,620 Income before provisions for credit losses and income taxes – Adjusted 749 371 578 314 (39) 1,973 1,610 Provisions for credit losses – Adjusted 139 (2) 26 80 1 244 254 Income before income taxes (recovery) – Adjusted 610 373 552 234 (40) 1,729 1,356 Income taxes (recovery) – Adjusted 168 99 109 49 (16) 409 306 Net income – Adjusted 442 274 443 185 (24) 1,320 1,050 (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) During the quarter ended January 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (3) During the quarter ended January 31, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. (4) During the quarter ended January 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that result in volatility of goodwill and capital on closing of the transaction. (5) During the quarter ended January 31, 2026, the Bank recorded integration and transaction-related charges of $65 million ($47 million net of income taxes) related to the CWB transaction (2025: $26 million, $19 million net of income taxes) and charges of $2 million related to the LBC transactions. (6) During the quarter ended January 31, 2026, the Bank recorded an amount of $24 million ($17 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition.
Slide 12 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 12 Report to Shareholders, First Quarter 2026 Presentation of Basic and Diluted Earnings Per Share – Adjusted (Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Basic earnings per share $ 3.12 $ 2.81 11 Amortization of the subscription receipt issuance costs(2) − 0.06 Gain on the fair value remeasurement of an equity interest(3) − (0.01) Management of the fair value changes related to the CWB acquisition(4) − 0.05 Integration and transaction-related charges(5) 0.13 0.05 Amortization of intangible assets related to the CWB acquisition(6) 0.04 − Basic earnings per share – Adjusted $ 3.29 $ 2.96 11 Diluted earnings per share $ 3.08 $ 2.78 11 Amortization of the subscription receipt issuance costs(2) − 0.06 Gain on the fair value remeasurement of an equity interest(3) − (0.01) Management of the fair value changes related to the CWB acquisition(4) − 0.05 Integration and transaction-related charges(5) 0.13 0.05 Amortization of intangible assets related to the CWB acquisition(6) 0.04 − Diluted earnings per share – Adjusted $ 3.25 $ 2.93 11 (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) During the quarter ended January 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (3) During the quarter ended January 31, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. (4) During the quarter ended January 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction. (5) During the quarter ended January 31, 2026, the Bank recorded integration and transaction-related charges of $65 million ($47 million net of income taxes) related to the CWB transaction (2025: $26 million, $19 million net of income taxes) and charges of $2 million related to the LBC transactions. (6) During the quarter ended January 31, 2026, the Bank recorded an amount of $24 million ($17 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition.
Slide 13 — Highlights
Management’s Discussion and Analysis National Bank of Canada 13 Report to Shareholders, First Quarter 2026 Highlights (millions of Canadian dollars, except per share amounts) Quarter ended January 31 2026(1) 2025 % Change Operating results Total revenues 3,893 3,183 22 Income before provisions for credit losses and income taxes 1,882 1,537 22 Net income 1,254 997 26 Return on common shareholders’ equity(2) 15.7 % 16.7 % Operating leverage(2) 0.1 % 3.9 % Efficiency ratio(2) 51.7 % 51.7 % Earnings per share Basic $ 3.12 $ 2.81 11 Diluted $ 3.08 $ 2.78 11 Operating results – Adjusted(3) Total revenues – Adjusted(3) 3,893 3,230 21 Income before provisions for credit losses and income taxes – Adjusted(3) 1,973 1,610 23 Net income – Adjusted(3) 1,320 1,050 26 Return on common shareholders’ equity – Adjusted(4) 16.6 % 17.6 % Operating leverage – Adjusted(4) 2.0 % 7.4 % Efficiency ratio – Adjusted(4) 49.3 % 50.2 % Diluted earnings per share – Adjusted(3) $ 3.25 $ 2.93 11 Common share information Dividends declared $ 1.24 $ 1.14 9 Book value(2) $ 78.81 $ 68.15 Share price High $ 175.57 $ 140.76 Low $ 156.88 $ 128.79 Close $ 162.25 $ 128.99 Number of common shares (thousands) 388,318 341,085 Market capitalization 63,005 43,997 (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 % Change Balance sheet and off-balance-sheet Total assets 605,871 576,919 5 Loans, net of allowances 304,120 302,623 − Deposits 445,874 428,003 4 Equity attributable to common shareholders 30,603 30,655 − Assets under administration(2) 899,198 874,360 3 Assets under management(2) 198,123 194,467 2 Regulatory ratios under Basel III(5) Capital ratios Common Equity Tier 1 (CET1) 13.7 % 13.8 % Tier 1 15.1 % 15.1 % Total 17.3 % 17.3 % Leverage ratio 4.3 % 4.5 % TLAC ratio(5) 32.5 % 29.7 % TLAC leverage ratio(5) 9.2 % 8.8 % Liquidity coverage ratio (LCR)(5) 189 % 173 % Net stable funding ratio (NSFR)(5) 120 % 124 % Other information Number of employees – Worldwide (full-time equivalent) 33,527 33,200 1 Number of branches in Canada 374 382 (2) Number of banking machines in Canada 921 939 (2) (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. (4) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP ratios. (5) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures.
Slide 14 — Financial Analysis
Management’s Discussion and Analysis National Bank of Canada 14 Report to Shareholders, First Quarter 2026 Financial Analysis Consolidated Results (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Operating results Net interest income 1,394 972 43 Non-interest income 2,499 2,211 13 Total revenues 3,893 3,183 22 Non-interest expenses 2,011 1,646 22 Income before provisions for credit losses and income taxes 1,882 1,537 22 Provisions for credit losses 244 254 (4) Income before income taxes 1,638 1,283 28 Income taxes 384 286 34 Net income 1,254 997 26 Non-controlling interests − − Net income attributable to the Bank's shareholders and holders of other equity instruments 1,254 997 26 Dividends on preferred shares and distributions on other equity instruments 37 39 (5) Net income attributable to common shareholders 1,217 958 27 Diluted earnings per share (dollars) 3.08 2.78 11 Specified items(2) Amortization of the subscription receipt issuance costs − (28) Gain on the fair value remeasurement of an equity interest − 4 Management of the fair value changes related to the CWB acquisition − (23) Integration and transaction-related charges (67) (26) Amortization of intangible assets related to the CWB acquisition (24) − Specified items before income taxes (91) (73) Income taxes related to specified items (25) (20) Specified items after income taxes (66) (53) Operating results – Adjusted(2) Net interest income – Adjusted 1,394 1,000 39 Non-interest income – Adjusted 2,499 2,230 12 Total revenues – Adjusted 3,893 3,230 21 Non-interest expenses – Adjusted 1,920 1,620 19 Income before provisions for credit losses and income taxes – Adjusted 1,973 1,610 23 Provisions for credit losses – Adjusted 244 254 (4) Income before income taxes – Adjusted 1,729 1,356 28 Income taxes – Adjusted 409 306 34 Net income – Adjusted 1,320 1,050 26 Non-controlling interests − − Net income attributable to the Bank's shareholders and holders of other equity instruments – Adjusted 1,320 1,050 26 Dividends on preferred shares and distributions on other equity instruments 37 39 (5) Net income attributable to common shareholders – Adjusted 1,283 1,011 27 Diluted earnings per share – Adjusted (dollars) 3.25 2.93 11 Average assets(3) 603,457 488,208 24 Average loans(3) 302,759 244,706 24 Average deposits(3) 440,185 349,630 26 Operating leverage(4) 0.1 % 3.9 % Operating leverage – Adjusted(5) 2.0 % 7.4 % Efficiency ratio(4) 51.7 % 51.7 % Efficiency ratio – Adjusted(5) 49.3 % 50.2 % (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. (3) Represents an average of the daily balances for the period. (4) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (5) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP ratios.
Slide 15 — First quarter of 2026 versus first quarter of 2025
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 15 Report to Shareholders, First Quarter 2026 First quarter of 2026 versus first quarter of 2025 Financial Results The Bank is reporting net income of $1,254 million, up 26% from $997 million. Diluted earnings per share stood at $3.08 compared to $2.78. These increases reflect good performance by all the business segments, as well as the inclusion of the results of CWB. Excluding specified items, adjusted net income stood at $1,320 million up 26% from $1,050 million. Adjusted diluted earnings per share stood at $3.25, up 11%. Return on common shareholders’ equity was 15.7% compared to 16.7% last year. Adjusted return on common shareholders’ equity was 16.6%, compared to 17.6% in 2025. Total Revenues The Bank’s total revenues amounted to $3,893 million, up $710 million or 22%, of which the inclusion of CWB drove a 9% increase. In the Personal and Commercial segment, total revenues rose 27% due to the inclusion of CWB, which contributed to an increase of $237 million or 20%. In addition, growth in personal and commercial loans and deposits, excluding CWB, more than offset the impact of a lower net interest margin, and internal commission revenues related to the distribution of Wealth Management products increased. The 16% growth in total revenues in the Wealth Management segment was mainly attributable to increases in fee-based revenues, notably revenues from investment management and trust service fees and mutual fund revenues. The growth was also due to an increase in net interest income and securities brokerage commissions, which was driven by an increase in client activity. Total revenues for the Capital Markets segment increased by 9% as a result of higher corporate and investment banking revenues, partly offset by the decrease in global markets revenues. In the USSF&I segment, total revenues were up 7% as a result of revenue growth at the ABA Bank subsidiary, stemming from business growth, and an increase in Credigy’s revenues. Total revenues for the Other heading increased compared to last year, in particular as a result of a higher contribution from Treasury activities and the unfavourable impact of specified items related to the CWB acquisition recorded in 2025. Excluding specified items, adjusted total revenues were $3,893 million compared to $3,230 million in 2025, an increase of 21%. Non-Interest Expenses Non-interest expenses stood at $2,011 million, up $365 million or 22%, of which $167 million or 10% was attributable to the inclusion of CWB. The increase was also due to specified items related to the CWB acquisition that were higher in 2026. Compensation and employee benefits were higher owing to salary growth as well as higher variable compensation related to revenue growth. In addition, occupancy expenses, including depreciation expense, were up, due to the inclusion of CWB expenses, expenses related to the Bank's head office building and the expansion of the banking network at the ABA Bank subsidiary. The increase in technology expenses, including depreciation expense, was attributable to significant investments made to support the Bank's technological evolution and business development plan. Professional fees rose, notably due to expenses related to the integration of CWB. Communication expenses were also higher compared to last year. In addition, the increase in other expenses was mainly due to the amortization of intangible assets, primarily related to the CWB acquisition. Excluding specified items related to the CWB acquisition, adjusted non-interest expenses stood at $1,920 million, up 19% from $1,620 million last year, of which 8% stems from the inclusion of CWB. Provisions for Credit Losses The Bank recorded provisions for credit losses of $244 million compared to $254 million last year. Provisions for credit losses on non-impaired loans decreased to $25 million, reflecting mainly the growth in the loan portfolios offset by the favourable impact of updated macroeconomic scenarios. In addition, provisions for credit losses on impaired loans were up $22 million, driven mainly by Personal Banking (including credit card receivables), the Capital Markets segment and the Credigy subsidiary. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans represented 0.28% of average loans, compared to 0.32% in 2025. Income Taxes Income taxes stood at $384 million compared to $286 million and the effective income tax rate was 23% compared to 22%. This is mainly due to a lower proportion of income from lower tax-rate jurisdictions in 2026.
Slide 16 — Results by Segment
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 16 Report to Shareholders, First Quarter 2026 Results by Segment The Bank carries out its activities in four business segments: Personal and Commercial, Wealth Management, Capital Markets, and U.S. Specialty Finance and International, which mainly comprises the activities of the Credigy Ltd. (Credigy) and Advanced Bank of Asia Limited (ABA Bank) subsidiaries. Other operating activities, certain specified items, Treasury activities, and the operations of the Flinks Technology Inc. (Flinks) subsidiary are grouped in the Other heading of segment results. Each reportable segment is distinguished by services offered, type of clientele, and marketing strategy. Personal and Commercial (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Operating results Net interest income 1,240 944 31 Non-interest income 288 260 11 Total revenues 1,528 1,204 27 Non-interest expenses 800 641 25 Income before provisions for credit losses and income taxes 728 563 29 Provisions for credit losses 139 162 (14) Income before income taxes 589 401 47 Income taxes 162 111 46 Net income 427 290 47 Less: Specified items after income taxes(2) (15) − Net income – Adjusted(2) 442 290 52 Net interest margin(3) 2.27 % 2.28 % Average interest-bearing assets(3) 216,471 164,340 32 Average assets(4) 220,069 165,861 33 Average loans(4) 216,127 164,097 32 Net impaired loans(3) 1,400 557 Net impaired loans as a % of total loans(3) 0.6 % 0.3 % Average deposits(4) 111,293 92,032 21 Efficiency ratio(3) 52.4 % 53.2 % Efficiency ratio – Adjusted(5) 51.0 % 53.2 % (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. During the quarter ended January 31, 2026, the Bank recorded amortization of intangible assets of $15 million net of income taxes related to the CWB acquisition. (3) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (4) Represents an average of the daily balances for the period. (5) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP ratios. First quarter of 2026 versus first quarter of 2025 In the Personal and Commercial segment, net income totalled $427 million, up 47% from $290 million last year. Adjusted net income was $442 million, up 52%. The 31% increase in net interest income was driven in part by the inclusion of CWB, which drove a 23% increase, as well as by growth in personal and commercial loans and deposits, which more than offset the impact of a lower net interest margin. In addition, non-interest income increased by 11%, in particular due to the inclusion of CWB’s revenues. Personal Banking’s total revenues increased by $87 million. This increase was driven by the inclusion of CWB’s revenues, and growth in loans and deposits, not including CWB, partly offset by a narrower net interest margin, as well as the increase in internal commission revenues related to the distribution of Wealth Management products. Commercial Banking's total revenues grew $237 million, mainly due to the inclusion of CWB’s revenues, as well as an increase in net interest income that was driven by loan growth and deposit growth, not including CWB, partly offset by a narrower net interest margin. The segment’s non-interest expenses stood at $800 million, which include specified items of $21 million related to the CWB acquisition, up 25%, due to the inclusion of CWB’s non-interest expenses which drove a 20% increase. The increase in non-interest expenses was also due to higher compensation and employee benefits, mainly from salary increases, fees and greater investments made as part of the segment’s technological evolution. The efficiency ratio of 52.4% has improved from 53.2% in 2025 partly as a result of cost synergies achieved from the acquisition of CWB. Adjusted non-interest expenses amounted to $779 million, compared to $641 million. The adjusted efficiency ratio stood at 51.0%, compared to 53.2%. The segment recorded provisions for credit losses of $139 million compared to $162 million last year, down $23 million. This decrease was mainly due to lower provisions for credit losses on non-impaired loans due to the favourable impact of updated macroeconomic scenarios. Provisions for credit losses on impaired loans were higher, notably as a result of impaired loans in Personal Banking (including credit card receivables).
Slide 17 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 17 Report to Shareholders, First Quarter 2026 Wealth Management (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Operating results Net interest income 240 227 6 Fee-based revenues 533 450 18 Transaction-based and other revenues 126 99 27 Total revenues 899 776 16 Non-interest expenses 531 441 20 Income before provisions for credit losses and income taxes 368 335 10 Provisions for credit losses (2) 2 Income before income taxes 370 333 11 Income taxes 98 91 8 Net income 272 242 12 Less: Specified items after income taxes(2) (2) − Net income – Adjusted(2) 274 242 13 Average assets(3) 13,128 10,611 24 Average loans(3) 11,220 9,443 19 Net impaired loans(4) 34 17 100 Average deposits(3) 60,244 43,463 39 Assets under administration(4) 899,198 820,125 10 Assets under management(4) 198,123 165,502 20 Efficiency ratio(4) 59.1 % 56.8 % Efficiency ratio – Adjusted(5) 58.7 % 56.8 % (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. During the quarter ended January 31, 2026, the Bank recorded amortization of intangible assets of $2 million net of income taxes related to the CWB acquisition. (3) Represents an average of the daily balances for the period. (4) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (5) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP ratios. First quarter of 2026 versus first quarter of 2025 In the Wealth Management segment, net income totalled $272 million, a 12% increase from $242 million last year. The segment’s total revenues amounted to $899 million, up $123 million or 16% from $776 million in 2025. The 6% increase in net interest income was primarily due to higher loan and deposit volumes as well as the inclusion of CWB’s revenues. The 18% increase in fee-based revenues was due to growth in assets under administration and assets under management, a reflection of the rise in stock markets and positive net inflows for the various solutions as well as, to a lesser extent, the inclusion of CWB’s activities. Transaction and other revenues rose 27%, primarily due to increased client activity. Non-interest expenses stood at $531 million, up 20% from $441 million in 2025. This increase was mainly a result of higher compensation and employee benefits, due in particular to variable compensation in line with revenue growth, higher technology expenses related to the segment's initiatives, and the inclusion of CWB’s non-interest expenses. The efficiency ratio stood at 59.1%, down from 56.8% in 2025. Recoveries of credit losses of $2 million were recorded, compared to provisions for credit losses of $2 million in 2025.
Slide 18 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 18 Report to Shareholders, First Quarter 2026 Capital Markets (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 % Change Operating results Global markets Equities 380 367 4 Interest rate and credit 133 170 (22) Commodities and foreign exchange 58 58 − 571 595 (4) Corporate and investment banking 419 312 34 Total revenues 990 907 9 Non-interest expenses 412 367 12 Income before provisions for credit losses and income taxes 578 540 7 Provisions for credit losses 26 36 (28) Income before income taxes 552 504 10 Income taxes 109 87 25 Net income 443 417 6 Average assets(2) 250,483 211,793 18 Average loans(2) (Corporate Banking only) 31,681 31,472 1 Net impaired loans(3) 138 129 7 Net impaired loans as a % of total loans(3) 0.4 % 0.4 % Average deposits(2) 91,372 74,330 23 Efficiency ratio(3) 41.6 % 40.5 % (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) Represents an average of the daily balances for the period. (3) See the Glossary section on pages 49 to 52 for details on the composition of these measures. First quarter of 2026 versus first quarter of 2025 In the Capital Markets segment, net income totalled $443 million, up 6% from $417 million last year. Total revenues amounted to $990 million, compared to $907 million in 2025, an increase of $83 million or 9%. Global markets revenues were down 4% as a result of a 22% decrease in interest rate and credit revenues, partly offset by a 4% increase in equities revenues. Corporate and investment banking revenues increased 34% due to growth in banking service revenues, revenues related to capital markets activity and revenues from merger and acquisition activity. Non-interest expenses stood at $412 million, a 12% increase, attributable to higher compensation and employee benefits, in particular due to variable compensation associated with revenue growth, as well as an increase in technology investment expenses and other expenses related to the segment’s business growth. The efficiency ratio was 41.6%, up from 40.5% in 2025. Provisions for credit losses were down $10 million due to a $20 million decrease in provisions for credit losses on non-impaired loans related to the favourable impact of updated macroeconomic scenarios, partly offset by a $10 million increase in provisions for credit losses on impaired loans.
Slide 19 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 19 Report to Shareholders, First Quarter 2026 USSF&I (millions of Canadian dollars) Quarter ended January 31 2026 2025 % Change Total revenues Credigy 160 145 10 ABA Bank 271 248 9 International 3 12 434 405 7 Non-interest expenses Credigy 37 40 (8) ABA Bank 83 83 − International − − 120 123 (2) Income before provisions for credit losses and income taxes 314 282 11 Provisions for credit losses Credigy 42 30 40 ABA Bank 38 21 81 International − − 80 51 57 Income before income taxes 234 231 1 Income taxes Credigy 17 16 6 ABA Bank 32 30 7 International − 2 49 48 2 Net income Credigy 64 59 8 ABA Bank 118 114 4 International 3 10 185 183 1 Average assets(1) 34,827 31,197 12 Average loans and receivables(1) 25,123 23,428 7 Net impaired loans(2) 1,259 1,133 11 Average deposits(1) 17,380 15,145 15 Efficiency ratio(2) 27.6 % 30.4 % (1) Represents an average of the daily balances for the period. (2) See the Glossary section on pages 49 to 52 for details on the composition of these measures. First quarter of 2026 versus first quarter of 2025 In the USSF&I segment, net income totalled $185 million, up 1% from $183 million in 2025. The $29 million or 7% increase in the segment’s total revenues was partly offset by the increase in provisions for credit losses. Credigy The Credigy subsidiary reported net income of $64 million, up $5 million or 8%. Total revenues were $160 million, up 10%, an increase due to growth in loan volumes and to revenues recognized in the first quarter of 2026 following prepayments on credit facilities, partly offset by the impact of exchange rate fluctuations. Non-interest expenses stood at $37 million, down $3 million due to compensation and employee benefits and the impact of exchange rate fluctuations. Provisions for credit losses increased by $12 million due to an increase in provisions for credit losses on impaired loans and non-impaired loans. ABA Bank The ABA Bank subsidiary recorded net income totalling $118 million, up $4 million or 4% from last year. Total revenues rose 9%, mainly attributable to sustained growth in assets, and lower interest expenses on deposits, partly offset by the impact of exchange rate fluctuations. Non-interest expenses were stable at $83 million, as an increase in occupancy expenses driven by the subsidiary’s business growth and the opening of new branches, was offset by the impact of exchange rate fluctuations. The subsidiary reported provisions for credit losses totalling $38 million, up $17 million. This increase was mainly due to higher provisions for credit losses on non-impaired loans.
Slide 20 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 20 Report to Shareholders, First Quarter 2026 Other (millions of Canadian dollars) Quarter ended January 31 2026(1) 2025 Operating results Net interest income 14 (60) Non-interest income 28 (49) Total revenues 42 (109) Non-interest expenses 148 74 Income before provisions for credit losses and income taxes (106) (183) Provisions for credit losses 1 3 Income before income taxes (recovery) (107) (186) Income taxes (recovery) (34) (51) Net loss (73) (135) Non-controlling interests − − Net loss attributable to the Bank’s shareholders and holders of other equity instruments (73) (135) Less: Specified items after income taxes(2) (49) (53) Net loss – Adjusted(2) (24) (82) Average assets(3) 84,950 68,746 (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Financial Reporting Method section on pages 6 to 12 for additional information on non-GAAP financial measures. During the quarter ended January 31, 2026, the Bank recorded integration and transaction-related charges of $49 million net of income taxes. During the quarter ended January 31, 2025, the Bank had recorded the amortization of the subscription receipt issuance costs of $20 million net of income taxes, a gain of $4 million resulting from the remeasurement at fair value of the CWB common shares already held by the Bank, the impact of managing fair value changes, representing a loss of $17 million net of income taxes, as well as integration and transaction-related charges of $19 million net of income taxes. (3) Represents an average of the daily balances for the period. First quarter of 2026 versus first quarter of 2025 For the Other heading of segment results, a net loss of $73 million was posted compared to a net loss of $135 million last year. The change in net loss was due to a higher contribution from Treasury activities and gains on investments, partly offset by the increase in non-interest expenses, stemming mainly from compensation and employee benefits as well as integration charges related to the CWB acquisition. The specified items mainly related to the acquisition of CWB had a $47 million unfavourable impact on the net loss in 2026, compared to a $53 million unfavourable impact in 2025. The adjusted net loss stood at $24 million, compared to $82 million in 2025.
Slide 21 — Consolidated Balance Sheet
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 21 Report to Shareholders, First Quarter 2026 Consolidated Balance Sheet Consolidated Balance Sheet Summary (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 % Change Assets Cash and deposits with financial institutions 36,768 27,916 32 Securities 194,634 188,747 3 Securities purchased under reverse repurchase agreements and securities borrowed 39,846 27,091 47 Loans, net of allowances 304,120 302,623 − Other 30,503 30,542 − 605,871 576,919 5 Liabilities and equity Deposits 445,874 428,003 4 Other 123,350 111,715 10 Subordinated debt 3,430 3,432 − Equity attributable to the Bank’s shareholders and holders of other equity instruments 33,217 33,769 (2) Non-controlling interests − − 605,871 576,919 5 As at January 31, 2026 versus as at October 31, 2025 Assets The Bank had total assets of $605.9 billion, up $29.0 billion or 5% from $576.9 billion. Cash and deposits with financial institutions stood at $36.8 billion, up $8.9 billion, owing primarily to an increase in deposits with the Bank of Canada and in deposits with regulated financial institutions, including the Federal Reserve. Securities have risen $5.9 billion owing to a $3.5 billion or 2% increase in securities at fair value through profit or loss driven mainly by securities issued or guaranteed by the Canadian government and securities issued or guaranteed by provincial and municipal governments of Canada, partly offset by a decrease in equity securities. In addition, securities other than those measured at fair value through profit or loss rose $2.4 billion. Securities purchased under reverse repurchase agreements and securities borrowed increased by $12.7 billion, driven primarily by the Capital Markets segment and Treasury activities. Loans, net of allowances for credit losses, totalled $304.1 billion, up $1.5 billion. The following table provides a breakdown of the main loan portfolios. (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Loans Residential mortgage and home equity lines of credit 146,497 145,509 Personal 18,298 18,593 Credit card 3,015 3,022 Business and government 138,519 137,630 306,329 304,754 Allowances for credit losses (2,209) (2,131) 304,120 302,623 Residential mortgages (including home equity lines of credit) rose $1.0 billion, due to growing business activities in the Personal and Commercial segment, partly offset by lower activity in the Capital Markets segment. Personal loans decreased $0.3 billion and credit card receivables were relatively stable. Business and government loans rose $0.9 billion or 1%, mainly due to business growth in Commercial Banking.
Slide 22 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 22 Report to Shareholders, First Quarter 2026 Impaired loans include all loans classified in Stage 3 of the expected credit loss model and POCI loans. Gross impaired loans stood at $3,742 million compared to $3,712 million as at October 31, 2025. Net impaired loans totalled $2,831 million compared to $2,904 million. This decrease was mainly due to lower net impaired loans in the loan portfolios of Commercial Banking, in Wealth Management and Capital Markets segments as well as Credigy subsidiary, offset partly by a rise in net impaired loans in the loan portfolios of Personal Banking. Other assets were relatively stable at $30.5 billion. Liabilities The Bank had total liabilities of $572.7 billion compared to $543.2 billion, up from $29.5 billion or 5%. Deposits stood at $445.9 billion compared to $428.0 billion, up $17.9 billion or 4%. Personal deposits amounted to $125.9 billion, up $1.5 billion. This increase was driven primarily by the business growth in the Wealth Management and Capital Markets segments and the ABA Bank subsidiary, partly offset by a decrease in deposits in Personal Banking. Business and government deposits totalled $313.9 billion, up $16.4 billion or 6%. The increase is explained by the business growth, in the Wealth Management and Capital Markets segments as well as financing activities in Treasury, including a $5.5 billion increase in deposits subject to bank recapitalization (bail-in) conversion regulations. The increase was partly offset by a decrease in deposits in Commercial Banking. Deposits from deposit-taking institutions were relatively stable at $6.1 billion. Other liabilities stood at $123.4 billion, up $11.7 billion, resulting essentially from a $17.3 billion increase in obligations related to securities sold under repurchase agreements and securities loaned. This increase is offset by decreases of $1.9 billion in obligations related to securities sold short, $1.9 billion in liabilities associated with transferred receivables, as well as a $1.3 billion reduction in other liabilities, notably accounts payable and accrued liabilities. Equity Equity attributable to the Bank’s shareholders and holders of other equity instruments totalled $33.2 billion, down $0.6 billion. This decrease was mainly attributable to the repurchase of common shares for cancellation, the redemption of outstanding Limited Recourse Capital Notes Series 1 (LRCN – Series 1), totalling $500 million and foreign currency translation adjustments. This decrease was partially offset by net income, net of dividends.
Slide 23 — Laurentian Bank of Canada (LBC) Transactions
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 23 Report to Shareholders, First Quarter 2026 Laurentian Bank of Canada (LBC) Transactions On December 2, 2025, the Bank entered into a definitive asset purchase agreement with LBC pursuant to which it will assume certain liabilities and acquire certain assets related to LBC’s retail and SME business banking portfolios (Retail/SME Transaction), and the Bank will assume LBC’s distribution agreement for certain mutual funds. Consideration of cash and cash equivalents to be received from LBC will be determined in reference to the value of liabilities assumed net of assets acquired, at the closing date. The closing of the Retail/SME Transaction, expected to occur in late 2026, is conditional on all conditions precedent to the closing of the acquisition of LBC by Fairstone Bank (Acquisition Transaction) having been satisfied or waived, and to the closing of the Acquisition Transaction immediately following the Retail/SME Transaction. The Retail/SME Transaction is subject to customary closing conditions, including receipt of key regulatory approvals. Separately, concurrently with the execution of the Retail/SME Transaction agreement, the Bank and LBC have also entered into a definitive loan purchase agreement in respect of the purchase by the Bank of LBC’s syndicated loan portfolio (Syndicated Loan Transaction) for a purchase price which will be determined in reference to the value at the closing date. On February 17, 2026, the closing of the Syndicated Loan Transaction occurred. The preliminary purchase price was $646 million representing the estimated fair value of the loans acquired, net of related liabilities assumed, pending finalization of closing-date values. Event after the Consolidated Balance Sheet Date Repurchases of Common Shares On February 24, 2026, the Bank’s Board of Directors authorized an amendment to the normal course issuer bid, that began on September 25, 2025. This amendment is intended to increase the maximum number of the Bank’s issued and outstanding common shares that may be repurchased for cancellation of up to 14,500,000 common shares (representing approximately 3.70% of the outstanding common shares as at September 11, 2025) over the 12-month period ending on September 24, 2026. This amendment to the normal course issuer bid is subject to the approval of OSFI and the Toronto Stock Exchange (TSX). For more information on the normal course issuer bid, see Note 10 to the Consolidated Financial Statements. Related Party Transactions The Bank’s policies and procedures regarding related party transactions have not significantly changed since October 31, 2025. For additional information, see Note 28 to the audited annual consolidated financial statements for the year ended October 31, 2025. Securitization and Off-Balance-Sheet Arrangements In the normal course of business, the Bank is party to various financial arrangements that, under IFRS, are not required to be recorded on the Consolidated Balance Sheet or are recorded under amounts other than their notional or contractual values. These arrangements include, among others, transactions with structured entities, derivative financial instruments, the issuance of guarantees, credit instruments, and financial assets received as collateral. A complete analysis of these types of arrangements, including their nature, business purpose, and importance, is provided on pages 60 and 61 of the 2025 Annual Report. For additional information on financial assets transferred but not derecognized, guarantees, commitments, and structured entities, see Notes 9, 26, and 27 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Slide 24 — Capital Management
Management’s Discussion and Analysis National Bank of Canada 24 Report to Shareholders, First Quarter 2026 Capital Management Capital management has a dual role of ensuring a competitive return to the Bank’s shareholders while maintaining a solid capital foundation that covers the risks inherent to the Bank’s business activities, supports its business segments, and protects its clients. The Bank’s capital management policy defines the guiding principles as well as the roles and responsibilities of its internal capital adequacy assessment process. This process aims to determine the capital that the Bank needs to maintain to pursue its business activities and accommodate unexpected losses arising from extremely adverse economic and operational conditions. For additional information on the capital management framework, see the Capital Management section on pages 62 to 71 of the Bank’s 2025 Annual Report. Basel Accord The Bank and all other major Canadian banks have to maintain the following minimum capital ratios established by OSFI: a CET1 capital ratio of at least 11.5%, a Tier 1 capital ratio of at least 13.0%, and a Total capital ratio of at least 15.0%. For additional information on the ratio calculations, see pages 63 to 65 of the 2025 Annual Report. All of these ratios include a capital conservation buffer of 2.5% established by the BCBS and OSFI, a 1.0% surcharge applicable solely to Domestic Systemically Important Banks (D-SIBs), and a 3.5% domestic stability buffer (DSB) established by OSFI. The DSB, which can vary from 0% to 4.0% of risk-weighted assets (RWA), consists exclusively of CET1 capital. A D-SIB that fails to meet this buffer requirement will not be subject to automatic constraints to reduce capital distributions but will have to provide a remediation plan to OSFI. The Bank also has to meet the requirements of the capital output floor which is set at 67.5%, under which its total RWA must not be lower than the capital output floor of the total RWA as calculated under the Basel III Standardized Approaches. If the capital requirement is less than the capital output floor requirement after applying the floor factor, the difference is added to the total RWA. Lastly, OSFI requires D-SIBs to maintain a Basel III leverage ratio of at least 3.5%, which includes a Tier 1 capital buffer of 0.5% applicable only to D-SIBs. For additional information on the leverage ratio calculation, see page 64 of the 2025 Annual Report. In addition, OSFI requires that regulatory capital instruments other than common equity must have a non-viability contingent capital (NVCC) clause to ensure that investors bear losses before taxpayers should the government determine that rescuing a non-viable financial institution is in the public interest. The Bank’s regulatory capital instruments, other than common shares, all have an NVCC clause. OSFI requires D-SIBs to maintain a risk-based Total Loss Absorbing Capacity (TLAC) ratio of at least 25.0% (including the DSB) of RWA and a TLAC leverage ratio of at least 7.25%. The TLAC ratio is calculated by dividing available TLAC by RWA, and the TLAC leverage ratio is calculated by dividing available TLAC by total exposure. As at January 31, 2026, outstanding liabilities of $31.6 billion ($26.1 billion as at October 31, 2025) were subject to conversion under the bail-in regulations.
Slide 25 — OSFI
Management’s Discussion and Analysis Capital Management National Bank of Canada 25 Report to Shareholders, First Quarter 2026 Requirements – Regulatory Capital(1), Leverage(1), and TLAC(2) Ratios Requirements as at January 31, 2026 Ratios as at January 31, 2026 Minimum Capital conservation buffer Minimum set by BCBS D-SIB surcharge Minimum set by OSFI Domestic stability buffer(3) Minimum set by OSFI, including the domestic stability buffer Capital ratios CET1 4.5 % 2.5 % 7.0 % 1.0 % 8.0 % 3.5 % 11.5 % 13.7 % Tier 1 6.0 % 2.5 % 8.5 % 1.0 % 9.5 % 3.5 % 13.0 % 15.1 % Total 8.0 % 2.5 % 10.5 % 1.0 % 11.5 % 3.5 % 15.0 % 17.3 % Leverage ratio 3.0 % n.a. 3.0 % 0.5 % 3.5 % n.a. 3.5 % 4.3 % TLAC ratio 21.5 % n.a. 21.5 % n.a. 21.5 % 3.5 % 25.0 % 32.5 % TLAC leverage ratio 6.75 % n.a. 6.75 % 0.5 % 7.25 % n.a. 7.25 % 9.2 % n.a. Not applicable (1) The capital ratios and the leverage ratio are calculated in accordance with the Basel III rules, as set out in OSFI's Capital Adequacy Requirements Guideline and Leverage Requirements Guideline. (2) The TLAC ratio and the TLAC leverage ratio are calculated in accordance with OSFI's Total Loss Absorbing Capacity Guideline. (3) On December 18, 2025, OSFI confirmed that the domestic stability buffer was being maintained at 3.5%. The Bank ensures that its capital levels are always above the minimum capital requirements set by OSFI, including the DSB. By maintaining a strong capital structure, the Bank can cover the risks inherent to its business activities, support its business segments, and protect its clients. Other disclosure requirements pursuant to Pillar 3 of the Basel Accord and a set of recommendations defined by the Enhanced Disclosure Task Force (EDTF) are presented in the Supplementary Regulatory Capital and Pillar 3 Disclosure report published quarterly and available on the Bank’s website at nbc.ca. Furthermore, a complete list of capital instruments and their main features is also available on the Bank’s website. Regulatory Developments The Bank closely monitors regulatory developments and participates actively in various consultative processes. For additional information about the regulatory context as at October 31, 2025, refer to page 65 of the Capital Management section in the 2025 Annual Report. In addition, since November 1, 2025, the below-described regulatory developments should also be considered. OSFI finalized the Capital and Liquidity Treatment of Crypto-asset Exposures (Banking) Guideline, replacing the interim advisory and establishing a comprehensive framework aligned with Basel standards and introduces differentiated capital treatment based on asset classification, conservative requirements for higher-risk exposures, exposure limits relative to regulatory capital, and enhanced risk management, notification and disclosure expectations. The guideline and the disclosure requirements pursuant to Pillar 3 became effective November 1, 2025. In addition, OSFI’s Capital Adequacy Requirements (CAR) Guideline (2026) came into effect on November 1, 2025, incorporating clarifications and targeted adjustments across credit, market and counterparty credit risk frameworks. These changes include refinements to the treatment of certain residential real estate and combined loan products, updates to risk weights for selected exposure classes, and technical enhancements intended to improve consistency and risk alignment, without materially altering the overall capital framework. Management Activities On September 25, 2025, the Bank began a normal course issuer bid to repurchase for cancellation up to 8,000,000 common shares (representing approximately 2.04% of its then outstanding common shares) over a 12-month period ending no later than September 24, 2026. During the quarter ended January 31, 2026, the Bank repurchased 3,593,000 common shares at a price of $619 million, which reduced Common share capital by $90 million and Retained earnings by $529 million. Under this program, the Bank repurchased a total of 4,978,400 common shares at a price of $832 million. On November 17, 2025, the Bank redeemed all of the issued and outstanding LRCN – Series 1, the redemption price was $1,000 each, plus interest accrued and unpaid. The Bank redeemed 500,000 LRCN – Series 1 for a total amount of $500 million. As part of the redemption of the LRCN – Series 1, the Bank redeemed all of the issued and outstanding Non-Cumulative 5-year Fixed Rate-Reset Series 44 First Preferred Shares issued by the Bank in conjunction with the LRCN – Series 1 and which were held by an independent trustee in a consolidated limited recourse trust.
Slide 26 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 26 Report to Shareholders, First Quarter 2026 Dividends On February 24, 2026, the Board of Directors declared regular dividends on the various series of first preferred shares and a dividend of $1.24, payable on May 1, 2026 to shareholders of record on March 30, 2026. Shares, Other Equity Instruments, and Stock Options As at January 31, 2026 Number of shares or LRCN(1) $ million First preferred shares Series 30 14,000,000 350 Series 38 16,000,000 400 Series 40 12,000,000 300 Series 42 12,000,000 300 Series 47 5,000,000 128 Series 49 5,000,000 136 64,000,000 1,614 Other equity instruments LRCN – Series 2 500,000 500 LRCN – Series 3 500,000 500 1,000,000 1,000 65,000,000 2,614 Common shares 388,317,954 9,826 Stock options 10,508,142 (1) Limited Recourse Capital Notes (LRCN). As at February 20, 2026, there were 387,257,925 common shares and 10,448,488 stock options outstanding. NVCC provisions require the conversion of capital instruments into a variable number of common shares should OSFI deem a bank to be non-viable or should the government publicly announce that a bank has accepted or agreed to accept a capital injection. If an NVCC trigger event were to occur, all of the Bank’s preferred shares, LRCNs, medium-term notes and subordinated debentures which are NVCC capital instruments, would be converted into common shares of the Bank according to an automatic conversion formula at a conversion price corresponding to the greater of the following amounts: (i) a $5.00 contractual floor price; or (ii) the market price of the Bank’s common shares on the date of the trigger event (10 day weighted average price). Based on a $5.00 floor price and including an estimate for accrued dividends and interest, these NVCC capital instruments would be converted into a maximum of 1,568 million Bank common shares, which would have an 80.1% dilutive effect based on the number of Bank common shares outstanding as at January 31, 2026.
Slide 27 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 27 Report to Shareholders, First Quarter 2026 Movement in Regulatory Capital(1) (millions of Canadian dollars) Quarter ended January 31, 2026 Common Equity Tier 1 (CET1) capital Balance at beginning 25,962 Issuance of common shares (including Stock Option Plan) 63 Impact of shares purchased or sold for trading (23) Repurchase of common shares (619) Other contributed surplus 7 Dividends on preferred and common shares and distributions on other equity instruments (526) Net income attributable to the Bank’s shareholders and holders of other equity instruments 1,254 Removal of own credit spread (net of income taxes) 52 Other (94) Movements in accumulated other comprehensive income Translation adjustments (171) Debt securities at fair value through other comprehensive income 59 Other − Change in goodwill and intangible assets (net of related tax liability) 19 Other, including regulatory adjustments Change in defined benefit pension plan asset (net of related tax liability) 22 Change in amount exceeding 15% threshold Deferred tax assets − Significant investments in common shares of financial institutions − Deferred tax assets, unless they result from temporary differences (net of related tax liability) (1) Other deductions or regulatory adjustments to CET1 implemented by OSFI 1 Change in other regulatory adjustments 18 Balance at end 26,023 Additional Tier 1 capital Balance at beginning 2,597 New Tier 1 eligible capital issuances − Redeemed capital(2) − Other, including regulatory adjustments (1) Balance at end 2,596 Total Tier 1 capital 28,619 Tier 2 capital Balance at beginning 4,098 New Tier 2 eligible capital issuances − Redeemed capital − Tier 2 instruments issued by subsidiaries and held by third parties − Change in certain allowances for credit losses (9) Other, including regulatory adjustments 10 Balance at end 4,099 Total regulatory capital 32,718 (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) The redemption of LRCN – Series 1 completed on November 17, 2025, was included in the October 31, 2025 ratios.
Slide 28 — malfunctions.
Management’s Discussion and Analysis Capital Management National Bank of Canada 28 Report to Shareholders, First Quarter 2026 Risk-Weighted Assets by Key Risk Drivers Risk-weighted assets (RWA) amounted to $189.4 billion as at January 31, 2026 compared to $188.8 billion as at October 31, 2025, a $0.6 billion increase resulting mainly from organic growth in RWA offset by foreign exchange movement impact. The changes in the Bank’s RWA by risk type are presented in the following table. Movement of Risk-Weighted Assets by Key Drivers(1) (millions of Canadian dollars) Quarter ended January 31, 2026 October 31, 2025 Non- counterparty credit risk Counterparty credit risk Total Total Credit risk – Risk-weighted assets at beginning 154,694 7,660 162,354 156,537 Book size 449 (42) 407 5,216 Book quality 261 (145) 116 234 Model updates − − − − Methodology and policy − − − − Acquisitions and disposals − − − − Foreign exchange movements (1,196) (127) (1,323) 367 Credit risk – Risk-weighted assets at end 154,208 7,346 161,554 162,354 Market risk – Risk-weighted assets at beginning 8,724 9,208 Movement in risk levels(2) 892 (484) Model updates − − Methodology and policy − − Acquisitions and disposals − − Market risk – Risk-weighted assets at end 9,616 8,724 Operational risk – Risk-weighted assets at beginning 17,678 17,365 Movement in risk levels 506 313 Methodology and policy − − Acquisitions and disposals − − Operational risk – Risk-weighted assets at end 18,184 17,678 Risk-weighted assets at end 189,354 188,756 (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) Also includes foreign exchange rate movements that are not considered material. The table above provides risk-weighted asset movements by the key drivers underlying the different risk categories. The Book size item reflects organic changes in book size and composition (including new loans and maturing loans). RWA movements attributable to book size include increases or decreases in exposures, measured by exposure at default, assuming a stable risk profile. The Book quality item is the Bank’s best estimate of changes in book quality related to experience, such as underlying customer behaviour or demographics, including changes resulting from model recalibrations or realignments and including risk mitigation factors. The Model updates item is used to reflect implementations of new models, changes in model scope, or any other change applied to address model malfunctions. The Methodology and policy item presents the impact of changes in calculation methods resulting from changes in regulatory policies or from new regulations.
Slide 29 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 29 Report to Shareholders, First Quarter 2026 Regulatory Capital Ratios, Leverage Ratio, and TLAC Ratios As at January 31, 2026, the Bank’s CET1, Tier 1, and Total capital ratios were, respectively, 13.7%, 15.1%, and 17.3% compared to ratios of 13.8%, 15.1% and 17.3%, respectively, as at October 31, 2025. Since October 31, 2025, the CET1 ratio slightly decreased whereas the Tier 1 and Total ratios were stable. The common share repurchases and the growth in RWA contributed to the decrease of the ratios offset by the net income, net of dividends. As at January 31, 2026, the leverage ratio was 4.3% compared to 4.5% as at October 31, 2025. The decrease in the leverage ratio was mainly attributable to an increase in total exposure, partially offset by the growth in Tier 1 capital. As at January 31, 2026 the Bank’s TLAC ratio and TLAC leverage ratio were 32.5% and 9.2%, respectively, compared to 29.7% and 8.8%, respectively, as at October 31, 2025. The TLAC ratio and the TLAC leverage ratio increase primarily due to net issuances of instruments that met all of the TLAC eligibility criteria during the period. During the quarter ended January 31, 2026, the Bank was compliant with all of OSFI’s regulatory capital, leverage, and TLAC requirements. Regulatory Capital(1), Leverage Ratio(1) and TLAC(2) (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Capital CET1 26,023 25,962 Tier 1(3) 28,619 28,559 Total(3) 32,718 32,657 Risk-weighted assets 189,354 188,756 Total exposure 665,594 633,494 Capital ratios CET1 13.7 % 13.8 % Tier 1(3) 15.1 % 15.1 % Total(3) 17.3 % 17.3 % Leverage ratio(3) 4.3 % 4.5 % Available TLAC 61,533 55,993 TLAC ratio 32.5 % 29.7 % TLAC leverage ratio 9.2 % 8.8 % (1) Capital, risk-weighted assets, total exposure, the capital ratios, and the leverage ratio are calculated in accordance with the Basel III rules, as set out in OSFI's Capital Adequacy Requirements Guideline and Leverage Requirements Guideline. (2) Available TLAC, the TLAC ratio, and the TLAC leverage ratio are calculated in accordance with OSFI's Total Loss Absorbing Capacity Guideline. (3) Data as at October 31, 2025 included the redemption of LRCN – Series 1 completed on November 17, 2025.
Slide 30 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 30 Report to Shareholders, First Quarter 2026 Public Disclosure Requirements for Global Systemically Important Banks The BCBS developed an assessment methodology and additional loss absorbency requirements as well as indicators to be used by the BCBS and the Financial Stability Board to evaluate Global Systemically Important Banks (G-SIBs). The annual public disclosure requirements apply to large, globally active banks. The most recent version of OSFI’s advisory entitled Global Systemically Important Banks – Public Disclosure Requirements regarding the implementation of public disclosure requirements for G-SIBs in Canada took effect in 2022. Canadian banks, including the Bank, that have not been designated as G-SIBs and that have total exposure (as calculated using the Basel III leverage ratio) greater than 200 billion euros at fiscal year-end must publish the indicators annually. The indicators are calculated and presented in accordance with specific BCBS guidelines, which are updated annually. Consequently, the values obtained may not be comparable to the other measures presented in this report. The following table presents the indicators used in the BCBS’s assessment methodology for evaluating G-SIBs. Indicators – Global Systemically Important Banks (G-SIBs)(1) (millions of Canadian dollars) As at October 31 Category Indicators 2025 2024 Cross-jurisdictional activity(2) Cross-jurisdictional claims 175,313 138,500 Cross-jurisdictional liabilities 114,772 84,931 Size(3) Total exposures as defined for use in the Basel III leverage ratio(4) 637,603 513,566 Interconnectedness(5) Intra-financial system assets(4) 82,126 74,527 Intra-financial system liabilities(4) 57,221 41,491 Securities outstanding(4) 202,607 150,887 Substitutability / financial institutions Payment activity(7) 18,241,845 14,480,595 infrastructure(6) Assets under custody 874,067 765,929 Underwritten transactions in debt and equity markets 49,244 46,856 Trading volume(8) Fixed-income securities(8) 757,530 924,734 Equities and other securities(8) 1,640,287 1,513,131 Complexity(9) Notional amount of over-the-counter derivative financial instruments(4) 2,750,248 2,261,187 Trading and investment securities 86,942 67,274 Level 3 financial assets(4) 1,339 1,360 (1) The G-SIB indicators are prepared using the methodology prescribed in the BCBS guidelines published in July 2018 and are calculated using the specific instructions updated by the BCBS each year. (2) Represents the Bank’s level of interaction outside Canada. (3) Represents the Bank’s total on-and-off balance sheet exposures, as determined by OSFI’s Basel III leverage ratio rules before regulatory adjustments. (4) Includes insurance activities. (5) Represents transactions with other financial institutions. (6) Represents the extent to which the Bank’s services could be substituted by other institutions. (7) For the fiscal years ended October 31, 2025 and 2024. (8) This indicator consists of two sub-indicators: fixed-income securities as well as equities and other securities. (9) Includes the level of complexity and volume of the Bank’s trading activities represented through derivative financial instruments, trading securities, investment securities, and Level 3 financial assets.
Slide 31 — Risk Management
Management’s Discussion and Analysis National Bank of Canada 31 Report to Shareholders, First Quarter 2026 Risk Management Risk-taking is intrinsic to a financial institution’s business. The Bank views risk as an integral part of its development and the diversification of its activities. It advocates a risk management approach that is consistent with its business strategy. The Bank voluntarily exposes itself to certain risk categories, particularly credit and market risk, in order to generate revenue. It also assumes certain risks that are inherent to its activities—to which it does not choose to expose itself—and that do not generate revenue, i.e., mainly operational risks. Despite the exercise of stringent risk management and existing mitigation measures, risk cannot be eliminated entirely, and residual risks may occasionally cause losses. Certain risks are discussed hereafter. For additional information, see the Risk Management section on pages 72 to 118 of the 2025 Annual Report. Risk management information is also provided in Note 6 to the Consolidated Financial Statements, which covers loans. Credit Risk Credit risk is the risk of incurring a financial loss if an obligor does not fully honour its contractual commitments to the Bank. Obligors may be borrowers, issuers, guarantors or counterparties. General economic and market conditions in Canada, the U.S. and other countries in which the Bank operates are currently difficult to predict due in part to measures affecting trade relations between Canada and its partners. The imposition of tariffs and the measures taken in response, as well as the possible impacts on our customers, could have an impact on a debtor’s ability to repay. Credit risk is the most significant risk facing the Bank in the normal course of its business. Regulatory Developments The Bank closely monitors regulatory developments and is actively involved in the various consultation processes. For additional information about the regulatory context as at October 31, 2025, see page 87 of the Risk Management section of the 2025 Annual Report. In addition, since November 1, 2025, there have been no new regulatory developments to consider.
Slide 32 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 32 Report to Shareholders, First Quarter 2026 The amounts in the following tables represent the Bank’s maximum exposure to credit risk as at the financial reporting date without considering any collateral held or any other credit enhancements. These amounts do not include allowances for credit losses nor amounts pledged as collateral. The tables also exclude equity securities. Maximum Credit Risk Exposure Under the Basel Asset Categories(1) (millions of Canadian dollars) As at January 31, 2026 Drawn(2) Undrawn commitments Repo-style transactions(3) Derivative financial instruments Other off-balance- sheet items(4) Total Standardized Approach(5) IRB Approach Retail Residential mortgages 99,646 9,832 − − − 109,478 18 % 82 % Qualifying revolving retail 4,503 13,616 − − − 18,119 − % 100 % Other retail 23,914 3,025 − − 39 26,978 30 % 70 % 128,063 26,473 − − 39 154,575 Non-retail Corporate 126,594 37,161 63,895 86 10,716 238,452 29 % 71 % Sovereign 85,098 6,217 111,235 263 645 203,458 3 % 97 % Financial institutions 12,287 1,322 191,620 4,304 2,639 212,172 25 % 75 % 223,979 44,700 366,750 4,653 14,000 654,082 Trading portfolio − − − 18,005 − 18,005 3 % 97 % Securitization 2,959 − − − 7,668 10,627 100 % − % Total – Gross credit risk 355,001 71,173 366,750 22,658 21,707 837,289 20 % 80 % Standardized Approach(5) 80,148 3,217 68,707 4,373 8,795 165,240 IRB Approach 274,853 67,956 298,043 18,285 12,912 672,049 Total – Gross credit risk 355,001 71,173 366,750 22,658 21,707 837,289 20 % 80 % (millions of Canadian dollars) As at October 31, 2025 Drawn(2) Undrawn commitments Repo-style transactions(3) Derivative financial instruments Other off-balance- sheet items(4) Total Standardized Approach(5) IRB Approach Retail Residential mortgages 97,507 9,715 − − − 107,222 18 % 82 % Qualifying revolving retail 4,487 13,454 − − − 17,941 − % 100 % Other retail 24,250 2,974 − − 47 27,271 30 % 70 % 126,244 26,143 − − 47 152,434 Non-retail Corporate 126,772 36,857 66,245 81 9,956 239,911 28 % 72 % Sovereign 74,412 6,281 104,954 − 535 186,182 3 % 97 % Financial institutions 14,229 1,227 192,041 3,146 2,625 213,268 23 % 77 % 215,413 44,365 363,240 3,227 13,116 639,361 Trading portfolio − − − 18,250 − 18,250 3 % 97 % Securitization 3,029 − − − 7,561 10,590 100 % − % Total – Gross credit risk 344,686 70,508 363,240 21,477 20,724 820,635 19 % 81 % Standardized Approach(5) 79,532 3,196 64,806 3,387 8,629 159,550 IRB Approach 265,154 67,312 298,434 18,090 12,095 661,085 Total – Gross credit risk 344,686 70,508 363,240 21,477 20,724 820,635 19 % 81 % (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) Excludes equity securities and certain other assets such as investments in deconsolidated subsidiaries and joint ventures, right-of-use properties and assets, goodwill, deferred tax assets, and intangible assets. (3) Securities purchased under reverse repurchase agreements and sold under repurchase agreements as well as securities loaned and borrowed. (4) Letters of guarantee, documentary letters of credit, and securitized assets that represent the Bank’s commitment to make payments in the event that an obligor cannot meet its financial obligations to third parties. (5) Includes exposures to qualifying central counterparties (QCCP). To meet OSFI’s mortgage loan disclosure requirements, additional information has been provided in the documents Supplementary Financial Information – First Quarter 2026 and Supplementary Regulatory Capital and Pillar 3 Disclosure – First Quarter 2026, which are available on the Bank’s website at nbc.ca.
Slide 33 — Market Risk
Management’s Discussion and Analysis Risk Management National Bank of Canada 33 Report to Shareholders, First Quarter 2026 Market Risk Market risk is the risk of financial losses arising from movements in market prices. The Bank is exposed to market risk through its participation in trading, investment, and asset/liability management activities. The following tables provide a breakdown of the Bank’s Consolidated Balance Sheet into assets and liabilities by those that carry market risk and those that do not carry market risk, distinguishing between trading positions whose main risk measures are Value-at-Risk (VaR) and non-trading positions that use other risk measures. Reconciliation of Market Risk with Consolidated Balance Sheet Items (millions of Canadian dollars) As at January 31, 2026 Market risk measures Balance sheet Trading(1) Non-trading(2) Not subject to market risk Non-traded risk primary risk sensitivity Assets Cash and deposits with financial institutions 36,768 380 29,032 7,356 Interest rate(3) Securities At fair value through profit or loss 151,613 149,033 2,580 − Interest rate(3) and equity At fair value through other comprehensive income 24,432 − 24,432 − Interest rate(3) and equity(4) At amortized cost 18,589 − 18,589 − Interest rate(3) Securities purchased under reverse repurchase agreements and securities borrowed 39,846 − 39,846 − Interest rate(3)(5) Loans, net of allowances 304,120 14,219 289,901 − Interest rate(3) Derivative financial instruments 12,578 11,771 807 − Interest rate and exchange rate Defined benefit asset 410 − 410 − Other Other 17,515 2,205 − 15,310 605,871 177,608 405,597 22,666 Liabilities Deposits 445,874 42,116 403,758 − Interest rate(3) Obligations related to securities sold short 11,448 11,448 − − Obligations related to securities sold under repurchase agreements and securities loaned 58,661 − 58,661 − Interest rate(3)(5) Derivative financial instruments 15,356 14,492 864 − Interest rate and exchange rate Liabilities related to transferred receivables 28,666 11,138 17,528 − Interest rate(3) Defined benefit liability 96 − 96 − Other Other 9,123 − − 9,123 Interest rate(3) Subordinated debt 3,430 − 3,430 − Interest rate(3) 572,654 79,194 484,337 9,123 (1) Trading positions whose risk measure is total VaR. For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect. (2) Non-trading positions that use other risk measures. (3) For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect, as well as the table that shows the interest rate sensitivity. (4) The fair value of equity securities designated at fair value through other comprehensive income is presented in Notes 3 and 5 to the Consolidated Financial Statements. (5) These instruments are recorded at amortized cost and are subject to credit risk for capital management purposes. For trading-related transactions with maturities of more than one day, interest rate risk is included in the VaR.
Slide 34 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 34 Report to Shareholders, First Quarter 2026 (millions of Canadian dollars) As at October 31, 2025 Market risk measures Balance sheet Trading(1) Non-trading(2) Not subject to market risk Non-traded risk primary risk sensitivity Assets Cash and deposits with financial institutions 27,916 627 20,274 7,015 Interest rate(3) Securities At fair value through profit or loss 148,118 145,420 2,698 − Interest rate(3) and equity(4) At fair value through other comprehensive income 24,024 − 24,024 − Interest rate(3) and equity(5) At amortized cost 16,605 − 16,605 − Interest rate(3) Securities purchased under reverse repurchase agreements and securities borrowed 27,091 − 27,091 − Interest rate(3)(6) Loans, net of allowances 302,623 15,097 287,526 − Interest rate(3) Derivative financial instruments 12,515 12,182 333 − Interest rate(7) and exchange rate(7) Defined benefit asset 441 − 441 − Other(8) Other 17,586 3,735 − 13,851 576,919 177,061 378,992 20,866 Liabilities Deposits 428,003 39,898 388,105 − Interest rate(3) Obligations related to securities sold short 13,257 13,257 − − Obligations related to securities sold under repurchase agreements and securities loaned 41,356 − 41,356 − Interest rate(3)(6) Derivative financial instruments 15,984 15,138 846 − Interest rate(7) and exchange rate(7) Liabilities related to transferred receivables 30,577 12,713 17,864 − Interest rate(3) Defined benefit liability 98 − 98 − Other(8) Other 10,443 − − 10,443 Interest rate(3) Subordinated debt 3,432 − 3,432 − Interest rate(3) 543,150 81,006 451,701 10,443 (1) Trading positions whose risk measure is total VaR. For additional information, see the table on the following page and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect. (2) Non-trading positions that use other risk measures. (3) For additional information, see the table in the pages ahead and in the Market Risk section of the 2025 Annual Report that shows the VaR distribution of the trading portfolios by risk category and their diversification effect, as well as the table that shows the interest rate sensitivity. (4) For additional information, see Note 7 to the audited annual consolidated financial statements for the year ended October 31, 2025. (5) The fair value of equity securities designated at fair value through other comprehensive income is presented in Notes 3 and 5 to the Consolidated Financial Statements. (6) These instruments are recorded at amortized cost and are subject to credit risk for capital management purposes. For trading-related transactions with maturities of more than one day, interest rate risk is included in the VaR. (7) For additional information, see Notes 17 and 18 to the audited annual consolidated financial statements for the year ended October 31, 2025. (8) For additional information, see Note 23 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Slide 35 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 35 Report to Shareholders, First Quarter 2026 Trading Activities The table below shows the VaR distribution of trading portfolios by risk category and their diversification effect. VaR of Trading Portfolios(1)(2) (millions of Canadian dollars) Quarter ended January 31, 2026 October 31, 2025 January 31, 2025 Low High Average Period end Average Period end Average Period end Interest rate (12.3) (22.4) (16.7) (15.7) (15.5) (16.3) (12.8) (13.0) Exchange rate (1.1) (5.0) (2.3) (1.1) (1.3) (1.6) (2.0) (0.9) Equity (4.7) (8.1) (5.9) (6.3) (5.1) (6.1) (4.8) (6.5) Commodity (1.2) (2.1) (1.5) (1.5) (2.5) (1.5) (1.6) (1.2) Diversification effect(3) n.m. n.m. 12.0 10.8 10.8 10.9 9.1 8.0 Total trading VaR (10.0) (18.5) (14.4) (13.8) (13.6) (14.6) (12.1) (13.6) n.m. Computation of a diversification effect for the high and low is not meaningful, as highs and lows may occur on different days and be attributable to different types of risk. (1) See the Glossary section on pages 49 to 52 for details on the composition of these measures. (2) Amounts are presented on a pre-tax basis and represent one-day VaR using a 99% confidence level. (3) The total trading VaR is less than the sum of the individual risk factor VaR results due to the diversification effect. The average total VaR of the trading portfolios remained relatively stable from the fourth quarter of 2025 to the first quarter of 2026. Daily Trading and Underwriting Revenues The following chart shows daily trading and underwriting revenues and VaR. During the quarter ended January 31, 2026, daily trading and underwriting revenues were positive on 93% of the days. In addition, four days were marked by net daily trading and underwriting losses in excess of $1 million. None of these losses exceeded VaR. Quarter Ended January 31, 2026 (millions of Canadian dollars) (20) (16) (12) (8) (4) 0 4 8 12 16 20 24 28 32 36 November 2025 December 2025 January 2026 Trading and underwriting revenues VaR
Slide 36 — Liquidity and Funding Risk
Management’s Discussion and Analysis Risk Management National Bank of Canada 36 Report to Shareholders, First Quarter 2026 Interest Rate Sensitivity – Non-Trading Activities (Before Tax) The following table presents the potential before-tax impact of an immediate and sustained 100-basis-point increase or of an immediate and sustained 100-basis-point decrease in interest rates on the economic value of equity and on the net interest income of the Bank’s non-trading portfolios for the next 12 months, assuming no further hedging is undertaken and using a constant balance sheet. (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Canadian dollar Other currencies Total Canadian dollar Other currencies Total Impact on equity 100-basis-point increase in the interest rate (603) (116) (719) (601) (82) (683) 100-basis-point decrease in the interest rate 598 91 689 605 83 688 Impact on net interest income 100-basis-point increase in the interest rate 111 (30) 81 132 (46) 86 100-basis-point decrease in the interest rate (131) 36 (95) (148) 49 (99) Liquidity and Funding Risk Liquidity and funding risk is the risk that the Bank will be unable to honour daily cash and financial obligations without resorting to costly and untimely measures. Liquidity and funding risk arises when sources of funds become insufficient to meet scheduled payments under the Bank’s commitments. Liquidity risk refers to the possibility that an institution may not be able to meet its financial obligations as they fall due, due to a mismatch between cash inflows and outflows, without incurring unacceptable losses. Funding risk is defined as the risk to the Bank’s ongoing ability to raise sufficient funds to finance actual or proposed business activities on an unsecured or secured basis at an acceptable price. The funding management priority is to achieve an optimal balance between deposits, securitization, secured funding, and unsecured funding. This brings optimal stability to the funding and reduces vulnerability to unpredictable events. Regulatory Developments The Bank continues to closely monitor regulatory developments and participates actively in various consultative processes. For additional information about the regulatory context as at October 31, 2025, refer to page 101 of the Risk Management section in the 2025 Annual Report. Furthermore, since November 1, 2025, the new regulatory development below is to be considered. The revised guidelines for Chapters 2, 3 and 4 were published by the OSFI on January 29, 2026. This version clarifies which types of deposits— particularly those arising from partnerships—may be classified as retail funding and therefore benefit from preferential treatment under the liquidity standards. It also introduces two new retail structured note categories, as well as additional guidance on the assessment of the maturity of structured notes with early redemption features and on the circumstances in which contingent funding obligations must be applied. These revised guidelines will come into effect on May 1, 2026. Liquidity Management Liquid Assets To protect depositors and creditors from unexpected crisis situations, the Bank holds a portfolio of unencumbered liquid assets that can be readily liquidated to meet financial obligations. The majority of the unencumbered liquid assets are held in Canadian or U.S. dollars. Moreover, all assets that can be quickly monetized are considered liquid assets. The Bank’s liquidity reserves do not factor in the availability of the emergency liquidity facilities of central banks. The following tables provide information on the Bank’s encumbered and unencumbered assets.
Slide 37 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 37 Report to Shareholders, First Quarter 2026 Liquid Asset Portfolio(1) (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Bank-owned liquid assets(2) Liquid assets received(3) Total liquid assets Encumbered liquid assets(4) Unencumbered liquid assets Unencumbered liquid assets Cash and deposits with financial institutions 36,768 − 36,768 14,640 22,128 13,359 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 52,535 86,403 138,938 81,419 57,519 54,180 Issued or guaranteed by Canadian provincial and municipal governments 21,303 15,508 36,811 23,501 13,310 14,032 Other debt securities 7,567 4,365 11,932 4,959 6,973 7,814 Equity securities 113,229 71,138 184,367 108,841 75,526 71,776 Loans Securities backed by insured residential mortgages 18,673 − 18,673 10,468 8,205 8,798 As at January 31, 2026 250,075 177,414 427,489 243,828 183,661 As at October 31, 2025 234,925 164,738 399,663 229,704 169,959 (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Unencumbered liquid assets by entity National Bank (parent) 118,182 117,051 Domestic subsidiaries 20,718 14,102 Foreign subsidiaries and branches 44,761 38,806 183,661 169,959 (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Unencumbered liquid assets by currency Canadian dollar 80,405 73,309 U.S. dollar 90,070 83,713 Other currencies 13,186 12,937 183,661 169,959 Liquid Asset Portfolio(1) – Average(5) (millions of Canadian dollars) Quarter ended January 31, 2026 October 31, 2025 Bank-owned liquid assets(2) Liquid assets received(3) Total liquid assets Encumbered liquid assets(4) Unencumbered liquid assets Unencumbered liquid assets Cash and deposits with financial institutions 34,905 − 34,905 14,498 20,407 17,374 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 52,324 80,030 132,354 81,276 51,078 56,036 Issued or guaranteed by Canadian provincial and municipal governments 20,571 15,658 36,229 24,686 11,543 12,431 Other debt securities 8,665 4,724 13,389 4,924 8,465 8,888 Equity securities 122,054 71,413 193,467 109,805 83,662 67,211 Loans Securities backed by insured residential mortgages 18,345 − 18,345 10,255 8,090 9,211 256,864 171,825 428,689 245,444 183,245 171,151 (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) Bank-owned liquid assets include assets for which there are no legal or geographic restrictions. (3) Securities received as collateral with respect to securities financing and derivative transactions and securities purchased under reverse repurchase agreements and securities borrowed. (4) In the normal course of its funding activities, the Bank pledges assets as collateral in accordance with standard terms. Encumbered liquid assets include assets used to cover short sales, obligations related to securities sold under repurchase agreements and securities loaned, guarantees related to security-backed loans and borrowings, collateral related to derivative financial instrument transactions, asset-backed securities, and liquid assets legally restricted from transfers. (5) The average is based on the sum of the end-of-period balances of the three months of the quarter divided by three.
Slide 38 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 38 Report to Shareholders, First Quarter 2026 Summary of Encumbered and Unencumbered Assets(1) (millions of Canadian dollars) As at January 31, 2026 Encumbered assets(2) Unencumbered assets Total Encumbered assets as a % of total assets Pledged as collateral Other(3) Available as collateral Other(4) Cash and deposits with financial institutions − 14,640 22,128 − 36,768 2.4 Securities 69,704 − 124,930 − 194,634 11.5 Securities purchased under reverse repurchase agreements and securities borrowed − 11,448 28,398 − 39,846 1.9 Loans, net of allowances 40,860 − 8,205 255,055 304,120 6.7 Derivative financial instruments − − − 12,578 12,578 − Premises and equipment − − − 2,159 2,159 − Goodwill − − − 3,098 3,098 − Intangible assets − − − 1,722 1,722 − Other assets 1,840 − − 9,106 10,946 0.3 112,404 26,088 183,661 283,718 605,871 22.8 (millions of Canadian dollars) As at October 31, 2025 Encumbered assets(2) Unencumbered assets Total Encumbered assets as a % of total assets Pledged as collateral Other(3) Available as collateral Other(4) Cash and deposits with financial institutions − 14,557 13,359 − 27,916 2.5 Securities 54,779 − 133,968 − 188,747 9.5 Securities purchased under reverse repurchase agreements and securities borrowed − 13,257 13,834 − 27,091 2.3 Loans, net of allowances 40,971 − 8,798 252,854 302,623 7.1 Derivative financial instruments − − − 12,515 12,515 − Premises and equipment − − − 2,162 2,162 − Goodwill − − − 3,101 3,101 − Intangible assets − − − 1,748 1,748 − Other assets 3,158 − − 7,858 11,016 0.5 98,908 27,814 169,959 280,238 576,919 21.9 (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) In the normal course of its funding activities, the Bank pledges assets as collateral in accordance with standard terms. Encumbered assets include assets used to cover short sales, obligations related to securities sold under repurchase agreements and securities loaned, guarantees related to security-backed loans and borrowings, collateral related to derivative financial instrument transactions, asset-backed securities, residential mortgage loans securitized and transferred under the Canada Mortgage Bond program, assets held in consolidated trusts supporting the Bank’s funding activities, and mortgage loans transferred under the covered bond program. (3) Other encumbered assets include assets for which there are restrictions and that cannot therefore be used for collateral or funding purposes as well as assets used to cover short sales. (4) Other unencumbered assets are assets that cannot be used for collateral or funding purposes in their current form. This category includes assets that are potentially eligible as funding program collateral (e.g., mortgages insured by the Canada Mortgage and Housing Corporation that can be securitized into mortgage-backed securities under the National Housing Act (Canada)). Liquidity Coverage Ratio The liquidity coverage ratio (LCR) was introduced primarily to ensure that banks could withstand periods of severe short-term stress. LCR is calculated by dividing the total amount of high-quality liquid assets (HQLA) by the total amount of net cash outflows. OSFI has been requiring Canadian banks to maintain a minimum LCR of 100%. An LCR above 100% ensures that banks are holding sufficient high-quality liquid assets to cover net cash outflows given a severe, 30-day liquidity crisis. The assumptions underlying the LCR scenario are established by the BCBS and OSFI’s Liquidity Adequacy Requirements Guideline. The table on the following page provides average LCR data calculated using the daily figures in the quarter. For the quarter ended January 31, 2026, the Bank’s average LCR was 189%, well above the 100% regulatory requirement and demonstrating the Bank’s solid short-term liquidity position.
Slide 39 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 39 Report to Shareholders, First Quarter 2026 LCR Disclosure Requirements(1)(2) (millions of Canadian dollars) Quarter ended January 31, 2026 October 31, 2025 Total unweighted value(3) (average) Total weighted value(4) (average) Total weighted value(4) (average) High-quality liquid assets (HQLA) Total HQLA n.a. 109,759 107,109 Cash outflows Retail deposits and deposits from small business customers, of which: 87,858 8,084 7,849 Stable deposits 31,471 944 935 Less stable deposits 56,387 7,140 6,914 Unsecured wholesale funding, of which: 142,214 77,308 75,827 Operational deposits (all counterparties) and deposits in networks of cooperative banks 46,105 11,303 10,576 Non-operational deposits (all counterparties) 88,853 58,639 58,488 Unsecured debt 7,256 7,366 6,763 Secured wholesale funding n.a. 36,110 34,155 Additional requirements, of which: 91,897 23,070 21,171 Outflows related to derivative exposures and other collateral requirements 31,500 13,180 11,972 Outflows related to loss of funding on secured debt securities 1,556 1,540 1,477 Backstop liquidity and credit enhancement facilities and commitments to extend credit 58,841 8,350 7,722 Other contractual commitments to extend credit 3,526 1,230 2,181 Other contingent commitments to extend credit 214,639 2,614 2,638 Total cash outflows n.a. 148,416 143,821 Cash inflows Secured lending (e.g., reverse repos) 197,368 41,450 38,120 Inflows from fully performing exposures 14,216 7,951 10,598 Other cash inflows 37,400 37,072 30,876 Total cash inflows 248,984 86,473 79,594 Total adjusted value(5) Total adjusted value(5) Total HQLA 109,759 107,109 Total net cash outflows 61,943 64,227 Liquidity coverage ratio (%)(6) 189 % 173 % n.a. Not applicable (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) OSFI prescribed a table format in order to standardize disclosure throughout the banking industry. (3) Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for cash inflows and outflows). (4) Weighted values are calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates. (5) Total adjusted values are calculated after the application of both haircuts and inflow and outflow rates and any applicable caps. (6) The data in this table is calculated using averages of the daily figures in the quarter. As at January 31, 2026, Level 1 liquid assets represented 81% of the Bank’s HQLA, which includes cash, central bank deposits, and bonds issued or guaranteed by the Canadian government and Canadian provincial governments. Cash outflows arise from the application of OSFI-prescribed assumptions on deposits, debt, secured funding, commitments and additional collateral requirements. The cash outflows are partly offset by cash inflows, which come mainly from secured loans and performing loans. The Bank expects some quarter-over-quarter variation between reported LCRs without such variation being necessarily indicative of a trend. The variation between the quarter ended January 31, 2026 and the preceding quarter was a result of normal business operations. The Bank’s liquid asset buffer is well in excess of its total net cash outflows. The LCR assumptions differ from the assumptions used for the liquidity disclosures presented in the tables on the previous pages or those used for internal liquidity management rules. While the liquidity disclosure framework is prescribed by the EDTF, the Bank’s internal liquidity metrics use assumptions that are calibrated according to its business model and experience. Net Stable Funding Ratio The BCBS has developed the net stable funding ratio (NSFR) to promote a more resilient banking sector. The NSFR requires institutions to maintain a stable funding profile in relation to the composition of their assets and off-balance-sheet activities. A viable funding structure is intended to reduce the likelihood that disruptions to an institution’s regular sources of funding would erode its liquidity position in a way that would increase the risk of its failure and potentially lead to broader systemic stress. The NSFR is calculated by dividing available stable funding by required stable funding. OSFI has been requiring Canadian banks to maintain a minimum NSFR of 100%.
Slide 40 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 40 Report to Shareholders, First Quarter 2026 The following table provides the available stable funding and required stable funding in accordance with OSFI’s Liquidity Adequacy Requirements Guideline. As at January 31, 2026, the Bank’s NSFR was 120%, well above the 100% regulatory requirement and demonstrating the Bank’s solid long- term liquidity position. NSFR Disclosure Requirements(1)(2) (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Unweighted value by residual maturity Weighted value(3) No maturity 6 months or less Over 6 months to 1 year Over 1 year Weighted value(3) Available Stable Funding (ASF) Items Capital: 33,776 − − 3,430 37,206 37,231 Regulatory capital 33,776 − − 3,430 37,206 37,231 Other capital instruments − − − − − − Retail deposits and deposits from small business customers: 84,950 13,606 11,922 33,712 133,758 133,311 Stable deposits 31,538 4,367 4,582 9,390 47,852 47,911 Less stable deposits 53,412 9,239 7,340 24,322 85,906 85,400 Wholesale funding: 96,376 126,252 42,884 76,509 169,197 143,883 Operational deposits 45,854 − − − 22,927 23,115 Other wholesale funding 50,522 126,252 42,884 76,509 146,270 120,768 Liabilities with matching interdependent assets(4) − 2,645 2,196 23,825 − − Other liabilities(5): 16,046 18,952 1,029 1,136 NSFR derivative liabilities(5) n.a. 7,444 n.a. n.a. All other liabilities and equity not included in the above categories 16,046 3,731 294 7,483 1,029 1,136 Total ASF n.a. n.a. n.a. n.a. 341,190 315,561 Required Stable Funding (RSF) Items Total NSFR high-quality liquid assets (HQLA) n.a. n.a. n.a. n.a. 40,836 9,028 Deposits held at other financial institutions for operational purposes − − − − − − Performing loans and securities: 88,564 83,855 41,675 113,897 206,794 206,535 Performing loans to financial institutions secured by Level 1 HQLA 291 15,555 29 − 807 642 Performing loans to financial institutions secured by non-Level-1 HQLA and unsecured performing loans to financial institutions 6,867 11,528 2,985 1,217 6,013 17,402 Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: 42,986 41,680 25,124 44,119 107,048 107,040 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 751 2,817 505 1,239 2,954 3,085 Performing residential mortgages, of which: 9,460 14,020 12,743 67,030 65,939 65,333 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 9,460 14,020 12,743 67,030 65,939 65,333 Securities that are not in default and do not qualify as HQLA, including exchange-traded equities 28,960 1,072 794 1,531 26,987 16,118 Assets with matching interdependent liabilities(4) − 2,645 2,196 23,825 − − Other assets(5): 11,448 44,422 31,740 33,440 Physical traded commodities, including gold 1,834 n.a. n.a. n.a. 1,781 2,867 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs(5) n.a. 14,838 12,613 13,174 NSFR derivative assets(5) n.a. 3,615 − − NSFR derivative liabilities before deduction of the variation margin posted(5) n.a. 16,768 838 900 All other assets not included in the above categories 9,614 4,089 647 4,465 16,508 16,499 Off-balance-sheet items(5) n.a. 149,118 5,704 5,660 Total RSF n.a. n.a. n.a. n.a. 285,074 254,663 Net Stable Funding Ratio (%) n.a. n.a. n.a. n.a. 120 % 124 % n.a. Not applicable (1) See the Financial Reporting Method section on pages 6 to 12 for additional information on capital management measures. (2) OSFI prescribed a table format in order to standardize disclosure throughout the banking industry. (3) Weighted values are calculated after application of the weightings set out in OSFI’s Liquidity Adequacy Requirements Guideline. (4) As per OSFI’s specifications, liabilities arising from transactions involving the Canada Mortgage Bond program and their corresponding encumbered mortgages are given ASF and RSF weights of 0%, respectively. (5) As per OSFI’s specifications, there is no need to differentiate by maturity.
Slide 41 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 41 Report to Shareholders, First Quarter 2026 The NSFR represents the amount of ASF relative to the amount of RSF. ASF is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The amount of RSF of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its off-balance-sheet exposures. The amounts of ASF and RSF are calibrated to reflect the degree of stability of liabilities and liquidity of assets. The Bank expects some quarter-over-quarter variation between reported NSFRs without such variation being necessarily indicative of a trend. The NSFR assumptions differ from the assumptions used for the liquidity disclosures provided in the tables on the preceding pages or those used for internal liquidity management rules. While the liquidity disclosure framework is prescribed by the EDTF, the Bank’s internal liquidity metrics use assumptions that are calibrated according to its business model and experience. Funding The Bank continuously monitors and analyzes market trends as well as possibilities for accessing less expensive and more flexible funding, considering both the risks and opportunities observed. The deposit strategy remains a priority for the Bank, which continues to prefer deposits to institutional funding. The table below presents the residual contractual maturities of the Bank’s wholesale funding. The information has been presented in accordance with the categories recommended by the EDTF for comparison purposes with other banks. Residual Contractual Maturities of Wholesale Funding (millions of Canadian dollars) As at January 31, 2026 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 12 months Subtotal 1 year or less Over 1 year to 2 years Over 2 years Total Deposits from banks(1) 388 − 140 524 1,052 − − 1,052 Certificates of deposit and commercial paper(2) 5,274 11,112 11,804 17,703 45,893 1,157 − 47,050 Senior unsecured medium-term notes(3) 1,253 3,767 3,786 14,409 23,215 12,792 16,395 52,402 Senior unsecured structured notes 68 60 992 664 1,784 785 2,864 5,433 Covered bonds and asset-backed securities Mortgage securitization − 437 2,047 2,150 4,634 3,154 20,878 28,666 Covered bonds − − 1,399 2,794 4,193 2,182 5,237 11,612 Subordinated liabilities(4) − − − − − − 3,430 3,430 6,983 15,376 20,168 38,244 80,771 20,070 48,804 149,645 Secured funding − 437 3,446 4,944 8,827 5,336 26,115 40,278 Unsecured funding 6,983 14,939 16,722 33,300 71,944 14,734 22,689 109,367 6,983 15,376 20,168 38,244 80,771 20,070 48,804 149,645 As at October 31, 2025 10,285 12,964 19,895 34,712 77,856 16,811 44,955 139,622 (1) Deposits from banks include all non-negotiable term deposits from banks. (2) Include bearer deposit notes. (3) Include debts subject to bank recapitalization (bail-in) conversion regulations. (4) Subordinated debt is presented in this table, but the Bank does not consider it as part of its wholesale funding. As part of a comprehensive liquidity management framework, the Bank regularly reviews its contracts that stipulate that additional collateral could be required in the event of a downgrade of the Bank’s credit rating. The Bank’s liquidity position management approach already incorporates additional collateral requirements in the event of a one-notch to three-notch downgrade in credit rating. The table below presents the additional collateral requirements in the event of a one-, two-, or three-notch credit rating downgrade. (millions of Canadian dollars) As at January 31, 2026 One-notch downgrade Two-notch downgrade Three-notch downgrade Derivatives(1) 26 107 123 (1) Contractual requirements related to agreements known as initial margins and variation margins.
Slide 42 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 42 Report to Shareholders, First Quarter 2026 Residual Contractual Maturities of Balance Sheet Items and Off-Balance-Sheet Commitments The following tables present balance sheet items and off-balance-sheet commitments by residual contractual maturity as at January 31, 2026 with comparative figures as at October 31, 2025. The information gathered from this maturity analysis is a component of liquidity and funding management. However, this maturity profile does not represent how the Bank manages its interest rate risk or its liquidity risk and funding needs. The Bank considers factors other than contractual maturity when assessing liquid assets or determining expected future cash flows. In the normal course of business, the Bank enters into various off-balance-sheet commitments. The credit instruments used to meet the funding needs of its clients represent the maximum amount of additional credit that the Bank could be obligated to extend if the commitments were fully drawn. The Bank also has future minimum commitments under leases as well as under other contracts, mainly commitments to purchase loans and contracts for outsourced information technology services. (millions of Canadian dollars) As at January 31, 2026 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 9 months Over 9 months to 12 months Over 1 year to 2 years Over 2 years to 5 years Over 5 years No specified maturity Total Assets Cash and deposits with financial institutions 21,792 1,385 1,218 761 1,103 242 − − 10,267 36,768 Securities At fair value through profit or loss 341 690 1,889 1,136 1,424 7,192 14,380 11,621 112,940 151,613 At fair value through other comprehensive income − 64 405 319 683 3,593 7,893 11,186 289 24,432 At amortized cost 14 62 1,019 1,057 1,099 2,426 8,715 4,197 − 18,589 355 816 3,313 2,512 3,206 13,211 30,988 27,004 113,229 194,634 Securities purchased under reverse repurchase agreements and securities borrowed 28,799 321 2,722 710 − 340 − − 6,954 39,846 Loans(1) Residential mortgage 2,575 3,921 7,944 6,496 5,818 23,225 52,988 10,950 590 114,507 Personal 1,108 1,470 2,267 1,751 1,495 6,158 15,832 5,592 14,615 50,288 Credit card 3,015 3,015 Business and government 17,816 9,669 10,556 9,168 6,465 14,480 22,367 7,058 40,940 138,519 Allowances for credit losses (2,209) (2,209) 21,499 15,060 20,767 17,415 13,778 43,863 91,187 23,600 56,951 304,120 Other Derivative financial instruments 1,895 1,992 1,256 711 1,128 1,299 1,846 2,451 − 12,578 Premises and equipment 2,159 2,159 Goodwill 3,098 3,098 Intangible assets 1,722 1,722 Other assets(1) 1,278 292 212 557 90 903 384 347 6,883 10,946 3,173 2,284 1,468 1,268 1,218 2,202 2,230 2,798 13,862 30,503 75,618 19,866 29,488 22,666 19,305 59,858 124,405 53,402 201,263 605,871 (1) Amounts collectible on demand are considered to have no specified maturity.
Slide 43 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 43 Report to Shareholders, First Quarter 2026 (millions of Canadian dollars) As at January 31, 2026 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 9 months Over 9 months to 12 months Over 1 year to 2 years Over 2 years to 5 years Over 5 years No specified maturity Total Liabilities and equity Deposits(1)(2) Personal 2,952 3,118 5,868 5,626 4,130 10,411 15,224 11,686 66,863 125,878 Business and government 45,130 21,850 22,057 22,191 16,753 19,366 47,087 6,968 112,493 313,895 Deposit-taking institutions 1,424 608 1,009 437 113 6 4 − 2,500 6,101 49,506 25,576 28,934 28,254 20,996 29,783 62,315 18,654 181,856 445,874 Other Obligations related to securities sold short(3) 128 26 259 94 85 329 3,443 5,055 2,029 11,448 Obligations related to securities sold under repurchase agreements and securities loaned 27,521 7,617 4,766 − − 9,405 − − 9,352 58,661 Derivative financial instruments 1,932 2,017 1,349 514 1,079 2,600 1,756 4,109 − 15,356 Liabilities related to transferred receivables(4) − 437 2,047 816 1,334 3,154 10,702 10,176 − 28,666 Lease liabilities(5) 7 15 21 22 20 81 196 291 − 653 Other liabilities – Other items(1)(5) 1,817 674 176 178 74 68 98 148 5,333 8,566 31,405 10,786 8,618 1,624 2,592 15,637 16,195 19,779 16,714 123,350 Subordinated debt − − − − − − − 3,430 − 3,430 Equity 33,217 33,217 80,911 36,362 37,552 29,878 23,588 45,420 78,510 41,863 231,787 605,871 Off-balance-sheet commitments Letters of guarantee and documentary letters of credit 119 1,729 2,070 2,459 4,088 2,019 133 − − 12,617 Credit card receivables(6) 11,647 11,647 Backstop liquidity and credit enhancement facilities(7) − − 15 − 15 5,552 − − 6,476 12,058 Commitments to extend credit(8) 3,841 14,567 12,401 7,007 9,116 7,498 3,526 268 59,429 117,653 Obligations related to: Lease commitments(9) 1 1 2 2 2 6 7 16 − 37 Other contracts 4 8 12 12 12 153 100 4 142 447 (1) Amounts payable upon demand or notice are considered to have no specified maturity. (2) Deposits are presented in greater detail than in the Consolidated Balance Sheet. (3) Amounts are disclosed according to the remaining contractual maturity of the underlying security. (4) These amounts mainly include liabilities related to the securitization of mortgage loans. (5) Other liabilities are presented in greater detail than in the Consolidated Balance Sheet. (6) These amounts are unconditionally revocable at the Bank’s discretion at any time. (7) In the event of payment on one of the backstop liquidity facilities, the Bank will receive as collateral government bonds in an amount up to $5.6 billion. (8) These amounts include $56.5 billion that is unconditionally revocable at the Bank’s discretion at any time. (9) These amounts include leases for which the underlying asset is of low value and leases other than for real estate of less than one year.
Slide 44 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 44 Report to Shareholders, First Quarter 2026 (millions of Canadian dollars) As at October 31, 2025 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 9 months Over 9 months to 12 months Over 1 year to 2 years Over 2 years to 5 years Over 5 years No specified maturity Total Assets Cash and deposits with financial institutions 13,916 1,537 1,660 680 569 − − − 9,554 27,916 Securities At fair value through profit or loss 180 149 585 688 981 3,696 12,533 12,056 117,250 148,118 At fair value through other comprehensive income 23 65 73 599 952 2,088 8,500 11,433 291 24,024 At amortized cost 466 400 134 1,036 1,242 2,456 7,551 3,320 − 16,605 669 614 792 2,323 3,175 8,240 28,584 26,809 117,541 188,747 Securities purchased under reverse repurchase agreements and securities borrowed 17,810 1,641 2,268 − − − − − 5,372 27,091 Loans(1) Residential mortgage 2,907 3,435 5,996 8,211 6,800 24,607 50,720 10,662 591 113,929 Personal 1,160 1,175 2,274 2,283 1,772 6,667 14,500 5,754 14,588 50,173 Credit card 3,022 3,022 Business and government 17,036 9,169 7,877 9,457 6,405 16,420 22,241 9,381 39,644 137,630 Allowances for credit losses (2,131) (2,131) 21,103 13,779 16,147 19,951 14,977 47,694 87,461 25,797 55,714 302,623 Other Derivative financial instruments 2,915 1,595 1,156 749 412 1,382 1,691 2,615 − 12,515 Premises and equipment 2,162 2,162 Goodwill 3,101 3,101 Intangible assets 1,748 1,748 Other assets(1) 1,260 305 23 227 219 567 197 1,049 7,169 11,016 4,175 1,900 1,179 976 631 1,949 1,888 3,664 14,180 30,542 57,673 19,471 22,046 23,930 19,352 57,883 117,933 56,270 202,361 576,919 (1) Amounts collectible on demand are considered to have no specified maturity.
Slide 45 — Environmental and Social Risk
Management’s Discussion and Analysis Risk Management National Bank of Canada 45 Report to Shareholders, First Quarter 2026 (millions of Canadian dollars) As at October 31, 2025 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 9 months Over 9 months to 12 months Over 1 year to 2 years Over 2 years to 5 years Over 5 years No specified maturity Total Liabilities and equity Deposits(1)(2) Personal 3,893 3,675 4,542 5,777 5,354 10,230 16,026 11,449 63,471 124,417 Business and government 49,094 14,091 22,662 23,596 12,484 15,717 39,727 6,977 113,164 297,512 Deposit-taking institutions 1,229 1,463 164 722 451 − 7 − 2,038 6,074 54,216 19,229 27,368 30,095 18,289 25,947 55,760 18,426 178,673 428,003 Other Obligations related to securities sold short(3) 28 579 373 295 154 999 3,045 5,205 2,579 13,257 Obligations related to securities sold under repurchase agreements and securities loaned 16,507 8,195 5,961 − − 603 − − 10,090 41,356 Derivative financial instruments 2,226 1,922 2,828 814 568 1,621 1,816 4,189 − 15,984 Liabilities related to transferred receivables(4) − 3,314 390 1,637 767 3,463 10,457 10,549 − 30,577 Securitization – Credit card(5) − − − − − − − − − − Lease liabilities(5) 7 15 22 22 23 83 196 276 − 644 Other liabilities – Other items(1)(5) 2,111 374 428 84 138 116 103 228 6,315 9,897 20,879 14,399 10,002 2,852 1,650 6,885 15,617 20,447 18,984 111,715 Subordinated debt − − − − − − − 3,432 − 3,432 Equity 33,769 33,769 75,095 33,628 37,370 32,947 19,939 32,832 71,377 42,305 231,426 576,919 Off-balance-sheet commitments Letters of guarantee and documentary letters of credit 106 2,837 2,436 1,680 2,202 2,030 251 7 17 11,566 Credit card receivables(6) 11,472 11,472 Backstop liquidity and credit enhancement facilities(7) − 15 5,552 15 − − − − 6,507 12,089 Commitments to extend credit(8) 3,952 15,070 8,861 9,910 6,078 7,399 5,613 290 60,616 117,789 Obligations related to: Lease commitments(9) 1 1 2 2 2 5 6 18 − 37 Other contracts 4 8 12 12 12 160 110 5 148 471 (1) Amounts payable upon demand or notice are considered to have no specified maturity. (2) Deposits are presented in greater detail than in the Consolidated Balance Sheet. (3) Amounts are disclosed according to the remaining contractual maturity of the underlying security. (4) These amounts mainly include liabilities related to the securitization of mortgage loans. (5) Other liabilities are presented in greater detail than in the Consolidated Balance Sheet. (6) These amounts are unconditionally revocable at the Bank’s discretion at any time. (7) In the event of payment on one of the backstop liquidity facilities, the Bank will receive as collateral government bonds in an amount up to $5.6 billion. (8) These amounts include $57.2 billion that is unconditionally revocable at the Bank’s discretion at any time. (9) These amounts include leases for which the underlying asset is of low value and leases other than for real estate of less than one year. Environmental and Social Risk Environmental and social risk is the possibility that environmental and social matters would result in a financial loss for the Bank or affect its business activities. For additional information on the ways the Bank addresses and mitigates this risk, see the Environmental and Social Risk section on pages 116 to 118 of the Bank’s 2025 Annual Report. Regulatory Developments The Bank continues to closely monitor regulatory developments and participates actively in various consultative processes. Since November 1, 2025, this new regulatory development is to be considered. On January 8, 2026, OSFI announced that it was continuing its regulatory relief exercise by postponing several planned works related to policies and guidance initiatives. Consultation on the disclosure expectation for financed emissions related to off-balance-sheet assets under management under Guideline B-15 entitled Climate Risk Management will be revisited in due course and implemented at a future date.
Slide 46 — Risk Disclosures
Management’s Discussion and Analysis National Bank of Canada 46 Report to Shareholders, First Quarter 2026 Risk Disclosures One of the purposes of the 2025 Annual Report, the Report to Shareholders – First Quarter 2026, and the related supplementary information documents is to provide transparent, high-quality risk disclosures in accordance with the recommendations made by the Financial Stability Board’s EDTF group. The following table lists the references where users can find information that responds to the EDTF’s 32 recommendations. Pages 2025 Annual Report Report to Shareholders(1) Supplementary Regulatory Capital and Pillar 3 Disclosure(1) General 1 Location of risk disclosures 16 46 Management’s Discussion and Analysis 62 to 118, 131 and 133 to 135 24 to 45 Consolidated Financial Statements Notes 1, 8, 17, 23 and 29 Notes 6 and 11 Supplementary Financial Information 24 to 34(2) Supplementary Regulatory Capital and Pillar 3 Disclosure 5 to 64 2 Risk terminology and risk measures 72 to 118 3 Top and emerging risks 28, 29 and 77 to 83 5 and 31 to 45 4 New key regulatory ratios 63 to 65, 101 and 105 to 108 24, 25, 36 and 38 to 41 Risk governance and risk management 5 Risk management organization, processes and key functions 72 to 95, 101 to 103 and 108 6 Risk management culture 72 and 73 7 Key risks by business segment, risk management and risk appetite 71 to 73 and 77 8 Stress testing 62, 73, 89, 99, 100 and 103 Capital adequacy and risk-weighted assets (RWA) 9 Minimum Pillar 1 capital requirements 63 to 65 24 and 25 10 Reconciliation of the accounting balance sheet to the regulatory balance sheet 11 to 17, 20 and 21 11 Movements in regulatory capital 69 27 12 Capital planning 62 to 71 13 RWA by business segment and by risk type 71 7 14 Capital requirements by risk and the RWA calculation method 84 to 88 7 15 Banking book credit risk 7 16 Movements in RWA by risk type 70 28 7 17 Assessment of credit risk model performance 76, 85 to 88 and 94 41 Liquidity 18 Liquidity management and components of the liquidity buffer 101 to 108 36 to 41 Funding 19 Summary of encumbered and unencumbered assets 104 and 105 37 and 38 20 Residual contractual maturities of balance sheet items and off-balance-sheet commitments 240 to 244 42 to 45 21 Funding strategy and funding sources 108 to 110 41 Market risk 22 Linkage of market risk measures to balance sheet 96 and 97 33 and 34 23 Market risk factors 94 to 100, 228 and 229 33 to 36 24 VaR: Assumptions, limitations and validation procedures 98 25 Stress tests and backtesting 94 to 100 Credit risk 26 Credit risk exposures 93 and 187 to 199 32 and 68 to 76 22 to 50 and 24 to 32(2) 27 Policies for identifying impaired loans 90, 91, 158 and 159 28 Movements in impaired loans and allowances for credit losses 131, 134, 135 and 187 to 199 68 to 76 29 to 32(2) 29 Counterparty credit risk relating to derivative transactions 89 to 92 and 208 to 211 42 to 50, 33(2) and 34(2) 30 Credit risk mitigation 87 to 92, 184 and 192 24, 28, 29 and 48 to 58 Other risks 31 Other risks: Governance, measurement and management 82, 83 and 110 to 118 32 Publicly known risk events 28, 29, 110 and 111 5 and 45 (1) First quarter 2026. (2) These pages are included in the document entitled Supplementary Financial Information — First Quarter 2026.
Slide 47 — Accounting Policies and Financial Disclosure
Management’s Discussion and Analysis National Bank of Canada 47 Report to Shareholders, First Quarter 2026 Accounting Policies and Financial Disclosure Material Accounting Policies and Accounting Estimates The unaudited interim condensed consolidated financial statements for the quarter ended January 31, 2026 were prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and use the same accounting policies as those described in Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025. Judgment, Estimates and Assumptions In preparing consolidated financial statements in accordance with IFRS, management must exercise judgment and make estimates and assumptions that affect the reporting date carrying values of assets and liabilities, net income, and related information. Some accounting policies are considered critical given their importance to the presentation of the Bank’s financial position and operating results and require subjective and complex judgments and estimates on matters that are inherently uncertain. Any change in these judgments and estimates could have a significant impact on the Bank’s consolidated financial statements. The material accounting policies and accounting estimates are the same as those described on pages 119 to 124 of the 2025 Annual Report. The global economic and geopolitical landscape, notably the measures affecting international trade relations, including the imposition of tariffs and related countermeasures, the ongoing Russia-Ukraine war and conflicts in the Middle East, together with inflationary pressures and an evolving interest rate environment, continue to create uncertainty. As a result, the establishment of reliable estimates and the use of judgment remain substantially complex. The uncertainty surrounding certain key inputs and assumptions used in the measurement of ECLs, including forward-looking macroeconomic scenarios and their associated probabilities, is described in Note 6 to these Consolidated Financial Statements. Future Accounting Policy Changes The Bank closely monitors both new accounting standards and amendments to existing accounting standards issued by the IASB. There have been no significant updates to the future accounting policy changes disclosed in Note 2 to the audited annual consolidated financial statements for the year ended October 31, 2025. The Bank is currently assessing the impact of applying these standards on the consolidated financial statements. Financial Disclosure During the first quarter of 2026, no changes were made to the policies, procedures, and other processes that comprise the Bank’s internal control over financial reporting that had or could reasonably have a significant impact on the internal control over financial reporting.
Slide 48 — Quarterly Financial Information
Management’s Discussion and Analysis National Bank of Canada 48 Report to Shareholders, First Quarter 2026 Quarterly Financial Information (millions of Canadian dollars, except per share amounts) 2026 2025 2024 2025 2024 Q1(1) Q4(1) Q3(1) Q2(1) Q1 Q4 Q3 Q2 Total Total Total revenues 3,893 3,698 3,449 3,650 3,183 2,944 2,996 2,750 13,980 11,400 Net income 1,254 1,059 1,065 896 997 955 1,033 906 4,017 3,816 Earnings per share ($) Basic 3.12 2.60 2.61 2.19 2.81 2.69 2.92 2.56 10.18 10.78 Diluted 3.08 2.57 2.58 2.17 2.78 2.66 2.89 2.54 10.07 10.68 Dividends per common share ($) 1.24 1.18 1.18 1.14 1.14 1.10 1.10 1.06 4.64 4.32 Return on common shareholders’ equity (%)(2) 15.7 13.3 13.6 11.9 16.7 16.4 18.4 16.9 13.7 17.2 Total assets 605,871 576,919 552,621 536,194 483,833 462,226 453,933 441,690 Net impaired loans(2) 2,831 2,904 2,588 2,437 1,836 1,629 1,482 1,426 Per common share ($) Book value(2) 78.81 78.39 77.20 76.13 68.15 65.74 64.64 62.28 Share price High 175.57 156.70 144.96 127.44 140.76 134.23 118.17 114.68 Low 156.88 143.40 121.09 107.01 128.79 111.98 106.21 101.24 (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarters ended January 31, 2026, October 31, 2025, July 31, 2025 and April 30, 2025. For additional information on the impact of the CWB acquisition, see the Acquisition section. (2) See the Glossary section on pages 49 to 52 for details on the composition of these measures.
Slide 49 — Glossary
Management’s Discussion and Analysis National Bank of Canada 49 Report to Shareholders, First Quarter 2026 Glossary Acceptances Acceptances and the customers’ liability under acceptances constitute a guarantee of payment by a bank and can be traded in the money market. The Bank earns a “stamping fee” for providing this guarantee. Allocated capital Capital is allocated to business segments based on Basel III CET1 requirements (11.5%) and reflects the capital required to support their activities, with unallocated capital reported in the Other heading of segment disclosures. Allowances for credit losses Allowances for credit losses represent management’s unbiased estimate of expected credit losses as at the balance sheet date. These allowances are primarily related to loans and off-balance-sheet items such as loan commitments and financial guarantees. Assets under administration Assets in respect of which a financial institution provides administrative services on behalf of the clients who own the assets. Such services include custodial services, collection of investment income, settlement of purchase and sale transactions, and record- keeping. Assets under administration are not reported on the balance sheet of the institution offering such services. Assets under management Assets managed by a financial institution and that are beneficially owned by clients. Management services are more comprehensive than administrative services and include selecting investments or offering investment advice. Assets under management, which may also be administered by the financial institution, are not reported on the balance sheet of the institution offering such services. Available TLAC Available TLAC includes total capital as well as certain senior unsecured debt subject to the federal government’s bail-in regulations that satisfy all of the eligibility criteria in OSFI’s Total Loss Absorbing Capacity (TLAC) Guideline. Average interest-bearing assets Average interest-bearing assets include interest-bearing deposits with financial institutions and certain cash items, securities, securities purchased under reverse repurchase agreements and securities borrowed, loans, while excluding other assets. The average is calculated based on the daily balances for the period. Average interest-bearing assets, non-trading Average interest-bearing assets, non-trading, include interest- bearing deposits with financial institutions and certain cash items, securities purchased under reverse repurchase agreements and securities borrowed, and loans, while excluding other assets and assets related to trading activities. The average is calculated based on the daily balances for the period. Average volumes Average volumes represent the average of the daily balances for the period of the consolidated balance sheet items. Basic earnings per share Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average basic number of common shares outstanding. Basis point (bps) Unit of measure equal to one one-hundredth of a percentage point (0.01%). Book value of a common share The book value of a common share is calculated by dividing common shareholders’ equity by the number of common shares on a given date. Common Equity Tier 1 (CET1) capital ratio CET1 capital consists of common shareholders’ equity less goodwill, intangible assets, and other capital deductions. The CET1 capital ratio is calculated by dividing total CET1 capital by the corresponding risk- weighted assets. Compound annual growth rate (CAGR) CAGR is a rate of growth that shows, for a period exceeding one year, the annual change as though the growth had been constant throughout the period. Derivative financial instruments Derivative financial instruments are financial contracts whose value is derived from an underlying interest rate, exchange rate, equity price, commodity price, credit instrument or index. Examples of derivatives include swaps, options, forward rate agreements, and futures. The notional amount of the derivative is the contract amount used as a reference point to calculate the payments to be exchanged between the two parties, and the notional amount itself is generally not exchanged by the parties. Diluted earnings per share Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding after taking into account the dilution effect of stock options using the treasury stock method and any gain (loss) on the redemption of preferred shares. Dividend payout ratio The dividend payout ratio represents the dividends of common shares (per share amount) expressed as a percentage of basic earnings per share.
Slide 50 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 50 Report to Shareholders, First Quarter 2026 Economic capital Economic capital is the internal measure used by the Bank to determine the capital required for its solvency and to pursue its business operations. Economic capital takes into consideration the credit, market, operational, business and other risks to which the Bank is exposed as well as the risk diversification effect among them and among the business segments. Economic capital thus helps the Bank to determine the capital required to protect itself against such risks and ensure its long-term viability. Efficiency ratio The efficiency ratio represents non-interest expenses expressed as a percentage of total revenues. It measures the efficiency of the Bank’s operations. Fair value The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal market at the measurement date under current market conditions (i.e., an exit price). Gross impaired loans as a percentage of total loans This measure represents gross impaired loans expressed as a percentage of the balance of loans. Hedging The purpose of a hedging transaction is to modify the Bank’s exposure to one or more risks by creating an offset between changes in the fair value of, or the cash flows attributable to, the hedged item and the hedging instrument. Impaired loans The Bank considers a financial asset, other than a credit card receivable, to be credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred or when contractual payments are 90 days past due. Credit card receivables are considered credit-impaired and are fully written off at the earlier of the following dates: when a notice of bankruptcy is received, a settlement proposal is made, or contractual payments are 180 days past due. Leverage ratio The leverage ratio is calculated by dividing Tier 1 capital by total exposure. Total exposure is defined as the sum of on-balance-sheet assets (including derivative financial instrument exposures and securities financing transaction exposures) and off-balance-sheet items. Liquidity coverage ratio (LCR) The LCR is a measure designed to ensure that the Bank has sufficient high-quality liquid assets to cover net cash outflows given a severe, 30-day liquidity crisis. Loan-to-value ratio The loan-to-value ratio is calculated according to the total facility amount for residential mortgages and home equity lines of credit divided by the value of the related residential property. Master netting agreement Legal agreement between two parties that have multiple derivative contracts with each other that provides for the net settlement of all contracts through a single payment, in the event of default, insolvency or bankruptcy. Net impaired loans Net impaired loans are gross impaired loans presented net of allowances for credit losses on impaired loans. Net impaired loans as a percentage of total loans This measure represents net impaired loans as a percentage of the balance of loans. Net interest income from trading activities Net interest income from trading activities comprises dividends related to financial assets and liabilities associated with trading activities, net of interest expenses and interest income related to the financing of these financial assets and liabilities. Net interest income, non-trading Net interest income, non-trading, comprises revenues related to financial assets and liabilities associated with non-trading activities, net of interest expenses and interest income related to the financing of these financial assets and liabilities. Net interest margin Net interest margin is calculated by dividing net interest income by average interest-bearing assets. Net stable funding ratio (NSFR) The NSFR ratio is a measure that helps guarantee that the Bank is maintaining a stable funding profile to reduce the risk of funding stress. Net write-offs as a percentage of average loans This measure represents the net write-offs (net of recoveries) expressed as a percentage of average loans.
Slide 51 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 51 Report to Shareholders, First Quarter 2026 Non-interest income related to trading activities Non-interest income related to trading activities consists of realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss, income from held-for-trading derivative financial instruments, changes in the fair value of loans at fair value through profit or loss, changes in the fair value of financial instruments designated at fair value through profit or loss, certain commission income, other trading activity revenues, and any applicable transaction costs. Office of the Superintendent of Financial Institutions (Canada) (OSFI) The mandate of OSFI is to regulate and supervise financial institutions and private pension plans subject to federal oversight, to help minimize undue losses to depositors and policyholders and, thereby, to contribute to public confidence in the Canadian financial system. Operating leverage Operating leverage is the difference between the growth rate for total revenues and the growth rate for non-interest expenses. Provisioning rate This measure represents the allowances for credit losses on impaired loans expressed as a percentage of gross impaired loans. Provisions for credit losses Amount charged to income necessary to bring the allowances for credit losses to a level deemed appropriate by management and is comprised of provisions for credit losses on impaired and non- impaired financial assets. Provisions for credit losses as a percentage of average loans This measure represents the provisions for credit losses expressed as a percentage of average loans. Provisions for credit losses on impaired loans as a percentage of average loans This measure represents the provisions for credit losses on impaired loans expressed as a percentage of average loans. Return on average assets Return on average assets represents net income expressed as a percentage of average assets. This ratio is used to measure the Bank’s efficiency in using all its assets to generate profits. Return on common shareholders’ equity (ROE) ROE represents net income attributable to common shareholders expressed as a percentage of average equity attributable to common shareholders. ROE for the business segments is calculated using net income attributable to common shareholders of the business segment expressed as a percentage of average allocated capital. It is a general measure of the Bank’s and the business segments’ efficiency in using equity. Risk-weighted assets Assets are risk weighted according to the guidelines established by OSFI. In the Standardized calculation approach, risk factors are applied directly to the face value of certain assets in order to reflect comparable risk levels. In the Advanced Internal Ratings-Based (AIRB) Approach, risk-weighted assets are derived from the Bank's internal models, which represent the Bank's own assessment of the risks it incurs. In the Foundation Internal Ratings-Based (FIRB) Approach, the Bank can use its own estimate of probability of default but must rely on OSFI estimates for the loss given default and exposure at default risk parameters. Off-balance-sheet instruments are converted to balance sheet (or credit) equivalents by adjusting the notional values before applying the appropriate risk-weighting factors. Securities purchased under reverse repurchase agreements Securities purchased by the Bank from a client pursuant to an agreement under which the securities will be resold to the same client on a specified date and at a specified price. Such an agreement is a form of short-term collateralized lending. Securities sold under repurchase agreements Financial obligations related to securities sold pursuant to an agreement under which the securities will be repurchased on a specified date and at a specified price. Such an agreement is a form of short-term funding. Structured entity A structured entity is an entity created to accomplish a narrow and well-defined objective and is designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate solely to administrative tasks and the relevant activities are directed by means of contractual arrangements.
Slide 52 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 52 Report to Shareholders, First Quarter 2026 Tier 1 capital ratio Tier 1 capital ratio consists of Common Equity Tier 1 capital and Additional Tier 1 instruments, namely, qualifying non-cumulative preferred shares and the eligible amount of innovative instruments. The Tier 1 capital ratio is calculated by dividing Tier 1 capital, less regulatory adjustments, by the corresponding risk-weighted assets. TLAC leverage ratio The TLAC leverage ratio is an independent risk measure that is calculated by dividing available TLAC by total exposure, as set out in OSFI’s Total Loss Absorbing Capacity (TLAC) Guideline. TLAC ratio The TLAC ratio is a measure used to assess whether a non-viable Domestic Systemically Important Bank (D-SIB) has sufficient loss- absorbing capacity to support its recapitalization. It is calculated by dividing available TLAC by risk weighted assets, as set out in OSFI’s Total Loss Absorbing Capacity (TLAC) Guideline. Total capital ratio Total capital is the sum of Tier 1 and Tier 2 capital. Tier 2 capital consists of the eligible portion of subordinated debt and certain allowances for credit losses. The Total capital ratio is calculated by dividing Total capital, less regulatory adjustments, by the corresponding risk-weighted assets. Total shareholder return (TSR) TSR represents the average total return on an investment in the Bank’s common shares. The return includes changes in share price and assumes that the dividends received were reinvested in additional common shares of the Bank. Trading activity revenues Trading activity revenues consist of the net interest income and the non-interest income related to trading activities. Net interest income comprises dividends related to financial assets and liabilities associated with trading activities, and some interest income related to the financing of these financial assets and liabilities net of interest expenses and interest income related to the financing of these financial assets and liabilities. Non-interest income consists of realized and unrealized gains and losses as well as interest income on securities measured at fair value through profit or loss, income from held-for-trading derivative financial instruments, changes in the fair value of loans at fair value through profit or loss, changes in the fair value of financial instruments designated at fair value through profit or loss, realized and unrealized gains and losses as well as interest expense on obligations related to securities sold short, certain commission income, other trading activity revenues, and any applicable transaction costs. Value-at-Risk (VaR) VaR is a statistical measure of risk that is used to quantify market risks across products, per types of risks, and aggregate risk on a portfolio basis. VaR is defined as the maximum loss at a specific confidence level over a certain horizon under normal market conditions. The VaR method has the advantage of providing a uniform measurement of financial instrument-related market risks based on a single statistical confidence level and time horizon.
Slide 53 — Interim Condensed
National Bank of Canada 53 Report to Shareholders, First Quarter 2026 Interim Condensed Consolidated Financial Statements (unaudited) Consolidated Balance Sheets 54 Consolidated Statements of Income 55 Consolidated Statements of Comprehensive Income 56 Consolidated Statements of Changes in Equity 58 Consolidated Statements of Cash Flows 59 Notes to the Interim Condensed Consolidated Financial Statements 60
Slide 54 — Consolidated Balance Sheets
Interim Condensed Consolidated Financial Statements National Bank of Canada 54 Report to Shareholders, First Quarter 2026 Consolidated Balance Sheets (unaudited) (millions of Canadian dollars) As at January 31, 2026 As at October 31, 2025 Assets Cash and deposits with financial institutions 36,768 27,916 Securities (Notes 4 and 5) At fair value through profit or loss 151,613 148,118 At fair value through other comprehensive income 24,432 24,024 At amortized cost 18,589 16,605 194,634 188,747 Securities purchased under reverse repurchase agreements and securities borrowed 39,846 27,091 Loans (Note 6) Residential mortgage 114,507 113,929 Personal 50,288 50,173 Credit card 3,015 3,022 Business and government 138,519 137,630 306,329 304,754 Allowances for credit losses (2,209) (2,131) 304,120 302,623 Other Derivative financial instruments 12,578 12,515 Premises and equipment 2,159 2,162 Goodwill 3,098 3,101 Intangible assets 1,722 1,748 Other assets (Note 7) 10,946 11,016 30,503 30,542 605,871 576,919 Liabilities and equity Deposits (Notes 4 and 8) 445,874 428,003 Other Obligations related to securities sold short 11,448 13,257 Obligations related to securities sold under repurchase agreements and securities loaned 58,661 41,356 Derivative financial instruments 15,356 15,984 Liabilities related to transferred receivables (Note 4) 28,666 30,577 Other liabilities (Note 9) 9,219 10,541 123,350 111,715 Subordinated debt 3,430 3,432 Equity Equity attributable to the Bank’s shareholders and holders of other equity instruments Preferred shares and other equity instruments (Note 10) 2,614 3,114 Common shares (Note 10) 9,826 9,865 Contributed surplus 133 137 Retained earnings 20,471 20,366 Accumulated other comprehensive income 173 287 33,217 33,769 Non-controlling interests − − 33,217 33,769 605,871 576,919 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 55 — Consolidated Statements of Income
Interim Condensed Consolidated Financial Statements National Bank of Canada 55 Report to Shareholders, First Quarter 2026 Consolidated Statements of Income (unaudited) (millions of Canadian dollars) Quarter ended January 31 2026 2025 Interest income Loans 4,313 3,896 Securities at fair value through profit or loss 511 533 Securities at fair value through other comprehensive income 208 168 Securities at amortized cost 166 138 Deposits with financial institutions 248 314 5,446 5,049 Interest expense Deposits 3,119 3,187 Liabilities related to transferred receivables 187 195 Subordinated debt 40 19 Other 706 676 4,052 4,077 Net interest income(1) 1,394 972 Non-interest income Underwriting and advisory fees 156 96 Securities brokerage commissions 76 57 Mutual fund revenues 201 178 Investment management and trust service fees 392 320 Credit fees 98 82 Card revenues 49 50 Deposit and payment service charges 78 72 Trading revenues (losses) 1,240 1,181 Gains (losses) on non-trading securities, net 38 27 Insurance revenues, net 22 22 Foreign exchange revenues, other than trading 72 66 Share in the net income of associates and joint ventures 2 2 Other 75 58 2,499 2,211 Total revenues 3,893 3,183 Non-interest expenses Compensation and employee benefits 1,260 1,037 Occupancy 119 97 Technology 330 285 Communications 17 16 Professional fees 110 93 Other 175 118 2,011 1,646 Income before provisions for credit losses and income taxes 1,882 1,537 Provisions for credit losses (Note 6) 244 254 Income before income taxes 1,638 1,283 Income taxes 384 286 Net income 1,254 997 Net income attributable to Preferred shareholders and holders of other equity instruments 37 39 Common shareholders 1,217 958 Bank shareholders and holders of other equity instruments 1,254 997 Non-controlling interests − − 1,254 997 Earnings per share (dollars) (Note 14) Basic 3.12 2.81 Diluted 3.08 2.78 Dividends per common share (dollars) (Note 10) 1.24 1.14 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. (1) Net interest income includes dividend income. For additional information, see Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025.
Slide 56 — Consolidated Statements of Comprehensive Income
Interim Condensed Consolidated Financial Statements National Bank of Canada 56 Report to Shareholders, First Quarter 2026 Consolidated Statements of Comprehensive Income (unaudited) (millions of Canadian dollars) Quarter ended January 31 2026 2025 Net income 1,254 997 Other comprehensive income, net of income taxes Items that may be subsequently reclassified to net income Net foreign currency translation adjustments Net unrealized foreign currency translation gains (losses) on investments in foreign operations (347) 453 Impact of hedging net foreign currency translation gains (losses) 176 (204) (171) 249 Net change in debt securities at fair value through other comprehensive income Net unrealized gains (losses) on debt securities at fair value through other comprehensive income 64 22 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income (5) (18) 59 4 Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges (14) (15) Net (gains) losses on designated derivative financial instruments reclassified to net income 12 (22) (2) (37) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans (41) 4 Net gains (losses) on equity securities designated at fair value through other comprehensive income 6 17 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (63) 18 (98) 39 Total other comprehensive income, net of income taxes (212) 255 Comprehensive income 1,042 1,252 Comprehensive income attributable to Bank shareholders and holders of other equity instruments 1,042 1,252 Non-controlling interests − − 1,042 1,252 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 57 — Consolidated Statements of Comprehensive Income (cont.)
Interim Condensed Consolidated Financial Statements National Bank of Canada 57 Report to Shareholders, First Quarter 2026 Consolidated Statements of Comprehensive Income (cont.) (unaudited) (millions of Canadian dollars) Income Taxes – Other Comprehensive Income The following table presents the income tax expense or recovery for each component of other comprehensive income. Quarter ended January 31 2026 2025 Items that may be subsequently reclassified to net income Net foreign currency translation adjustments Net unrealized foreign currency translation gains (losses) on investments in foreign operations 3 (15) Impact of hedging net foreign currency translation gains (losses) 62 (64) 65 (79) Net change in debt securities at fair value through other comprehensive income Net unrealized gains (losses) on debt securities at fair value through other comprehensive income 25 9 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income (3) (7) 22 2 Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges (5) (5) Net (gains) losses on designated derivative financial instruments reclassified to net income 5 (9) − (14) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans (16) 1 Net gains (losses) on equity securities designated at fair value through other comprehensive income 2 6 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (24) 7 (38) 14 49 (77) The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 58 — Consolidated Statements of Changes in Equity
Interim Condensed Consolidated Financial Statements National Bank of Canada 58 Report to Shareholders, First Quarter 2026 Consolidated Statements of Changes in Equity (unaudited) (millions of Canadian dollars) Quarter ended January 31 2026 2025 Preferred shares and other equity instruments at beginning 3,114 3,150 Redemption of Limited Recourse Capital Notes, Series 1 (Note 10) (500) − Preferred shares and other equity instruments at end 2,614 3,150 Common shares at beginning 9,865 3,463 Issuances of common shares pursuant to the Stock Option Plan 74 28 Repurchases of common shares for cancellation (Note 10) (90) − Impact of shares purchased or sold for trading (23) (6) Common shares at end 9,826 3,485 Contributed surplus at beginning 137 85 Stock option expense (Note 12) 6 5 Stock options exercised (11) (3) Other 1 (3) Contributed surplus at end 133 84 Retained earnings at beginning 20,366 18,633 Net income attributable to the Bank's shareholders and holders of other equity instruments 1,254 997 Dividends on preferred shares and distributions on other equity instruments (Note 10) (42) (45) Dividends on common shares (Note 10) (484) (389) Premium paid on common shares repurchased for cancellation (Note 10) (529) − Remeasurements of pension plans and other post-employment benefit plans (41) 4 Net gains (losses) on equity securities designated at fair value through other comprehensive income 6 17 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (63) 18 Other 4 6 Retained earnings at end 20,471 19,241 Accumulated other comprehensive income at beginning 287 219 Net foreign currency translation adjustments (171) 249 Net change in unrealized gains (losses) on debt securities at fair value through other comprehensive income 59 4 Net change in gains (losses) on instruments designated as cash flow hedges (2) (37) Accumulated other comprehensive income at end 173 435 Equity attributable to the Bank's shareholders and holders of other equity instruments 33,217 26,395 Non-controlling interests at beginning − − Net income attributable to non-controlling interests − − Other − 1 Non-controlling interests at end − 1 Equity 33,217 26,396 Accumulated Other Comprehensive Income As at January 31, 2026 As at January 31, 2025 Accumulated other comprehensive income Net foreign currency translation adjustments 183 569 Net unrealized gains (losses) on debt securities at fair value through other comprehensive income 102 (22) Net gains (losses) on instruments designated as cash flow hedges (114) (114) Share in the other comprehensive income of associates and joint ventures 2 2 173 435 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 59 — Consolidated Statements of Cash Flows
Interim Condensed Consolidated Financial Statements National Bank of Canada 59 Report to Shareholders, First Quarter 2026 Consolidated Statements of Cash Flows (unaudited) (millions of Canadian dollars) Quarter ended January 31 2026 2025 Cash flows from operating activities Net income 1,254 997 Adjustments for Provisions for credit losses (Note 6) 244 254 Amortization of premises and equipment, including right-of-use assets 71 63 Amortization of intangible assets 95 75 Deferred taxes 5 35 Losses (gains) on sales of non-trading securities, net (38) (23) Share in the net income of associates and joint ventures (2) (2) Stock option expense 6 5 Gain on the fair value remeasurement of an equity interest (Note 15) − (4) Change in operating assets and liabilities Securities at fair value through profit or loss (3,495) (10,601) Securities purchased under reverse repurchase agreements and securities borrowed (12,755) 1,036 Loans, net of securitization (3,652) (4,107) Deposits 17,871 17,550 Obligations related to securities sold short (1,809) 702 Obligations related to securities sold under repurchase agreements and securities loaned 17,305 (818) Derivative financial instruments, net (691) 1,109 Securitization – Credit cards − (49) Interest and dividends receivable and interest payable (240) (108) Current tax assets and liabilities (107) (31) Other items (167) (1,498) 13,895 4,585 Cash flows from financing activities Redemption of preferred shares and other equity instruments for cancellation (Note 10) (500) − Issuances of common shares (including the impact of shares purchased for trading) 40 19 Repurchases of common shares for cancellation (Note 10) (619) − Issuance of subordinated debt − 1,000 Repayments of lease liabilities (26) (24) Dividends paid on shares and distributions on other equity instruments (526) (434) (1,631) 561 Cash flows from investing activities Net change in investments in associates and joint ventures − (2) Business acquisition 2 − Purchases of non-trading securities (8,501) (10,956) Maturities of non-trading securities 3,052 1,460 Sales of non-trading securities 2,618 6,683 Net change in premises and equipment, excluding right-of-use assets (34) (65) Net change in intangible assets (69) (64) (2,932) (2,944) Impact of currency rate movements on cash and cash equivalents (480) 857 Increase (decrease) in cash and cash equivalents 8,852 3,059 Cash and cash equivalents at beginning 27,916 31,549 Cash and cash equivalents at end(1) 36,768 34,608 Supplementary information about cash flows from operating activities Interest paid 4,310 4,341 Interest and dividends received 5,464 5,205 Income taxes paid 315 68 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements. (1) This item represents the balance of Cash and deposits with financial institutions in the Consolidated Balance Sheet. It includes an amount of $14.6 billion as at January 31, 2026 ($14.6 billion as at October 31, 2025) for which there are restrictions and of which $7.1 billion ($7.1 billion as at October 31, 2025) represents the balances that the Bank must maintain with central banks, other regulatory agencies, and certain counterparties.
Slide 60 — Notes to the Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements National Bank of Canada 60 Report to Shareholders, First Quarter 2026 Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) Note 1 Basis of Presentation 60 Note 10 Share Capital and Other Equity Instruments 78 Note 2 Future Accounting Policy Changes 60 Note 11 Capital Disclosure 79 Note 3 Fair Value of Financial Instruments 61 Note 12 Share-Based Payments 80 Note 4 Financial instruments Designated at Fair Value Through Note 13 Employee Benefits – Pension Plans and Other Profit or Loss 66 Post-Employment Benefit Plans 81 Note 5 Securities 67 Note 14 Earnings Per Share 81 Note 6 Loans and Allowances for Credit Losses 68 Note 15 Segment Disclosures 82 Note 7 Other Assets 77 Note 16 Significant Transactions 83 Note 8 Deposits 77 Note 17 Event After the Consolidated Balance Sheet Date 83 Note 9 Other Liabilities 77 Note 1 – Basis of Presentation On February 24, 2026, the Board of Directors authorized the publication of the Bank’s unaudited interim condensed consolidated financial statements (the Consolidated Financial Statements) for the quarter ended January 31, 2026. The Bank’s Consolidated Financial Statements were prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB), using the same accounting policies as those described in Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025. As the Consolidated Financial Statements do not include all of the information required for full annual financial statements, they should be read in conjunction with the audited annual consolidated financial statements for the year ended October 31, 2025. Judgment, Estimates and Assumptions In preparing consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, management must exercise judgment and make estimates and assumptions that affect the reporting date carrying values of assets and liabilities, net income, and related information. Some of the Bank’s accounting policies, such as measurement of expected credit losses (ECLs), require particularly complex judgments and estimates. See Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025 for a summary of the most significant estimation processes used to prepare the Consolidated Financial Statements and for the valuation techniques used to determine the carrying values and fair values of assets and liabilities. The global economic and geopolitical landscape, notably the measures affecting international trade relations, including the imposition of tariffs and related countermeasures, the ongoing Russia-Ukraine war and conflicts in the Middle East, together with inflationary pressures and an evolving interest rate environment, continue to create uncertainty. As a result, the establishment of reliable estimates and the use of judgment remain substantially complex. The uncertainty surrounding certain key inputs and assumptions used in the measurement of ECLs, including forward looking macroeconomic scenarios and their associated probabilities, is described in Note 6 to these Consolidated Financial Statements. Unless otherwise indicated, all amounts are expressed in Canadian dollars, which is the Bank’s functional and presentation currency. Note 2 – Future Accounting Policy Changes The Bank closely monitors both new accounting standards and amendments to existing accounting standards issued by the IASB. There have been no significant updates to the future accounting policy changes disclosed in Note 2 to the audited annual consolidated financial statements for the year ended October 31, 2025. The Bank is currently assessing the impact of applying these standards on the consolidated financial statements.
Slide 61 — Note 3 – Fair Value of Financial Instruments
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 61 Report to Shareholders, First Quarter 2026 Note 3 – Fair Value of Financial Instruments Fair Value and Carrying Value of Financial Instruments by Category Financial assets and financial liabilities are recognized on the Consolidated Balance Sheet at fair value or at amortized cost in accordance with the categories set out in the accounting framework for financial instruments. As at January 31, 2026 Carrying value and fair value Carrying value Fair value Total carrying value Total fair value Financial instruments classified as at fair value through profit or loss Financial instruments designated at fair value through profit or loss Debt securities classified as at fair value through other comprehensive income Equity securities designated at fair value through other comprehensive income Financial instruments at amortized cost, net Financial instruments at amortized cost, net Financial assets Cash and deposits with financial institutions − − − − 36,768 36,768 36,768 36,768 Securities 151,253 360 24,143 289 18,589 18,776 194,634 194,821 Securities purchased under reverse repurchase agreements and securities borrowed − − − − 39,846 39,846 39,846 39,846 Loans, net of allowances 15,668 − − − 288,452 292,753 304,120 308,421 Other Derivative financial instruments 12,578 − − − − − 12,578 12,578 Other assets 67 − − − 4,849 4,849 4,916 4,916 Financial liabilities Deposits(1) − 33,623 412,251 413,889 445,874 447,512 Other Obligations related to securities sold short 11,448 − − − 11,448 11,448 Obligations related to securities sold under repurchase agreements and securities loaned − − 58,661 58,661 58,661 58,661 Derivative financial instruments 15,356 − − − 15,356 15,356 Liabilities related to transferred receivables − 11,617 17,049 16,960 28,666 28,577 Other liabilities − 4 4,117 4,117 4,121 4,121 Subordinated debt − − 3,430 3,515 3,430 3,515 (1) Includes embedded derivative financial instruments.
Slide 62 — Establishing Fair Value
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 62 Report to Shareholders, First Quarter 2026 Note 3 – Fair Value of Financial Instruments (cont.) As at October 31, 2025 Carrying value and fair value Carrying value Fair value Total carrying value Total fair value Financial instruments classified as at fair value through profit or loss Financial instruments designated at fair value through profit or loss Debt securities classified as at fair value through other comprehensive income Equity securities designated at fair value through other comprehensive income Financial instruments at amortized cost, net Financial instruments at amortized cost, net Financial assets Cash and deposits with financial institutions − − − − 27,916 27,916 27,916 27,916 Securities 147,756 362 23,733 291 16,605 16,869 188,747 189,011 Securities purchased under reverse repurchase agreements and securities borrowed − − − − 27,091 27,091 27,091 27,091 Loans, net of allowances 16,662 − − − 285,961 289,791 302,623 306,453 Other Derivative financial instruments 12,515 − − − − − 12,515 12,515 Other assets 67 − − − 3,657 3,657 3,724 3,724 Financial liabilities Deposits(1) − 32,740 395,263 395,685 428,003 428,425 Other Obligations related to securities sold short 13,257 − − − 13,257 13,257 Obligations related to securities sold under repurchase agreements and securities loaned − − 41,356 41,356 41,356 41,356 Derivative financial instruments 15,984 − − − 15,984 15,984 Liabilities related to transferred receivables − 13,191 17,386 17,302 30,577 30,493 Other liabilities − 5 4,814 4,814 4,819 4,819 Subordinated debt − − 3,432 3,529 3,432 3,529 (1) Includes embedded derivative financial instruments. Establishing Fair Value The fair value of a financial instrument is the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction in the principal market at the measurement date under current market conditions (i.e., an exit price). Unadjusted quoted prices in active markets provide the best evidence of fair value. When there is no quoted price in an active market, the Bank applies other valuation techniques that maximize the use of relevant observable inputs and that minimize the use of unobservable inputs. Such valuation techniques include the following: using information available from recent market transactions, referring to the current fair value of a comparable financial instrument, applying discounted cash flow analysis, applying option pricing models, or relying on any other valuation technique that is commonly used by market participants and has proven to yield reliable estimates. Judgment is required when applying many of the valuation techniques. The Bank’s valuations were based on its assessment of the conditions prevailing as at January 31, 2026 and may change in the future. Furthermore, there may be measurement uncertainty resulting from the choice of valuation model used. Fair value is established in accordance with a rigorous control framework. The Bank has policies and procedures that govern the process for determining fair value. The Bank’s valuation governance structure has remained largely unchanged from that described in Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. The valuation techniques used to determine the fair value of financial assets and financial liabilities are also described in this note, and no significant changes have been made to the valuation techniques.
Slide 63 — Financial Instruments Recorded at Fair Value in the Consolidated Balance Sheet
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 63 Report to Shareholders, First Quarter 2026 Financial Instruments Recorded at Fair Value in the Consolidated Balance Sheet Hierarchy of Fair Value Measurements IFRS establishes a fair value measurement hierarchy that classifies the inputs used in financial instrument fair value measurement techniques according to three levels. This fair value hierarchy requires observable inputs to be used whenever such inputs exist. According to the hierarchy, the highest level of inputs are unadjusted quoted prices in active markets for identical instruments and the lowest level of inputs are unobservable inputs. In some cases, the inputs used to measure the fair value of a financial instrument might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. For additional information, see Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. Transfers of financial instruments between Levels 1 and 2 and transfers to (or from) Level 3 are deemed to have taken place at the beginning of the quarter in which the transfer occurred. Significant transfers can occur between the fair value hierarchy levels due to new information on inputs used to determine fair value and the observable nature of those inputs. During the quarter ended January 31, 2026, $5 million in securities classified as at fair value through profit or loss were transferred from Level 2 to Level 1 as a result of changing market conditions ($8 million in securities classified as at fair value through profit or loss and $1 million in obligations related to securities sold short during the quarter ended January 31, 2025). Also, during the quarter ended January 31, 2026, $11 million in securities classified as at fair value through profit or loss and $1 million in obligations related to securities sold short were transferred from Level 1 to Level 2 as a result of changing market conditions ($2 million in securities classified as at fair value through profit or loss and $1 million in obligations related to securities sold short during the quarter ended January 31, 2025). During the quarters ended January 31, 2026 and 2025, financial instruments were transferred to (or from) Level 3 due to changes in the availability of observable market inputs as a result of changing market conditions. The following tables show financial instruments recorded at fair value on the Consolidated Balance Sheet according to the fair value hierarchy. As at January 31, 2026 Level 1 Level 2 Level 3 Total financial assets/liabilities at fair value Financial assets Securities At fair value through profit or loss Securities issued or guaranteed by Canadian government 6,458 13,018 − 19,476 Canadian provincial and municipal governments − 11,493 − 11,493 U.S. Treasury, other U.S. agencies and other foreign governments 992 2,408 − 3,400 Other debt securities − 4,271 33 4,304 Equity securities 109,985 2,111 844 112,940 117,435 33,301 877 151,613 At fair value through other comprehensive income Securities issued or guaranteed by Canadian government 2,582 4,984 − 7,566 Canadian provincial and municipal governments − 4,989 − 4,989 U.S. Treasury, other U.S. agencies and other foreign governments 10,243 224 − 10,467 Other debt securities − 1,121 − 1,121 Equity securities − 218 71 289 12,825 11,536 71 24,432 Loans − 15,429 239 15,668 Other Derivative financial instruments 360 12,126 92 12,578 Other assets – Other items − − 67 67 130,620 72,392 1,346 204,358 Financial liabilities Deposits(1) − 42,136 − 42,136 Other Obligations related to securities sold short 4,811 6,637 − 11,448 Derivative financial instruments 566 14,690 100 15,356 Liabilities related to transferred receivables − 11,617 − 11,617 Other liabilities - Accounts payable and accrued expenses − 4 − 4 5,377 75,084 100 80,561 (1) Includes the embedded derivative financial instruments related to deposits measured at amortized cost.
Slide 64 — Financial Instruments Classified in Level 3
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 64 Report to Shareholders, First Quarter 2026 Note 3 – Fair Value of Financial Instruments (cont.) As at October 31, 2025 Level 1 Level 2 Level 3 Total financial assets/liabilities at fair value Financial assets Securities At fair value through profit or loss Securities issued or guaranteed by Canadian government 6,019 10,959 − 16,978 Canadian provincial and municipal governments − 7,667 − 7,667 U.S. Treasury, other U.S. agencies and other foreign governments 973 1,695 − 2,668 Other debt securities − 3,450 105 3,555 Equity securities 114,055 2,444 751 117,250 121,047 26,215 856 148,118 At fair value through other comprehensive income Securities issued or guaranteed by Canadian government 1,723 5,384 − 7,107 Canadian provincial and municipal governments − 4,849 − 4,849 U.S. Treasury, other U.S. agencies and other foreign governments 10,210 428 − 10,638 Other debt securities − 1,139 − 1,139 Equity securities − 220 71 291 11,933 12,020 71 24,024 Loans − 16,421 241 16,662 Other Derivative financial instruments 2,052 10,359 104 12,515 Other assets – Other items − − 67 67 135,032 65,015 1,339 201,386 Financial liabilities Deposits(1) − 39,917 − 39,917 Other Obligations related to securities sold short 7,044 6,213 − 13,257 Derivative financial instruments 1,798 14,100 86 15,984 Liabilities related to transferred receivables − 13,191 − 13,191 Other liabilities - Accounts payable and accrued expenses − 5 − 5 8,842 73,426 86 82,354 (1) Includes the embedded derivative financial instruments related to deposits measured at amortized cost. Financial Instruments Classified in Level 3 The Bank classifies financial instruments in Level 3 when the valuation technique is based on at least one significant input that is not observable in the markets. The Bank maximizes the use of observable inputs to determine the fair value of financial instruments. For a description of the valuation techniques and significant unobservable inputs used in determining the fair value of financial instruments classified in Level 3, see Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. For the quarter ended January 31, 2026, no significant change was made to the valuation techniques and significant unobservable inputs used in determining fair value. Sensitivity Analysis of Financial Instruments Classified in Level 3 The Bank performs sensitivity analyses for the fair value measurements of Level 3 financial instruments, substituting unobservable inputs with one or more reasonably possible alternative assumptions. For additional information on how a change in an unobservable input might affect the fair value measurements of Level 3 financial instruments, see Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. For the quarter ended January 31, 2026, there were no significant changes in the sensitivity analyses of Level 3 financial instruments.
Slide 65 — Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 65 Report to Shareholders, First Quarter 2026 Change in the Fair Value of Financial Instruments Classified in Level 3 The Bank may hedge the fair value of financial instruments classified in the various levels through offsetting hedge positions. Gains and losses on financial instruments classified in Level 3 presented in the following tables do not reflect the inverse gains and losses on financial instruments used for economic hedging purposes that may have been classified in Level 1 or Level 2 by the Bank. In addition, the Bank may hedge the fair value of financial instruments classified in Level 3 using other financial instruments classified in Level 3. The effect of these hedges is not included in the net amount presented in the following tables. The gains and losses presented hereafter may comprise changes in fair value based on observable and unobservable inputs. Quarter ended January 31, 2026 Securities at fair value through profit or loss Securities at fair value through other comprehensive income Loans and other assets Derivative financial instruments(1) Fair value as at October 31, 2025 856 71 308 18 Total realized and unrealized gains (losses) included in Net income (2) 7 − 2 8 Total realized and unrealized gains (losses) included in Other comprehensive income − 1 − − Purchases 22 − − − Sales (8) (1) (6) − Issuances − − 12 − Settlements and other − − (10) (12) Financial instruments transferred into Level 3 − − − − Financial instruments transferred out of Level 3 − − − (22) Fair value as at January 31, 2026 877 71 306 (8) Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at January 31, 2026(3) 6 − 2 8 Quarter ended January 31, 2025 Securities at fair value through profit or loss Securities at fair value through other comprehensive income Loans and other assets Derivative financial instruments(1) Fair value as at October 31, 2024 668 307 288 71 Total realized and unrealized gains (losses) included in Net income (4) 21 − (2) 26 Total realized and unrealized gains (losses) included in Other comprehensive income − 3 − − Purchases 11 − − − Sales (4) − (2) − Issuances − − 5 − Settlements and other − − 6 (4) Financial instruments transferred into Level 3 − − − − Financial instruments transferred out of Level 3 − − − 2 Fair value as at January 31, 2025 696 310 295 95 Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at January 31, 2025(5) 19 − (2) 26 (1) The derivative financial instruments include assets and liabilities presented on a net basis. (2) Total gains (losses) included in Non-interest income was a gain of $17 million. (3) Total unrealized gains (losses) included in Non-interest income was an unrealized gain of $16 million. (4) Total gains (losses) included in Non-interest income was a gain of $45 million. (5) Total unrealized gains (losses) included in Non-interest income was an unrealized gain of $43 million.
Slide 66 — Note 4 – Financial Instruments Designated at Fair Value Through Profit or Loss
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 66 Report to Shareholders, First Quarter 2026 Note 4 – Financial Instruments Designated at Fair Value Through Profit or Loss The Bank chose to designate certain financial instruments at fair value through profit or loss according to the criteria presented in Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025. Consistent with its risk management strategy and in accordance with the fair value option, which permits the designation if it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring financial assets and liabilities or recognizing the gains and losses thereon on different bases, the Bank designated certain securities, certain liabilities related to transferred receivables, and certain other liabilities at fair value through profit or loss. The fair value of liabilities related to transferred receivables and other liabilities does not include credit risk, as the holders of these liabilities are not exposed to the Bank’s credit risk. The Bank also designated certain deposits that include embedded derivative financial instruments at fair value through profit or loss. To determine a change in fair value arising from a change in the credit risk of deposits designated at fair value through profit or loss, the Bank calculates, at the beginning of the period, the present value of the instrument’s contractual cash flows using the following rates: first, an observed discount rate for similar securities that reflects the Bank’s credit spread and, then, a rate that excludes the Bank’s credit spread. The difference obtained between the two values is then compared to the difference obtained using the same rates at the end of the period. Information about the financial assets and financial liabilities designated at fair value through profit or loss is provided in the following tables. Carrying value as at January 31, 2026 Unrealized gains (losses) for the quarter ended January 31, 2026 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 360 (2) 8 Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 33,623 (317) 410 Liabilities related to transferred receivables 11,617 71 1 Other liabilities 4 − − . 45,244 (246) 411 Carrying value as at January 31, 2025 Unrealized gains (losses) for the quarter ended January 31, 2025 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 361 3 11 Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 27,936 51 1,438 Liabilities related to transferred receivables 10,593 (94) 33 38,529 (43) 1,471 (1) For the quarter ended January 31, 2026, the change in the fair value of deposits designated at fair value through profit or loss attributable to credit risk, and recorded in Other comprehensive income, resulted in a loss of $87 million ($25 million gain for the quarter ended January 31, 2025). (2) The amount at maturity that the Bank will be contractually required to pay to the holders of these deposits varies and will differ from the reporting date fair value.
Slide 67 — Note 5 – Securities
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 67 Report to Shareholders, First Quarter 2026 Note 5 – Securities Credit Quality As at January 31, 2026 and as at October 31, 2025, securities at fair value through other comprehensive income and securities at amortized cost were mainly classified in Stage 1, with their credit quality falling mostly in the “Excellent” category according to the Bank’s internal risk-rating categories. For additional information on the reconciliation of allowances for credit losses, see Note 6 to these Consolidated Financial Statements. Gross Unrealized Gains (Losses) on Securities at Fair Value Through Other Comprehensive Income(1) As at January 31, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Carrying value(2) Securities issued or guaranteed by Canadian government 7,443 126 (3) 7,566 Canadian provincial and municipal governments 4,963 66 (40) 4,989 U.S. Treasury, other U.S. agencies and other foreign governments 10,314 161 (8) 10,467 Other debt securities 1,135 8 (22) 1,121 Equity securities 239 50 − 289 24,094 411 (73) 24,432 As at October 31, 2025 Amortized cost Gross unrealized gains Gross unrealized losses Carrying value(2) Securities issued or guaranteed by Canadian government 6,939 172 (4) 7,107 Canadian provincial and municipal governments 4,777 100 (28) 4,849 U.S. Treasury, other U.S. agencies and other foreign governments 10,466 180 (8) 10,638 Other debt securities 1,149 13 (23) 1,139 Equity securities 246 45 − 291 23,577 510 (63) 24,024 (1) Excludes the impact of hedging. (2) The allowances for credit losses on securities at fair value through other comprehensive income (excluding equity securities), representing $3 million as at January 31, 2026 ($3 million as at October 31, 2025), are reported in Other comprehensive income. For additional information, see Note 6 to these Consolidated Financial Statements. Equity Securities Designated at Fair Value Through Other Comprehensive Income The Bank designated certain equity securities, the main business objective of which is to generate dividend income, at fair value through other comprehensive income without subsequent reclassification of gains and losses to net income. During the quarter ended January 31, 2026, a dividend income amount of $3 million was recognized for these investments ($14 million for the quarter ended January 31, 2025), including a negligible amount for investments that were sold during the quarters ended January 31, 2026 and 2025. Quarter ended January 31, 2026 Quarter ended January 31, 2025 Equity securities of private companies Equity securities of public companies Total Equity securities of private companies Equity securities of public companies Total Fair value at beginning 71 220 291 307 359 666 Change in fair value − 8 8 3 20 23 Designated at fair value through other comprehensive income − 5 5 − 40 40 Sales(1) − (15) (15) − (166) (166) Fair value at end 71 218 289 310 253 563 (1) The Bank disposed of private and public company equity securities for economic reasons.
Slide 68 — Securities at Amortized Cost
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 68 Report to Shareholders, First Quarter 2026 Note 5 – Securities (cont.) Securities at Amortized Cost As at January 31, 2026 As at October 31, 2025 Securities issued or guaranteed by Canadian government 11,404 10,505 Canadian provincial and municipal governments 4,821 4,075 U.S. Treasury, other U.S. agencies and other foreign governments 222 339 Other debt securities 2,163 1,699 Gross carrying value 18,610 16,618 Allowances for credit losses 21 13 Carrying value 18,589 16,605 Gains (Losses) on Disposals of Securities at Amortized Cost During the quarters ended January 31, 2026 and 2025, the Bank disposed of certain debt securities measured at amortized cost. The carrying value of these securities upon disposal was $50 million for the quarter ended January 31, 2026 ($43 million for the quarter ended January 31, 2025), and the Bank recognized negligible gains for the quarter ended January 31, 2026 ($3 million for the quarter ended January 31, 2025) under Non-interest income – Gains (losses) on non-trading securities, net in the Consolidated Statement of Income. Note 6 – Loans and Allowances for Credit Losses Determining and Measuring Expected Credit Losses (ECL) Determining Expected Credit Losses Expected credit losses are determined using a three-stage impairment approach that is based on the change in the credit quality of financial assets since initial recognition. Non-impaired loans Stage 1 Financial assets that have experienced no significant increase in credit risk between initial recognition and the reporting date, and for which 12-month expected credit losses are recorded at the reporting date, are classified in Stage 1. Stage 2 Financial assets that have experienced a significant increase in credit risk between initial recognition and the reporting date, and for which lifetime expected credit losses are recorded at the reporting date, are classified in Stage 2. Impaired loans Loans classified as impaired loans are divided into the following two categories: Stage 3 Financial assets for which there is objective evidence of impairment, for which one or more events have had a detrimental impact on the estimated future cash flows of these financial assets at the reporting date, and for which lifetime expected credit losses are recorded. POCI Financial assets that are credit-impaired when purchased or originated (POCI). For additional information, see Notes 1 and 8 to the audited annual consolidated financial statements for the year ended October 31, 2025. Credit Quality of Loans The following tables present the gross carrying amounts of loans as at January 31, 2026 and as at October 31, 2025, according to credit quality and ECL impairment stage of each loan category at amortized cost, and according to credit quality for loans at fair value through profit or loss. For additional information on credit quality according to the Internal Ratings-Based (IRB) categories, see the Internal Default Risk Ratings table on page 87 in the Credit Risk section of the 2025 Annual Report.
Slide 69 — Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 69 Report to Shareholders, First Quarter 2026 As at January 31, 2026 Non-impaired loans Impaired loans Loans at fair value through profit or loss(1) Total Stage 1 Stage 2 Residential mortgage Excellent 38,861 4 − − 38,865 Good 18,566 84 − − 18,650 Satisfactory 16,035 3,740 − − 19,775 Special mention 449 736 − − 1,185 Substandard 90 280 − − 370 Default − − 227 − 227 IRB Approach 74,001 4,844 227 − 79,072 Standardized Approach 20,717 503 989 13,226 35,435 Gross carrying amount 94,718 5,347 1,216 13,226 114,507 Allowances for credit losses(2) 104 61 119 − 284 Carrying amount 94,614 5,286 1,097 13,226 114,223 Personal Excellent 23,166 9 − − 23,175 Good 8,860 603 − − 9,463 Satisfactory 8,262 1,473 − − 9,735 Special mention 2,259 882 − − 3,141 Substandard 43 300 − − 343 Default − − 260 − 260 IRB Approach 42,590 3,267 260 − 46,117 Standardized Approach 3,790 108 273 − 4,171 Gross carrying amount 46,380 3,375 533 − 50,288 Allowances for credit losses(2) 125 141 198 − 464 Carrying amount 46,255 3,234 335 − 49,824 Credit card Excellent 336 − − − 336 Good 468 − − − 468 Satisfactory 931 29 − − 960 Special mention 580 286 − − 866 Substandard 42 158 − − 200 Default − − − − − IRB Approach 2,357 473 − − 2,830 Standardized Approach 179 6 − − 185 Gross carrying amount 2,536 479 − − 3,015 Allowances for credit losses(2) 42 118 − − 160 Carrying amount 2,494 361 − − 2,855 Business and government Excellent 7,182 4 − 1,148 8,334 Good 28,921 18 − 27 28,966 Satisfactory 39,956 13,262 − 142 53,360 Special mention 278 1,965 − − 2,243 Substandard − 581 − − 581 Default − − 788 − 788 IRB Approach 76,337 15,830 788 1,317 94,272 Standardized Approach 37,478 4,439 1,205 1,125 44,247 Gross carrying amount 113,815 20,269 1,993 2,442 138,519 Allowances for credit losses(2) 388 319 594 − 1,301 Carrying amount 113,427 19,950 1,399 2,442 137,218 Total loans Gross carrying amount 257,449 29,470 3,742 15,668 306,329 Allowances for credit losses(2) 659 639 911 − 2,209 Carrying amount 256,790 28,831 2,831 15,668 304,120 (1) Not subject to expected credit losses. (2) The allowances for credit losses do not include the amounts related to undrawn commitments reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 70 — Note 6 – Loans and Allowances for Credit Losses (cont.)
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 70 Report to Shareholders, First Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) As at October 31, 2025 Non-impaired loans Impaired loans Loans at fair value through profit or loss(1) Total Stage 1 Stage 2 Residential mortgage Excellent 37,897 9 − − 37,906 Good 18,734 104 − − 18,838 Satisfactory 15,712 3,269 − − 18,981 Special mention 453 719 − − 1,172 Substandard 91 240 − − 331 Default − − 223 − 223 IRB Approach 72,887 4,341 223 − 77,451 Standardized Approach 20,840 671 957 14,010 36,478 Gross carrying amount 93,727 5,012 1,180 14,010 113,929 Allowances for credit losses(2) 88 69 102 − 259 Carrying amount 93,639 4,943 1,078 14,010 113,670 Personal Excellent 22,936 19 − − 22,955 Good 8,231 893 − − 9,124 Satisfactory 8,159 1,838 − − 9,997 Special mention 2,339 921 − − 3,260 Substandard 51 308 − − 359 Default − − 244 − 244 IRB Approach 41,716 3,979 244 − 45,939 Standardized Approach 3,845 97 292 − 4,234 Gross carrying amount 45,561 4,076 536 − 50,173 Allowances for credit losses(2) 119 141 180 − 440 Carrying amount 45,442 3,935 356 − 49,733 Credit card Excellent 357 − − − 357 Good 491 − − − 491 Satisfactory 909 29 − − 938 Special mention 563 278 − − 841 Substandard 44 156 − − 200 Default − − − − − IRB Approach 2,364 463 − − 2,827 Standardized Approach 189 6 − − 195 Gross carrying amount 2,553 469 − − 3,022 Allowances for credit losses(2) 43 114 − − 157 Carrying amount 2,510 355 − − 2,865 Business and government Excellent 7,116 2 − 1,251 8,369 Good 28,915 4 − 27 28,946 Satisfactory 40,097 12,453 − 146 52,696 Special mention 303 1,986 − − 2,289 Substandard − 550 − − 550 Default − − 864 − 864 IRB Approach 76,431 14,995 864 1,424 93,714 Standardized Approach 36,650 4,906 1,132 1,228 43,916 Gross carrying amount 113,081 19,901 1,996 2,652 137,630 Allowances for credit losses(2) 365 384 526 − 1,275 Carrying amount 112,716 19,517 1,470 2,652 136,355 Total loans Gross carrying amount 254,922 29,458 3,712 16,662 304,754 Allowances for credit losses(2) 615 708 808 − 2,131 Carrying amount 254,307 28,750 2,904 16,662 302,623 (1) Not subject to expected credit losses. (2) The allowances for credit losses do not include the amounts related to undrawn commitments reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 71 — Loans Past Due But Not Impaired(1)
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 71 Report to Shareholders, First Quarter 2026 The following table presents the credit risk exposures of off-balance-sheet commitments as at January 31, 2026 and as at October 31, 2025 according to credit quality and ECL impairment stage. As at January 31, 2026 As at October 31, 2025 Stage 1 Stage 2 Impaired Total Stage 1 Stage 2 Impaired Total Off-balance-sheet commitments(1) Retail Excellent 16,648 14 − 16,662 16,332 13 − 16,345 Good 5,138 234 − 5,372 5,083 321 − 5,404 Satisfactory 1,852 207 − 2,059 1,771 236 − 2,007 Special mention 487 137 − 624 468 133 − 601 Substandard 19 43 − 62 20 44 − 64 Default − − 2 2 − − 2 2 Non-retail Excellent 13,340 − − 13,340 13,887 − − 13,887 Good 26,001 − − 26,001 25,144 8 − 25,152 Satisfactory 18,196 7,227 − 25,423 17,682 6,376 − 24,058 Special mention 24 256 − 280 29 193 − 222 Substandard 3 154 − 157 8 125 − 133 Default − − 15 15 − − 25 25 IRB Approach 81,708 8,272 17 89,997 80,424 7,449 27 87,900 Standardized Approach 26,788 201 25 27,014 28,306 406 83 28,795 Total exposure 108,496 8,473 42 117,011 108,730 7,855 110 116,695 Allowances for credit losses 195 101 1 297 178 84 6 268 Total exposure, net of allowances 108,301 8,372 41 116,714 108,552 7,771 104 116,427 (1) Represent letters of guarantee and documentary letters of credit, undrawn commitments, and backstop liquidity and credit enhancement facilities. Loans Past Due But Not Impaired(1) As at January 31, 2026 As at October 31, 2025 Residential mortgage Personal Credit card Business and government Residential mortgage Personal Credit card Business and government Past due but not impaired 31 to 60 days 191 176 32 147 366 126 34 194 61 to 90 days 162 63 19 151 101 52 18 68 Over 90 days(2) − − 44 − − − 41 − 353 239 95 298 467 178 93 262 (1) Loans less than 31 days past due are not presented as they are not considered past due from an administrative standpoint. (2) All loans more than 90 days past due, except for credit card receivables, are considered impaired (Stage 3). Impaired Loans As at January 31, 2026 As at October 31, 2025 Gross Allowances for credit losses Net Gross Allowances for credit losses Net Residential mortgage 1,216 119 1,097 1,180 102 1,078 Personal 533 198 335 536 180 356 Credit card(1) − − − − − − Business and government 1,993 594 1,399 1,996 526 1,470 3,742 911 2,831 3,712 808 2,904 (1) Credit card receivables are considered impaired, at the latest, when payment is 180 days past due, and they are written off at that time.
Slide 72 — Allowances for Credit Losses
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 72 Report to Shareholders, First Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Allowances for Credit Losses The following tables present a reconciliation of the allowances for credit losses by Consolidated Balance Sheet item and by type of off-balance-sheet commitment. Quarter ended January 31, 2026 Allowances for credit losses as at October 31, 2025 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at January 31, 2026 Balance sheet Cash and deposits with financial institutions(2)(3) 11 1 − − − 12 Securities(3) At fair value through other comprehensive income(4) 3 − − − − 3 At amortized cost(2) 13 8 − − − 21 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 259 35 (7) − (3) 284 Personal 440 67 (43) − − 464 Credit card 157 34 (36) − 5 160 Business and government 1,275 70 (57) − 13 1,301 2,131 206 (143) − 15 2,209 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 25 7 − − − 32 Undrawn commitments 236 21 − − − 257 Backstop liquidity and credit enhancement facilities 7 1 − − − 8 268 29 − − − 297 2,426 244 (143) − 15 2,542 Quarter ended January 31, 2025 Allowances for credit losses as at October 31, 2024 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at January 31, 2025 Balance sheet Cash and deposits with financial institutions(2)(3) 9 2 − − − 11 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 6 − − − − 6 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 197 14 (1) − 5 215 Personal 360 66 (38) − 7 395 Credit card 156 28 (31) − 4 157 Business and government 628 130 (45) − 3 716 1,341 238 (115) − 19 1,483 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 21 1 − − − 22 Undrawn commitments 188 12 − − − 200 Backstop liquidity and credit enhancement facilities 5 − − − − 5 214 13 − − − 227 1,573 254 (115) − 19 1,731 (1) The contractual amount outstanding on financial assets that were written off during the quarter ended January 31, 2026 and that are still subject to enforcement activity was $68 million ($51 million for the quarter ended January 31, 2025). (2) These financial assets are presented net of the allowances for credit losses on the Consolidated Balance Sheet. (3) As at January 31, 2026 and 2025, these financial assets were mainly classified in Stage 1 and their credit quality fell mostly within the Excellent category. (4) The allowances for credit losses are reported in the Accumulated other comprehensive income item of the Consolidated Balance Sheet. (5) The allowances for credit losses are reported in the Allowances for credit losses item of the Consolidated Balance Sheet. (6) The allowances for credit losses are reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 73 — Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 73 Report to Shareholders, First Quarter 2026 The following tables present a reconciliation of allowances for credit losses for each loan category at amortized cost according to ECL impairment stage. Quarter ended January 31, 2026 Quarter ended January 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Residential mortgage Balance at beginning 88 69 102 259 62 85 50 197 Originations or purchases 9 − − 9 4 − − 4 Transfers(2): to Stage 1 11 (11) − − 13 (12) (1) − to Stage 2 (2) 8 (6) − (2) 6 (4) − to Stage 3 − (4) 4 − − (5) 5 − Net remeasurement of loss allowances(3) − 1 29 30 (15) 11 18 14 Derecognitions(4) (1) (1) (2) (4) (1) (1) (2) (4) Changes to models − − − − − − − − Provisions for credit losses 17 (7) 25 35 (1) (1) 16 14 Write-offs − − (7) (7) − − (1) (1) Disposals − − − − − − − − Recoveries − − 2 2 − − 1 1 Foreign exchange movements and other (1) (1) (3) (5) 2 2 − 4 Balance at end 104 61 119 284 63 86 66 215 Includes: Amounts drawn 104 61 119 284 63 86 66 215 Undrawn commitments(5) − − − − − − − − Personal Balance at beginning 125 146 180 451 107 127 135 369 Originations or purchases 15 − − 15 10 − − 10 Transfers(2): to Stage 1 29 (27) (2) − 26 (24) (2) − to Stage 2 (10) 11 (1) − (11) 12 (1) − to Stage 3 − (23) 23 − − (20) 20 − Net remeasurement of loss allowances(3) (23) 43 40 60 (21) 47 37 63 Derecognitions(4) (3) (4) (2) (9) (2) (3) (2) (7) Changes to models − − − − − − − − Provisions for credit losses 8 − 58 66 2 12 52 66 Write-offs − − (43) (43) − − (38) (38) Disposals − − − − − − − − Recoveries − − 4 4 − − 4 4 Foreign exchange movements and other (2) (1) (1) (4) 2 1 − 3 Balance at end 131 145 198 474 111 140 153 404 Includes: Amounts drawn 125 141 198 464 106 136 153 395 Undrawn commitments(5) 6 4 − 10 5 4 − 9 (1) No POCI loans were acquired during the quarters ended January 31, 2026 and 2025. (2) Represent stage transfers deemed to have taken place at the beginning of the quarter in which the transfer occurred. (3) Includes the net remeasurement of loss allowances (after transfers) attributable mainly to changes in volumes and in the credit quality of existing loans as well as to changes in risk parameters. (4) Represent reversals to loss allowances arising from full loan repayments (excluding write-offs and disposals). (5) The allowances for credit losses on undrawn commitments are reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 74 — Note 6 – Loans and Allowances for Credit Losses (cont.)
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 74 Report to Shareholders, First Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Quarter ended January 31, 2026 Quarter ended January 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Credit card Balance at beginning 81 154 − 235 70 141 − 211 Originations or purchases 6 − − 6 3 − − 3 Transfers(2): to Stage 1 39 (39) − − 27 (27) − − to Stage 2 (7) 7 − − (6) 6 − − to Stage 3 − (21) 21 − − (13) 13 − Net remeasurement of loss allowances(3) (36) 59 10 33 (15) 36 14 35 Derecognitions(4) (1) (1) − (2) (1) − − (1) Changes to models − − − − − − − − Provisions for credit losses 1 5 31 37 8 2 27 37 Write-offs − − (36) (36) − − (31) (31) Disposals − − − − − − − − Recoveries − − 5 5 − − 4 4 Foreign exchange movements and other − − − − − − − − Balance at end 82 159 − 241 78 143 − 221 Includes: Amounts drawn 42 118 − 160 46 111 − 157 Undrawn commitments(5) 40 41 − 81 32 32 − 64 Business and government Balance at beginning 473 417 532 1,422 308 215 229 752 Originations or purchases 46 − − 46 37 − − 37 Transfers(2): to Stage 1 20 (14) (6) − 14 (14) − − to Stage 2 (25) 33 (8) − (12) 15 (3) − to Stage 3 (1) (1) 2 − − (5) 5 − Net remeasurement of loss allowances(3) 11 (52) 121 80 (22) 39 101 118 Derecognitions(4) (16) (17) (4) (37) (9) (12) (1) (22) Changes to models − − − − − − − − Provisions for credit losses 35 (51) 105 89 8 23 102 133 Write-offs − − (57) (57) − − (45) (45) Disposals − − − − − − − − Recoveries − − 19 19 − − 2 2 Foreign exchange movements and other (1) (1) (4) (6) 2 − (1) 1 Balance at end 507 365 595 1,467 318 238 287 843 Includes: Amounts drawn 388 319 594 1,301 221 209 286 716 Undrawn commitments(5) 119 46 1 166 97 29 1 127 Total allowances for credit losses at end(6) 824 730 912 2,466 570 607 506 1,683 Includes: Amounts drawn 659 639 911 2,209 436 542 505 1,483 Undrawn commitments(5) 165 91 1 257 134 65 1 200 (1) No POCI loans were acquired during the quarters ended January 31, 2026, and 2025. (2) Represent stage transfers deemed to have taken place at the beginning of the quarter in which the transfer occurred. (3) Includes the net remeasurement of loss allowances (after transfers) attributable mainly to changes in volumes and in the credit quality of existing loans as well as to changes in risk parameters. (4) Represent reversals to loss allowances arising from full loan repayments (excluding write-offs and disposals). (5) The allowances for credit losses on undrawn commitments are reported in the Other liabilities item of the Consolidated Balance Sheet. (6) Excludes allowances for credit losses on other financial assets at amortized cost and on off-balance-sheet commitments other than undrawn commitments.
Slide 75 — Main Macroeconomic Factors
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 75 Report to Shareholders, First Quarter 2026 Main Macroeconomic Factors The following tables show the main macroeconomic factors used to estimate the allowances for credit losses on loans. For each scenario, namely, the base scenario, upside scenario, and downside scenario, the average values of the macroeconomic factors over the next 12 months (used for Stage 1 credit loss calculations) and over the remaining forecast period (used for Stage 2 credit loss calculations) are presented. As at January 31, 2026 Base scenario Upside scenario Downside scenario Next 12 months Remaining forecast period Next 12 months Remaining forecast period Next 12 months Remaining forecast period Macroeconomic factors(1) GDP growth(2) 1.6 % 1.8 % 2.2 % 1.9 % (6.3) % 2.7 % Unemployment rate 6.5 % 6.1 % 6.2 % 5.6 % 8.9 % 8.2 % Housing price index growth(2) 2.3 % 2.6 % 9.7 % 2.4 % (13.9) % 0.3 % BBB spread(3) 1.5 % 1.6 % 1.4 % 1.4 % 3.3 % 2.4 % S&P/TSX growth(2)(4) 8.4 % 2.8 % 11.0 % 3.2 % (30.5) % 7.5 % WTI oil price(5) (US$ per barrel) 60 68 74 75 35 43 As at October 31, 2025 Base scenario Upside scenario Downside scenario Next 12 months Remaining forecast period Next 12 months Remaining forecast period Next 12 months Remaining forecast period Macroeconomic factors(1) GDP growth(2) 1.5 % 1.9 % 1.8 % 2.1 % (6.3) % 2.7 % Unemployment rate 7.2 % 6.6 % 6.7 % 5.9 % 9.2 % 8.4 % Housing price index growth(2) 0.3 % 2.4 % 9.7 % 2.4 % (13.9) % 0.3 % BBB spread(3) 1.6 % 1.6 % 1.4 % 1.4 % 3.3 % 2.4 % S&P/TSX growth(2)(4) 5.0 % 2.8 % 12.1 % 3.2 % (30.5) % 7.5 % WTI oil price(5) (US$ per barrel) 62 69 74 75 39 47 (1) All macroeconomic factors are based on the Canadian economy unless otherwise indicated. (2) Growth rate is annualized. (3) Yield on corporate BBB bonds less yield on Canadian federal government bonds with 10-year maturity. (4) Main stock index in Canada. (5) The West Texas Intermediate (WTI) index is commonly used as a benchmark for the price of oil. The main macroeconomic factors used for the personal credit portfolio are unemployment rate and growth in the housing price index, based on the economy of Canada or Quebec. The main macroeconomic factors used for the business and government credit portfolio are unemployment rate, spread on corporate BBB bonds, S&P/TSX growth, and WTI oil price. An increase in unemployment rate or BBB spread will generally lead to higher allowances for credit losses, whereas an increase in the other macroeconomic factors (GDP, S&P/TSX, housing price index, and WTI oil price) will generally lead to lower allowances for credit losses.
Slide 76 — Sensitivity Analysis of Allowances for Credit Losses on Non-Impaired Loans
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 76 Report to Shareholders, First Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) During the quarter ended January 31, 2026, developments in the macroeconomic factors were generally favourable for financial variables and the economy. Overall, the environment remains perilous and uncertainty is running high. Despite ongoing uncertainty surrounding trade relations with the United States, the Canadian economy performed better than expected in the second half of the year 2025. With this economic upturn, the labour market has improved in recent months. However, the outlook remains fragile. Business hiring and investment intentions continue to be weak. Rather than easing, trade tensions with the United States have escalated at the start of this crucial year for the renewal of the Canada–United States–Mexico Agreement (CUSMA). This casts doubt on the possibility of a painless renewal of CUSMA. In the U.S., the labour market has shown some signs of weakness, but we do not believe that this will last long. The economy is being supported by considerable fiscal stimulus and accommodative financial conditions. Furthermore, major investments in artificial intelligence could continue in 2026, an exuberance that may represent a risk in the medium term. Such an environment should help keep inflation above the central bank's target for a fifth consecutive year. In the base scenario, Canada's unemployment rate stands at 6.4% after 12 months, a decrease of 0.3 percentage point. Alongside this improvement in the labour market, real estate prices are slightly higher. In fact, housing prices rise 2.3% year-over-year. The S&P/TSX sits at 33,344 points after one year, and the price of oil is at US$63. In the upside scenario, trade tensions fade and geopolitical conflicts are resolved, lifting confidence. Inflation continues to subside, as central bankers managed to curb it without causing significant damage to the economy. This allows them to further cut interest rates. The Canadian and U.S. governments continue to expand spending. House prices appreciate strongly against a backdrop of respectable economic growth and an improving labour market that supports consumption. After one year, the unemployment rate in this scenario is more favourable than in the base scenario (0.4 percentage point lower). Housing prices rise 9.7%, the S&P/TSX sits at 34,128 points after one year, and the price of oil is at US$75. In the downside scenario, the Americans impose much higher tariffs on Canada and a global trade war intensifies. The central bank cuts interest rates sharply, but falling demand and uncertainty translate into sharply reduced investment by businesses, which consequently reduce staffing levels. Given budgetary constraints, governments are unable to support households and businesses as they did during the pandemic. The geopolitical situation continues to cause concern, with the risk of conflicts escalating. After 12 months, economic contraction pushes unemployment to 9.7%. House prices fall sharply (-13.9%). The S&P/TSX sits at 21,367 points after one year, and the price of oil is at US$30. Given the uncertainty surrounding key inputs used to measure credit losses, the Bank has applied expert credit judgment to adjust the modelled expected credit loss results. Sensitivity Analysis of Allowances for Credit Losses on Non-Impaired Loans Scenarios The following table shows a comparison of the Bank's allowances for credit losses on non-impaired loans (Stages 1 and 2) as at January 31, 2026 based on the probability weightings of three scenarios with allowances for credit losses resulting from simulations of each scenario weighted at 100%. Allowances for credit losses on non-impaired loans Balance as at January 31, 2026 1,554 Simulations 100% upside scenario 985 100% base scenario 1,107 100% downside scenario 2,097
Slide 77 — Note 7 – Other Assets
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 77 Report to Shareholders, First Quarter 2026 Note 7 – Other Assets As at January 31, 2026 As at October 31, 2025 Receivables, prepaid expenses and other items 1,977 1,768 Interest and dividends receivable 1,826 1,844 Due from clients, dealers and brokers 2,307 1,168 Defined benefit asset 410 441 Deferred tax assets 1,061 1,131 Current tax assets 1,054 819 Reinsurance contract assets 20 20 Insurance contract assets 39 40 Investments in associates and joint ventures 47 46 Commodities(1) 2,205 3,739 10,946 11,016 (1) Commodities include precious metals and other commodities that are recorded at fair value based on quoted prices in active markets and are classified in Level 1 of the fair value measurement hierarchy. Note 8 – Deposits As at January 31, 2026 As at October 31, 2025 On demand(1) After notice(2) Fixed term(3) Total Total Personal 6,534 60,329 59,015 125,878 124,417 Business and government 78,493 34,000 201,402 313,895 297,512 Deposit-taking institutions 2,065 435 3,601 6,101 6,074 87,092 94,764 264,018 445,874 428,003 (1) Demand deposits are deposits for which the Bank does not have the right to require a notice of withdrawal and consist essentially of deposits in chequing accounts. (2) Notice deposits are deposits for which the Bank may legally require a notice of withdrawal and consist mainly of deposits in savings accounts. (3) Fixed-term deposits are deposits that can be withdrawn by the holder on a specified date and include term deposits, guaranteed investment certificates, savings accounts and plans, covered bonds, and other similar instruments. The Deposits – Business and government item includes, among other items, covered bonds for which the balance was $11.6 billion as at January 31, 2026 ($10.0 billion as at October 31, 2025). During the quarter ended January 31, 2026, the Bank issued an amount of 1.0 billion euros in covered bonds (US$255 million in covered bonds matured during the quarter ended January 31, 2025). For additional information on covered bonds, see Note 27 to the audited annual consolidated financial statements for the year ended October 31, 2025. In addition, as at January 31, 2026, the Deposits – Business and government item also includes deposits of $31.6 billion ($26.1 billion as at October 31, 2025) that are subject to the bank bail-in conversion regulations issued by the Government of Canada. These regulations provide certain powers to the Canada Deposit Insurance Corporation (CDIC), notably the power to convert certain eligible Bank shares and liabilities into common shares should the Bank become non-viable. Note 9 – Other Liabilities As at January 31, 2026 As at October 31, 2025 Accounts payable and accrued expenses 3,095 4,192 Subsidiaries’ debts to third parties 273 313 Interest and dividends payable 2,217 2,475 Lease liabilities 653 644 Due to clients, dealers and brokers 1,022 1,065 Defined benefit liability 96 98 Allowances for credit losses – Off-balance-sheet commitments (Note 6) 297 268 Deferred tax liabilities 245 324 Current tax liabilities 313 185 Insurance contract liabilities 21 27 Other items(1)(2)(3) 987 950 9,219 10,541 (1) As at January 31, 2026, Other items included provisions for litigation of $13 million ($13 million as at October 31, 2025). (2) As at January 31, 2026, Other items included provisions for onerous contracts of $9 million ($10 million as at October 31, 2025). (3) As at January 31, 2026, Other items included the financial liability resulting from put options written to non-controlling interests of Flinks Technology Inc. (Flinks) for an amount of $5 million ($5 million as at October 31, 2025).
Slide 78 — Note 10 – Share Capital and Other Equity Instruments
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 78 Report to Shareholders, First Quarter 2026 Note 10 – Share Capital and Other Equity Instruments Shares and Other Equity Instruments Outstanding As at January 31, 2026 As at October 31, 2025 Number of shares or LRCN(1) Shares or LRCN $ Number of shares or LRCN Shares or LRCN $ First Preferred Shares Series 30 14,000,000 350 14,000,000 350 Series 38 16,000,000 400 16,000,000 400 Series 40 12,000,000 300 12,000,000 300 Series 42 12,000,000 300 12,000,000 300 Series 47 5,000,000 128 5,000,000 128 Series 49 5,000,000 136 5,000,000 136 64,000,000 1,614 64,000,000 1,614 Other equity instruments LRCN – Series 1 − − 500,000 500 LRCN – Series 2 500,000 500 500,000 500 LRCN – Series 3 500,000 500 500,000 500 1,000,000 1,000 1,500,000 1,500 Preferred shares and other equity instruments 65,000,000 2,614 65,500,000 3,114 Common shares at beginning of fiscal year 391,065,541 9,865 340,743,876 3,463 Issued pursuant to the Stock Option Plan 988,072 74 1,508,524 114 Issued as part of the CWB acquisition Exchange of common shares − − 41,010,378 5,290 Automatic exchange of subscription receipts − − 9,262,500 1,040 Repurchases of common shares for cancellation (3,593,000) (90) (1,385,400) (35) Impact of shares purchased or sold for trading(2) (142,659) (23) (74,337) (7) Common shares at end of period 388,317,954 9,826 391,065,541 9,865 (1) Limited Recourse Capital Notes (LRCN). (2) As at January 31, 2026, a total of 28,625 shares were held for trading, representing an amount of $4 million (114,034 shares were sold short for trading, representing an amount of $19 million as at October 31, 2025). Dividends Declared and Distributions on Other Equity Instruments Quarter ended January 31 2026 2025 Dividends or interest $ Dividends per share Dividends or interest $ Dividends per share First Preferred Shares Series 30 5 0.3869 5 0.3869 Series 32 − − 3 0.2399 Series 38 7 0.4392 7 0.4392 Series 40 5 0.3636 5 0.3636 Series 42 5 0.4410 5 0.4410 Series 47 2 0.3982 − − Series 49 2 0.4782 − − 26 25 Other equity instruments LRCN – Series 1(1) 1 5 LRCN – Series 2(2) 5 5 LRCN – Series 3(3) 10 10 16 20 Preferred shares and other equity instruments 42 45 Common shares 484 1.2400 389 1.1400 526 434 (1) The LRCN – Series 1 bore interest at a fixed rate of 4.30% per annum. (2) The LRCN – Series 2 bear interest at a fixed rate of 4.05% per annum. (3) The LRCN – Series 3 bear interest at a fixed rate of 7.50% per annum.
Slide 79 — Note 11 – Capital Disclosure
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 79 Report to Shareholders, First Quarter 2026 Redemption of Limited Recourse Capital Notes On November 17, 2025, the first business day after the November 15, 2025 set redemption date, the Bank redeemed all of the issued and outstanding LRCN – Series 1. Pursuant to the LRCN – Series 1 conditions, the redemption price was $1,000 per LRCN plus the interest accrued and unpaid. The Bank redeemed 500,000 LRCN – Series 1 for a total amount of $500 million, which reduced Preferred shares and other equity instruments. In connection with the redemption of LRCN – Series 1, the Bank redeemed all of the Non-Cumulative 5-Year Fixed Rate Reset Series 44 First Preferred Shares, issued by the Bank in conjunction with the LRCN – Series 1 and held by an independent trustee in a limited recourse consolidated trust. Repurchases of Common Shares On September 25, 2025, the Bank began a normal course issuer bid to repurchase for cancellation up to 8,000,000 common shares (representing approximately 2.04% of its then outstanding common shares) over the 12-month period ending on September 24, 2026. Any repurchase through the Toronto Stock Exchange is done at market prices. The common shares may also be repurchased through other means authorized by the Toronto Stock Exchange and applicable regulations, including private agreements or share repurchase programs under issuer bid exemption orders issued by the securities regulators. A private purchase made under an exemption order issued by a securities regulator will be done at a discount to the prevailing market price. The amounts that are paid above the average book value of the common shares, including tax, are charged to Retained earnings. During the quarter ended January 31, 2026, the Bank repurchased 3,593,000 common shares for $619 million, including tax, which reduced Common shares by $90 million and Retained earnings by $529 million. During the quarter ended January 31, 2025, the Bank had not repurchased any common shares. Note 11 – Capital Disclosure The Bank and all other major Canadian banks have to maintain the following minimum capital ratios established by OSFI: a CET1 capital ratio of at least 11.5%, a Tier 1 capital ratio of at least 13.0%, and a Total capital ratio of at least 15.0%. All of these ratios include a capital conservation buffer of 2.5% established by the Basel Committee on Banking Supervision (BCBS) and OSFI, a 1.0% surcharge applicable solely to Domestic Systemically Important Banks (D-SIBs), and a 3.5% domestic stability buffer (DSB) established by OSFI. The DSB, which can vary from 0% to 4.0% of risk-weighted assets (RWA), consists exclusively of CET1 capital. A D-SIB that fails to meet this buffer requirement will not be subject to automatic constraints to reduce capital distributions but must provide a remediation plan to OSFI. The Bank also has to meet the requirements of the capital output floor which is set at 67.5%, under which its total RWA must not be lower than the output floor for the total RWA as calculated under the Basel III Standardized Approaches. If the capital requirement is less than the capital output floor requirement after applying the floor factor, the difference is added to the total RWA. Lastly, OSFI requires D-SIBs to maintain a Basel III leverage ratio of at least 3.5%, which includes a Tier 1 capital buffer of 0.5% applicable only to D-SIBs. OSFI also requires D-SIBs to maintain a risk-based total loss-absorbing capacity (TLAC) ratio of at least 25.0% (including the DSB) of RWA and a TLAC leverage ratio of at least 7.25%. During the quarter ended January 31, 2026, the Bank was compliant with all of OSFI’s regulatory capital, leverage, and TLAC requirements.
Slide 80 — Regulatory Capital(1), Leverage Ratio(1) and TLAC(2)
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 80 Report to Shareholders, First Quarter 2026 Note 11 – Capital Disclosure (cont.) Regulatory Capital(1), Leverage Ratio(1) and TLAC(2) As at January 31, 2026 As at October 31, 2025 Capital CET1 26,023 25,962 Tier 1(3) 28,619 28,559 Total(3) 32,718 32,657 Risk-weighted assets 189,354 188,756 Total exposure 665,594 633,494 Capital ratios CET1 13.7 % 13.8 % Tier 1(3) 15.1 % 15.1 % Total(3) 17.3 % 17.3 % Leverage ratio(3) 4.3 % 4.5 % Available TLAC 61,533 55,993 TLAC ratio 32.5 % 29.7 % TLAC leverage ratio 9.2 % 8.8 % (1) Capital, risk-weighted assets, total exposure, the capital ratios, and the leverage ratio are calculated in accordance with the Basel III rules, as set out in OSFI's Capital Adequacy Requirements Guideline and Leverage Requirements Guideline. (2) Available TLAC, the TLAC ratio, and the TLAC leverage ratio are calculated in accordance with OSFI's Total Loss Absorbing Capacity Guideline. (3) Data as at October 31, 2025 included the redemption of LRCN – Series 1 completed on November 17, 2025. Note 12 – Share-Based Payments Stock Option Plan During the quarter ended January 31, 2026, the Bank awarded 922,520 stock options (1,004,492 stock options during the quarter ended January 31, 2025) with an average fair value of $28.87 per option ($23.26 in 2025). As at January 31, 2026, there were 10,508,142 stock options outstanding (10,580,306 stock options as at October 31, 2025). The average fair value of the options awarded was estimated on the award date using the Black-Scholes model as well as the following accounting assumptions. Quarter ended January 31 2026 2025 Risk-free interest rate 2.94% 2.63% Expected life of options 7 years 7 years Expected volatility 22.06% 24.43% Expected dividend yield 3.36% 3.54% During the quarter ended January 31, 2026, a $6 million compensation expense was recorded for this plan ($5 million for the quarter ended January 31, 2025).
Slide 81 — Note 13 – Employee Benefits – Pension Plans and Other Post-Employment Benefit Plans
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 81 Report to Shareholders, First Quarter 2026 Note 13 – Employee Benefits – Pension Plans and Other Post-Employment Benefit Plans The Bank offers pension plans that have a defined benefit component and a defined contribution component. The Bank also offers other post- employment benefit plans to eligible retirees. The cost associated with these plans, including the remeasurements recognized in Other comprehensive income, is presented in the following table. Cost for Pension Plans and Other Post-Employment Benefit Plans Quarter ended January 31 Pension plans Other post-employment benefit plans 2026 2025 2026 2025 Current service cost 27 27 Interest expense (income), net (4) (5) 1 1 Administrative costs 1 1 Expense of the defined benefit component 24 23 1 1 Expense of the defined contribution component 16 7 Expense recognized in Net income 40 30 1 1 Remeasurements(1) Actuarial (gains) losses on the defined benefit obligation (114) 112 (2) 2 Return on plan assets(2) 173 (119) Remeasurements recognized in Other comprehensive income 59 (7) (2) 2 99 23 (1) 3 (1) Changes related to the discount rate and to the return on plan assets are reviewed and updated on a quarterly basis. All other assumptions are updated annually. (2) Excludes interest income. Note 14 – Earnings Per Share Diluted earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding after taking into account the dilution effect of stock options using the treasury stock method and any gain (loss) on the redemption of preferred shares. Quarter ended January 31 2026 2025 Basic earnings per share Net income attributable to the Bank’s shareholders and holders of other equity instruments 1,254 997 Dividends on preferred shares and distributions on other equity instruments, net of income taxes 37 39 Net income attributable to common shareholders 1,217 958 Weighted average basic number of common shares outstanding (thousands) 390,047 340,739 Basic earnings per share (dollars) 3.12 2.81 Diluted earnings per share Net income attributable to common shareholders 1,217 958 Weighted average basic number of common shares outstanding (thousands) 390,047 340,739 Adjustment to average number of common shares (thousands) Stock options(1) 4,696 4,215 Weighted average diluted number of common shares outstanding (thousands) 394,743 344,954 Diluted earnings per share (dollars) 3.08 2.78 (1) For the quarter ended January 31, 2026, the calculation of diluted earnings per share excluded an average number of 551,507 options outstanding with a weighted average exercise price of $170.76 as the exercise price of these options was greater than the average price of the Bank’s common shares. For the quarter ended January 31, 2025, as the exercise price of the options was lower than the average price of the Bank’s common shares, no options were excluded from the diluted earnings per share calculation.
Slide 82 — Note 15 – Segment Disclosures
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 82 Report to Shareholders, First Quarter 2026 Note 15 – Segment Disclosures The Bank carries out its activities in four business segments: Personal and Commercial, Wealth Management, Capital Markets as well as U.S. Specialty Finance and International (USSF&I), which comprises the activities of the Credigy Ltd. (Credigy) and Advanced Bank of Asia Limited (ABA Bank) subsidiaries. For presentation purposes, other activities are grouped in the Other heading. Each reportable segment is distinguished by services offered, type of clientele, and marketing strategy. For additional information, see Note 30 to the audited annual consolidated financial statements for the year ended October 31, 2025. Quarter ended January 31(1) Personal and Commercial Wealth Management Capital Markets USSF&I Other Total 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Net interest income(2) 1,240 944 240 227 (497) (509) 397 370 14 (60) 1,394 972 Non-interest income(3) 288 260 659 549 1,487 1,416 37 35 28 (49) 2,499 2,211 Total revenues 1,528 1,204 899 776 990 907 434 405 42 (109) 3,893 3,183 Non-interest expenses(4)(5) 800 641 531 441 412 367 120 123 148 74 2,011 1,646 Income before provisions for credit losses and income taxes 728 563 368 335 578 540 314 282 (106) (183) 1,882 1,537 Provisions for credit losses 139 162 (2) 2 26 36 80 51 1 3 244 254 Income before income taxes (recovery) 589 401 370 333 552 504 234 231 (107) (186) 1,638 1,283 Income taxes (recovery) 162 111 98 91 109 87 49 48 (34) (51) 384 286 Net income 427 290 272 242 443 417 185 183 (73) (135) 1,254 997 Non-controlling interests − − − − − − − − − − − − Net income attributable to the Bank’s shareholders and holders of other equity instruments 427 290 272 242 443 417 185 183 (73) (135) 1,254 997 Average assets(6) 220,069 165,861 13,128 10,611 250,483 211,793 34,827 31,197 84,950 68,746 603,457 488,208 Total assets 222,913 167,754 12,847 11,047 244,352 203,943 35,449 32,891 90,310 68,198 605,871 483,833 (1) On February 3, 2025, the Bank completed the acquisition of CWB. CWB’s results were consolidated from the closing date, which impacted the results, balances and ratios for the quarter ended January 31, 2026. For additional information on the impact of the CWB acquisition, see the Acquisition section in the Management Discussion and Analysis. (2) During the quarter ended January 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) in the Other heading to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (3) During the quarter ended January 31, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. Also, during the quarter ended January 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction. All these items had been recorded in the Other heading. (4) During the quarter ended January 31, 2026, the Bank recorded integration and transaction-related charges of $65 million ($47 million net of income taxes) related to the CWB acquisition ($26 million ($19 million net of income taxes) during the quarter ended January 31, 2025) and charges of $2 million related to the Laurentian Bank of Canada transactions. All these items were recorded in the Other heading. (5) During the quarter ended January 31, 2026, the Bank recorded an expense of $24 million ($17 million net of income taxes), allocated between the Personal and Commercial ($21 million) and the Wealth Management ($3 million) segments, to reflect the amortization of intangible assets related to the CWB acquisition. (6) Represents the average of the daily balances for the period, which is also the basis on which segment assets are reported in the business segments.
Slide 83 — Note 16 – Significant Transactions
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 83 Report to Shareholders, First Quarter 2026 Note 16 – Significant Transactions Laurentian Bank of Canada (LBC) Transactions On December 2, 2025, the Bank entered into a definitive asset purchase agreement with LBC pursuant to which it will assume certain liabilities and acquire certain assets related to LBC’s retail and SME business banking portfolios (Retail/SME Transaction), and the Bank will assume LBC’s distribution agreement for certain mutual funds. Consideration of cash and cash equivalents to be received from LBC will be determined in reference to the value of liabilities assumed net of assets acquired, at the closing date. The closing of the Retail/SME Transaction, expected to occur in late 2026, is conditional on all conditions precedent to the closing of the acquisition of LBC by Fairstone Bank (Acquisition Transaction) having been satisfied or waived, and to the closing of the Acquisition Transaction immediately following the Retail/SME Transaction. The Retail/SME Transaction is subject to customary closing conditions, including receipt of key regulatory approvals. Separately, concurrently with the execution of the Retail/SME Transaction agreement, the Bank and LBC have also entered into a definitive loan purchase agreement in respect of the purchase by the Bank of LBC’s syndicated loan portfolio (Syndicated Loan Transaction) for a purchase price which will be determined in reference to the value at the closing date. On February 17, 2026, the closing of the Syndicated Loan Transaction occurred. The preliminary purchase price was $646 million representing the estimated fair value of the loans acquired, net of related liabilities assumed, pending finalization of closing-date values. Note 17 – Event After the Consolidated Balance Sheet Date Repurchases of Common Shares On February 24, 2026, the Bank’s Board of Directors authorized an amendment to the normal course issuer bid, that began on September 25, 2025. This amendment is intended to increase the maximum number of the Bank’s issued and outstanding common shares that may be repurchased for cancellation of up to 14,500,000 common shares (representing approximately 3.70% of the outstanding common shares as at September 11, 2025) over the 12-month period ending on September 24, 2026. This amendment to the normal course issuer bid is subject to the approval of OSFI and the Toronto Stock Exchange (TSX). For more information on the normal course issuer bid, see Note 10.
Slide 84 — Information for Shareholders and Investors
Information for Shareholders and Investors Investor Relations Financial analysts and investors who want to obtain financial information on the Bank may contact the Investor Relations Department. 800 Saint-Jacques Street, 33rd Floor Montreal, Quebec H3C 1A3 Toll-free: 1-866-517-5455 Email: [email protected] Website: nbc.ca/investorrelations Media Relations 800 Saint-Jacques Street, 32th Floor Montreal, Quebec H3C 1A3 Telephone: 514-394-6500 Email: [email protected] Quarterly Report Publication Dates for Fiscal 2026 (subject to approval by the Board of Directors of the Bank) First quarter February 25 Second quarter May 27 Third quarter August 26 Fourth quarter December 2 Disclosure of First Quarter 2026 Results Conference Call — A conference call for analysts and institutional investors will be held on Wednesday, February 25, 2026 at 11:00 a.m. ET. — Access by telephone in listen-only mode: 1-800-715-9871 or 647-932-3411. The access code is 4380484#. — A recording of the conference call can be heard until May 25, 2026 by dialing 1-800-770-2030 or 647-362-9199. The access code is 4380484#. Webcast — The conference call will be webcast live at nbc.ca/investorrelations. — A recording of the webcast will also be available on National Bank’s website after the call. Financial Documents — The Report to Shareholders (which includes the quarterly Consolidated Financial Statements) is available at all times on National Bank’s website at nbc.ca/investorrelations. — The Report to Shareholders, the Supplementary Financial Information, the Supplementary Regulatory Capital and Pillar 3 Disclosure, and a slide presentation will be available on the Investor Relations page of National Bank’s website on the morning of the day of the conference call. Transfer Agent and Registrar For information about stock transfers, address changes, dividends, lost certificates, tax forms, and estate transfers, shareholders of record may contact the transfer agent, Computershare Trust Company of Canada, at the address or telephone number below. Computershare Trust Company of Canada Share Ownership Management 100 University Avenue, 8th Floor Toronto, Ontario M5J 2Y1 Telephone: 1-888-838-1407 Fax: 1-888-453-0330 Email: [email protected] Website: computershare.com Shareholders whose shares are held by a market intermediary are asked to contact the market intermediary concerned. Direct Deposit Service for Dividends Shareholders may elect to have their dividend payments deposited directly via electronic funds transfer to their bank account at any financial institution that is a member of the Canadian Payments Association. To do so, they must send a written request to the transfer agent, Computershare Trust Company of Canada. Dividend Reinvestment and Share Purchase Plan National Bank has a Dividend Reinvestment and Share Purchase Plan for holders of its common and preferred shares under which they can acquire common shares of the Bank without paying commissions or administration fees. Participants acquire common shares through the reinvestment of cash dividends paid on the shares they hold or through optional cash payments of at least $1 per payment, up to a maximum of $5,000 per quarter. For additional information, shareholders may contact National Bank’s registrar and transfer agent, Computershare Trust Company of Canada, at 1-888-838-1407. To participate in the plan, National Bank’s beneficial or non-registered common shareholders must contact their financial institution or broker. Dividends Dividends paid are “eligible dividends” in accordance with the Income Tax Act (Canada).