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National Bank Holdings Corp — report shareholder q2 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 Second Quarter 2026 National Bank reports its results for the Second Quarter of 2026 and raises its quarterly dividend by 8 cents to $1.32 per share The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter and six-month period ended April 30, 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, May 27, 2026 – For the second quarter of 2026, National Bank is reporting net income of $1,234 million, up 38% from $896 million in the second quarter of 2025. Diluted earnings per share stood at $3.06 in the second quarter of 2026, up 41% from $2.17 in the second quarter of 2025. These increases reflect good performance across the business segments and lower provisions for credit losses, particularly due to the initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired Canadian Western Bank (CWB) loans. Excluding specified items(1) recorded in the second quarters of 2026 and 2025 mainly related to the acquisition of CWB, adjusted net income(1) stood at $1,303 million, up 12% from $1,166 million in the corresponding quarter of 2025. Adjusted diluted earnings per share(1) stood at $3.23, up 13% from $2.85 in the second quarter of 2025. For the six-month period ended April 30, 2026, the Bank’s net income totalled $2,488 million, up 31% from $1,893 million for the corresponding period of 2025. Diluted earnings per share stood at $6.14 compared to $4.91 for the corresponding period of 2025, an increase of 25%. This growth was driven by good performance across all business segments and the inclusion of CWB’s results starting in the second quarter of 2025. Adjusted net income(1) for the six-month period ended April 30, 2026 totalled $2,623 million, up 18% from $2,216 million for the corresponding period of 2025, while adjusted diluted earnings per share(1) stood at $6.48, up 12% from $5.78 for the six-month period ended April 30, 2025. “We delivered strong growth in the second quarter, reflecting the diversification of our business and continued client activity across our franchises. Our performance was further supported by credit discipline, CWB-related synergies and share buybacks,” said Laurent Ferreira, President and Chief Executive Officer of National Bank of Canada. “In the context of heightened macroeconomic uncertainty, we remain well positioned to support our clients, and continue delivering strong earnings growth and return on equity, while maintaining robust capital levels,” concluded Mr. Ferreira. Highlights (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Net income 1,234 896 38 2,488 1,893 31 Diluted earnings per share (dollars) $ 3.06 $ 2.17 41 $ 6.14 $ 4.91 25 Income before provisions for credit losses and income taxes 1,848 1,708 8 3,730 3,245 15 Return on common shareholders’ equity(2) 15.9 % 11.9 % 15.8 % 14.0 % Dividend payout ratio(2) 42.3 % 42.2 % 42.3 % 42.2 % Operating results – Adjusted(1) Net income – Adjusted 1,303 1,166 12 2,623 2,216 18 Diluted earnings per share – Adjusted (dollars) $ 3.23 $ 2.85 13 $ 6.48 $ 5.78 12 Income before provisions for credit losses and income taxes – Adjusted 1,936 1,850 5 3,909 3,460 13 Return on common shareholders’ equity – Adjusted(3) 16.8 % 15.6 % 16.7 % 16.5 % As at April 30, 2026 As at October 31, 2025 CET1 capital ratio under Basel III(4) 13.5 % 13.8 % Leverage ratio under Basel III(4) 4.3 % 4.5 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios. (4) See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Slide 2 — Report to Shareholders
National Bank of Canada 2 Report to Shareholders, Second Quarter 2026 Report to Shareholders Second quarter of 2026 versus second quarter of 2025 Personal and Commercial Net income totalled $355 million versus $132 million in 2025, a $223 million increase. Adjusted net income(1) totalled $373 million, up $57 million or 18%. At $1,488 million, second-quarter total revenues rose $72 million or 5% mainly due to net interest income, in line with the growth in loan and deposit volumes, partly offset by a lower net interest margin. Compared to a year ago, personal lending grew 11% and commercial lending grew 5%, due to the good organic growth. Net interest margin(2) stood at 2.26%, down from 2.30%. Non-interest expenses stood at $829 million, up 3%. Provisions for credit losses were down $257 million, mainly due to initial provisions for credit losses of $230 million on acquired non-impaired CWB loans recorded in 2025. At 55.7%, the efficiency ratio(2) improved compared to 56.8%. Wealth Management Net income totalled $274 million, an 18% increase from $232 million in 2025. Total revenues amounted to $905 million compared to $791 million last year, a $114 million or 14% increase driven by growth in all types of revenues, mainly fee-based revenues. Non-interest expenses stood at $531 million versus $476 million in 2025, a 12% increase associated with revenue growth. At 58.7%, the efficiency ratio(2) improved compared to 60.2%. Capital Markets Net income totalled $488 million, versus $501 million in 2025, a 3% decrease. Total revenues amounted to $1,074 million, down 2%, mainly due to a decrease in global markets revenues, partly offset by an increase in corporate and investment banking revenues. Non-interest expenses stood at $439 million compared to $403 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 $16 million compared to $64 million, a decrease attributable to provisions for credit losses on impaired loans. At 40.9%, the efficiency ratio(2) deteriorated compared to 36.6%. U.S. Specialty Finance and International (USSF&I) Net income totalled $186 million, up 10% from $169 million last year. Total revenues amounted to $410 million, a 5% increase attributable to revenue growth at the ABA Bank subsidiary. Non-interest expenses stood at $131 million, a 12% increase mainly attributable to the ABA Bank subsidiary. Provisions for credit losses were down $15 million, a decrease attributable to the Credigy and ABA Bank subsidiaries. At 32.0%, the efficiency ratio(2) compares to 30.0%. Other The Other heading reported a net loss of $69 million compared to a net loss of $138 million in 2025, owing mainly to a higher contribution from Treasury activities, as well as the decrease in non-interest expenses. Capital Management As at April 30, 2026, the Common Equity Tier 1 (CET1) capital ratio under Basel III(3) stood at 13.5%, down from 13.8% as at October 31, 2025. (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures.
Slide 3 — and Analysis
National Bank of Canada 3 Report to Shareholders, Second Quarter 2026 Management’s Discussion and Analysis May 26, 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 and six-month period ended April 30, 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. Economic Review and Outlook 4 Capital Management 25 Financial Reporting Method 5 Risk Management 31 Highlights 13 Risk Disclosures 43 Financial Analysis 14 Accounting Policies and Financial Disclosure 44 Consolidated Results 14 Material Accounting Policies and Accounting Estimates 44 Results by Segment 17 Future Accounting Policy Changes 44 Consolidated Balance Sheet 23 Financial Disclosure 44 Laurentian Bank of Canada (LBC) Transactions 24 Quarterly Financial Information 44 Related Party Transactions 24 Glossary 45 Securitization and Off-Balance-Sheet Arrangements 24 Income Taxes 25 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 second quarter of 2026 and may be updated in the quarterly reports to shareholders filed thereafter.
Slide 4 — Economic Review and Outlook (1)
Management’s Discussion and Analysis National Bank of Canada 4 Second Quarter 2026 Economic Review and Outlook (1) Global Economy In the global economy, the most significant event of the past quarter has undoubtedly been the conflict in the Middle East, which led to paralysis in the Strait of Hormuz, a transit route for approximately 20% of global oil supply as well as several other strategic commodities. Unsurprisingly, this situation triggered a surge in the prices of these products, which still remain well above their pre-war levels, as uncertainty surrounding the outcome of the conflict remains very high. Attempts at rapprochement between the United States and Iran have been unsuccessful, despite several initiatives. Although tensions have eased somewhat following ceasefire agreements, a return to normal will depend largely on the reopening of the Strait of Hormuz, the timing of which remains uncertain at this stage. The economic repercussions of these developments will nevertheless vary by country. Commodity-exporting economies are clearly benefitting from higher prices. However, even in those countries, households will feel the effects of higher inflation on their purchasing power. As for European and Asian economies, they appear particularly vulnerable, given their heavy dependence on energy supplies from the Middle East. These headwinds have led us to reduce our 2026 growth forecast to 3.0%(2), representing a more modest increase than the 3.4% recorded in 2025. In the United States, rising energy prices have added to inflation that was already above the U.S. Federal Reserve’s (FED) target. Since commodity prices may take some time to normalize, and the labour market remains resilient, the recent inflationary surge may well generate second-round effects (i.e., inflationary pressure through wages). Moreover, inflation was already above target before the conflict began, and had been so for several months. This greatly limits the FED’s leeway to lower its policy rate again this year. In this respect, the monetary policy committee appears increasingly divided. Governor Powell’s last decision, before handing over his position to Kevin Warsh, was to keep rates unchanged. However, that decision was marked by one dissent in favour of a rate cut, while three other members opposed the accommodative bias of the statement. For our part, we find it difficult to see the FED cutting rates by year-end, since the inflationary surge is taking place in the context of an economy operating above potential. That said, it should be noted that economic growth at the beginning of the year fell short of expectations, as shown by weak growth in real personal consumption expenditures and real personal income. This was probably due in large part to weak population growth. What is really driving the U.S. economy at present is investment in artificial intelligence-related industries. As a result, the composition of growth is evolving, with household demand gradually giving way to investment. Still, we are not overly concerned about the consumer, given the highly expansionary fiscal stimulus measures associated with the One Big Beautiful Bill. Under our base-case scenario, this would translate into gross domestic product (GDP) growth of 2.3%(2) in 2026, following 2.1% in 2025. This forecast nevertheless remains conditional on a rapid geopolitical de-escalation and, consequently, on central banks not overreacting to the current inflation shock. Canadian Economy The impact of the oil shock on the Canadian economy continues to generate debate. It is generally acknowledged that Canada is relatively better positioned than many other countries to cope with rising oil prices, given its status as a net exporter. That does not mean, however, that the Canadian economy will benefit in the short term from the tensions in the Middle East. To be sure, improved terms of trade support nominal GDP as well as public finances. In addition, higher prices are a positive factor for the energy sector. However, because this increase is currently viewed as temporary, it should not lead to a marked rebound in investment or job creation. Moreover, households may be forced to reduce discretionary spending because of higher prices at the pump. This risk is all the greater given that the labour market is currently showing little strength in the context of trade tensions with the United States, as evidenced by its recent deterioration and the low number of job vacancies. Added to this is a negative wealth effect linked to declining real estate prices, which could also weigh on household consumption. Fortunately, financial conditions remain relatively favourable despite the current uncertainty. In this context, and considering that inflation was broadly under control before the outbreak of hostilities in the Middle East, we believe it would be premature for the Bank of Canada to raise its policy rate in response to higher energy costs. Since the Canadian economy is currently operating with excess supply, second-round effects — particularly a resurgence of wage pressures — are less likely to materialize. All things considered, the current difficulties, combined with slower immigration, should limit economic growth in 2026. Growth should come in at 1.0%(2), a modest pace but one that should still allow for a slight improvement in the labour market by year-end. This scenario nevertheless depends in part on a renegotiation of Canada–United States–Mexico Agreement (CUSMA). We believe it is unlikely that Washington will impose significant tariffs on Canada and Mexico in a context of renewed inflationary pressures, as the midterm elections approach. Quebec Economy The challenges posed by U.S. tariffs and the importance of the manufacturing sector remain significant for Quebec’s economy. Following a year of hesitant economic growth, data from the Labour Force Survey (LFS) indicate that the labour market stumbled at the start of this year. The unemployment rate thus returned to a cyclical high of 6.2% in April, driven by a contraction in employment. Although this level remains enviable compared with the rest of the country — the national unemployment rate stood at 6.9% — it is still above the level observed before the current trade tensions (5.4%), if further data confirm this episode of weakness. Some deterioration was expected in the current environment, but its magnitude is surprising. Provincial data are generally more volatile, so the indicators may rally somewhat over the coming months. This is all the more true given that layoff notices published by the government do not point to a marked deterioration, and SME confidence is at a six-year high. We therefore remain relatively confident despite this soft patch, especially since the province has several strengths to get through this period, including as the country’s most diversified economy. Quebec households also have a savings rate above the Canadian average (7.7% versus 4.4% in the fourth quarter of 2025), which provides them with a considerable cushion in a context of rising energy costs. In addition, according to the firm Léger, 67% of Quebec households consider their financial situation to be good or very good, compared with 57% for Canada as a whole. This consumer confidence is explained in part by the fact that they have been less affected by the fight against inflation launched in 2022 and the monetary tightening that followed. Quebec households are in fact less indebted than elsewhere in the country, while housing prices remain more affordable. Moreover, despite the current uncertainty, the Quebec housing market continues to show greater resilience than those of Ontario and British Columbia. We forecast economic growth of 0.9%(2) for the province in 2026, following a 0.7% growth in 2025. (1) The quarters used in the Economic Review and Outlook section are calendar quarters. (2) Economic Forecasts, National Bank’s Economics and Strategy Group.
Slide 5 — Financial Reporting Method
Management’s Discussion and Analysis National Bank of Canada 5 Report to Shareholders, Second 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. 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 10 to 12 and in the Consolidated Results table on page 14. It should be noted that, for the quarter and six-month period ended April 30, 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 transactions-related charges, amortization of intangible assets related to the CWB acquisition and initial provisions for credit losses on non-impaired loans acquired from LBC. For the quarter and six-month period ended April 30, 2025, several CWB acquisition-related items had been excluded from results (in particular, integration and transaction-related charges, amortization of intangible assets related to the CWB acquisition and initial provisions for credit losses on acquired non-impaired CWB loans). In addition, for the six-month period ended April 30, 2025, 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 were excluded from results. 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 6 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 6 Report to Shareholders, Second 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 –Second 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, interest income related to the financing of these financial assets and liabilities, net of interest expenses, 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 7 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 7 Report to Shareholders, Second 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. (Credigy) 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 – Second 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 8 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 8 Report to Shareholders, Second 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 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 ratio 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 or coverage ratio of gross impaired loans 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 9 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 9 Report to Shareholders, Second 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 45 to 48 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 10 — Reconciliation of Non-GAAP Financial Measures
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 10 Report to Shareholders, Second Quarter 2026 Reconciliation of Non-GAAP Financial Measures Presentation of Results – Adjusted (millions of Canadian dollars) Quarter ended April 30 2026 2025 Personal and Commercial Wealth Management Capital Markets USSF&I Other Total Total Operating results Net interest income 1,212 241 (483) 373 (34) 1,309 1,205 Non-interest income 276 664 1,557 37 64 2,598 2,445 Total revenues 1,488 905 1,074 410 30 3,907 3,650 Non-interest expenses 829 531 439 131 129 2,059 1,942 Income before provisions for credit losses and income taxes 659 374 635 279 (99) 1,848 1,708 Provisions for credit losses 169 1 16 44 3 233 545 Income before income taxes (recovery) 490 373 619 235 (102) 1,615 1,163 Income taxes (recovery) 135 99 131 49 (33) 381 267 Net income 355 274 488 186 (69) 1,234 896 Items that have an impact on results Non-interest expenses Integration and transaction-related charges(1) − − − − 64 64 118 Amortization of intangible assets related to the CWB acquisition(2) 20 4 − − − 24 24 Impact on non-interest expenses 20 4 − − 64 88 142 Provisions for credit losses Initial provisions for credit losses on non-impaired loans acquired(3) 4 − 2 − − 6 230 Impact on provisions for credit losses 4 − 2 − − 6 230 Income taxes Income taxes on the integration and transaction-related charges(1) − − − − (18) (18) (32) Income taxes on the amortization of intangible assets related to the CWB acquisition(2) (5) (1) − − − (6) (6) Income taxes on initial provisions for credit losses on non-impaired loans acquired(3) (1) − − − − (1) (64) Impact on income taxes (6) (1) − − (18) (25) (102) Impact on net income (18) (3) (2) − (46) (69) (270) Operating results – Adjusted Net interest income – Adjusted 1,212 241 (483) 373 (34) 1,309 1,205 Non-interest income – Adjusted 276 664 1,557 37 64 2,598 2,445 Total revenues – Adjusted 1,488 905 1,074 410 30 3,907 3,650 Non-interest expenses – Adjusted 809 527 439 131 65 1,971 1,800 Income before provisions for credit losses and income taxes – Adjusted 679 378 635 279 (35) 1,936 1,850 Provisions for credit losses – Adjusted 165 1 14 44 3 227 315 Income before income taxes (recovery) – Adjusted 514 377 621 235 (38) 1,709 1,535 Income taxes (recovery) – Adjusted 141 100 131 49 (15) 406 369 Net income – Adjusted 373 277 490 186 (23) 1,303 1,166 (1) During the quarter ended April 30, 2026, the Bank recorded integration and transaction-related charges of $57 million ($41 million net of income taxes) related to the CWB transaction (2025: $118 million, $86 million net of income taxes) and charges of $7 million ($5 million net of income taxes) related to the LBC transactions. (2) During the quarter ended April 30, 2026, the Bank recorded an amount of $24 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $24 million, $18 million net of income taxes). (3) During the quarter ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million ($5 million net of income taxes). During the quarter ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
Slide 11 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 11 Report to Shareholders, Second Quarter 2026 (millions of Canadian dollars) Six-month ended April 30 2026 2025 Personal and Commercial Wealth Management Capital Markets USSF&I Other Total Total Operating results Net interest income 2,452 481 (980) 770 (20) 2,703 2,177 Non-interest income 564 1,323 3,044 74 92 5,097 4,656 Total revenues 3,016 1,804 2,064 844 72 7,800 6,833 Non-interest expenses 1,629 1,062 851 251 277 4,070 3,588 Income before provisions for credit losses and income taxes 1,387 742 1,213 593 (205) 3,730 3,245 Provisions for credit losses 308 (1) 42 124 4 477 799 Income before income taxes (recovery) 1,079 743 1,171 469 (209) 3,253 2,446 Income taxes (recovery) 297 197 240 98 (67) 765 553 Net income 782 546 931 371 (142) 2,488 1,893 Items that have an impact on results Net interest income Amortization of the subscription receipt issuance costs(1) − − − − − − (28) Impact on net interest income − − − − − − (28) Non-interest income Gain on the fair value remeasurement of an equity interest(2) − − − − − − 4 Management of the fair value changes related to the CWB acquisition(3) − − − − − − (23) Impact on non-interest income − − − − − − (19) Non-interest expenses Integration and transaction-related charges(4) − − − − 131 131 144 Amortization of intangible assets related to the CWB acquisition(5) 41 7 − − − 48 24 Impact on non-interest expenses 41 7 − − 131 179 168 Provisions for credit losses Initial provisions for credit losses on non-impaired loans acquired(6) 4 − 2 − − 6 230 Impact on provisions for credit losses 4 − 2 − − 6 230 Income taxes Income taxes on the amortization of the subscription receipt issuance costs(1) − − − − − − (8) Income taxes on the gain on the fair value remeasurement of an equity interest(2) − − − − − − 1 Income taxes on management of the fair value changes related to the CWB acquisition(3) − − − − − − (6) Income taxes on the integration and transaction-related charges(4) − − − − (36) (36) (39) Income taxes on the amortization of intangible assets related to the CWB acquisition(5) (11) (2) − − − (13) (6) Income taxes on initial provisions for credit losses on non-impaired loans acquired(6) (1) − − − − (1) (64) Impact on income taxes (12) (2) − − (36) (50) (122) Impact on net income (33) (5) (2) − (95) (135) (323) Operating results – Adjusted Net interest income – Adjusted 2,452 481 (980) 770 (20) 2,703 2,205 Non-interest income – Adjusted 564 1,323 3,044 74 92 5,097 4,675 Total revenues – Adjusted 3,016 1,804 2,064 844 72 7,800 6,880 Non-interest expenses – Adjusted 1,588 1,055 851 251 146 3,891 3,420 Income before provisions for credit losses and income taxes – Adjusted 1,428 749 1,213 593 (74) 3,909 3,460 Provisions for credit losses – Adjusted 304 (1) 40 124 4 471 569 Income before income taxes (recovery) – Adjusted 1,124 750 1,173 469 (78) 3,438 2,891 Income taxes (recovery) – Adjusted 309 199 240 98 (31) 815 675 Net income – Adjusted 815 551 933 371 (47) 2,623 2,216 (1) During the six-month period ended April 30, 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. (2) During the six-month period ended April 30, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. (3) During the six-month period ended April 30, 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. (4) During the six-month period ended April 30, 2026, the Bank recorded integration and transaction-related charges of $122 million ($88 million net of income taxes) related to the CWB transaction (2025: $144 million, $105 million net of income taxes) and charges of $9 million ($7 million net of income taxes) related to the LBC transactions. (5) During the six-month period ended April 30, 2026, the Bank recorded an amount of $48 million ($35 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $24 million, $18 million net of income taxes). (6) During the six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million ($5 million net of income taxes). During the six-month period ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
Slide 12 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 12 Report to Shareholders, Second Quarter 2026 Presentation of Basic and Diluted Earnings Per Share – Adjusted (Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Basic earnings per share $ 3.10 $ 2.19 42 $ 6.22 $ 4.96 25 Amortization of the subscription receipt issuance costs(1) − − − 0.05 Gain on the fair value remeasurement of an equity interest(2) − − − (0.01) Management of the fair value changes related to the CWB acquisition(3) − − − 0.05 Integration and transaction-related charges(4) 0.12 0.22 0.24 0.29 Amortization of intangible assets related to the CWB acquisition(5) 0.04 0.04 0.09 0.05 Initial provisions for credit losses on non-impaired loans acquired(6) 0.01 0.43 0.01 0.45 Basic earnings per share – Adjusted $ 3.27 $ 2.88 14 $ 6.56 $ 5.84 12 Diluted earnings per share $ 3.06 $ 2.17 41 $ 6.14 $ 4.91 25 Amortization of the subscription receipt issuance costs(1) − − − 0.05 Gain on the fair value remeasurement of an equity interest(2) − − − (0.01) Management of the fair value changes related to the CWB acquisition(3) − − − 0.05 Integration and transaction-related charges(4) 0.12 0.22 0.24 0.28 Amortization of intangible assets related to the CWB acquisition(5) 0.04 0.04 0.09 0.05 Initial provisions for credit losses on non-impaired loans acquired(6) 0.01 0.42 0.01 0.45 Diluted earnings per share – Adjusted $ 3.23 $ 2.85 13 $ 6.48 $ 5.78 12 (1) During the six-month period ended April 30, 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. (2) During the six-month period ended April 30, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. (3) During the six-month period ended April 30, 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. (4) During the quarter ended April 30, 2026, the Bank recorded integration and transaction-related charges of $57 million ($41 million net of income taxes) related to the CWB transaction (2025: $118 million, $86 million net of income taxes) and charges of $7 million ($5 million, net of income taxes) related to the LBC transactions. For the six-month period ended April 30, 2026, charges related to the CWB transaction are $122 million ($88 million, net of income taxes) (2025: $144 million, $105 million net of income taxes) and charges of $9 million ($7 million, net of income taxes) related to the LBC transactions. (5) During the quarter ended April 30, 2026, the Bank recorded an amount of $24 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition. For the six-month period ended April 30, 2026, this expense was $48 million ($35 million net of income taxes). For the quarter and six-month period ended April 30, 2025, this charge was $24 million ($18 million of income taxes). (6) During the quarter and six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $6 million ($5 million net of income taxes). During the quarter and six-month ended April 30, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans.
Slide 13 — Highlights
Management’s Discussion and Analysis National Bank of Canada 13 Report to Shareholders, Second Quarter 2026 Highlights (millions of Canadian dollars, except per share amounts) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Operating results Total revenues 3,907 3,650 7 7,800 6,833 14 Income before provisions for credit losses and income taxes 1,848 1,708 8 3,730 3,245 15 Net income 1,234 896 38 2,488 1,893 31 Return on common shareholders’ equity(1) 15.9 % 11.9 % 15.8 % 14.0 % Operating leverage(1) 1.0 % 0.8 % 0.8 % 2.3 % Efficiency ratio(1) 52.7 % 53.2 % 52.2 % 52.5 % Earnings per share Basic $ 3.10 $ 2.19 42 $ 6.22 $ 4.96 25 Diluted $ 3.06 $ 2.17 41 $ 6.14 $ 4.91 25 Operating results – Adjusted(2) Total revenues – Adjusted(2) 3,907 3,650 7 7,800 6,880 13 Income before provisions for credit losses and income taxes – Adjusted(2) 1,936 1,850 5 3,909 3,460 13 Net income – Adjusted(2) 1,303 1,166 12 2,623 2,216 18 Return on common shareholders’ equity – Adjusted(3) 16.8 % 15.6 % 16.7 % 16.5 % Operating leverage – Adjusted(3) (2.5) % 10.4 % (0.4) % 8.9 % Efficiency ratio – Adjusted(3) 50.4 % 49.3 % 49.9 % 49.7 % Diluted earnings per share – Adjusted(2) $ 3.23 $ 2.85 13 $ 6.48 $ 5.78 12 Common share information Dividends declared $ 1.24 $ 1.14 9 $ 2.48 $ 2.28 9 Book value(1) $ 80.31 $ 76.13 $ 80.31 $ 76.13 Share price High $ 205.04 $ 127.44 $ 205.04 $ 140.76 Low $ 163.94 $ 107.01 $ 156.88 $ 107.01 Close $ 205.04 $ 121.08 $ 205.04 $ 121.08 Number of common shares (thousands) 385,634 391,322 385,634 391,322 Market capitalization 79,070 47,381 79,070 47,381 (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 % Change Balance sheet and off-balance-sheet Total assets 617,734 576,919 7 Loans, net of allowances 311,987 302,623 3 Deposits 450,711 428,003 5 Equity attributable to common shareholders 30,970 30,655 1 Assets under administration(1) 938,997 874,360 7 Assets under management(1) 206,933 194,467 6 Regulatory ratios under Basel III(4) Capital ratios Common Equity Tier 1 (CET1) 13.5 % 13.8 % Tier 1 14.9 % 15.1 % Total 17.0 % 17.3 % Leverage ratio 4.3 % 4.5 % TLAC ratio(4) 31.5 % 29.7 % TLAC leverage ratio(4) 9.0 % 8.8 % Liquidity coverage ratio (LCR)(4) 170 % 173 % Net stable funding ratio (NSFR)(4) 118 % 124 % Other information Number of employees – Worldwide (full-time equivalent) 33,767 33,200 2 Number of branches in Canada 361 382 (5) Number of banking machines in Canada 818 939 (13) (1) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (2) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios. (4) See the Financial Reporting Method section on pages 5 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, Second Quarter 2026 Financial Analysis Consolidated Results (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 1,309 1,205 9 2,703 2,177 24 Non-interest income 2,598 2,445 6 5,097 4,656 9 Total revenues 3,907 3,650 7 7,800 6,833 14 Non-interest expenses 2,059 1,942 6 4,070 3,588 13 Income before provisions for credit losses and income taxes 1,848 1,708 8 3,730 3,245 15 Provisions for credit losses 233 545 (57) 477 799 (40) Income before income taxes 1,615 1,163 39 3,253 2,446 33 Income taxes 381 267 43 765 553 38 Net income 1,234 896 38 2,488 1,893 31 Non-controlling interests − − − − Net income attributable to the Bank's shareholders and holders of other equity instruments 1,234 896 38 2,488 1,893 31 Dividends on preferred shares and distributions on other equity instruments 37 43 (14) 74 82 (10) Net income attributable to common shareholders 1,197 853 40 2,414 1,811 33 Diluted earnings per share (dollars) 3.06 2.17 41 6.14 4.91 25 Specified items(1) 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 (64) (118) (131) (144) Amortization of intangible assets related to the CWB acquisition (24) (24) (48) (24) Initial provisions for credit losses on non-impaired loans acquired (6) (230) (6) (230) Specified items before income taxes (94) (372) (185) (445) Income taxes related to specified items (25) (102) (50) (122) Specified items after income taxes (69) (270) (135) (323) Operating results – Adjusted(1) Net interest income – Adjusted 1,309 1,205 9 2,703 2,205 23 Non-interest income – Adjusted 2,598 2,445 6 5,097 4,675 9 Total revenues – Adjusted 3,907 3,650 7 7,800 6,880 13 Non-interest expenses – Adjusted 1,971 1,800 10 3,891 3,420 14 Income before provisions for credit losses and income taxes – Adjusted 1,936 1,850 5 3,909 3,460 13 Provisions for credit losses – Adjusted 227 315 (28) 471 569 (17) Income before income taxes – Adjusted 1,709 1,535 11 3,438 2,891 19 Income taxes – Adjusted 406 369 10 815 675 21 Net income – Adjusted 1,303 1,166 12 2,623 2,216 18 Non-controlling interests − − − − Net income attributable to the Bank's shareholders and holders of other equity instruments – Adjusted 1,303 1,166 12 2,623 2,216 18 Dividends on preferred shares and distributions on other equity instruments 37 43 (14) 74 82 (10) Net income attributable to common shareholders – Adjusted 1,266 1,123 13 2,549 2,134 19 Diluted earnings per share – Adjusted (dollars) 3.23 2.85 13 6.48 5.78 12 Average assets(2) 631,995 551,432 15 617,489 519,296 19 Average loans(2) 307,335 284,845 8 305,009 264,442 15 Average deposits(2) 458,754 399,064 15 449,316 373,936 20 Operating leverage(3) 1.0 % 0.8 % 0.8 % 2.3 % Operating leverage – Adjusted(4) (2.5) % 10.4 % (0.4) % 8.9 % Efficiency ratio(3) 52.7 % 53.2 % 52.2 % 52.5 % Efficiency ratio – Adjusted(4) 50.4 % 49.3 % 49.9 % 49.7 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. (2) Represents an average of the daily balances for the period. (3) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (4) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Slide 15 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 15 Report to Shareholders, Second Quarter 2026 Financial Results Second quarter of 2026 versus second quarter of 2025 The Bank is reporting net income of $1,234 million, up 38% from $896 million. Diluted earnings per share stood at $3.06 compared to $2.17. These increases reflect strong performance across the business segments and lower provisions for credit losses, particularly due to the initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired CWB loans. Excluding specified items, adjusted net income stood at $1,303 million, up 12% from $1,166 million. Adjusted diluted earnings per share stood at $3.23, up 13%. First six-month period of 2026 versus first six-month period of 2025 The Bank’s net income totalled $2,488 million, up 31% from $1,893 million. Diluted earnings per share stood at $6.14 versus $4.91 in 2025. This growth was driven by strong performance across all business segments and the inclusion of CWB’s results starting in the second quarter of 2025. Excluding specified items, adjusted net income totalled $2,623 million, up 18% from $2,216 million, and adjusted diluted earnings per share stood at $6.48, up 12% from $5.78. Return on common shareholders’ equity was 15.8% compared to 14.0% last year. Adjusted return on common shareholders’ equity was 16.7% compared to 16.5% in 2025. Total Revenues Second quarter of 2026 versus second quarter of 2025 The Bank’s total revenues amounted to $3,907 million, up $257 million or 7%. In the Personal and Commercial segment, total revenues rose 5% due to the growth in loans and deposits, which more than offset the impact of a lower net interest margin, as well as the increase in internal commission revenues related to the distribution of Wealth Management products. The 14% 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 decreased by 2% due to lower global markets revenues, partly offset by higher corporate and investment banking revenues. In the USSF&I segment, total revenues were up 5% as a result of revenue growth at the ABA Bank subsidiary, stemming from business growth. Total revenues for the Other heading increased compared to last year, in particular as a result of a higher contribution from Treasury activities. First six-month period of 2026 versus first six-month period of 2025 The Bank’s total revenues amounted to $7,800 million compared to $6,833 million, an increase of $967 million or 14%. In the Personal and Commercial segment, total revenues were up $396 million or 15%, mainly driven by the increase in net interest income arising from growth in personal and commercial loans and deposits, partly offset by a decrease in net interest margin, the inclusion of CWB’s results beginning in the second quarter of 2025, as well as growth in internal commission revenues related to the distribution of Wealth Management products. The 15% increase in total revenues in the Wealth Management segment was mainly due to increases in fee-based revenues, notably revenues from investment management and trust service fees and mutual fund revenues as a result of growth in assets under administration and under management. The growth was also attributable to the rise in net interest income and securities brokerage commissions, which was driven by an increase in client activity. Total revenues for the Capital Markets segment were up $56 million or 3% 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 6%, which was mainly driven by revenue growth at the ABA Bank subsidiary, stemming from business growth, and an increase in Credigy’s revenues. Total revenues for the Other heading were higher than in 2025, mainly attributable to 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 $7,800 million, up 13% from $6,880 million in 2025. Non-Interest Expenses Second quarter of 2026 versus second quarter of 2025 Non-interest expenses stood at $2,059 million, up $117 million or 6%. The increase was due to higher compensation and employee benefits, notably variable compensation related to revenue growth. In addition, occupancy expenses, including depreciation expense, were up due to a $22 million reversal in second-quarter of 2025 of the provision for property taxes related to the Bank’s head office building, head office-related expenses, as well as 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 were down, notably due to lower expenses related to the integration of CWB compared to 2025. Communication expenses were also down compared to last year. In addition, the increase in other expenses was partly due to litigation expenses of $15 million recorded in the second quarter of 2026. Excluding specified items, mainly related to the CWB acquisition, adjusted non-interest expenses stood at $1,971 million, up 10% from $1,800 million last year.
Slide 16 — Income Taxes
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 16 Report to Shareholders, Second Quarter 2026 First six-month period of 2026 versus first six-month period of 2025 Non-interest expenses totalled $4,070 million, up 13%. The growth in non-interest expenses was essentially due to the same reasons provided above for the quarter, notably higher compensation and employee benefits, occupancy expenses and technology expenses. In addition, communication expenses were stable and professional fees were up compared to 2025. Moreover, the increase in other expenses was mainly attributable to the amortization of intangible assets related to the acquisition of CWB, which began in the second quarter of 2025, as well as litigation expenses of $15 million recorded in the second quarter of 2026. Adjusted non-interest expenses were $3,891 million, a 14% increase from $3,420 million. Provisions for Credit Losses Second quarter of 2026 versus second quarter of 2025 The Bank recorded provisions for credit losses of $233 million compared to $545 million last year. This significant decrease was partly due to initial provisions for credit losses of $230 million recorded on acquired non-impaired CWB loans in 2025. Provisions for credit losses on non-impaired loans totalled $38 million, reflecting growth in loan portfolios, the unfavourable impact of updated macroeconomic scenarios, as well as initial provisions for credit losses of $6 million recorded on non-impaired syndicated loans acquired from LBC during the second quarter of 2026. Provisions for credit losses on impaired loans amounted to $195 million compared to $230 million in 2025, a decrease that was mainly due to the Capital Markets segment and the Credigy subsidiary. These decreases were offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and in Commercial Banking. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans(1) represented 0.26% of average loans, compared to 0.32% in 2025. Adjusted provisions for credit losses totalled $227 million, down $88 million from 2025. First six-month period of 2026 versus first six-month period of 2025 The Bank’s provisions for credit losses totalled $477 million compared to $799 million. This decrease was partly due to initial provisions for credit losses of $230 million recorded on acquired non-impaired CWB loans in 2025. In addition, provisions for credit losses on non-impaired loans reflect growth in loan portfolios (including non-impaired syndicated loans acquired from LBC during the second quarter of 2026) and credit risk migration, partly offset by the favourable impact of updated macroeconomic scenarios. Provisions for credit losses on impaired loans were lower, mainly due to the Capital Markets segment, partly offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and in Commercial Banking. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans(1) represented 0.27% of average loans, compared to 0.32% in 2025. Adjusted provisions for credit losses were $471 million compared to $569 million in 2025. Income Taxes Second quarter of 2026 versus second quarter of 2025 Income taxes stood at $381 million compared to $267 million and the effective income tax rate was 24% compared to 23%. This is mainly due to a lower proportion of income from lower tax-rate jurisdictions in 2026. First six-month period of 2026 versus first six-month period of 2025 The effective income tax rate stood at 24% compared to 23% last year, a change mainly due to a lower proportion of income from lower tax-rate jurisdictions in 2026. (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios.
Slide 17 — Results by Segment
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 17 Report to Shareholders, Second 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 April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 1,212 1,146 6 2,452 2,090 17 Non-interest income 276 270 2 564 530 6 Total revenues 1,488 1,416 5 3,016 2,620 15 Non-interest expenses 829 804 3 1,629 1,445 13 Income before provisions for credit losses and income taxes 659 612 8 1,387 1,175 18 Provisions for credit losses 169 426 (60) 308 588 (48) Income before income taxes 490 186 1,079 587 84 Income taxes 135 54 297 165 80 Net income 355 132 782 422 85 Less: Specified items after income taxes(1) (18) (184) (33) (184) Net income – Adjusted(1) 373 316 18 815 606 34 Return on common shareholders' equity(2) 10.4 % 11.3 % Return on common shareholders' equity – Adjusted(3) 10.9 % 11.8 % Net interest margin(2) 2.26 % 2.30 % 2.26 % 2.29 % Average interest-bearing assets(2) 220,076 204,759 7 218,244 184,214 18 Average assets(4) 224,690 208,658 8 222,341 186,905 19 Average loans(4) 219,673 203,341 8 217,870 183,394 19 Net impaired loans(2) 1,607 1,237 30 1,607 1,237 30 Net impaired loans as a % of total loans(2) 0.7 % 0.6 % 0.7 % 0.6 % Average deposits(4) 110,656 107,086 3 110,980 99,433 12 Efficiency ratio(2) 55.7 % 56.8 % 54.0 % 55.2 % Efficiency ratio – Adjusted(3) 54.4 % 55.1 % 52.7 % 54.2 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded amortization of intangible assets of $15 million net of income taxes related to the CWB acquisition ($30 million net of income taxes for the six-month period ended April 30, 2026) and initial provisions for credit losses of $3 million net of income taxes on non-impaired loans acquired from LBC. In addition, during the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $1 million net of income taxes, amortization of intangible assets of $17 million net of income taxes and initial provisions for credit losses on acquired non-impaired CWB loans of $166 million net of income taxes. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios. (4) Represents an average of the daily balances for the period. Second quarter of 2026 versus second quarter of 2025 In the Personal and Commercial segment, net income totalled $355 million compared to $132 million last year, an increase of $223 million partly due to the decrease in provisions for credit losses, which had included initial provisions for credit losses of $230 million on acquired non-impaired CWB loans in the second quarter of 2025. In addition, income before provisions for credit losses and income taxes stood at $659 million compared to $612 million, up 8%. Adjusted net income was $373 million, up 18%. The 6% increase in net interest income was driven by growth in personal and commercial loans as well as commercial deposits, which more than offset the impact of a lower net interest margin. In addition, non-interest income increased by 2%. Personal Banking’s total revenues increased by $64 million. This increase was driven by growth in loans, 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 $8 million, mainly due to an increase in net interest income, driven by loan growth and deposit growth, partly offset by a narrower net interest margin. The segment’s non-interest expenses stood at $829 million, up 3%. The increase in non-interest expenses was due to higher compensation and employee benefits, mainly from salary increases, fees and investments made as part of the segment’s technological evolution, professional fees, and litigation expenses of $15 million recorded in the second quarter of 2026. The efficiency ratio of 55.7% has improved from 56.8% in 2025 partly as a result of cost synergies achieved as part of the acquisition of CWB. Adjusted non-interest expenses amounted to $809 million, compared to $780 million. The adjusted efficiency ratio stood at 54.4%, compared to 55.1%.
Slide 18 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 18 Report to Shareholders, Second Quarter 2026 Provisions for credit losses stood at $169 million compared to $426 million last year, down $257 million. This decrease was mainly due to initial provisions for credit losses on acquired non-impaired CWB loans of $230 million recorded in the second quarter of 2025. In addition, provisions for credit losses on non-impaired loans were down, while provisions for credit losses on impaired loans were up as a result of impaired loans in Personal Banking (including credit card receivables) and Commercial Banking. Adjusted provisions for credit losses totalled $165 million, down $31 million from 2025. First six-month period of 2026 versus first six-month period of 2025 The Personal and Commercial segment’s net income was $782 million, up 85% from $422 million, partly due to initial provisions for credit losses of $230 million on acquired non-impaired CWB loans recorded last year, as well as to the inclusion of CWB’s results beginning in the second quarter of 2025. Income before provisions for credit losses and income taxes stood at $1,387 million compared to $1,175 million, up 18%. Adjusted net income was up 34%. The increase in Personal Banking’s total revenues was mainly due to growth in loans and deposits offset by a narrower net interest margin, as well as an increase in internal commission revenues arising from the distribution of the Wealth Management segment's products. In addition, the increase in Commercial Banking’s total revenues was mainly due to the inclusion of CWB’s results beginning in the second quarter of 2025, as well as loan and deposit growth, partly offset by a narrower net interest margin. Non-interest expenses stood at $1,629 million, up 13% due to the same reasons provided above for the quarter, as well as the inclusion of CWB’s non- interest expenses beginning in the second quarter of 2025. The efficiency ratio stood at 54.0% and improved compared to the same period in 2025. Adjusted non-interest expenses of $1,588 million were up 12% from $1,421 million. The adjusted efficiency ratio, at 52.7%, improved compared to 54.2%. Provisions for credit losses amounted to $308 million, a decrease of $280 million from last year. This decrease was due to initial provisions on credit losses on acquired non-impaired CWB loans of $230 million recorded in 2025, as well as to provisions for credit losses on non-impaired loans in Commercial Banking. These decreases were partly offset by higher provisions for credit losses on impaired loans in Personal Banking (including credit card receivables) and Commercial Banking. Excluding specified items, provisions for credit losses totalled $304 million down from $358 million.
Slide 19 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 19 Report to Shareholders, Second Quarter 2026 Wealth Management (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 241 230 5 481 457 5 Fee-based revenues 540 467 16 1,073 917 17 Transaction-based and other revenues 124 94 32 250 193 30 Total revenues 905 791 14 1,804 1,567 15 Non-interest expenses 531 476 12 1,062 917 16 Income before provisions for credit losses and income taxes 374 315 19 742 650 14 Provisions for credit losses 1 (1) (1) 1 Income before income taxes 373 316 18 743 649 14 Income taxes 99 84 18 197 175 13 Net income 274 232 18 546 474 15 Less: Specified items after income taxes(1) (3) (3) (5) (3) Net income – Adjusted(1) 277 235 18 551 477 16 Return on common shareholders' equity(2) 58.4 % 57.6 % Return on common shareholders' equity – Adjusted(3) 59.0 % 58.2 % Average assets(4) 13,348 10,754 24 13,236 10,681 24 Average loans(4) 11,581 9,596 21 11,398 9,518 20 Net impaired loans(2) 37 12 37 12 Average deposits(4) 61,750 60,015 3 60,985 51,602 18 Assets under administration(2) 938,997 825,523 14 938,997 825,523 14 Assets under management(2) 206,933 170,469 21 206,933 170,469 21 Efficiency ratio(2) 58.7 % 60.2 % 58.9 % 58.5 % Efficiency ratio – Adjusted(3) 58.2 % 59.7 % 58.5 % 58.3 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded amortization of intangible assets of $3 million net of income taxes related to the CWB acquisition ($5 million net of income taxes for the six-month period ended April 30, 2026). In addition, during the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $2 million net of income taxes and amortization of intangible assets of $1 million net of income taxes. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios. (4) Represents an average of the daily balances for the period. Second quarter of 2026 versus second quarter of 2025 In the Wealth Management segment, net income totalled $274 million, an 18% increase from $232 million last year. The segment’s total revenues amounted to $905 million, up $114 million or 14% from $791 million in 2025. The 5% increase in net interest income was primarily due to higher loan and deposit volumes. The 16% increase in fee-based revenues was due to growth in assets under administration and assets under management, reflecting mainly the rise in stock markets as well as positive net inflows for the various solutions. Transaction-based and other revenues rose 32%, primarily due to increased client activity. Non-interest expenses stood at $531 million, up 12% from $476 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, as well as higher technology expenses related to the segment's initiatives. The efficiency ratio stood at 58.7%, improved from 60.2% in 2025. Provisions for credit losses of $1 million were recorded, compared to recoveries of credit losses of $1 million in 2025. First six-month period of 2026 versus first six-month period of 2025 In the Wealth Management segment, net income totalled $546 million compared to $474 million, an increase of 15%. The segment’s total revenues stood at $1,804 million, an increase of 15% compared to $1,567 million, mainly due to the 17% increase in fee-based revenues due to growth in assets under administration and under management as a result of stronger stock markets, positive net inflows for the various solutions as well as the inclusion of CWB’s revenues beginning in the second quarter of 2025. Net interest income rose by $24 million or 5%, mainly due to higher loan and deposit volumes. In addition, transaction-based and other revenues increased by 30% due to increased client activity. Non-interest expenses stood at $1,062 million compared to $917 million, an increase of 16% due to the same reasons provided above for the quarter, as well as external management fees and the inclusion of CWB’s non-interest expenses beginning in the second quarter of 2025. The efficiency ratio stood at 58.9%, compared to 58.5%. The segment recorded recoveries of credit losses of $1 million compared to provisions for credit losses of $1 million recorded in 2025.
Slide 20 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 20 Report to Shareholders, Second Quarter 2026 Capital Markets (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Operating results Global markets Equities 348 542 (36) 728 909 (20) Interest rate and credit 165 180 (8) 298 350 (15) Commodities and foreign exchange 88 62 42 146 120 22 601 784 (23) 1,172 1,379 (15) Corporate and investment banking 473 317 49 892 629 42 Total revenues 1,074 1,101 (2) 2,064 2,008 3 Non-interest expenses 439 403 9 851 770 11 Income before provisions for credit losses and income taxes 635 698 (9) 1,213 1,238 (2) Provisions for credit losses 16 64 (75) 42 100 (58) Income before income taxes 619 634 (2) 1,171 1,138 3 Income taxes 131 133 (2) 240 220 9 Net income 488 501 (3) 931 918 1 Less: Specified items after income taxes(1) (2) − (2) − Net income – Adjusted(1) 490 501 (2) 933 918 2 Return on common shareholders' equity(2) 28.9 % 27.4 % Return on common shareholders' equity – Adjusted(3) 28.9 % 27.4 % Average assets(4) 269,129 224,314 20 259,651 217,949 19 Average loans(4) (Corporate Banking only) 32,628 31,118 5 32,147 31,298 3 Net impaired loans(2) 66 74 (11) 66 74 (11) Net impaired loans as a % of total loans(2) 0.2 % 0.2 % 0.2 % 0.2 % Average deposits(4) 97,818 77,467 26 94,541 75,872 25 Efficiency ratio(2) 40.9 % 36.6 % 41.2 % 38.3 % (1) During the quarter and six-month period ended April 30, 2026, the Bank recorded initial provisions for credit losses of $2 million on non-impaired loans acquired from LBC. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (3) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP ratios. (4) Represents an average of the daily balances for the period. Second quarter of 2026 versus second quarter of 2025 In the Capital Markets segment, net income totalled $488 million compared to $501 million last year, down 3%. Total revenues amounted to $1,074 million compared to $1,101 million in 2025, a decrease of $27 million or 2%. Global markets revenues were down 23% due to a 36% decrease in equities revenues and an 8% decrease in interest rate and credit revenues, partly offset by a 42% increase in commodities and foreign exchange revenues. Corporate and investment banking revenues were up 49% 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 $439 million, up 9%, due to higher compensation and employee benefits as well as an increase in technology investment expenses and other expenses related to the segment’s business growth. The efficiency ratio stood at 40.9% and deteriorated compared to 36.6% in 2025. Provisions for credit losses were down $48 million due to a $56 million decrease in provisions for credit losses on impaired loans attributable to a file in the manufacturing sector last year, partly offset by an $8 million increase in provisions for credit losses on non-impaired loans related to loan portfolio growth. First six-month period of 2026 versus first six-month period of 2025 The Capital Markets segment’s net income totalled $931 million, up 1% from 2025. Total revenues amounted to $2,064 million, an increase of $56 million or 3%. Global markets revenues were down 15% due to a 20% decrease in equities revenues and a 15% decrease in interest rate and credit revenues, partly offset by a 22% increase in commodities and foreign exchange revenues. In addition, corporate and investment banking revenues were up 42% due to growth in banking service revenues, revenues from capital markets activity and revenues from merger and acquisition activity. Non-interest expenses were up 11% due to higher compensation and employee benefits, mainly attributable to higher variable compensation notably driven by revenue growth, as well as an increase in technology investment expenses and other expenses related to the segment’s business growth. The efficiency ratio stood at 41.2%, deteriorating by 2.9 percentage points compared to last year. Provisions for credit losses totalled $42 million compared to $100 million in 2025. This decrease was due to a $46 million decrease in provisions for credit losses on impaired loans and a $12 million decrease in provisions for credit losses on non-impaired loans.
Slide 21 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 21 Report to Shareholders, Second Quarter 2026 USSF&I (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 % Change 2026 2025 % Change Total revenues Credigy 140 141 (1) 300 286 5 ABA Bank 265 250 6 536 498 8 International 5 (1) 8 11 410 390 5 844 795 6 Non-interest expenses Credigy 36 39 (8) 73 79 (8) ABA Bank 94 77 22 177 160 11 International 1 1 1 1 131 117 12 251 240 5 Income before provisions for credit losses and income taxes 279 273 2 593 555 7 Provisions for credit losses Credigy 25 30 (17) 67 60 12 ABA Bank 19 29 (34) 57 50 14 International − − − − 44 59 (25) 124 110 13 Income before income taxes 235 214 10 469 445 5 Income taxes Credigy 17 15 13 34 31 10 ABA Bank 31 31 − 63 61 3 International 1 (1) 1 1 49 45 9 98 93 5 Net income Credigy 62 57 9 126 116 9 ABA Bank 121 113 7 239 227 5 International 3 (1) 6 9 186 169 10 371 352 5 Return on common shareholders' equity(1) 26.9 % 26.3 % Average assets(2) 35,393 33,101 7 35,106 32,134 9 Average loans and receivables(2) 25,418 24,126 5 25,268 23,771 6 Net impaired loans(1) 1,259 1,114 13 1,259 1,114 13 Average deposits(2) 17,956 16,500 9 17,663 15,811 12 Efficiency ratio(1) 32.0 % 30.0 % 29.7 % 30.2 % (1) See the Glossary section on pages 45 to 48 for details on the composition of these measures. (2) Represents an average of the daily balances for the period. For the second quarter of 2026, net income totalled $186 million compared to $169 million in 2025, up 10%. Total revenues totalled $410 million compared to $390 million, an increase of 5%, attributable to the ABA Bank subsidiary. For the first six-month period of 2026, net income totalled $371 million, up 5% from $352 million in 2025. Credigy Second quarter of 2026 versus second quarter of 2025 The Credigy subsidiary reported net income of $62 million, up $5 million or 9%. Total revenues of $140 million were relatively stable compared to $141 million last year. Non-interest expenses were $36 million, down $3 million due to compensation and employee benefits and the impact of exchange rate fluctuations. Provisions for credit losses were down by $5 million due to lower provisions for credit losses on POCI loans, partly offset by an increase in provisions for credit losses on non-impaired loans. First six-month period of 2026 versus first six-month period of 2025 The Credigy subsidiary reported net income of $126 million, up 9%. Total revenues amounted to $300 million, up 5% from $286 million in 2025. This increase was due to growth in loan volumes and to revenues recognized in the first quarter of 2026 following the prepayments on credit facilities, partly offset by the impact of exchange rate fluctuations. Non-interest expenses were down $6 million compared to 2025, mainly due to compensation and employee benefits and the impact of exchange rate fluctuations. Provisions for credit losses were up $7 million due to the increase in provisions for credit losses on non-impaired loans.
Slide 22 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 22 Report to Shareholders, Second Quarter 2026 ABA Bank Second quarter of 2026 versus second quarter of 2025 The ABA Bank subsidiary recorded net income totalling $121 million, up $8 million or 7% from last year. Total revenues rose 6%, mainly attributable to sustained growth in assets and lower interest expenses on deposits, both partly offset by the impact of exchange rate fluctuations. Non-interest expenses stood at $94 million, up 22%, an increase attributable to higher compensation and employee benefits, occupancy expenses driven by the subsidiary’s business growth and the opening of new branches, partly offset by the impact of exchange rate fluctuations. The subsidiary reported provisions for credit losses totalling $19 million, down $10 million. This decrease was mainly due to lower provisions for credit losses on non-impaired loans. First six-month period of 2026 versus first six-month period of 2025 The ABA Bank subsidiary recorded net income totalling $239 million, up $12 million or 5% from 2025. The subsidiary’s business growth, notably sustained asset growth, lower interest expense on deposits, as well as the impact of exchange rate fluctuations explain the 8% increase in total revenues. Non-interest expenses totalling $177 million, up 11% from 2025, due to the same reasons provided above for the quarter. Provisions for credit losses totalled $57 million, up $7 million, owing to higher provisions for credit losses on non-impaired loans. Other (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 2026 2025 Operating results Net interest income (34) (22) (20) (82) Non-interest income 64 (26) 92 (75) Total revenues 30 (48) 72 (157) Non-interest expenses 129 142 277 216 Income before provisions for credit losses and income taxes (99) (190) (205) (373) Provisions for credit losses 3 (3) 4 − Income before income taxes (recovery) (102) (187) (209) (373) Income taxes (recovery) (33) (49) (67) (100) Net loss (69) (138) (142) (273) Non-controlling interests − − − − Net loss attributable to the Bank’s shareholders and holders of other equity instruments (69) (138) (142) (273) Less: Specified items after income taxes(1) (46) (83) (95) (136) Net loss – Adjusted(1) (23) (55) (47) (137) Average assets(2) 89,435 74,605 87,155 71,627 (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter and six-month period ended April 30, 2026, the Bank recorded integration and transaction-related charges of $46 million net of income taxes ($95 million net of income taxes for the six-month period ended April 30, 2026). During the quarter and six-month period ended April 30, 2025, the Bank had recorded integration and transaction-related charges of $83 million net of income taxes ($102 million net of income taxes for the six-month period ended April 30, 2025). In addition, during the six-month period ended April 30, 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 and the impact of managing fair value changes, representing a loss of $17 million net of income taxes. (2) Represents an average of the daily balances for the period. Second quarter of 2026 versus second quarter of 2025 For the Other heading of segment results, a net loss of $69 million was posted compared to a net loss of $138 million last year. The change in net loss was due to a higher contribution from Treasury activities as well as lower non-interest expenses, stemming mainly from the decrease in integration charges related to the CWB acquisition. These items were partly offset by higher compensation and employee benefits as well as by a $22 million reversal in second-quarter 2025 of the provision for property taxes related to the Bank’s head office building. The specified items mainly related to the acquisition of CWB had a $46 million unfavourable impact on the net loss in 2026, compared to an $83 million unfavourable impact in 2025. The adjusted net loss stood at $23 million, compared to $55 million in 2025. First six-month period of 2026 versus first six-month period of 2025 The net loss stood at $142 million compared to a net loss of $273 million in 2025. The change in net loss was due to a higher contribution from Treasury activities and higher gains on investments, partly offset by the increase in non-interest expenses that resulted mainly from higher compensation and employee benefits as well as from a $22 million reversal in second-quarter 2025 of the provision for property taxes. The specified items mainly related to the acquisition of CWB had an unfavourable impact of $95 million on the net loss compared to an unfavourable impact of $136 million in 2025. The adjusted net loss amounted to $47 million compared to $137 million in 2025.
Slide 23 — Consolidated Balance Sheet
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 23 Report to Shareholders, Second Quarter 2026 Consolidated Balance Sheet Consolidated Balance Sheet Summary (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 % Change Assets Cash and deposits with financial institutions 43,431 27,916 56 Securities 199,627 188,747 6 Securities purchased under reverse repurchase agreements and securities borrowed 31,481 27,091 16 Loans, net of allowances 311,987 302,623 3 Other 31,208 30,542 2 617,734 576,919 7 Liabilities and equity Deposits 450,711 428,003 5 Other 130,010 111,715 16 Subordinated debt 3,429 3,432 − Equity attributable to the Bank’s shareholders and holders of other equity instruments 33,584 33,769 (1) Non-controlling interests − − 617,734 576,919 7 As at April 30, 2026 versus as at October 31, 2025 Assets The Bank had total assets of $617.7 billion, up $40.8 billion or 7% from $576.9 billion. Cash and deposits with financial institutions stood at $43.4 billion, up $15.5 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 $10.9 billion owing to a $6.7 billion or 5% increase in securities at fair value through profit or loss driven by securities issued or guaranteed by the Canadian government, securities issued or guaranteed by provincial and municipal governments of Canada, securities issued or guaranteed by U.S. Treasury, other U.S. agencies, other foreign governments as well as other debt securities, offset by a decrease in equity securities. In addition, securities other than those measured at fair value through profit or loss rose $4.2 billion. Securities purchased under reverse repurchase agreements and securities borrowed increased by $4.4 billion, driven primarily by the Capital Markets segment and Treasury activities. Loans, net of allowances for credit losses, totalled $312.0 billion, up $9.4 billion. The following table provides a breakdown of the main loan portfolios. (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 Loans Residential mortgage and home equity lines of credit 150,599 145,509 Personal 18,582 18,593 Credit card 3,099 3,022 Business and government 141,970 137,630 314,250 304,754 Allowances for credit losses (2,263) (2,131) 311,987 302,623 Residential mortgages (including home equity lines of credit) rose $5.1 billion, due to sustained demand for mortgage credit in Personal Banking, partly offset by lower activity in the Capital Markets segment. Personal loans and credit card receivables were relatively stable. Business and government loans rose $4.3 billion or 3%, mainly due to business growth in Commercial Banking and Capital Markets segment. Impaired loans include all loans classified in Stage 3 of the expected credit loss model and POCI loans. Gross impaired loans stood at $3,904 million compared to $3,712 million as at October 31, 2025. Net impaired loans totalled $2,969 million compared to $2,904 million. This increase was due to higher net impaired loans in the loan portfolios of Personal Banking and Commercial Banking, as well as ABA Bank subsidiary, partly offset by a decrease in net impaired loans in the loan portfolios of Wealth Management and Capital Markets segments, as well as Credigy subsidiary. Other assets stood at $31.2 billion, up $0.7 billion or 2% that resulted mainly from an increase in derivative financial instruments.
Slide 24 — Laurentian Bank of Canada (LBC) Transactions
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 24 Report to Shareholders, Second Quarter 2026 Liabilities The Bank had total liabilities of $584.2 billion compared to $543.2 billion, up $41.0 billion or 8%. Deposits stood at $450.7 billion compared to $428.0 billion, up $22.7 billion or 5%. Personal deposits amounted to $127.8 billion, up $3.4 billion. This increase was driven primarily by the business growth in the Wealth Management and Capital Markets segments. Business and government deposits totalled $317.3 billion, up $19.8 billion or 7%. The increase is explained by the business growth in Commercial Banking, Capital Markets segment as well as financing activities in Treasury, including a $3.7 billion increase in deposits subject to bank recapitalization (bail-in) conversion regulations. Deposits from deposit-taking institutions stood at $5.5 billion, down $0.5 billion due to a decrease in Treasury activities. Other liabilities stood at $130.0 billion, up $18.3 billion, resulting essentially from a $17.9 billion increase in obligations related to securities sold under repurchase agreements and securities loaned, a $2.0 billion in derivative financial instruments and a $0.6 billion in other liabilities. This increase is offset by decreases of $1.5 billion in obligations related to securities sold short and $0.8 billion in liabilities associated with transferred receivables. Equity Equity attributable to the Bank’s shareholders and holders of other equity instruments totalled $33.6 billion, down $0.2 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 offset by net income, net of dividends. 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 had 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). On February 17, 2026, the closing of the Syndicated Loan Transaction occurred. The purchase price of $647 million was allocated between the acquired assets and the assumed liabilities based on their relative fair values as at the acquisition date, comprising loans and deposits totaling $657 million and $10 million, respectively. 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 25 — Capital Management
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 25 Report to Shareholders, Second Quarter 2026 Income Taxes Notice of Assessment In March 2026, the Bank was reassessed by the Canada Revenue Agency (CRA) for additional income tax and interest of approximately $120 million (including estimated provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2021 taxation year. In prior fiscal years, the Bank had been reassessed for additional income tax and interest of approximately $1.2 billion (including provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2012-2020 taxation years. In the reassessments, the CRA alleges that the dividends were received as part of a “dividend rental arrangement”. In October 2023, the Bank filed a notice of appeal with the Tax Court of Canada, and the matter is now in litigation. The CRA may issue reassessments to the Bank for taxation years subsequent to 2021 in regard to certain activities similar to those that were the subject of the above-mentioned reassessments. The Bank remains confident that its tax position was appropriate and intends to vigorously defend its position. As at result, no amount has been recognized in the Consolidated Financial Statements as at April 30, 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, supports its business segments, and protects its clients. The Bank manages its capital in accordance with the capital management framework as described in 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 April 30, 2026, outstanding liabilities of $29.8 billion ($26.1 billion as at October 31, 2025) were subject to conversion under the bail-in regulations.
Slide 26 — OSFI
Management’s Discussion and Analysis Capital Management National Bank of Canada 26 Report to Shareholders, Second Quarter 2026 Requirements – Regulatory Capital(1), Leverage(1), and TLAC(2) Ratios The following table provides the minimum capital requirements set by OSFI. Requirements as at April 30, 2026 Ratios as at April 30, 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 % 13.5 % Tier 1 6.0 % 2.5 % 8.5 % 1.0 % 9.5 % 3.5 % 13.0 % 14.9 % Total 8.0 % 2.5 % 10.5 % 1.0 % 11.5 % 3.5 % 15.0 % 17.0 % 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 % 31.5 % TLAC leverage ratio 6.75 % n.a. 6.75 % 0.5 % 7.25 % n.a. 7.25 % 9.0 % 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. On March 12, 2026, an amendment to the issuer bid took effect. This amendment increased the maximum number of issued and outstanding Bank common shares that can be redeemed for cancellation up to 14,500,000 common shares (representing approximately 3.70% of the outstanding common shares as at September 11, 2025) during the 12-month period ending September 24, 2026. During the six-month period ended April 30, 2026, the Bank repurchased 6,965,400 common shares at a price of $1,241 million, which reduced Common share capital by $176 million and Retained earnings by $1,065 million. Under this program, the Bank repurchased a total of 8,350,800 common shares at a price of $1,454 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 27 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 27 Report to Shareholders, Second Quarter 2026 Dividends On May 26, 2026, the Board of Directors declared regular dividends on the various series of first preferred shares and a dividend of $1.32 per common share, up 8 cents or 6%, payable on August 1, 2026 to shareholders of record on June 29, 2026. Shares, Other Equity Instruments, and Stock Options As at April 30, 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 385,633,934 9,824 Stock options 10,017,815 (1) Limited Recourse Capital Notes (LRCN). As at May 22, 2026, there were 385,142,589 common shares and 9,969,096 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 1,559 million Bank common shares, which would have an 80.2% dilutive effect based on the number of Bank common shares outstanding as at April 30, 2026.
Slide 28 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 28 Report to Shareholders, Second Quarter 2026 Movement in Regulatory Capital(1) (millions of Canadian dollars) Six months ended April 30, 2026 Common Equity Tier 1 (CET1) capital Balance at beginning 25,962 Issuance of common shares (including Stock Option Plan) 95 Impact of shares purchased or sold for trading 22 Repurchase of common shares (1,241) Other contributed surplus 58 Dividends on preferred and common shares and distributions on other equity instruments (1,045) Net income attributable to the Bank’s shareholders and holders of other equity instruments 2,488 Removal of own credit spread (net of income taxes) (33) Regulatory adjustment related to contractual service margin(2) 148 Other 24 Movements in accumulated other comprehensive income Translation adjustments (185) Debt securities at fair value through other comprehensive income 12 Other − Change in goodwill and intangible assets (net of related tax liability) 45 Other, including regulatory adjustments Change in defined benefit pension plan asset (net of related tax liability) (4) 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 (21) Balance at end 26,325 Additional Tier 1 capital Balance at beginning 2,597 New Tier 1 eligible capital issuances − Redeemed capital(3) − Other, including regulatory adjustments 3 Balance at end 2,600 Total Tier 1 capital 28,925 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 8 Other, including regulatory adjustments (25) Balance at end 4,081 Total regulatory capital 33,006 (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on capital management measures. (2) The contractual service margin related to our insurance company subsidiaries is included in the CET1 capital as permitted by the OSFI guideline. (3) The redemption of LRCN – Series 1 completed on November 17, 2025, was included in the October 31, 2025 ratios.
Slide 29 — malfunctions.
Management’s Discussion and Analysis Capital Management National Bank of Canada 29 Report to Shareholders, Second Quarter 2026 Risk-Weighted Assets by Key Risk Drivers Risk-weighted assets (RWA) amounted to $194.5 billion as at April 30, 2026 compared to $188.8 billion as at October 31, 2025, a $5.7 billion increase resulting from organic growth in RWA and a deterioration in the credit quality of the loan portfolio, offset by foreign exchange movement. 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 April 30, 2026 January 31, 2026 October 31, 2025 Non- counterparty credit risk Counterparty credit risk Total Total Total Credit risk – Risk-weighted assets at beginning 154,208 7,346 161,554 162,354 156,537 Book size 2,335 739 3,074 407 5,216 Book quality 472 (86) 386 116 234 Model updates − − − − − Methodology and policy − − − − − Acquisitions and disposals − − − − − Foreign exchange movements (103) (13) (116) (1,323) 367 Credit risk – Risk-weighted assets at end 156,912 7,986 164,898 161,554 162,354 Market risk – Risk-weighted assets at beginning 9,616 8,724 9,208 Movement in risk levels(2) 1,214 892 (484) Model updates − − − Methodology and policy − − − Acquisitions and disposals − − − Market risk – Risk-weighted assets at end 10,830 9,616 8,724 Operational risk – Risk-weighted assets at beginning 18,184 17,678 17,365 Movement in risk levels 579 506 313 Methodology and policy − − − Acquisitions and disposals − − − Operational risk – Risk-weighted assets at end 18,763 18,184 17,678 Risk-weighted assets at end 194,491 189,354 188,756 (1) See the Financial Reporting Method section on pages 5 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 30 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 30 Report to Shareholders, Second Quarter 2026 Regulatory Capital Ratios, Leverage Ratio, and TLAC Ratios As at April 30, 2026, the Bank’s CET1, Tier 1, and Total capital ratios were, respectively, 13.5%, 14.9%, and 17.0% compared to ratios of 13.8%, 15.1% and 17.3%, respectively, as at October 31, 2025. All of the capital ratios decreased since October 31, 2025. The decrease was primarily driven by the repurchases of common shares for cancellation and the growth in RWA offset by the net income, net of dividends. As at April 30, 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 April 30, 2026, the Bank’s TLAC ratio and TLAC leverage ratio were 31.5% and 9.0%, 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 and six-month period ended April 30, 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 April 30, 2026 As at October 31, 2025 Capital CET1 26,325 25,962 Tier 1(3) 28,925 28,559 Total(3) 33,006 32,657 Risk-weighted assets 194,491 188,756 Total exposure 678,630 633,494 Capital ratios CET1 13.5 % 13.8 % Tier 1(3) 14.9 % 15.1 % Total(3) 17.0 % 17.3 % Leverage ratio(3) 4.3 % 4.5 % Available TLAC 61,308 55,993 TLAC ratio 31.5 % 29.7 % TLAC leverage ratio 9.0 % 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 31 — Risk Management
Management’s Discussion and Analysis National Bank of Canada 31 Report to Shareholders, Second 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. Risks Description Emerging risks – Conflict in the Middle East Further to the geopolitical risks outlined in the 2025 Annual Report, although the Bank has no significant direct exposure to the Middle East region, the conflict could still affect it through broader macroeconomic and financial market channels, especially if it were to persist for a long period of time. Prolonged or recurring disruptions to the Strait of Hormuz could continue to restrict global supplies of key commodities, including oil, natural gas, fertilizers and helium. This, in turn, could lead to ongoing inflationary pressures across global energy, agriculture, transportation and manufacturing sectors, potentially resulting in higher interest rates and tighter funding conditions for businesses and consumers alike. The potential impact on the Bank and its clients is contingent upon the nature and duration of these evolving conditions. The Bank continues to monitor these developments closely, assessing both direct and indirect potential implications for its financial position and that of its clients. Emerging risks – Technology and Frontier AI development Recent advances in generative artificial intelligence (AI), referred to as Frontier AI, including tools capable of rapidly identifying and exploiting software vulnerabilities, may increase the probability, the impact and the sophistication of potential cyber incidents, challenging traditional detection, remediation, and response frameworks. Beyond the risk of isolated events, Frontier AI capabilities raise the potential for more systemic impacts in a highly interconnected financial system, including operational disruption and broader confidence effects. The Bank continues to assess these developments as an emerging, transversal risk and is integrating AI-related considerations across cybersecurity, third-party risk management, model risk governance, and enterprise resilience planning. Management’s approach emphasizes vulnerability remediation, enhanced threat intelligence, strengthened oversight of critical service providers, and a focus on resilience, with the objective of maintaining the safety and soundness of operations and protecting client trust as the risk landscape evolves. 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, Second 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 April 30, 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 103,019 10,028 − − − 113,047 18 % 82 % Qualifying revolving retail 4,617 13,948 − − − 18,565 − % 100 % Other retail 24,082 3,033 − − 39 27,154 29 % 71 % 131,718 27,009 − − 39 158,766 Non-retail Corporate 130,900 38,425 78,312 158 10,570 258,365 27 % 73 % Sovereign 93,501 6,430 123,119 233 623 223,906 2 % 98 % Banks 15,366 1,308 190,339 2,648 2,710 212,371 20 % 80 % 239,767 46,163 391,770 3,039 13,903 694,642 Trading portfolio − − − 19,152 − 19,152 2 % 98 % Securitization 3,203 − − − 7,860 11,063 100 % − % Total – Gross credit risk 374,688 73,172 391,770 22,191 21,802 883,623 18 % 82 % Standardized Approach(5) 79,599 2,911 63,016 2,629 8,997 157,152 IRB Approach 295,089 70,261 328,754 19,562 12,805 726,471 Total – Gross credit risk 374,688 73,172 391,770 22,191 21,802 883,623 18 % 82 % (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 % Banks 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 5 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 – Second Quarter 2026 and Supplementary Regulatory Capital and Pillar 3 Disclosure – Second 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, Second 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 April 30, 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 43,431 254 32,816 10,361 Interest rate(3) Securities At fair value through profit or loss 154,771 152,108 2,663 − Interest rate(3) and equity At fair value through other comprehensive income 23,812 − 23,812 − Interest rate(3) and equity(4) At amortized cost 21,044 − 21,044 − Interest rate(3) Securities purchased under reverse repurchase agreements and securities borrowed 31,481 − 31,481 − Interest rate(3)(5) Loans, net of allowances 311,987 13,647 298,340 − Interest rate(3) Derivative financial instruments 13,282 12,853 429 − Interest rate and exchange rate Defined benefit asset 450 − 450 − Other Other 17,476 3,053 − 14,423 617,734 181,915 411,035 24,784 Liabilities Deposits 450,711 44,625 406,086 − Interest rate(3) Obligations related to securities sold short 11,846 11,846 − − Obligations related to securities sold under repurchase agreements and securities loaned 59,330 − 59,330 − Interest rate(3)(5) Derivative financial instruments 17,949 17,155 794 − Interest rate and exchange rate Liabilities related to transferred receivables 29,817 11,781 18,036 − Interest rate(3) Defined benefit liability 94 − 94 − Other Other 10,974 − − 10,974 Interest rate(3) Subordinated debt 3,429 − 3,429 − Interest rate(3) 584,150 85,407 487,769 10,974 (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, Second 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, Second 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 Six months ended April 30, 2026 January 31, 2026 April 30, 2025 April 30, 2026 April 30, 2025 Low High Average Period end Average Period end Average Period end Average Average Interest rate (10.4) (19.7) (15.3) (16.3) (16.7) (15.7) (12.4) (12.7) (16.0) (12.6) Exchange rate (0.5) (3.4) (1.4) (1.8) (2.3) (1.1) (1.5) (1.7) (1.9) (1.8) Equity (3.9) (8.2) (6.1) (3.9) (5.9) (6.3) (6.2) (5.6) (6.0) (5.5) Commodity (1.3) (2.9) (1.8) (1.5) (1.5) (1.5) (1.3) (1.1) (1.7) (1.4) Diversification effect(3) n.m. n.m. 11.1 8.9 12.0 10.8 8.7 9.2 11.7 8.9 Total trading VaR (9.9) (17.1) (13.5) (14.6) (14.4) (13.8) (12.7) (11.9) (13.9) (12.4) 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 45 to 48 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 trading VaR decreased between the first and second quarter of 2026, mainly due to a decrease in interest rate risk. Daily Trading and Underwriting Revenues The following chart shows daily trading and underwriting revenues and VaR. During the quarter ended April 30, 2026, daily trading and underwriting revenues were positive on 90% of the days. In addition, six days were marked by net daily trading and underwriting losses in excess of $1 million. None of these losses exceeded VaR. Quarter Ended April 30, 2026 (millions of Canadian dollars) (20) (16) (12) (8) (4) 0 4 8 12 16 20 24 28 32 36 40 44 February 2026 March 2026 April 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, Second 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 April 30, 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 (626) (139) (765) (601) (82) (683) 100-basis-point decrease in the interest rate 645 113 758 605 83 688 Impact on net interest income 100-basis-point increase in the interest rate 96 (31) 65 132 (46) 86 100-basis-point decrease in the interest rate (99) 35 (64) (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 of the Liquidity Adequacy Requirements 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, Second Quarter 2026 Liquid Asset Portfolio(1) (millions of Canadian dollars) As at April 30, 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 43,431 − 43,431 14,695 28,736 13,359 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 57,097 85,422 142,519 83,766 58,753 54,180 Issued or guaranteed by Canadian provincial and municipal governments 19,196 13,874 33,070 21,180 11,890 14,032 Other debt securities 8,226 4,718 12,944 5,732 7,212 7,814 Equity securities 115,108 70,990 186,098 118,020 68,078 71,776 Loans Securities backed by insured residential mortgages 19,306 − 19,306 9,378 9,928 8,798 As at April 30, 2026 262,364 175,004 437,368 252,771 184,597 As at October 31, 2025 234,925 164,738 399,663 229,704 169,959 (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 Unencumbered liquid assets by entity National Bank (parent) 126,203 117,051 Domestic subsidiaries 11,350 14,102 Foreign subsidiaries and branches 47,044 38,806 184,597 169,959 (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 Unencumbered liquid assets by currency Canadian dollar 91,494 73,309 U.S. dollar 75,913 83,713 Other currencies 17,190 12,937 184,597 169,959 Liquid Asset Portfolio(1) – Average(5) (millions of Canadian dollars) Quarter ended April 30, 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 38,285 − 38,285 14,608 23,677 17,374 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 60,003 88,196 148,199 90,475 57,724 56,036 Issued or guaranteed by Canadian provincial and municipal governments 20,462 14,025 34,487 22,149 12,338 12,431 Other debt securities 9,461 4,787 14,248 5,652 8,596 8,888 Equity securities 124,669 73,770 198,439 118,537 79,902 67,211 Loans Securities backed by insured residential mortgages 18,973 − 18,973 9,687 9,286 9,211 271,853 180,778 452,631 261,108 191,523 171,151 (1) See the Financial Reporting Method section on pages 5 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, Second Quarter 2026 Summary of Encumbered and Unencumbered Assets(1) (millions of Canadian dollars) As at April 30, 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 − 14,695 28,736 − 43,431 2.4 Securities 73,329 − 126,298 − 199,627 11.9 Securities purchased under reverse repurchase agreements and securities borrowed − 11,846 19,635 − 31,481 1.9 Loans, net of allowances 41,718 − 9,928 260,341 311,987 6.8 Derivative financial instruments − − − 13,282 13,282 − Premises and equipment − − − 2,174 2,174 − Goodwill − − − 3,098 3,098 − Intangible assets − − − 1,688 1,688 − Other assets 2,690 − − 8,276 10,966 0.4 117,737 26,541 184,597 288,859 617,734 23.4 (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 5 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 April 30, 2026, the Bank’s average LCR was 170%, 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, Second Quarter 2026 LCR Disclosure Requirements(1)(2) (millions of Canadian dollars) Quarter ended April 30, 2026 January 31, 2026 Total unweighted value(3) (average) Total weighted value(4) (average) Total weighted value(4) (average) High-quality liquid assets (HQLA) Total HQLA n.a. 116,644 109,759 Cash outflows Retail deposits and deposits from small business customers, of which: 89,182 8,251 8,084 Stable deposits 31,731 952 944 Less stable deposits 57,451 7,299 7,140 Unsecured wholesale funding, of which: 148,719 80,522 77,308 Operational deposits (all counterparties) and deposits in networks of cooperative banks 46,808 11,482 11,303 Non-operational deposits (all counterparties) 94,210 61,228 58,639 Unsecured debt 7,701 7,812 7,366 Secured wholesale funding n.a. 36,815 36,110 Additional requirements, of which: 97,172 26,995 23,070 Outflows related to derivative exposures and other collateral requirements 35,248 16,292 13,180 Outflows related to loss of funding on secured debt securities 2,186 2,209 1,540 Backstop liquidity and credit enhancement facilities and commitments to extend credit 59,738 8,494 8,350 Other contractual commitments to extend credit 4,616 1,876 1,230 Other contingent commitments to extend credit 220,270 2,600 2,614 Total cash outflows n.a. 157,059 148,416 Cash inflows Secured lending (e.g., reverse repos) 194,446 38,731 41,450 Inflows from fully performing exposures 13,572 7,754 7,951 Other cash inflows 38,932 38,842 37,072 Total cash inflows 246,950 85,327 86,473 Total adjusted value(5) Total adjusted value(5) Total HQLA 116,644 109,759 Total net cash outflows 71,732 61,943 Liquidity coverage ratio (%)(6) 170 % 189 % n.a. Not applicable (1) See the Financial Reporting Method section on pages 5 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 April 30, 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 April 30, 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, Second 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 April 30, 2026, the Bank’s NSFR was 118%, 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 April 30, 2026 As at January 31, 2026 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: 34,119 − − 3,429 37,548 37,206 Regulatory capital 34,119 − − 3,429 37,548 37,206 Other capital instruments − − − − − − Retail deposits and deposits from small business customers: 86,638 14,413 10,834 34,113 135,216 133,758 Stable deposits 32,172 4,779 4,029 9,341 48,271 47,852 Less stable deposits 54,466 9,634 6,805 24,772 86,945 85,906 Wholesale funding: 101,907 124,811 45,487 75,084 169,435 169,197 Operational deposits 49,311 − − − 24,655 22,927 Other wholesale funding 52,596 124,811 45,487 75,084 144,780 146,270 Liabilities with matching interdependent assets(4) − 3,445 1,653 24,719 − − Other liabilities(5): 15,556 24,007 1,029 1,029 NSFR derivative liabilities(5) n.a. 9,352 n.a. n.a. All other liabilities and equity not included in the above categories 15,556 6,293 294 8,068 1,029 1,029 Total ASF n.a. n.a. n.a. n.a. 343,228 341,190 Required Stable Funding (RSF) Items Total NSFR high-quality liquid assets (HQLA) n.a. n.a. n.a. n.a. 39,131 40,836 Deposits held at other financial institutions for operational purposes − − − − − − Performing loans and securities: 94,373 79,985 39,174 119,903 214,319 206,794 Performing loans to financial institutions secured by Level 1 HQLA 100 11,946 119 − 662 807 Performing loans to financial institutions secured by non-Level-1 HQLA and unsecured performing loans to financial institutions 6,300 11,483 1,513 1,433 5,442 6,013 Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: 44,731 41,427 25,048 45,586 109,613 107,048 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 677 2,514 562 1,344 2,852 2,954 Performing residential mortgages, of which: 9,651 13,762 11,973 71,002 67,454 65,939 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 9,651 13,762 11,973 71,002 67,454 65,939 Securities that are not in default and do not qualify as HQLA, including exchange-traded equities 33,591 1,367 521 1,882 31,148 26,987 Assets with matching interdependent liabilities(4) − 3,445 1,653 24,719 − − Other assets(5): 12,753 47,028 32,725 31,740 Physical traded commodities, including gold 2,685 n.a. n.a. n.a. 2,496 1,781 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs(5) n.a. 14,827 12,603 12,613 NSFR derivative assets(5) n.a. 4,476 − − NSFR derivative liabilities before deduction of the variation margin posted(5) n.a. 19,845 992 838 All other assets not included in the above categories 10,068 2,955 617 4,308 16,634 16,508 Off-balance-sheet items(5) n.a. 151,463 5,836 5,704 Total RSF n.a. n.a. n.a. n.a. 292,011 285,074 Net Stable Funding Ratio (%) n.a. n.a. n.a. n.a. 118 % 120 % n.a. Not applicable (1) See the Financial Reporting Method section on pages 5 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, Second 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 April 30, 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) 453 140 445 82 1,120 − − 1,120 Certificates of deposit and commercial paper(2) 5,480 7,049 7,976 22,910 43,415 − − 43,415 Senior unsecured medium-term notes(3) 491 3,565 7,064 12,611 23,731 10,751 16,272 50,754 Senior unsecured structured notes − 1,013 301 1,699 3,013 850 2,930 6,793 Covered bonds and asset-backed securities Mortgage securitization − 2,495 861 1,652 5,008 4,081 20,728 29,817 Covered bonds 1,386 − 1,196 3,252 5,834 2,876 2,782 11,492 Subordinated liabilities(4) − − − − − − 3,429 3,429 7,810 14,262 17,843 42,206 82,121 18,558 46,141 146,820 Secured funding 1,386 2,495 2,057 4,904 10,842 6,957 23,510 41,309 Unsecured funding 6,424 11,767 15,786 37,302 71,279 11,601 22,631 105,511 7,810 14,262 17,843 42,206 82,121 18,558 46,141 146,820 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 April 30, 2026 One-notch downgrade Two-notch downgrade Three-notch downgrade Derivatives(1) 20 103 139 (1) Contractual requirements related to agreements known as initial margins and variation margins.
Slide 42 — Environmental and Social Risk
Management’s Discussion and Analysis Risk Management National Bank of Canada 42 Report to Shareholders, Second Quarter 2026 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 in various consultative processes. Since November 1, 2025, the new regulatory developments below are 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. On February 26, 2025, the European Commission presented a draft “Omnibus” package of legislation with the aim of easing and simplifying certain disclosure requirements related to the European’s Corporate Sustainability Reporting Directive (CSRD). On February 26, 2026, the final text of the Omnibus project was published and came into force on March 18, 2026. Member states of the European Union will have until March 19, 2027, to transpose the new directive into national law. The Bank continues to monitor developments related to this regulation and its impact on its sustainability disclosures. On April 20, 2026, the Canadian Sustainability Standards Board (CSSB) published an exposure draft Proposed Amendments to CSDS 2 – Amendments to Greenhouse Gas Emissions Disclosures, intended to reflect the amendments made to IFRS S2 – Climate-related Disclosures in December 2025. The CSSB will collect feedback on the most appropriate path forward to serve the Canadian public interest and will make amendments to CSDS 2, as necessary, by the end of 2026.
Slide 43 — Risk Disclosures
Management’s Discussion and Analysis National Bank of Canada 43 Report to Shareholders, Second Quarter 2026 Risk Disclosures One of the purposes of the 2025 Annual Report, the Report to Shareholders – Second 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 43 Management’s Discussion and Analysis 62 to 118, 131 and 133 to 135 25 to 42 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 4 and 31 to 42 4 New key regulatory ratios 63 to 65, 101 and 105 to 108 25, 26, 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 25 and 26 10 Reconciliation of the accounting balance sheet to the regulatory balance sheet 11 to 17, 20 and 21 11 Movements in regulatory capital 69 28 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 29 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 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 65 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 65 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 4 and 42 (1) Second quarter 2026. (2) These pages are included in the document entitled Supplementary Financial Information — Second Quarter 2026.
Slide 44 — Accounting Policies and Financial Disclosure
Management’s Discussion and Analysis National Bank of Canada 44 Report to Shareholders, Second Quarter 2026 Accounting Policies and Financial Disclosure Material Accounting Policies and Accounting Estimates The unaudited interim condensed consolidated financial statements for the quarter and six-month period ended April 30, 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 leading to higher oil and gas prices, together with inflationary pressures and an evolving interest rate environment, continue to generate a high level of 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 second 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. Quarterly Financial Information (millions of Canadian dollars, except per share amounts) 2026 2025 2024 2025 2024 Q2(1) Q1(1) Q4(1) Q3(1) Q2(1) Q1 Q4 Q3 Total Total Total revenues 3,907 3,893 3,698 3,449 3,650 3,183 2,944 2,996 13,980 11,400 Net income 1,234 1,254 1,059 1,065 896 997 955 1,033 4,017 3,816 Earnings per share ($) Basic 3.10 3.12 2.60 2.61 2.19 2.81 2.69 2.92 10.18 10.78 Diluted 3.06 3.08 2.57 2.58 2.17 2.78 2.66 2.89 10.07 10.68 Dividends per common share ($) 1.24 1.24 1.18 1.18 1.14 1.14 1.10 1.10 4.64 4.32 Return on common shareholders’ equity (%)(2) 15.9 15.7 13.3 13.6 11.9 16.7 16.4 18.4 13.7 17.2 Total assets 617,734 605,871 576,919 552,621 536,194 483,833 462,226 453,933 Net impaired loans(2) 2,969 2,831 2,904 2,588 2,437 1,836 1,629 1,482 Per common share ($) Book value(2) 80.31 78.81 78.39 77.20 76.13 68.15 65.74 64.64 Share price High 205.04 175.57 156.70 144.96 127.44 140.76 134.23 118.17 Low 163.94 156.88 143.40 121.09 107.01 128.79 111.98 106.21 (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. (2) See the Glossary section on pages 45 to 48 for details on the composition of these measures.
Slide 45 — Glossary
Management’s Discussion and Analysis National Bank of Canada 45 Report to Shareholders, Second 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 while unallocated capital is 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 46 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 46 Report to Shareholders, Second 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, and certain interest income related to the financing of these financial assets and liabilities, net of interest expenses. 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 47 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 47 Report to Shareholders, Second 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, realized and unrealized gains and losses as well as interest expenses on obligations related to securities sold short certain commission income as well as other income related to trading activities, 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 48 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Glossary National Bank of Canada 48 Report to Shareholders, Second 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, certain interest income related to the financing of these financial assets and liabilities, net of interest expenses. 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 as well as 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 49 — Interim Condensed
National Bank of Canada 49 Second Quarter 2026 Interim Condensed Consolidated Financial Statements (unaudited) Consolidated Balance Sheets 50 Consolidated Statements of Income 51 Consolidated Statements of Comprehensive Income 52 Consolidated Statements of Changes in Equity 54 Consolidated Statements of Cash Flows 55 Notes to the Interim Condensed Consolidated Financial Statements 56
Slide 50 — Consolidated Balance Sheets
Interim Condensed Consolidated Financial Statements National Bank of Canada 50 Report to Shareholders, Second Quarter 2026 Consolidated Balance Sheets (unaudited) (millions of Canadian dollars) As at April 30, 2026 As at October 31, 2025 Assets Cash and deposits with financial institutions 43,431 27,916 Securities (Notes 4 and 5) At fair value through profit or loss 154,771 148,118 At fair value through other comprehensive income 23,812 24,024 At amortized cost 21,044 16,605 199,627 188,747 Securities purchased under reverse repurchase agreements and securities borrowed 31,481 27,091 Loans (Note 6) Residential mortgage 117,667 113,929 Personal 51,514 50,173 Credit card 3,099 3,022 Business and government 141,970 137,630 314,250 304,754 Allowances for credit losses (2,263) (2,131) 311,987 302,623 Other Derivative financial instruments 13,282 12,515 Premises and equipment 2,174 2,162 Goodwill 3,098 3,101 Intangible assets 1,688 1,748 Other assets (Note 7) 10,966 11,016 31,208 30,542 617,734 576,919 Liabilities and equity Deposits (Notes 4 and 8) 450,711 428,003 Other Obligations related to securities sold short 11,846 13,257 Obligations related to securities sold under repurchase agreements and securities loaned 59,330 41,356 Derivative financial instruments 17,949 15,984 Liabilities related to transferred receivables (Note 4) 29,817 30,577 Other liabilities (Note 9) 11,068 10,541 130,010 111,715 Subordinated debt 3,429 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) 9,824 9,865 Contributed surplus 177 137 Retained earnings 20,768 20,366 Accumulated other comprehensive income 201 287 33,584 33,769 Non-controlling interests − − 33,584 33,769 617,734 576,919 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 51 — Consolidated Statements of Income
Interim Condensed Consolidated Financial Statements National Bank of Canada 51 Report to Shareholders, Second Quarter 2026 Consolidated Statements of Income (unaudited) (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 2026 2025 Interest income Loans 4,267 4,096 8,580 7,992 Securities at fair value through profit or loss 502 548 1,013 1,081 Securities at fair value through other comprehensive income 279 187 487 355 Securities at amortized cost 180 143 346 281 Deposits with financial institutions 260 288 508 602 5,488 5,262 10,934 10,311 Interest expense Deposits 3,170 3,181 6,289 6,368 Liabilities related to transferred receivables 209 198 396 393 Subordinated debt 39 34 79 53 Other 761 644 1,467 1,320 4,179 4,057 8,231 8,134 Net interest income(1) 1,309 1,205 2,703 2,177 Non-interest income Underwriting and advisory fees 210 112 366 208 Securities brokerage commissions 78 55 154 112 Mutual fund revenues 200 174 401 352 Investment management and trust service fees 404 342 796 662 Credit fees 88 83 186 165 Card revenues 57 53 106 103 Deposit and payment service charges 69 74 147 146 Trading revenues (losses) 1,290 1,388 2,530 2,569 Gains (losses) on non-trading securities, net 43 22 81 49 Insurance revenues, net 14 18 36 40 Foreign exchange revenues, other than trading 76 64 148 130 Share in the net income of associates and joint ventures 2 2 4 4 Other 67 58 142 116 2,598 2,445 5,097 4,656 Total revenues 3,907 3,650 7,800 6,833 Non-interest expenses Compensation and employee benefits 1,254 1,196 2,514 2,233 Occupancy 117 87 236 184 Technology 351 342 681 627 Communications 17 18 34 34 Professional fees 112 120 222 213 Other 208 179 383 297 2,059 1,942 4,070 3,588 Income before provisions for credit losses and income taxes 1,848 1,708 3,730 3,245 Provisions for credit losses (Note 6) 233 545 477 799 Income before income taxes 1,615 1,163 3,253 2,446 Income taxes (Note 14) 381 267 765 553 Net income 1,234 896 2,488 1,893 Net income attributable to Preferred shareholders and holders of other equity instruments 37 43 74 82 Common shareholders 1,197 853 2,414 1,811 Bank shareholders and holders of other equity instruments 1,234 896 2,488 1,893 Non-controlling interests − − − − 1,234 896 2,488 1,893 Earnings per share (dollars) (Note 15) Basic 3.10 2.19 6.22 4.96 Diluted 3.06 2.17 6.14 4.91 Dividends per common share (dollars) (Note 10) 1.24 1.14 2.48 2.28 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 52 — Consolidated Statements of Comprehensive Income
Interim Condensed Consolidated Financial Statements National Bank of Canada 52 Report to Shareholders, Second Quarter 2026 Consolidated Statements of Comprehensive Income (unaudited) (millions of Canadian dollars) Quarter ended April 30 Six months ended April 30 2026 2025 2026 2025 Net income 1,234 896 2,488 1,893 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 (35) (589) (382) (136) Impact of hedging net foreign currency translation gains (losses) 21 277 197 73 (14) (312) (185) (63) 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 (21) (14) 43 8 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income (27) (17) (32) (35) Change in allowances for credit losses on debt securities at fair value through other comprehensive income reclassified to net income 1 − 1 − (47) (31) 12 (27) Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges 73 (14) 59 (29) Net (gains) losses on designated derivative financial instruments reclassified to net income 16 (19) 28 (41) 89 (33) 87 (70) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans 29 94 (12) 98 Net gains (losses) on equity securities designated at fair value through other comprehensive income 4 (27) 10 (10) Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss 83 109 20 127 116 176 18 215 Total other comprehensive income, net of income taxes 144 (200) (68) 55 Comprehensive income 1,378 696 2,420 1,948 Comprehensive income attributable to Bank shareholders and holders of other equity instruments 1,378 696 2,420 1,948 Non-controlling interests − − − − 1,378 696 2,420 1,948 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 53 — Consolidated Statements of Comprehensive Income
Interim Condensed Consolidated Financial Statements National Bank of Canada 53 Report to Shareholders, Second 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 April 30 Six months ended April 30 2026 2025 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 − 18 3 3 Impact of hedging net foreign currency translation gains (losses) 9 90 71 26 9 108 74 29 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 (8) (4) 17 5 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income (9) (7) (12) (14) Change in allowances for credit losses on debt securities at fair value through other comprehensive income reclassified to net income − − − − (17) (11) 5 (9) Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges 28 (7) 23 (12) Net (gains) losses on designated derivative financial instruments reclassified to net income 5 (7) 10 (16) 33 (14) 33 (28) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans 11 37 (5) 38 Net gains (losses) on equity securities designated at fair value through other comprehensive income 1 (9) 3 (3) Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss 32 42 8 49 44 70 6 84 69 153 118 76 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 54 — Consolidated Statements of Changes in Equity
Interim Condensed Consolidated Financial Statements National Bank of Canada 54 Report to Shareholders, Second Quarter 2026 Consolidated Statements of Changes in Equity (unaudited) (millions of Canadian dollars) Six months ended April 30 2026 2025 Preferred shares and other equity instruments at beginning 3,114 3,150 Issuances of preferred shares, Series 47 and 49 − 264 Redemption of preferred shares, Series 32, for cancellation − (300) Redemption of Limited Recourse Capital Notes, Series 1 (Note 10) (500) − Preferred shares and other equity instruments at end 2,614 3,114 Common shares at beginning 9,865 3,463 Issuances of common shares pursuant to the Stock Option Plan 113 34 Issuances of common shares related to the CWB acquisition Exchange of common shares − 5,290 Automatic exchange of subscription receipts − 1,040 Repurchases of common shares for cancellation (Note 10) (176) − Impact of shares purchased or sold for trading 22 (22) Common shares at end 9,824 9,805 Contributed surplus at beginning 137 85 Stock option expense (Note 12) 12 11 Stock options exercised (18) (4) Replacement options related to the CWB acquisition − 29 Other 46 (8) Contributed surplus at end 177 113 Retained earnings at beginning 20,366 18,633 Net income attributable to the Bank's shareholders and holders of other equity instruments 2,488 1,893 Dividends on preferred shares and distributions on other equity instruments (Note 10) (83) (93) Dividends on common shares (Note 10) (962) (837) Premium paid on common shares repurchased for cancellation (Note 10) (1,065) − Issuance expenses for shares and other equity instruments, net of income taxes − (11) Remeasurements of pension plans and other post-employment benefit plans (12) 98 Net gains (losses) on equity securities designated at fair value through other comprehensive income 10 (10) Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss 20 127 Impact of a financial liability resulting from put options written to non-controlling interests − (1) Other 6 14 Retained earnings at end 20,768 19,813 Accumulated other comprehensive income at beginning 287 219 Net foreign currency translation adjustments (185) (63) Net change in unrealized gains (losses) on debt securities at fair value through other comprehensive income 12 (27) Net change in gains (losses) on instruments designated as cash flow hedges 87 (70) Accumulated other comprehensive income at end 201 59 Equity attributable to the Bank's shareholders and holders of other equity instruments 33,584 32,904 Non-controlling interests at beginning − − Other − 1 Non-controlling interests at end − 1 Equity 33,584 32,905 Accumulated Other Comprehensive Income As at April 30, 2026 As at April 30, 2025 Accumulated other comprehensive income Net foreign currency translation adjustments 169 257 Net unrealized gains (losses) on debt securities at fair value through other comprehensive income 55 (53) Net gains (losses) on instruments designated as cash flow hedges (25) (147) Share in the other comprehensive income of associates and joint ventures 2 2 201 59 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 55 — Consolidated Statements of Cash Flows
Interim Condensed Consolidated Financial Statements National Bank of Canada 55 Report to Shareholders, Second Quarter 2026 Consolidated Statements of Cash Flows (unaudited) (millions of Canadian dollars) Six months ended April 30 2026 2025 Cash flows from operating activities Net income 2,488 1,893 Adjustments for Provisions for credit losses (Note 6) 477 799 Amortization of premises and equipment, including right-of-use assets 149 138 Amortization of intangible assets 188 154 Deferred taxes (103) (173) Losses (gains) on sales of non-trading securities, net (81) (45) Share in the net income of associates and joint ventures (4) (4) Stock option expense 12 11 Gain on the fair value remeasurement of an equity interest (Note 16) − (4) Change in operating assets and liabilities Securities at fair value through profit or loss (6,653) (17,157) Securities purchased under reverse repurchase agreements and securities borrowed (4,390) (4,571) Loans, net of securitization (9,944) (4,652) Commodities 687 104 Deposits 22,698 21,101 Obligations related to securities sold short (1,411) 429 Obligations related to securities sold under repurchase agreements and securities loaned 17,974 2,791 Derivative financial instruments, net 1,198 1,083 Interest and dividends receivable and interest payable (251) 342 Current tax assets and liabilities 77 23 Due to clients, dealers and brokers 696 214 Other items 854 282 24,661 2,758 Cash flows from financing activities Redemption of preferred shares and other equity instruments for cancellation (Note 10) (500) (300) Issuances of common shares (including the impact of shares purchased for trading) 117 8 Repurchases of common shares for cancellation (Note 10) (1,241) − Issuance of subordinated debt − 1,000 Issuance expenses for shares and other equity instruments − (11) Repayments of lease liabilities (51) (46) Dividends paid on shares and distributions on other equity instruments (1,045) (933) (2,720) (282) Cash flows from investing activities Net change in investments in associates and joint ventures (1) (2) Business acquisitions (2) 148 Purchase of assets (Note 17) (647) − Purchases of non-trading securities (19,496) (16,734) Maturities of non-trading securities 5,664 5,269 Sales of non-trading securities 8,857 9,333 Net change in premises and equipment, excluding right-of-use assets (81) (115) Net change in intangible assets (128) (111) (5,834) (2,212) Impact of currency rate movements on cash and cash equivalents (592) (391) Increase (decrease) in cash and cash equivalents 15,515 (127) Cash and cash equivalents at beginning 27,916 31,549 Cash and cash equivalents at end (1) 43,431 31,422 Supplementary information about cash flows from operating activities Interest paid 8,339 7,827 Interest and dividends received 10,792 10,346 Income taxes paid 897 539 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 $14.7 billion as at April 30, 2026 ($14.6 billion as at October 31, 2025) for which there are restrictions and of which $7.5 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 56 — Notes to the Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements National Bank of Canada 56 Report to Shareholders, Second Quarter 2026 Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) Note 1 Basis of Presentation 56 Note 10 Share Capital and Other Equity Instruments 78 Note 2 Future Accounting Policy Changes 56 Note 11 Capital Disclosure 79 Note 3 Fair Value of Financial Instruments 57 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 62 Post-Employment Benefit Plans 81 Note 5 Securities 63 Note 14 Income Taxes 81 Note 6 Loans and Allowances for Credit Losses 65 Note 15 Earnings Per Share 82 Note 7 Other Assets 77 Note 16 Segment Disclosures 82 Note 8 Deposits 77 Note 17 Significant Transactions 83 Note 9 Other Liabilities 77 Note 1 – Basis of Presentation On May 26, 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 and six-month period ended April 30, 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 leading to higher oil and gas prices, together with inflationary pressures and an evolving interest rate environment, continue to generate a high level of 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 57 — 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 57 Report to Shareholders, Second 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 April 30, 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 − − − − 43,431 43,431 43,431 43,431 Securities 154,413 358 23,526 286 21,044 21,031 199,627 199,614 Securities purchased under reverse repurchase agreements and securities borrowed − − − − 31,481 31,481 31,481 31,481 Loans, net of allowances 15,275 − − − 296,712 300,366 311,987 315,641 Other Derivative financial instruments 13,282 − − − − − 13,282 13,282 Other assets 67 − − − 4,063 4,063 4,130 4,130 Financial liabilities Deposits(1) − 35,475 415,236 416,309 450,711 451,784 Other Obligations related to securities sold short 11,846 − − − 11,846 11,846 Obligations related to securities sold under repurchase agreements and securities loaned − − 59,330 59,330 59,330 59,330 Derivative financial instruments 17,949 − − − 17,949 17,949 Liabilities related to transferred receivables − 12,258 17,559 17,374 29,817 29,632 Other liabilities − 4 5,539 5,539 5,543 5,543 Subordinated debt − − 3,429 3,468 3,429 3,468 (1) Includes embedded derivative financial instruments.
Slide 58 — 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 58 Report to Shareholders, Second 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 April 30, 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 59 — 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 59 Report to Shareholders, Second 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 April 30, 2026, $48 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 ($5 million in securities classified as at fair value through profit or loss and $2 million in obligations related to securities sold short during the quarter ended April 30, 2025). Also, during the quarter ended April 30, 2026, $31 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 ($4 million in securities classified as at fair value through profit or loss during the quarter ended April 30, 2025). During the six-month periods ended April 30, 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 April 30, 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 6,906 11,887 − 18,793 Canadian provincial and municipal governments − 9,730 − 9,730 U.S. Treasury, other U.S. agencies and other foreign governments 2,061 4,330 − 6,391 Other debt securities − 5,007 28 5,035 Equity securities 111,212 2,706 904 114,822 120,179 33,660 932 154,771 At fair value through other comprehensive income Securities issued or guaranteed by Canadian government 2,690 5,892 − 8,582 Canadian provincial and municipal governments − 4,569 − 4,569 U.S. Treasury, other U.S. agencies and other foreign governments 8,149 923 − 9,072 Other debt securities − 1,303 − 1,303 Equity securities − 215 71 286 10,839 12,902 71 23,812 Loans − 15,039 236 15,275 Other Derivative financial instruments 443 12,719 120 13,282 Other assets – Other items − − 67 67 131,461 74,320 1,426 207,207 Financial liabilities Deposits(1) − 44,639 − 44,639 Other Obligations related to securities sold short 5,119 6,727 − 11,846 Derivative financial instruments 968 16,916 65 17,949 Liabilities related to transferred receivables − 12,258 − 12,258 Other liabilities - Accounts payable and accrued expenses − 4 − 4 6,087 80,544 65 86,696 (1) Includes the embedded derivative financial instruments related to deposits measured at amortized cost.
Slide 60 — 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 60 Report to Shareholders, Second 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 and six-month period ended April 30, 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 six-month period ended April 30, 2026, there were no significant changes in the sensitivity analyses of Level 3 financial instruments.
Slide 61 — 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 61 Report to Shareholders, Second 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. Six months ended April 30, 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) 22 − 4 13 Total realized and unrealized gains (losses) included in Other comprehensive income − − − − Purchases 69 − 2 − Sales (15) − (16) − Issuances − − 26 − Settlements and other − − (21) (7) Financial instruments transferred into Level 3 − − − 20 Financial instruments transferred out of Level 3 − − − 11 Fair value as at April 30, 2026 932 71 303 55 Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at April 30, 2026(3) 12 − 5 13 Six months ended April 30, 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 − 5 (17) Total realized and unrealized gains (losses) included in Other comprehensive income − (18) − − Purchases 399 15 − − Sales (124) (128) (4) − Issuances − − 62 − Settlements and other − − (39) (14) Financial instruments transferred into Level 3 − − − 1 Financial instruments transferred out of Level 3 − − − 2 Fair value as at April 30, 2025 964 176 312 43 Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at April 30, 2025(5) 6 − (1) (17) (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 $39 million. (3) Total unrealized gains (losses) included in Non-interest income was an unrealized gain of $30 million. (4) Total gains (losses) included in Non-interest income was a gain of $9 million. (5) Total unrealized gains (losses) included in Non-interest income was an unrealized loss of $12 million.
Slide 62 — 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 62 Report to Shareholders, Second 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 April 30, 2026 Unrealized gains (losses) for the quarter ended April 30, 2026 Unrealized gains (losses) for the six months ended April 30, 2026 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 358 (3) (5) 5 Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 35,475 (244) (560) 486 Liabilities related to transferred receivables 12,258 77 145 65 Other liabilities 4 − − − . 47,737 (167) (415) 551 Carrying value as at April 30, 2025 Unrealized gains (losses) for the quarter ended April 30, 2025 Unrealized gains (losses) for the six months ended April 30, 2025 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 362 1 4 12 Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 29,249 146 131 1,929 Liabilities related to transferred receivables 12,105 (66) (160) (38) 41,354 80 (29) 1,891 (1) For the quarter ended April 30, 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 gain of $115 million ($151 million gain for the quarter ended April 30, 2025). For the six-month period ended April 30, 2026, this change resulted in a gain of $28 million ($176 million gain for the six-month period ended April 30, 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 63 — 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 63 Report to Shareholders, Second Quarter 2026 Note 5 – Securities Credit Quality As at April 30, 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 April 30, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Carrying value(2) Securities issued or guaranteed by Canadian government 8,540 70 (28) 8,582 Canadian provincial and municipal governments 4,600 32 (63) 4,569 U.S. Treasury, other U.S. agencies and other foreign governments 9,035 61 (24) 9,072 Other debt securities 1,326 3 (26) 1,303 Equity securities 233 53 − 286 23,734 219 (141) 23,812 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 $4 million as at April 30, 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 six-month period ended April 30, 2026, a dividend income amount of $6 million was recognized for these investments ($18 million for the six-month period ended April 30, 2025), including a negligible amount for investments that were sold during the six-month period ended April 30, 2026 ($1 million for investments that were sold during the six-month period ended April 30, 2025). Six months ended April 30, 2026 Six months ended April 30, 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 − 13 13 (18) 5 (13) Designated at fair value through other comprehensive income − 7 7 15 66 81 Sales(1) − (25) (25) (128) (194) (322) Fair value at end 71 215 286 176 236 412 (1) The Bank disposed of private and public company equity securities for economic reasons.
Slide 64 — 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 64 Report to Shareholders, Second Quarter 2026 Note 5 – Securities (cont.) Securities at Amortized Cost As at April 30, 2026 As at October 31, 2025 Securities issued or guaranteed by Canadian government 13,694 10,505 Canadian provincial and municipal governments 4,897 4,075 U.S. Treasury, other U.S. agencies and other foreign governments 565 339 Other debt securities 1,915 1,699 Gross carrying value 21,071 16,618 Allowances for credit losses 27 13 Carrying value 21,044 16,605 Gains (Losses) on Disposals of Securities at Amortized Cost During the six-month periods ended April 30, 2026 and 2025, the Bank disposed of certain debt securities measured at amortized cost. The carrying value of these securities upon disposal was $371 million for the six-month period ended April 30, 2026 ($195 million for the six-month period ended April 30, 2025), and the Bank recognized gains of $1 million for the six-month period ended April 30, 2026 ($5 million for the six-month period ended April 30, 2025) under Non-interest income – Gains (losses) on non-trading securities, net in the Consolidated Statement of Income.
Slide 65 — Note 6 – Loans and 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 65 Report to Shareholders, Second Quarter 2026 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 April 30, 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 66 — 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 66 Report to Shareholders, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) As at April 30, 2026 Non-impaired loans Impaired loans Loans at fair value through profit or loss(1) Total Stage 1 Stage 2 Residential mortgage Excellent 40,226 5 − − 40,231 Good 19,070 76 − − 19,146 Satisfactory 16,156 3,868 − − 20,024 Special mention 450 774 − − 1,224 Substandard 93 271 − − 364 Default − − 377 − 377 IRB Approach 75,995 4,994 377 − 81,366 Standardized Approach 21,661 595 1,015 13,030 36,301 Gross carrying amount 97,656 5,589 1,392 13,030 117,667 Allowances for credit losses(2) 95 67 123 − 285 Carrying amount 97,561 5,522 1,269 13,030 117,382 Personal Excellent 23,644 10 − − 23,654 Good 9,296 523 − − 9,819 Satisfactory 8,537 1,491 − − 10,028 Special mention 2,319 919 − − 3,238 Substandard 51 317 − − 368 Default − − 283 − 283 IRB Approach 43,847 3,260 283 − 47,390 Standardized Approach 3,763 110 251 − 4,124 Gross carrying amount 47,610 3,370 534 − 51,514 Allowances for credit losses(2) 124 147 215 − 486 Carrying amount 47,486 3,223 319 − 51,028 Credit card Excellent 382 − − − 382 Good 501 − − − 501 Satisfactory 946 30 − − 976 Special mention 573 283 − − 856 Substandard 43 166 − − 209 Default − − − − − IRB Approach 2,445 479 − − 2,924 Standardized Approach 169 6 − − 175 Gross carrying amount 2,614 485 − − 3,099 Allowances for credit losses(2) 44 125 − − 169 Carrying amount 2,570 360 − − 2,930 Business and government Excellent 7,635 − − 776 8,411 Good 29,598 2 − 20 29,620 Satisfactory 42,187 14,078 − 139 56,404 Special mention 239 2,054 − − 2,293 Substandard − 681 − − 681 Default − − 720 − 720 IRB Approach 79,659 16,815 720 935 98,129 Standardized Approach 37,065 4,208 1,258 1,310 43,841 Gross carrying amount 116,724 21,023 1,978 2,245 141,970 Allowances for credit losses(2) 399 327 597 − 1,323 Carrying amount 116,325 20,696 1,381 2,245 140,647 Total loans Gross carrying amount 264,604 30,467 3,904 15,275 314,250 Allowances for credit losses(2) 662 666 935 − 2,263 Carrying amount 263,942 29,801 2,969 15,275 311,987 (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 67 — 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 67 Report to Shareholders, Second Quarter 2026 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 68 — Loans Past Due But Not Impaired
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, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) The following table presents the credit risk exposures of off-balance-sheet commitments as at April 30, 2026 and as at October 31, 2025 according to credit quality and ECL impairment stage. As at April 30, 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 16,960 12 − 16,972 16,332 13 − 16,345 Good 5,406 222 − 5,628 5,083 321 − 5,404 Satisfactory 1,914 215 − 2,129 1,771 236 − 2,007 Special mention 468 141 − 609 468 133 − 601 Substandard 18 49 − 67 20 44 − 64 Default − − 1 1 − − 2 2 Non-retail Excellent 17,750 − − 17,750 13,887 − − 13,887 Good 26,387 1 − 26,388 25,144 8 − 25,152 Satisfactory 17,840 7,226 − 25,066 17,682 6,376 − 24,058 Special mention 26 405 − 431 29 193 − 222 Substandard 4 78 − 82 8 125 − 133 Default − − 19 19 − − 25 25 IRB Approach 86,773 8,349 20 95,142 80,424 7,449 27 87,900 Standardized Approach 26,149 189 9 26,347 28,306 406 83 28,795 Total exposure 112,922 8,538 29 121,489 108,730 7,855 110 116,695 Allowances for credit losses 195 101 2 298 178 84 6 268 Total exposure, net of allowances 112,727 8,437 27 121,191 108,552 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 April 30, 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 230 124 31 93 366 126 34 194 61 to 90 days 176 56 17 113 101 52 18 68 Over 90 days(2) − − 40 − − − 41 − 406 180 88 206 467 178 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 April 30, 2026 As at October 31, 2025 Gross Allowances for credit losses Net Gross Allowances for credit losses Net Residential mortgage 1,392 123 1,269 1,180 102 1,078 Personal 534 215 319 536 180 356 Credit card(1) − − − − − − Business and government 1,978 597 1,381 1,996 526 1,470 3,904 935 2,969 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 69 — 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 69 Report to Shareholders, Second Quarter 2026 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 April 30, 2026 Allowances for credit losses as at January 31, 2026 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at April 30, 2026 Balance sheet Cash and deposits with financial institutions(2)(3) 12 1 − − − 13 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 21 6 − − − 27 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 284 7 (8) − 2 285 Personal 464 69 (50) − 3 486 Credit card 160 43 (41) − 7 169 Business and government 1,301 105 (104) − 21 1,323 2,209 224 (203) − 33 2,263 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 32 1 − − − 33 Undrawn commitments 257 (1) − − − 256 Backstop liquidity and credit enhancement facilities 8 1 − − − 9 297 1 − − − 298 2,542 233 (203) − 33 2,605 Quarter ended April 30, 2025 Allowances for credit losses as at January 31, 2025 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at April 30, 2025 Balance sheet Cash and deposits with financial institutions(2)(3) 11 (2) − − − 9 Securities(3) At fair value through other comprehensive income(4) 4 (1) − − − 3 At amortized cost(2) 6 − − − − 6 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 215 46 (8) − (4) 249 Personal 395 57 (42) − (2) 408 Credit card 157 34 (32) − 6 165 Business and government 716 385 (16) − 31 1,116 1,483 522 (98) − 31 1,938 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 22 1 − − − 23 Undrawn commitments 200 24 − − − 224 Backstop liquidity and credit enhancement facilities 5 1 − − − 6 227 26 − − − 253 1,731 545 (98) − 31 2,209 (1) The contractual amount outstanding on financial assets that were written off during the quarter ended April 30, 2026 and that are still subject to enforcement activity was $75 million ($63 million for the quarter ended April 30, 2025). (2) These financial assets are presented net of the allowances for credit losses on the Consolidated Balance Sheet. (3) As at April 30, 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 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, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Six months ended April 30, 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 April 30, 2026 Balance sheet Cash and deposits with financial institutions(2)(3) 11 2 − − − 13 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 13 14 − − − 27 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 259 42 (15) − (1) 285 Personal 440 136 (93) − 3 486 Credit card 157 77 (77) − 12 169 Business and government 1,275 175 (161) − 34 1,323 2,131 430 (346) − 48 2,263 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 25 8 − − − 33 Undrawn commitments 236 20 − − − 256 Backstop liquidity and credit enhancement facilities 7 2 − − − 9 268 30 − − − 298 2,426 477 (346) − 48 2,605 Six months ended April 30, 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 April 30, 2025 Balance sheet Cash and deposits with financial institutions(2)(3) 9 − − − − 9 Securities(3) At fair value through other comprehensive income(4) 3 − − − − 3 At amortized cost(2) 6 − − − − 6 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 197 60 (9) − 1 249 Personal 360 123 (80) − 5 408 Credit card 156 62 (63) − 10 165 Business and government 628 515 (61) − 34 1,116 1,341 760 (213) − 50 1,938 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 21 2 − − − 23 Undrawn commitments 188 36 − − − 224 Backstop liquidity and credit enhancement facilities 5 1 − − − 6 214 39 − − − 253 1,573 799 (213) − 50 2,209 (1) The contractual amount outstanding on financial assets that were written off during the six-month period ended April 30, 2026 and that are still subject to enforcement activity was $143 million ($114 million for the six-month period ended April 30, 2025). (2) These financial assets are presented net of the allowances for credit losses on the Consolidated Balance Sheet. (3) As at April 30, 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 71 — 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 71 Report to Shareholders, Second 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 April 30, 2026 Quarter ended April 30, 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 104 61 119 284 63 86 66 215 Originations or purchases 5 − − 5 15 − − 15 Transfers(2): to Stage 1 10 (9) (1) − 11 (10) (1) − to Stage 2 (2) 10 (8) − (2) 8 (6) − to Stage 3 − (4) 4 − − (4) 4 − Net remeasurement of loss allowances(3) (21) 10 19 8 (4) 11 28 35 Derecognitions(4) (1) (1) (4) (6) (1) (1) (2) (4) Changes to models − − − − − − − − Provisions for credit losses (9) 6 10 7 19 4 23 46 Write-offs − − (8) (8) − − (8) (8) Disposals − − − − − − − − Recoveries − − 2 2 − − 2 2 Foreign exchange movements and other − − − − (1) (2) (3) (6) Balance at end 95 67 123 285 81 88 80 249 Includes: Amounts drawn 95 67 123 285 81 88 80 249 Undrawn commitments(5) − − − − − − − − Personal Balance at beginning 131 145 198 474 111 140 153 404 Originations or purchases 11 − − 11 10 − − 10 Transfers(2): to Stage 1 24 (21) (3) − 26 (22) (4) − to Stage 2 (10) 12 (2) − (10) 12 (2) − to Stage 3 (1) (26) 27 − − (24) 24 − Net remeasurement of loss allowances(3) (23) 44 44 65 (20) 38 40 58 Derecognitions(4) (2) (3) (2) (7) (2) (3) (2) (7) Changes to models − − − − − − − − Provisions for credit losses (1) 6 64 69 4 1 56 61 Write-offs − − (50) (50) − − (42) (42) Disposals − − − − − − − − Recoveries − − 4 4 − − 5 5 Foreign exchange movements and other − − (1) (1) (3) (1) (3) (7) Balance at end 130 151 215 496 112 140 169 421 Includes: Amounts drawn 124 147 215 486 104 135 169 408 Undrawn commitments(5) 6 4 − 10 8 5 − 13 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the quarter ended April 30, 2026 was $35 million ($379 million during the quarter ended April 30, 2025). The expected credit losses reflected in the purchase price have been discounted. (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 72 — 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 72 Report to Shareholders, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Quarter ended April 30, 2026 Quarter ended April 30, 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 82 159 − 241 78 143 − 221 Originations or purchases 6 − − 6 5 − − 5 Transfers(2): to Stage 1 36 (36) − − 35 (35) − − to Stage 2 (6) 6 − − (7) 7 − − to Stage 3 − (23) 23 − − (15) 15 − Net remeasurement of loss allowances(3) (31) 64 11 44 (39) 62 11 34 Derecognitions(4) (1) (1) − (2) (1) − − (1) Changes to models − − − − − − − − Provisions for credit losses 4 10 34 48 (7) 19 26 38 Write-offs − − (41) (41) − − (32) (32) Disposals − − − − − − − − Recoveries − − 7 7 − − 6 6 Foreign exchange movements and other − − − − − − − − Balance at end 86 169 − 255 71 162 − 233 Includes: Amounts drawn 44 125 − 169 38 127 − 165 Undrawn commitments(5) 42 44 − 86 33 35 − 68 Business and government Balance at beginning 507 365 595 1,467 318 238 287 843 Originations or purchases 52 − − 52 246 − − 246 Transfers(2): to Stage 1 17 (16) (1) − 13 (12) (1) − to Stage 2 (23) 27 (4) − (116) 119 (3) − to Stage 3 (3) (4) 7 − (2) (6) 8 − Net remeasurement of loss allowances(3) (22) 9 84 71 (2) 71 123 192 Derecognitions(4) (12) (12) − (24) (18) (17) (2) (37) Changes to models − − − − − − − − Provisions for credit losses 9 4 86 99 121 155 125 401 Write-offs − − (104) (104) − − (16) (16) Disposals − − − − − − − − Recoveries − − 26 26 − − 41 41 Foreign exchange movements and other − − (5) (5) (3) − (7) (10) Balance at end 516 369 598 1,483 436 393 430 1,259 Includes: Amounts drawn 399 327 597 1,323 335 353 428 1,116 Undrawn commitments(5) 117 42 1 160 101 40 2 143 Total allowances for credit losses at end(6) 827 756 936 2,519 700 783 679 2,162 Includes: Amounts drawn 662 666 935 2,263 558 703 677 1,938 Undrawn commitments(5) 165 90 1 256 142 80 2 224 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the quarter ended April 30, 2026 was $35 million ($379 million during the quarter ended April 30, 2025). The expected credit losses reflected in the purchase price have been discounted. (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 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, Second Quarter 2026 Six months ended April 30, 2026 Six months ended April 30, 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 14 − − 14 19 − − 19 Transfers(2): to Stage 1 21 (20) (1) − 24 (22) (2) − to Stage 2 (4) 18 (14) − (4) 14 (10) − to Stage 3 − (8) 8 − − (9) 9 − Net remeasurement of loss allowances(3) (21) 11 48 38 (19) 22 46 49 Derecognitions(4) (2) (2) (6) (10) (2) (2) (4) (8) Changes to models − − − − − − − − Provisions for credit losses 8 (1) 35 42 18 3 39 60 Write-offs − − (15) (15) − − (9) (9) Disposals − − − − − − − − Recoveries − − 4 4 − − 3 3 Foreign exchange movements and other (1) (1) (3) (5) 1 − (3) (2) Balance at end 95 67 123 285 81 88 80 249 Includes: Amounts drawn 95 67 123 285 81 88 80 249 Undrawn commitments(5) − − − − − − − − Personal Balance at beginning 125 146 180 451 107 127 135 369 Originations or purchases 26 − − 26 20 − − 20 Transfers(2): to Stage 1 53 (48) (5) − 52 (46) (6) − to Stage 2 (20) 23 (3) − (21) 24 (3) − to Stage 3 (1) (49) 50 − − (44) 44 − Net remeasurement of loss allowances(3) (46) 87 84 125 (41) 85 77 121 Derecognitions(4) (5) (7) (4) (16) (4) (6) (4) (14) Changes to models − − − − − − − − Provisions for credit losses 7 6 122 135 6 13 108 127 Write-offs − − (93) (93) − − (80) (80) Disposals − − − − − − − − Recoveries − − 8 8 − − 9 9 Foreign exchange movements and other (2) (1) (2) (5) (1) − (3) (4) Balance at end 130 151 215 496 112 140 169 421 Includes: Amounts drawn 124 147 215 486 104 135 169 408 Undrawn commitments(5) 6 4 − 10 8 5 − 13 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the six-month period ended April 30, 2026 was $35 million ($379 million during the six-month period ended April 30, 2025). The expected credit losses reflected in the purchase price have been discounted. (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, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Six months ended April 30, 2026 Six months ended April 30, 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 12 − − 12 8 − − 8 Transfers(2): to Stage 1 75 (75) − − 62 (62) − − to Stage 2 (13) 13 − − (13) 13 − − to Stage 3 − (44) 44 − − (28) 28 − Net remeasurement of loss allowances(3) (67) 123 21 77 (54) 98 25 69 Derecognitions(4) (2) (2) − (4) (2) − − (2) Changes to models − − − − − − − − Provisions for credit losses 5 15 65 85 1 21 53 75 Write-offs − − (77) (77) − − (63) (63) Disposals − − − − − − − − Recoveries − − 12 12 − − 10 10 Foreign exchange movements and other − − − − − − − − Balance at end 86 169 − 255 71 162 − 233 Includes: Amounts drawn 44 125 − 169 38 127 − 165 Undrawn commitments(5) 42 44 − 86 33 35 − 68 Business and government Balance at beginning 473 417 532 1,422 308 215 229 752 Originations or purchases 98 − − 98 283 − − 283 Transfers(2): to Stage 1 37 (30) (7) − 27 (26) (1) − to Stage 2 (48) 60 (12) − (128) 134 (6) − to Stage 3 (4) (5) 9 − (2) (11) 13 − Net remeasurement of loss allowances(3) (11) (43) 205 151 (24) 110 224 310 Derecognitions(4) (28) (29) (4) (61) (27) (29) (3) (59) Changes to models − − − − − − − − Provisions for credit losses 44 (47) 191 188 129 178 227 534 Write-offs − − (161) (161) − − (61) (61) Disposals − − − − − − − − Recoveries − − 45 45 − − 43 43 Foreign exchange movements and other (1) (1) (9) (11) (1) − (8) (9) Balance at end 516 369 598 1,483 436 393 430 1,259 Includes: Amounts drawn 399 327 597 1,323 335 353 428 1,116 Undrawn commitments(5) 117 42 1 160 101 40 2 143 Total allowances for credit losses at end(6) 827 756 936 2,519 700 783 679 2,162 Includes: Amounts drawn 662 666 935 2,263 558 703 677 1,938 Undrawn commitments(5) 165 90 1 256 142 80 2 224 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the six-month period ended April 30, 2026 was $35 million ($379 million during the six-month period ended April 30, 2025). The expected credit losses reflected in the purchase price have been discounted. (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, Second 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 April 30, 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) 1.4 % 1.7 % 2.0 % 1.9 % (6.2) % 2.7 % Unemployment rate 6.6 % 6.2 % 6.2 % 5.6 % 8.8 % 8.1 % Housing price index growth(2) 1.1 % 2.5 % 9.7 % 2.4 % (13.9) % 0.3 % BBB spread(3) 1.4 % 1.5 % 1.3 % 1.3 % 3.3 % 2.4 % S&P/TSX growth(2)(4) (1.1) % 3.7 % 6.6 % 3.2 % (30.5) % 7.5 % WTI oil price(5) (US$ per barrel) 82 69 77 75 54 52 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, Second Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) In general, during the second quarter, macroeconomic factors evolved favourable for financial variables and were unfavourable for the economy. Overall, the environment remains challenging and uncertainty is still high. Despite the uncertainties weighing on trade relations with the United States, the Canadian economy has generally shown resilience in terms of economic growth. However, the labour and property markets are showing signs of weakness at the start of the year. The outlook remains fragile. The oil shock benefits Canadian oil producers, but this should not translate into a significant rally in investment in the short term, as the surge in prices is perceived as temporary. Meanwhile, consumers are being held back by higher energy bills. Our base scenario assumes that disruptions to the oil supply are temporary, but that limited production places upward pressure on oil prices in the short and medium term. Since inflationary pressures were under control before the oil shock, the Bank of Canada has the luxury of remaining on the sidelines, despite temporarily higher inflation. The unemployment rate improved in the second half of 2026 due to an easing of trade tensions with the United States. In the base scenario, Canada’s unemployment rate stands at 6.5% after 12 months, a decrease of 0.1 percentage point. Alongside this improvement in the labour market, real estate prices are slightly higher. In fact, housing prices rise by 1.1% year over year. The S&P/TSX sits at 32,500 points after one year, and the price of oil is at US$73. In the upside scenario, trade tensions fade and geopolitical conflicts are resolved, lifting confidence. Inflation resumes a more moderate path due to productivity gains. This allows central bankers to abandon restrictive policies. 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 (0.5 percentage point lower). Housing prices rise 9.7%, the S&P/TSX sits at 35,029 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 in a context of global uncertainty. The central bank cuts interest rates sharply, but falling demand and confidence 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. After 12 months, economic contraction pushes unemployment to 9.6%. Housing prices fall sharply (-13.9%). The S&P/TSX sits at 22,837 points after one year and the price of oil is at US$37. 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 April 30, 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 April 30, 2026 1,583 Simulations 100% upside scenario 1,012 100% base scenario 1,173 100% downside scenario 2,128
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, Second Quarter 2026 Note 7 – Other Assets As at April 30, 2026 As at October 31, 2025 Receivables, prepaid expenses and other items 2,021 1,768 Interest and dividends receivable 1,987 1,844 Due from clients, dealers and brokers 1,314 1,168 Defined benefit asset 450 441 Deferred tax assets 1,246 1,131 Current tax assets 789 819 Reinsurance contract assets 21 20 Insurance contract assets 36 40 Investments in associates and joint ventures 49 46 Commodities(1) 3,053 3,739 10,966 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 April 30, 2026 As at October 31, 2025 On demand(1) After notice(2) Fixed term(3) Total Total Personal 6,309 62,153 59,374 127,836 124,417 Business and government 80,999 35,757 200,588 317,344 297,512 Deposit-taking institutions 1,709 477 3,345 5,531 6,074 89,017 98,387 263,307 450,711 428,003 (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 $11.5 billion as at April 30, 2026 ($10.0 billion as at October 31, 2025). During the six-month period ended April 30, 2026, the Bank issued an amount of 1.0 billion euros in covered bonds (US$255 million and $1.0 billion euros in covered bonds matured during the six-month period ended April 30, 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 April 30, 2026, the Deposits – Business and government item also includes deposits of $29.8 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 April 30, 2026 As at October 31, 2025 Accounts payable and accrued expenses 3,678 4,192 Subsidiaries’ debts to third parties 365 313 Interest and dividends payable 2,367 2,475 Lease liabilities 677 644 Due to clients, dealers and brokers 1,761 1,065 Defined benefit liability 94 98 Allowances for credit losses – Off-balance-sheet commitments (Note 6) 298 268 Deferred tax liabilities 249 324 Current tax liabilities 232 185 Insurance contract liabilities 22 27 Other items(1)(2)(3) 1,325 950 11,068 10,541 (1) As at April 30, 2026, Other items included provisions for litigation of $27 million ($13 million as at October 31, 2025). (2) As at April 30, 2026, Other items included provisions for onerous contracts of $8 million ($10 million as at October 31, 2025). (3) As at April 30, 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, Second Quarter 2026 Note 10 – Share Capital and Other Equity Instruments Shares and Other Equity Instruments Outstanding As at April 30, 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 1,455,722 113 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 (6,965,400) (176) (1,385,400) (35) Impact of shares purchased or sold for trading(2) 78,071 22 (74,337) (7) Common shares at end of period 385,633,934 9,824 391,065,541 9,865 (1) Limited Recourse Capital Notes (LRCN). (2) As at April 30, 2026, a total of 192,105 shares were sold short for trading, representing an amount of $41 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 Six months ended April 30 2026 2025 Dividends or interest $ Dividends per share Dividends or interest $ Dividends per share First Preferred Shares Series 30 11 0.7739 11 0.7739 Series 32 − − 3 0.2399 Series 38 14 0.8784 14 0.8784 Series 40 9 0.7273 9 0.7273 Series 42 10 0.8820 10 0.8820 Series 47 4 0.7964 2 0.3982 Series 49 5 0.9564 2 0.4782 53 51 Other equity instruments LRCN – Series 1(1) 1 10 LRCN – Series 2(2) 10 10 LRCN – Series 3(3) 19 19 LRCN – Series 1 and 2 of CWB − 3 30 42 Preferred shares and other equity instruments 83 93 Common shares 962 2.4800 837 2.2800 1,045 930 (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, Second 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. On March 12, 2026, an amendment to this issuer bid took effect. This amendment increased the maximum number of the Bank’s issued and outstanding common shares that may be repurchased for cancellation to 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. 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 six-month period ended April 30, 2026, the Bank repurchased 6,965,400 common shares for $1,241 million, including tax, which reduced Common shares by $176 million and Retained earnings by $1,065 million. During the six-month period ended April 30, 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%.
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, Second Quarter 2026 Note 11 – Capital Disclosure (cont.) During the quarter and six-month period ended April 30, 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) As at April 30, 2026 As at October 31, 2025 Capital CET1 26,325 25,962 Tier 1(3) 28,925 28,559 Total(3) 33,006 32,657 Risk-weighted assets 194,491 188,756 Total exposure 678,630 633,494 Capital ratios CET1 13.5 % 13.8 % Tier 1(3) 14.9 % 15.1 % Total(3) 17.0 % 17.3 % Leverage ratio(3) 4.3 % 4.5 % Available TLAC 61,308 55,993 TLAC ratio 31.5 % 29.7 % TLAC leverage ratio 9.0 % 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 quarters ended April 30, 2026 and 2025, the Bank did not award any stock options. During the six-month period ended April 30, 2026, the Bank awarded 922,520 stock options (1,004,492 stock options during the six-month period ended April 30, 2025) with an average fair value of $28.87 per option ($23.26 in 2025). As at April 30, 2026, there were 10,017,815 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. Six months ended April 30 2026 2025(1) 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% (1) Excluding replacement options issued in connection with the CWB acquisition. During the quarter ended April 30, 2026, a $6 million compensation expense was recorded for this plan ($6 million for the quarter ended April 30, 2025). During the six-month period ended April 30, 2026, a $12 million compensation expense was recorded for this plan ($11 million for the six-month period ended April 30, 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, Second 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 April 30 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 14 9 Expense recognized in Net income 38 32 1 1 Remeasurements(1) Actuarial (gains) losses on the defined benefit obligation (111) (218) (1) (3) Return on plan assets(2) 72 90 Remeasurements recognized in Other comprehensive income (39) (128) (1) (3) (1) (96) − (2) Six months ended April 30 Pension plans Other post-employment benefit plans 2026 2025 2026 2025 Current service cost 54 54 Interest expense (income), net (8) (10) 2 2 Administrative costs 2 2 Expense of the defined benefit component 48 46 2 2 Expense of the defined contribution component 30 16 Expense recognized in Net income 78 62 2 2 Remeasurements(1) Actuarial (gains) losses on the defined benefit obligation (225) (106) (3) (1) Return on plan assets(2) 245 (29) Remeasurements recognized in Other comprehensive income 20 (135) (3) (1) 98 (73) (1) 1 (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 – Income Taxes Notice of Assessment In March 2026, the Bank was reassessed by the Canada Revenue Agency (CRA) for additional income tax and interest of approximately $120 million (including estimated provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2021 taxation year. In prior fiscal years, the Bank had been reassessed for additional income tax and interest of approximately $1.2 billion (including provincial tax and interest) in respect of certain Canadian dividends received by the Bank during the 2012-2020 taxation years. In the reassessments, the CRA alleges that the dividends were received as part of a “dividend rental arrangement”. In October 2023, the Bank filed a notice of appeal with the Tax Court of Canada, and the matter is now in litigation. The CRA may issue reassessments to the Bank for taxation years subsequent to 2021 in regard to certain activities similar to those that were the subject of the above-mentioned reassessments. The Bank remains confident that its tax position was appropriate and intends to vigorously defend its position. As at result, no amount has been recognized in the Consolidated Financial Statements as at April 30, 2026.
Slide 82 — Note 15 – Earnings Per Share
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, Second Quarter 2026 Note 15 – 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 April 30 Six months ended April 30 2026 2025 2026 2025 Basic earnings per share Net income attributable to the Bank’s shareholders and holders of other equity instruments 1,234 896 2,488 1,893 Dividends on preferred shares and distributions on other equity instruments, net of income taxes 37 43 74 82 Net income attributable to common shareholders 1,197 853 2,414 1,811 Weighted average basic number of common shares outstanding (thousands) 386,581 390,124 388,343 365,022 Basic earnings per share (dollars) 3.10 2.19 6.22 4.96 Diluted earnings per share Net income attributable to common shareholders 1,197 853 2,414 1,811 Weighted average basic number of common shares outstanding (thousands) 386,581 390,124 388,343 365,022 Adjustment to average number of common shares (thousands) Stock options(1) 4,879 3,754 4,677 4,045 Weighted average diluted number of common shares outstanding (thousands) 391,460 393,878 393,020 369,067 Diluted earnings per share (dollars) 3.06 2.17 6.14 4.91 (1) For the quarter and six-month period ended April 30, 2026, 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. For the quarter ended April 30, 2025, the calculation of diluted earnings per share excluded an average number of 999,490 options outstanding with a weighted average exercise price of $132.75, given that the exercise price of these options was greater than the average price of the Bank’s common shares. For the six-month period ended April 30, 2025, the calculation of diluted earnings per share excluded an average number of 791,144 options outstanding with a weighted average exercise price of $132.75, given that the exercise price of these options was greater than the average price of the Bank’s common shares. Note 16 – 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 April 30 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 1,212 1,146 241 230 (483) (505) 373 356 (34) (22) 1,309 1,205 Non-interest income 276 270 664 561 1,557 1,606 37 34 64 (26) 2,598 2,445 Total revenues 1,488 1,416 905 791 1,074 1,101 410 390 30 (48) 3,907 3,650 Non-interest expenses(1)(2) 829 804 531 476 439 403 131 117 129 142 2,059 1,942 Income before provisions for credit losses and income taxes 659 612 374 315 635 698 279 273 (99) (190) 1,848 1,708 Provisions for credit losses(3) 169 426 1 (1) 16 64 44 59 3 (3) 233 545 Income before income taxes (recovery) 490 186 373 316 619 634 235 214 (102) (187) 1,615 1,163 Income taxes (recovery) 135 54 99 84 131 133 49 45 (33) (49) 381 267 Net income 355 132 274 232 488 501 186 169 (69) (138) 1,234 896 Non-controlling interests − − − − − − − − − − − − Net income attributable to the Bank’s shareholders and holders of other equity instruments 355 132 274 232 488 501 186 169 (69) (138) 1,234 896 Average assets(4) 224,690 208,658 13,348 10,754 269,129 224,314 35,393 33,101 89,435 74,605 631,995 551,432 Total assets 229,373 210,502 13,270 10,968 249,758 213,679 34,653 31,613 90,680 69,432 617,734 536,194
Slide 83 — Note 17 – 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, Second Quarter 2026 Six months ended April 30 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(5) 2,452 2,090 481 457 (980) (1,014) 770 726 (20) (82) 2,703 2,177 Non-interest income(6) 564 530 1,323 1,110 3,044 3,022 74 69 92 (75) 5,097 4,656 Total revenues 3,016 2,620 1,804 1,567 2,064 2,008 844 795 72 (157) 7,800 6,833 Non-interest expenses(1)(2) 1,629 1,445 1,062 917 851 770 251 240 277 216 4,070 3,588 Income before provisions for credit losses and income taxes 1,387 1,175 742 650 1,213 1,238 593 555 (205) (373) 3,730 3,245 Provisions for credit losses(3) 308 588 (1) 1 42 100 124 110 4 − 477 799 Income before income taxes (recovery) 1,079 587 743 649 1,171 1,138 469 445 (209) (373) 3,253 2,446 Income taxes (recovery) 297 165 197 175 240 220 98 93 (67) (100) 765 553 Net income 782 422 546 474 931 918 371 352 (142) (273) 2,488 1,893 Non-controlling interests − − − − − − − − − − − − Net income attributable to the Bank’s shareholders and holders of other equity instruments 782 422 546 474 931 918 371 352 (142) (273) 2,488 1,893 Average assets(4) 222,341 186,905 13,236 10,681 259,651 217,949 35,106 32,134 87,155 71,627 617,489 519,296 Total assets 229,373 210,502 13,270 10,968 249,758 213,679 34,653 31,613 90,680 69,432 617,734 536,194 (1) During the quarter ended April 30, 2026, the Bank recorded integration and transaction-related charges of $57 million ($41 million net of income taxes) related to the CWB acquisition and charges of $7 million ($5 million net of income taxes) related to the Laurentian Bank of Canada (LBC) transactions. These charges were recorded in the Other heading. For the quarter ended April 30, 2025, integration and transaction-related charges of $118 million ($86 million net of income taxes) had been recorded related to the CWB acquisition in the Personal and Commercial ($1 million) and Wealth Management ($3 million) segments and in the Other heading ($114 million). For the six-month period ended April 30, 2026, charges related to the CWB acquisition were $122 million ($88 million net of income taxes) ($144 million, $105 million net of income taxes during the six-month ended April 30, 2025) and charges related to LBC transactions were $9 million ($7 million net of income taxes). (2) During the quarter ended April 30, 2026, the Bank recorded an expense of $24 million ($18 million net of income taxes), allocated between the Personal and Commercial ($20 million), and the Wealth Management ($4 million) segments to reflect the amortization of intangible assets related to the CWB acquisition. For the six-month period ended April 30, 2026, this expense amounted to $48 million ($35 million net of income taxes), allocated between the Personal and Commercial ($41 million) and the Wealth Management ($7 million) segments. For the quarter and six-month period ended April 30, 2025, the expense amounted to $24 million ($18 million net of income taxes), allocated between the Personal and Commercial ($23 million) and the Wealth Management ($1 million) segments. (3) During the quarter and six-month period ended April 30, 2026, the Bank recorded an amount of $6 million ($5 million net of income taxes) in the Personal and Commercial ($4 million) and Capital Markets ($2 million) segments to reflect the initial provisions for credit losses on non-impaired loans acquired from LBC. During the quarter and six-month period ended April 30, 2025, the Bank had recorded an amount of $230 million ($166 million net of income taxes) in the Personal and Commercial segment to reflect the initial provisions for credit losses on acquired non-impaired CWB loans. (4) 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. (5) During the six-month period ended April 30, 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. (6) During the six-month period ended April 30, 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 six-month period ended April 30, 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. Note 17 – 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 had 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). On February 17, 2026, the closing of the Syndicated Loan Transaction occurred. The purchase price of $647 million was allocated between the acquired assets and the assumed liabilities based on their relative fair values as at the acquisition date, comprising loans and deposits totaling $657 million and $10 million, respectively.
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, 32nd 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 Second Quarter 2026 Results Conference Call — A conference call for analysts and institutional investors will be held on Wednesday, May 27, 2026 at 11:00 a.m. EDT. — Access by telephone in listen-only mode: 1-800-715-9871 or 647-932-3411. The access code is 1221054#. — A recording of the conference call can be heard until August 27, 2026 by dialing 1-800-770-2030 or 647-362-9199. The access code is 1221054#. 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).