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National Bank Holdings Corp — report shareholder q3 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 Third Quarter 2026 National Bank reports its results for the Third Quarter of 2026 The financial information reported in this document is based on the unaudited interim condensed consolidated financial statements for the quarter and the nine-month period ended July 31, 2026 and is prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). All amounts are presented in Canadian dollars. MONTREAL, August 26, 2026 – For the third quarter of 2026, National Bank is reporting net income of $1,307 million, up 23% from $1,065 million in the third quarter of 2025. Diluted earnings per share stood at $3.25, up 26% from $2.58 a year earlier, driven by strong performance across all business segments. Excluding specified items(1) recorded in the third quarters of 2026 and 2025, related to the acquisition of Canadian Western Bank (CWB) and transactions with Laurentian Bank of Canada (LBC), adjusted net income(1) stood at $1,362 million, up 23% from $1,104 million in the corresponding quarter of 2025. Adjusted diluted earnings per share(1) stood at $3.39, up 26% from $2.68 a year earlier. For the nine-month period ended July 31, 2026, the Bank’s net income totalled $3,795 million, up 28% from $2,958 million for the corresponding period of 2025. Diluted earnings per share stood at $9.39 compared to $7.50 for the corresponding period of 2025, an increase of 25%. This growth reflected strong performance across all business segments, lower provisions for credit losses, particularly due to initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired CWB loans, as well as the increased contribution from CWB in 2026, which included an additional quarter of results compared with 2025. Excluding specified items(1) recorded during the nine-month periods ended July 31, 2026 and 2025, adjusted net income(1) totalled $3,985 million, up 20% from $3,320 million for the corresponding period of 2025, while adjusted diluted earnings per share(1) stood at $9.88, up 17% from $8.46 for the nine-month period ended July 31, 2025. “We delivered strong earnings and revenue growth, as well as a high return on equity, continuing the momentum achieved since the beginning of the year. Our results also reflected positive operating leverage and resilient credit performance, while we maintained robust capital levels,” said Laurent Ferreira, President and Chief Executive Officer of National Bank of Canada. “Despite trade and geopolitical uncertainty, Canada’s resilience and the retooling of its economy are creating opportunities for growth. We remain focused on supporting our clients and advancing the country’s economic priorities to create long-term value for all our stakeholders,” concluded Mr. Ferreira. Highlights (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Net income 1,307 1,065 23 3,795 2,958 28 Diluted earnings per share (dollars) $ 3.25 $ 2.58 26 $ 9.39 $ 7.50 25 Income before provisions for credit losses and income taxes 1,960 1,524 29 5,690 4,769 19 Return on common shareholders’ equity(2) 16.1 % 13.6 % 15.9 % 13.8 % Dividend payout ratio(2) 41.1 % 44.3 % 41.1 % 44.3 % Operating results – Adjusted(1) Net income – Adjusted 1,362 1,104 23 3,985 3,320 20 Diluted earnings per share – Adjusted (dollars) $ 3.39 $ 2.68 26 $ 9.88 $ 8.46 17 Income before provisions for credit losses and income taxes – Adjusted 2,036 1,643 24 5,945 5,103 17 Return on common shareholders’ equity – Adjusted(3) 16.8 % 14.1 % 16.7 % 15.6 % As at July 31, 2026 As at October 31, 2025 CET1 capital ratio under Basel III(4) 13.5 % 13.8 % Leverage ratio under Basel III(4) 4.2 % 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, Third Quarter 2026 Report to Shareholders Third quarter of 2026 versus third quarter of 2025 Personal and Commercial − Net income totalled $421 million versus $370 million in 2025, a 14% increase. − At $1,546 million, third-quarter total revenues rose $97 million or 7% 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 13% and commercial lending grew 4%, driven by solid organic growth. − Net interest margin(1) stood at 2.19%, down from 2.25%. − Non-interest expenses stood at $848 million, up 5%. − Provisions for credit losses were down $17 million, mainly due to a decrease in provisions for credit losses on non-impaired loans. − At 54.9%, the efficiency ratio(1) improved compared to 55.6%. Wealth Management − Net income totalled $296 million, a 21% increase from $244 million in 2025. − Total revenues amounted to $955 million compared to $811 million last year, a $144 million or 18% increase driven by growth in all types of revenues, mainly fee-based revenues. − Non-interest expenses stood at $553 million versus $477 million in 2025, a 16% increase associated with revenue growth. − At 57.9%, the efficiency ratio(1) improved compared to 58.8%. Capital Markets − Net income totalled $442 million versus $334 million in 2025, a 32% increase. − Total revenues amounted to $1,041 million, a 34% increase, driven by strong growth in global markets revenues. − Non-interest expenses stood at $436 million compared to $347 million, an increase reflecting higher compensation and employee benefits, as well as expenses related to business growth in the segment. − Provisions for credit losses were $50 million compared to $24 million in 2025. − At 41.9%, the efficiency ratio(1) improved compared to 44.7%, reflecting strong revenue growth. U.S. Specialty Finance and International (USSF&I) − Net income totalled $184 million, up 3% from $178 million last year. − Total revenues amounted to $441 million, a 10% increase attributable to revenue growth at the Credigy and ABA Bank subsidiaries. − Non-interest expenses stood at $130 million, a 4% decrease mainly attributable to the Credigy subsidiary. − Provisions for credit losses were up $37 million, an increase mainly attributable to the Credigy subsidiary. − At 29.5%, the efficiency ratio(1) improved compared to 33.6%. Other − The Other heading reported a net loss of $36 million compared to a net loss of $61 million in 2025, owing mainly to a higher contribution from Treasury activities, higher gains on investments, as well as a decrease in non-interest expenses. Capital Management − As at July 31, 2026, the Common Equity Tier 1 (CET1) capital ratio under Basel III(2) stood at 13.5%, down from 13.8% as at October 31, 2025. (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 capital management measures.
Slide 3 — and Analysis
National Bank of Canada 3 Report to Shareholders, Third Quarter 2026 Management’s Discussion and Analysis August 25, 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, issued 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 nine-month period ended July 31, 2026 and with the audited annual consolidated financial statements for the year ended October 31, 2025 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise indicated. IFRS represent Canadian generally accepted accounting principles (GAAP). All amounts are presented in Canadian dollars. Additional information about the Bank, including the Annual Information Form, can be obtained from the Bank’s website at nbc.ca and SEDAR+’s website at sedarplus.ca. The information found in the various documents and reports published by the Bank or the information available on the Bank's website and mentioned herein is not and should not be considered incorporated by reference into the Report to Shareholders, the Management's Discussion and Analysis, or the consolidated financial statements, unless expressly stated otherwise. Economic Review and Outlook 4 Income Taxes 25 Financial Reporting Method 5 Capital Management 25 Highlights 13 Risk Management 31 Financial Analysis 14 Risk Disclosures 43 Consolidated Results 14 Accounting Policies and Financial Disclosure 44 Results by Segment 17 Material Accounting Policies and Accounting Estimates 44 Consolidated Balance Sheet 23 Future Accounting Policy Changes 44 Laurentian Bank of Canada (LBC) Transactions 24 Financial Disclosure 44 Event after the Consolidated Balance Sheet Date 24 Quarterly Financial Information 44 Related Party Transactions 24 Glossary 45 Securitization and Off-Balance-Sheet Arrangements 24 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 and 2027, 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 third 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 Report to Shareholders, Third Quarter 2026 Economic Review and Outlook(1) Global Economy Tensions in the Middle East remain elevated, as the United States (U.S.) and Iran have yet to reach an agreement that would bring a lasting end to the conflict and allow the resumption of traffic through the Strait of Hormuz. As a result, oil and commodity prices remain above their pre-crisis levels, although they have fallen somewhat as progress has been made in the discussions between the various stakeholders. China has also helped ease the upward pressure on oil prices by reducing its crude oil imports since the onset of the conflict. In Europe, weather conditions during the summer have also disrupted navigation on the Rhine River, which normally provides passage to approximately 7,000 cargo vessels per day. These disruptions have forced transport companies to reduce shipping volumes and raise prices, which could weigh on economic growth in the euro area. At the same time, massive investments in artificial intelligence (AI), particularly in the U.S., are expected to support global economic activity. Increased military spending across several regions of the world is also driving stronger demand. Considering all these factors, we expect the global economy to grow by 2.9%(2) in 2026 and 3.3%(2) in 2027. In the U.S., the gross domestic product (GDP) data suggest the emergence of a two-speed economy, in which strong investment growth in AI-related sectors stands in contrast with declining investment in other sectors. Since the commercialization of ChatGPT, investment in the sectors most exposed to AI has surged 48%, more than double the pace observed in the rest of the economy. Over the longer term, this represents a vulnerability, as the outcome will depend on the ability of this technology to generate sufficient productivity gains to ensure profitability of the current projects. In the near term, however, economic resilience will depend primarily on maintaining a robust pace of investment capable of offsetting weaknesses elsewhere in the economy and supporting sustained growth. This scenario appears plausible over the coming quarters, as companies with significant exposure to AI are expected to invest as much as $800 billion this year. Beyond business investment, the path taken by GDP will also depend heavily on consumer spending, which represents a substantial share of economic activity. In the second quarter, consumer spending grew at its fastest pace in 18 months, supported by a resilient labour market and strong equity market returns. Combined with the strength of AI-related investment, such solid consumer spending should keep economic growth close to its potential, both this year and next year. However, this outlook assumes that financial conditions do not become more restrictive, which depends in particular on the conflict in the Middle East not continuing so long that the U.S. Federal Reserve (FED) raises its key policy rate. Accordingly, we forecast U.S. economic growth of 2.2%(2) in both 2026 and 2027. Canadian Economy Following two consecutive quarters of economic contraction leading some observers to think that Canada may have entered a recession, economic growth resumed in the second quarter of 2026. Monthly industry-level data indicate annualized GDP growth of over 3.0% in the three months ended June 2026, driven notably by the favourable impact of the mining, oil and gas extraction sector. This performance is particularly noteworthy given the backdrop of demographic contraction, which is weighing on potential economic growth. Nevertheless, the Canadian economy continues to present a mixed picture. Economic activity remains characterized by excess supply, and part of the growth recorded in the second quarter appears to have been driven by temporary factors, including the FIFA World Cup and increased government activity tied to the census. Labour market conditions support this assessment. Despite the recent improvement, the labour market posted excess supply during the first half of the year. This excess capacity is likely helping to keep core inflation near the Bank of Canada’s target, while the surge in energy prices has not yet been reflected more broadly in the other components of inflation. In this context, we continue to believe that the Bank of Canada has sufficient leeway to keep its policy rate unchanged until the end of 2026, especially since trade relations with the United States continue to pose a significant risk to the economy, as confirmed by the recent escalation. Nevertheless, we continue to believe that it is in the United States’ interest for negotiations to resume soon, particularly given inflationary pressures, high long-term interest rates, and weak public support for the trade war. We forecast economic growth of only 0.8%(2) in 2026, constrained by demographic contraction, and 1.5%(2) in 2027. The unemployment rate is expected to average 6.5%(2) in 2026 and 6.3%(2) in 2027. Quebec Economy Quebec’s economy continues to lag the Canadian average. Since the beginning of 2025, coinciding with the onset of trade tensions, the province’s GDP has contracted by 0.5%, compared with growth of 1.0% nationally. Since the beginning of the trade conflict, Quebec’s economy has faced the highest tariff burden in Canada. Unfortunately, the joint review of the Canada-United States-Mexico Agreement (CUSMA), held on July 1, 2026, failed to reduce the uncertainty surrounding the future of the trade agreement. Under the most recent round of tariffs, Quebec remains the most affected province These headwinds are compounded by an unfavourable demographic backdrop and growing pressure on household finances due to higher energy prices. Several factors should nevertheless continue to support economic activity. The labour market remains particularly resilient. The unemployment rate stood at 5.6% in July 2026, only 0.2 percentage points above where it was at the onset of the trade war and among the lowest in Canada. The financial position of households also provides meaningful support. Quebec households posted a savings rate of 7.5% in the first quarter of 2026, compared with 3.5% nationally, providing a significant buffer against higher energy costs. According to Léger, 72% of Quebec households consider their financial position to be good or very good, compared with 60% Canada-wide. This reflects the fact that Quebec consumers have been relatively less affected by the fight against inflation since 2022 and the resulting monetary tightening, in particular because they carry less debt and benefit from more affordable housing than elsewhere in Canada. This resilience is also evident in Quebec’s housing market, particularly relative to Ontario and British Columbia, despite the current uncertainty. We forecast economic growth of 0.8%(2) in Quebec in 2026, followed by 1.3%(2) in 2027. The province is also expected to continue posting one of the lowest unemployment rates in Canada, averaging 5.6%(2) in 2026 and 5.5%(2) in 2027. (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, Third 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 nine-month period ended July 31, 2026, as part of the CWB acquisition and the LBC transactions, related items have been excluded from results since, in the opinion of management, they do not reflect the underlying performance of the Bank’s operations, in particular, integration and transaction-related charges and amortization of intangible assets related to the CWB acquisition. In addition, for the nine-month period ended July 31, 2026, initial provisions for credit losses on non-impaired loans acquired from LBC were excluded from results. For the quarter and nine-month period ended July 31, 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 the income tax recovery related to a change in tax treatment). In addition, for the nine-month period ended July 31, 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 and the initial provisions for credit losses on acquired non-impaired CWB loans 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, Third 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 the 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 – Third 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, Third 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 – Third 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, Third 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-offs 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, Third 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, Third Quarter 2026 Reconciliation of Non-GAAP Financial Measures Presentation of Results – Adjusted (millions of Canadian dollars) Quarter ended July 31 2026 2025 Personal and Commercial Wealth Management Capital Markets USSF&I Other Total Total Operating results Net interest income 1,250 254 (655) 377 28 1,254 1,172 Non-interest income 296 701 1,696 64 42 2,799 2,277 Total revenues 1,546 955 1,041 441 70 4,053 3,449 Non-interest expenses 848 553 436 130 126 2,093 1,925 Income before provisions for credit losses and income taxes 698 402 605 311 (56) 1,960 1,524 Provisions for credit losses 117 − 50 79 − 246 203 Income before income taxes (recovery) 581 402 555 232 (56) 1,714 1,321 Income taxes (recovery) 160 106 113 48 (20) 407 256 Net income 421 296 442 184 (36) 1,307 1,065 Items that have an impact on results Non-interest expenses Integration and transaction-related charges(1) − − − − 51 51 94 Amortization of intangible assets related to the CWB acquisition(2) 21 4 − − − 25 25 Impact on non-interest expenses 21 4 − − 51 76 119 Income taxes Income taxes on the integration and transaction-related charges(1) − − − − (14) (14) (26) Income taxes on the amortization of intangible assets related to the CWB acquisition(2) (6) (1) − − − (7) (7) Income tax recovery related to a change in tax treatment(3) − − − − − − (47) Impact on income taxes (6) (1) − − (14) (21) (80) Impact on net income (15) (3) − − (37) (55) (39) Operating results – Adjusted Net interest income – Adjusted 1,250 254 (655) 377 28 1,254 1,172 Non-interest income – Adjusted 296 701 1,696 64 42 2,799 2,277 Total revenues – Adjusted 1,546 955 1,041 441 70 4,053 3,449 Non-interest expenses – Adjusted 827 549 436 130 75 2,017 1,806 Income before provisions for credit losses and income taxes – Adjusted 719 406 605 311 (5) 2,036 1,643 Provisions for credit losses – Adjusted 117 − 50 79 − 246 203 Income before income taxes (recovery) – Adjusted 602 406 555 232 (5) 1,790 1,440 Income taxes (recovery) – Adjusted 166 107 113 48 (6) 428 336 Net income – Adjusted 436 299 442 184 1 1,362 1,104 (1) During the quarter ended July 31, 2026, the Bank recorded integration and transaction-related charges of $24 million ($18 million net of income taxes) related to the CWB transaction (2025: $94 million, $68 million net of income taxes) and charges of $27 million ($19 million net of income taxes) related to the LBC transactions. (2) During the quarter ended July 31, 2026, the Bank recorded an amount of $25 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $25 million, $18 million net of income taxes). (3) During the quarter ended July 31, 2025, income tax recovery of $47 million was recorded due to a change in tax treatment related to unrealized gains recognized in fiscal 2024 and in the first quarter of 2025 from the remeasurement at fair value of the interest already held by the Bank in CWB.
Slide 11 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 11 Report to Shareholders, Third Quarter 2026 (millions of Canadian dollars) Nine-month ended July 31 2026 2025 Personal and Commercial Wealth Management Capital Markets USSF&I Other Total Total Operating results Net interest income 3,702 735 (1,635) 1,147 8 3,957 3,349 Non-interest income 860 2,024 4,740 138 134 7,896 6,933 Total revenues 4,562 2,759 3,105 1,285 142 11,853 10,282 Non-interest expenses 2,477 1,615 1,287 381 403 6,163 5,513 Income before provisions for credit losses and income taxes 2,085 1,144 1,818 904 (261) 5,690 4,769 Provisions for credit losses 425 (1) 92 203 4 723 1,002 Income before income taxes (recovery) 1,660 1,145 1,726 701 (265) 4,967 3,767 Income taxes (recovery) 457 303 353 146 (87) 1,172 809 Net income 1,203 842 1,373 555 (178) 3,795 2,958 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) − − − − 182 182 238 Amortization of intangible assets related to the CWB acquisition(5) 62 11 − − − 73 49 Impact on non-interest expenses 62 11 − − 182 255 287 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) − − − − (50) (50) (65) Income taxes on the amortization of intangible assets related to the CWB acquisition(5) (17) (3) − − − (20) (13) Income taxes on initial provisions for credit losses on non-impaired loans acquired(6) (1) − − − − (1) (64) Income tax recovery related to a change in tax treatment(7) − − − − − − (47) Impact on income taxes (18) (3) − − (50) (71) (202) Impact on net income (48) (8) (2) − (132) (190) (362) Operating results – Adjusted Net interest income – Adjusted 3,702 735 (1,635) 1,147 8 3,957 3,377 Non-interest income – Adjusted 860 2,024 4,740 138 134 7,896 6,952 Total revenues – Adjusted 4,562 2,759 3,105 1,285 142 11,853 10,329 Non-interest expenses – Adjusted 2,415 1,604 1,287 381 221 5,908 5,226 Income before provisions for credit losses and income taxes – Adjusted 2,147 1,155 1,818 904 (79) 5,945 5,103 Provisions for credit losses – Adjusted 421 (1) 90 203 4 717 772 Income before income taxes (recovery) – Adjusted 1,726 1,156 1,728 701 (83) 5,228 4,331 Income taxes (recovery) – Adjusted 475 306 353 146 (37) 1,243 1,011 Net income – Adjusted 1,251 850 1,375 555 (46) 3,985 3,320 (1) During the nine-month period ended July 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (2) During the nine-month period ended July 31, 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 nine-month period ended July 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction. (4) During the nine-month period ended July 31, 2026, the Bank recorded integration and transaction-related charges of $146 million ($106 million net of income taxes) related to the CWB transaction (2025: $238 million, $173 million net of income taxes) and charges of $36 million ($26 million net of income taxes) related to the LBC transactions. (5) During the nine-month period ended July 31, 2026, the Bank recorded an amount of $73 million ($53 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $49 million, $36 million net of income taxes).
Slide 12 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Reporting Method National Bank of Canada 12 Report to Shareholders, Third Quarter 2026 (6) During the nine-month period ended July 31, 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 nine-month period ended July 31, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans. (7) During the nine-month period ended July 31, 2025, income tax recovery of $47 million was recorded due to a change in tax treatment related to unrealized gains recognized in fiscal 2024 and in the first quarter of 2025 from the remeasurement at fair value of the interest already held by the Bank in CWB. Presentation of Basic and Diluted Earnings Per Share – Adjusted (Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Basic earnings per share $ 3.29 $ 2.61 26 $ 9.51 $ 7.58 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) 0.09 0.17 0.34 0.46 Amortization of intangible assets related to the CWB acquisition(5) 0.05 0.05 0.14 0.10 Initial provisions for credit losses on non-impaired loans acquired(6) − − 0.01 0.44 Income tax recovery related to a change in tax treatment(7) − (0.12) − (0.12) Basic earnings per share – Adjusted $ 3.43 $ 2.71 27 $ 10.00 $ 8.55 17 Diluted earnings per share $ 3.25 $ 2.58 26 $ 9.39 $ 7.50 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) 0.09 0.17 0.34 0.46 Amortization of intangible assets related to the CWB acquisition(5) 0.05 0.05 0.14 0.10 Initial provisions for credit losses on non-impaired loans acquired(6) − − 0.01 0.44 Income tax recovery related to a change in tax treatment(7) − (0.12) − (0.13) Diluted earnings per share – Adjusted $ 3.39 $ 2.68 26 $ 9.88 $ 8.46 17 (1) During the nine-month period ended July 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (2) During the nine-month period ended July 31, 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 nine-month period ended July 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction. (4) During the quarter ended July 31, 2026, the Bank recorded integration and transaction-related charges of $24 million ($18 million net of income taxes) related to the CWB transaction (2025: $94 million, $68 million net of income taxes) and charges of $27 million ($19 million net of income taxes) related to the LBC transactions. For the nine-month period ended July 31, 2026, charges related to the CWB transaction amounted to $146 million ($106 million net of income taxes) (2025: $238 million, $173 million net of income taxes) and charges related to the LBC transactions totalled $36 million ($26 million net of income taxes). (5) During the quarter ended July 31, 2026, the Bank recorded an amount of $25 million ($18 million net of income taxes) to reflect the amortization of intangible assets related to the CWB acquisition (2025: $25 million, $18 million net of income taxes). For the nine-month period ended July 31, 2026, this expense was $73 million ($53 million net of income taxes) (2025: $49 million, $36 million net of income taxes). (6) During the nine-month period ended July 31, 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 nine-month period ended July 31, 2025, initial provisions for credit losses of $230 million ($166 million net of income taxes) were recorded on acquired non-impaired CWB loans. (7) During the nine-month period ended July 31, 2025, income tax recovery of $47 million was recorded due to a change in tax treatment related to unrealized gains recognized in fiscal 2024 and in the first quarter of 2025 from the remeasurement at fair value of the interest already held by the Bank in CWB.
Slide 13 — Highlights
Management’s Discussion and Analysis National Bank of Canada 13 Report to Shareholders, Third Quarter 2026 Highlights (millions of Canadian dollars, except per share amounts) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Operating results Total revenues 4,053 3,449 18 11,853 10,282 15 Income before provisions for credit losses and income taxes 1,960 1,524 29 5,690 4,769 19 Net income 1,307 1,065 23 3,795 2,958 28 Return on common shareholders’ equity(1) 16.1 % 13.6 % 15.9 % 13.8 % Operating leverage(1) 8.8 % (9.8) % 3.5 % (2.0) % Efficiency ratio(1) 51.6 % 55.8 % 52.0 % 53.6 % Earnings per share Basic $ 3.29 $ 2.61 26 $ 9.51 $ 7.58 25 Diluted $ 3.25 $ 2.58 26 $ 9.39 $ 7.50 25 Operating results – Adjusted(2) Total revenues – Adjusted(2) 4,053 3,449 18 11,853 10,329 15 Income before provisions for credit losses and income taxes – Adjusted(2) 2,036 1,643 24 5,945 5,103 17 Net income – Adjusted(2) 1,362 1,104 23 3,985 3,320 20 Return on common shareholders’ equity – Adjusted(3) 16.8 % 14.1 % 16.7 % 15.6 % Operating leverage – Adjusted(3) 5.8 % 1.7 % 1.7 % 6.4 % Efficiency ratio – Adjusted(3) 49.8 % 52.4 % 49.8 % 50.6 % Diluted earnings per share – Adjusted(2) $ 3.39 $ 2.68 26 $ 9.88 $ 8.46 17 Common share information Dividends declared $ 1.32 $ 1.18 12 $ 3.80 $ 3.46 10 Book value(1) $ 82.02 $ 77.20 $ 82.02 $ 77.20 Share price High $ 235.32 $ 144.96 $ 235.32 $ 144.96 Low $ 197.89 $ 121.09 $ 156.88 $ 107.01 Close $ 226.75 $ 144.13 $ 226.75 $ 144.13 Number of common shares (thousands) 383,581 391,967 383,581 391,967 Market capitalization 86,977 56,494 86,977 56,494 (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 % Change Balance sheet and off-balance-sheet Total assets 635,159 576,919 10 Loans, net of allowances 324,544 302,623 7 Deposits 464,732 428,003 9 Equity attributable to common shareholders 31,460 30,655 3 Assets under administration(1) 988,957 874,360 13 Assets under management(1) 217,338 194,467 12 Regulatory ratios under Basel III(4) Capital ratios Common Equity Tier 1 (CET1) 13.5 % 13.8 % Tier 1 15.1 % 15.1 % Total 17.2 % 17.3 % Leverage ratio 4.2 % 4.5 % TLAC ratio(4) 33.1 % 29.7 % TLAC leverage ratio(4) 9.3 % 8.8 % Liquidity coverage ratio (LCR)(4) 161 % 173 % Net stable funding ratio (NSFR)(4) 118 % 124 % Other information Number of employees – Worldwide (full-time equivalent) 34,816 33,200 5 Number of branches in Canada 354 382 (7) Number of banking machines in Canada 730 939 (22) (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, Third Quarter 2026 Financial Analysis Consolidated Results (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 1,254 1,172 7 3,957 3,349 18 Non-interest income 2,799 2,277 23 7,896 6,933 14 Total revenues 4,053 3,449 18 11,853 10,282 15 Non-interest expenses 2,093 1,925 9 6,163 5,513 12 Income before provisions for credit losses and income taxes 1,960 1,524 29 5,690 4,769 19 Provisions for credit losses 246 203 21 723 1,002 (28) Income before income taxes 1,714 1,321 30 4,967 3,767 32 Income taxes 407 256 59 1,172 809 45 Net income 1,307 1,065 23 3,795 2,958 28 Non-controlling interests − − − − Net income attributable to the Bank's shareholders and holders of other equity instruments 1,307 1,065 23 3,795 2,958 28 Dividends on preferred shares and distributions on other equity instruments 41 42 (2) 115 124 (7) Net income attributable to common shareholders 1,266 1,023 24 3,680 2,834 30 Diluted earnings per share (dollars) 3.25 2.58 26 9.39 7.50 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 (51) (94) (182) (238) Amortization of intangible assets related to the CWB acquisition (25) (25) (73) (49) Initial provisions for credit losses on non-impaired loans acquired − − (6) (230) Specified items before income taxes (76) (119) (261) (564) Income tax recovery related to a change in tax treatment − (47) − (47) Income taxes related to specified items (21) (33) (71) (155) Specified items after income taxes (55) (39) (190) (362) Operating results – Adjusted(1) Net interest income – Adjusted 1,254 1,172 7 3,957 3,377 17 Non-interest income – Adjusted 2,799 2,277 23 7,896 6,952 14 Total revenues – Adjusted 4,053 3,449 18 11,853 10,329 15 Non-interest expenses – Adjusted 2,017 1,806 12 5,908 5,226 13 Income before provisions for credit losses and income taxes – Adjusted 2,036 1,643 24 5,945 5,103 17 Provisions for credit losses – Adjusted 246 203 21 717 772 (7) Income before income taxes – Adjusted 1,790 1,440 24 5,228 4,331 21 Income taxes – Adjusted 428 336 27 1,243 1,011 23 Net income – Adjusted 1,362 1,104 23 3,985 3,320 20 Non-controlling interests − − − − Net income attributable to the Bank's shareholders and holders of other equity instruments – Adjusted 1,362 1,104 23 3,985 3,320 20 Dividends on preferred shares and distributions on other equity instruments 41 42 (2) 115 124 (7) Net income attributable to common shareholders – Adjusted 1,321 1,062 24 3,870 3,196 21 Diluted earnings per share – Adjusted (dollars) 3.39 2.68 26 9.88 8.46 17 Average assets(2) 643,021 567,070 13 626,094 535,396 17 Average loans(2) 318,930 288,309 11 309,700 272,486 14 Average deposits(2) 462,026 404,700 14 453,599 384,304 18 Operating leverage(3) 8.8 % (9.8) % 3.5 % (2.0) % Operating leverage – Adjusted(4) 5.8 % 1.7 % 1.7 % 6.4 % Efficiency ratio(3) 51.6 % 55.8 % 52.0 % 53.6 % Efficiency ratio – Adjusted(4) 49.8 % 52.4 % 49.8 % 50.6 % (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, Third Quarter 2026 Financial Results Third quarter of 2026 versus third quarter of 2025 The Bank is reporting net income of $1,307 million, up 23% from $1,065 million last year. Diluted earnings per share stood at $3.25, up 26% compared to $2.58 a year earlier, driven by strong performance across all business segments. Excluding specified items recorded in the third quarters of 2026 and 2025, related to the acquisition of CWB and transactions with LBC, adjusted net income stood at $1,362 million, up 23% from $1,104 million a year earlier. Adjusted diluted earnings per share stood at $3.39, up 26% from $2.68. Nine-month period of 2026 versus nine-month period of 2025 The Bank’s net income totalled $3,795 million, up 28% from $2,958 million in 2025. Diluted earnings per share stood at $9.39 compared to $7.50 for the corresponding period of 2025, an increase of 25%. This growth reflected strong performance across all business segments, lower provisions for credit losses, particularly due to initial provisions for credit losses recorded in the second quarter of 2025 on acquired non-impaired CWB loans as well as the increased contribution from CWB in 2026, which included an additional quarter of results compared with 2025. Excluding specified items recorded during the nine-month periods ended July 31, 2026 and 2025, adjusted net income totalled $3,985 million, up 20% from $3,320 million, and adjusted diluted earnings per share stood at $9.88, up 17% from $8.46. Return on common shareholders’ equity was 15.9% compared to 13.8% last year. Adjusted return on common shareholders’ equity was 16.7% compared to 15.6% in 2025. Total Revenues Third quarter of 2026 versus third quarter of 2025 The Bank’s total revenues amounted to $4,053 million, up $604 million or 18%. Total revenues for the Capital Markets segment were up 34% due to the significant increase in global markets revenues. Total revenues in the Personal and Commercial segment rose 7% 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 18% 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 were driven by an increase in client activity. In the USSF&I segment, total revenues were up 10% as a result of revenue growth at the ABA Bank subsidiary, stemming from business growth, as well as an increase in revenues from the Credigy subsidiary, partly attributable to the disposal of a loan portfolio. Total revenues for the Other heading increased compared to last year, in particular as a result of a higher contribution from Treasury activities and gains on investments. Nine-month period of 2026 versus nine-month period of 2025 The Bank’s total revenues amounted to $11,853 million compared to $10,282 million, an increase of $1,571 million or 15%. In the Personal and Commercial segment, total revenues were up $493 million or 12%, driven by the increase in net interest income arising from growth in loans and deposits, partly offset by a decrease in net interest margin, as well as growth in internal commission revenues related to the distribution of Wealth Management products. The 16% 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 were driven by an increase in client activity. Total revenues for the Capital Markets segment were up $320 million or 11% as a result of higher corporate and investment banking revenues. In the USSF&I segment, total revenues were up 7%, 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, due to a higher contribution from Treasury activities and the unfavourable impact of specified items related to the CWB acquisition recorded in 2025. The effect of an additional quarter of CWB’s revenues in 2026, given its integration beginning in the second quarter of 2025, also contributed to the increase in total revenues across the business segments. Excluding specified items, adjusted total revenues were $11,853 million, up 15% from $10,329 million in 2025. Non-Interest Expenses Third quarter of 2026 versus third quarter of 2025 Non-interest expenses stood at $2,093 million, up $168 million or 9%. 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 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. Communication expenses were stable compared to last year. Professional fees were down, notably due to lower expenses related to the integration of CWB compared to 2025. In addition, the increase in other expenses was partly due to litigation expenses of $11 million recorded in the third quarter of 2026. Excluding specified items, related to the CWB acquisition and transactions with LBC, adjusted non-interest expenses stood at $2,017 million, up 12% from $1,806 million last year.
Slide 16 — Income Taxes
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 16 Report to Shareholders, Third Quarter 2026 Nine-month period of 2026 versus nine-month period of 2025 Non-interest expenses totalled $6,163 million, up 12%. The growth in non-interest expenses was essentially due to the same reasons provided above for the quarter as well as the impact of an additional quarter of CWB expenses in 2026, reflecting its integration beginning in the second quarter of 2025. Furthermore, the increase in occupancy expenses was also due to a $22 million reversal in the second quarter of 2025 of the provision for property taxes related to the Bank’s head office building. 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 $26 million recorded in 2026. Adjusted non-interest expenses were $5,908 million, a 13% increase from $5,226 million. Provisions for Credit Losses Third quarter of 2026 versus third quarter of 2025 The Bank recorded provisions for credit losses of $246 million compared to $203 million last year. Provisions for credit losses on non-impaired loans amounted to $23 million, reflecting growth in loan portfolios and the unfavourable impact of updated macroeconomic scenarios, partly offset by the favourable effects of credit risk migration for certain portfolios. Provisions for credit losses on impaired loans totalled $223 million compared to $152 million in 2025, an increase that was mainly due to Personal Banking (including credit card receivables), the Capital Markets segment, as well as the Credigy and ABA Bank subsidiaries. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans(1) represented 0.28% of average loans, compared to 0.21% in 2025. Nine-month period of 2026 versus nine-month period of 2025 The Bank’s provisions for credit losses totalled $723 million compared to $1,002 million last year. 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 the loan portfolios (including non-impaired syndicated loans acquired from LBC during the second quarter of 2026) as well as the unfavourable impact of updated macroeconomic scenarios, partly offset by the favourable effect of credit risk migration. Provisions for credit losses on impaired loans increased, mainly due to Personal Banking (including credit card receivables), Commercial Banking and the ABA Bank subsidiary. Provisions for credit losses on impaired loans excluding Credigy’s POCI loans(1) represented 0.27% of average loans, compared to 0.28% in 2025. Adjusted provisions for credit losses were $717 million, down from $772 million in 2025. Income Taxes Third quarter of 2026 versus third quarter of 2025 Income taxes stood at $407 million compared to $256 million and the effective income tax rate was 24% compared to 19% last year. This was mainly due to the recognition of a one-time tax recovery related to a change in tax treatment in 2025 and a lower proportion of income from lower tax-rate jurisdictions in 2026. Nine-month period of 2026 versus nine-month period of 2025 The effective income tax rate stood at 24% compared to 21% last year. The change in effective income tax rate was due to the same reasons as those mentioned for the quarter. (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, Third 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 for reporting purposes 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 July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 1,250 1,180 6 3,702 3,270 13 Non-interest income 296 269 10 860 799 8 Total revenues 1,546 1,449 7 4,562 4,069 12 Non-interest expenses 848 805 5 2,477 2,250 10 Income before provisions for credit losses and income taxes 698 644 8 2,085 1,819 15 Provisions for credit losses 117 134 (13) 425 722 (41) Income before income taxes 581 510 14 1,660 1,097 51 Income taxes 160 140 14 457 305 50 Net income 421 370 14 1,203 792 52 Less: Specified items after income taxes(1) (15) (16) (48) (200) Net income – Adjusted(1) 436 386 13 1,251 992 26 Return on common shareholders' equity(2) 11.8 % 11.5 % Return on common shareholders' equity – Adjusted(3) 12.2 % 11.9 % Net interest margin(2) 2.19 % 2.25 % 2.24 % 2.27 % Average interest-bearing assets(2) 226,845 208,107 9 221,142 192,266 15 Average assets(4) 231,995 211,499 10 225,594 195,193 16 Average loans(4) 226,487 207,887 9 220,774 191,648 15 Net impaired loans(2) 1,580 1,326 19 1,580 1,326 19 Net impaired loans as a % of total loans(2) 0.7 % 0.6 % 0.7 % 0.6 % Average deposits(4) 114,718 109,093 5 112,240 102,689 9 Efficiency ratio(2) 54.9 % 55.6 % 54.3 % 55.3 % Efficiency ratio – Adjusted(3) 53.5 % 54.0 % 52.9 % 54.1 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter ended July 31, 2026, the Bank recorded amortization of intangible assets of $15 million net of income taxes related to the CWB acquisition ($45 million net of income taxes for the nine-month period ended July 31, 2026). In addition, for the nine-month period ended July 31, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $3 million net of income taxes. During the quarter ended July 31, 2025, the Bank had recorded amortization of intangible assets of $16 million net of income taxes ($33 million net of income taxes for the nine-month period ended July 31, 2025). In addition, for the nine-month period ended July 31, 2025, the Bank had recorded integration and transaction- related charges of $1 million 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. Third quarter of 2026 versus third quarter of 2025 In the Personal and Commercial segment, net income totalled $421 million compared to $370 million last year, an increase of 14%. 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 10%. Personal Banking’s total revenues increased by $72 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 $25 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. In addition, revenues from derivative financial instruments as well as revenues from merger and acquisition activity increased. The segment’s non-interest expenses stood at $848 million, up 5%. The increase in non-interest expenses was due to higher compensation and employee benefits, technology expenses and investments, as well as professional fees related to business segment initiatives and litigation expenses of $11 million recorded during the quarter. The efficiency ratio of 54.9% improved from 55.6% in 2025 partly as a result of cost synergies achieved as part of the CWB acquisition. Adjusted non-interest expenses amounted to $827 million, compared to $782 million. The adjusted efficiency ratio stood at 53.5%, compared to 54.0%.
Slide 18 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 18 Report to Shareholders, Third Quarter 2026 Provisions for credit losses stood at $117 million compared to $134 million last year, down $17 million. This decrease was mainly due to lower provisions for credit losses on non-impaired loans, reflecting the impact of macroeconomic scenarios and favourable credit risk migration in Commercial Banking loans. In addition, provisions for credit losses on impaired loans were higher due to loan portfolios of Personal Banking (including credit card receivables). Nine-month period of 2026 versus nine-month period of 2025 The Personal and Commercial segment’s net income was $1,203 million, up 52% from $792 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 impact of an additional quarter of CWB results in 2026, following its integration beginning in the second quarter of 2025. Income before provisions for credit losses and income taxes stood at $2,085 million compared to $1,819 million, up 15%. Adjusted net income was up 26%. The increase in Personal Banking’s total revenues was mainly due to growth in loans partly 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. The increase in Commercial Banking’s total revenues was due to the impact of an additional quarter of CWB results in 2026, as well as loan and deposit growth, partly offset by a narrower net interest margin. Revenues from derivative financial instruments and merger and acquisition activity also increased. Non-interest expenses stood at $2,477 million, up 10% due to the same reasons provided above for the quarter, as well as the impact of an additional quarter of CWB results in 2026, following its integration beginning in the second quarter of 2025. The efficiency ratio stood at 54.3% and improved compared to the same period in 2025. Adjusted non-interest expenses of $2,415 million were up 10% from $2,203 million. The adjusted efficiency ratio, at 52.9%, improved compared to 54.1%. Provisions for credit losses amounted to $425 million, a decrease of $297 million from last year. This decrease was due to initial provisions for 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 $421 million, down from $492 million.
Slide 19 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 19 Report to Shareholders, Third Quarter 2026 Wealth Management (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Operating results Net interest income 254 235 8 735 692 6 Fee-based revenues 575 482 19 1,648 1,399 18 Transaction-based and other revenues 126 94 34 376 287 31 Total revenues 955 811 18 2,759 2,378 16 Non-interest expenses 553 477 16 1,615 1,394 16 Income before provisions for credit losses and income taxes 402 334 20 1,144 984 16 Provisions for credit losses − 1 (100) (1) 2 Income before income taxes 402 333 21 1,145 982 17 Income taxes 106 89 19 303 264 15 Net income 296 244 21 842 718 17 Less: Specified items after income taxes(1) (3) (2) (8) (5) Net income – Adjusted(1) 299 246 22 850 723 18 63.9 % 59.7 % 64.5 % 60.2 % 14,626 11,140 31 13,705 10,836 26 12,557 9,957 26 11,788 9,667 22 22 36 (39) 22 36 (39) 0.2 % 0.4 % 0.2 % 0.4 % 61,458 58,179 6 61,144 53,818 14 988,957 817,718 21 988,957 817,718 21 217,338 183,182 19 217,338 183,182 19 57.9 % 58.8 % 58.5 % 58.6 % Return on common shareholders' equity(2) Return on common shareholders' equity – Adjusted(3) Average assets(4) Average loans(4) Net impaired loans(2) Net impaired loans as a % of total loans(2) Average deposits(4) Assets under administration(2) Assets under management(2) Efficiency ratio(2) Efficiency ratio – Adjusted(3) 57.5 % 58.6 % 58.1 % 58.4 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter ended July 31, 2026, the Bank recorded amortization of intangible assets related to the CWB acquisition of $3 million net of income taxes ($8 million net of income taxes for the nine-month period ended July 31, 2026). During the quarter ended July 31, 2025, the Bank had recorded amortization of intangible assets of $2 million net of income taxes ($3 million for the nine-month period ended July 31, 2025). In addition, for the nine-month period ended July 31, 2025, the Bank had recorded integration and transaction-related charges of $2 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. Third quarter of 2026 versus third quarter of 2025 In the Wealth Management segment, net income totalled $296 million, a 21% increase from $244 million last year. The segment’s total revenues amounted to $955 million, up $144 million or 18% from $811 million in 2025. The 8% increase in net interest income was primarily due to higher loan and deposit volumes, partly offset by an unfavourable impact of a change in the composition of deposits. The 19% increase in fee-based revenues was due to growth in assets under administration and assets under management, reflecting the rise in stock markets as well as positive net inflows for the various solutions. Transaction-based and other revenues rose 34%, due to increased client activity. Non-interest expenses stood at $553 million, up 16% from $477 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 57.9%, improved from 58.8% in 2025. Provisions for credit losses were negligible, whereas $1 million in provisions for credit losses had been recorded in 2025. Nine-month period of 2026 versus nine-month period of 2025 In the Wealth Management segment, net income totalled $842 million compared to $718 million, an increase of 17%. The segment’s total revenues stood at $2,759 million, up 16% compared to $2,378 million. This increase was mainly due to the 18% 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 effect of an additional quarter of CWB’s revenues in the 2026 results, given its integration beginning in the second quarter of 2025. Net interest income rose by $43 million or 6%, mainly due to higher loan and deposit volumes. In addition, transaction-based and other revenues increased by 31% due to increased client activity. Non-interest expenses stood at $1,615 million compared to $1,394 million, an increase of 16% due to the same factors provided above for the quarter, as well as the effect of an additional quarter of CWB’s non-interest expenses in the 2026 results, given its integration beginning in the second quarter of 2025. The efficiency ratio stood at 58.5%, compared to 58.6%. The segment recorded recoveries of credit losses of $1 million compared to provisions for credit losses of $2 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, Third Quarter 2026 Capital Markets (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Operating results Global markets Equities 363 165 120 1,091 1,074 2 Interest rate and credit 159 147 8 457 497 (8) Commodities and foreign exchange 56 57 (2) 202 177 14 578 369 57 1,750 1,748 − Corporate and investment banking 463 408 13 1,355 1,037 31 Total revenues 1,041 777 34 3,105 2,785 11 Non-interest expenses 436 347 26 1,287 1,117 15 Income before provisions for credit losses and income taxes 605 430 41 1,818 1,668 9 Provisions for credit losses 50 24 92 124 (26) Income before income taxes 555 406 37 1,726 1,544 12 Income taxes 113 72 57 353 292 21 Net income 442 334 32 1,373 1,252 10 Less: Specified items after income taxes(1) − − (2) − Net income – Adjusted(1) 442 334 32 1,375 1,252 10 Return on common shareholders' equity(2) 23.6 % 26.1 % Return on common shareholders' equity – Adjusted(3) 23.6 % 26.1 % Average assets(4) 273,785 234,289 17 264,414 223,456 18 Average loans(4) (Corporate Banking only) 34,897 30,909 13 33,074 31,166 6 Net impaired loans(2) 85 74 15 85 74 15 Net impaired loans as a % of total loans(2) 0.2 % 0.2 % 0.2 % 0.2 % Average deposits(4) 100,991 78,775 28 96,715 76,850 26 Efficiency ratio(2) 41.9 % 44.7 % 41.4 % 40.1 % (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the nine-month period ended July 31, 2026, the Bank recorded initial provisions for credit losses on non-impaired loans acquired from LBC of $2 million. (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. Third quarter of 2026 versus third quarter of 2025 In the Capital Markets segment, net income totalled $442 million compared to $334 million last year, up 32%. Total revenues amounted to $1,041 million compared to $777 million in 2025, an increase of $264 million or 34%. Global markets revenues were up 57% primarily driven by strong growth in equities revenues. In addition, interest rate and credit revenues increased, while commodities and foreign exchange revenues declined slightly. Corporate and investment banking revenues were up 13% due to growth in banking service revenues, partly offset by lower capital markets activity revenues. Non-interest expenses stood at $436 million, up 26%, due to higher compensation and employee benefits, in particular due to variable compensation associated with revenue growth, as well as an increase in technology investment expenses and other expenses related to the segment’s business growth. The efficiency ratio stood at 41.9%, improved from 44.7% in 2025, reflecting the strong revenue growth achieved by the segment. Provisions for credit losses were up $26 million due to a $49 million increase in provisions for credit losses on impaired loans, attributable to a single file in the energy sector, partly offset by a $23 million decrease in provisions for credit losses on non-impaired loans. Nine-month period of 2026 versus nine-month period of 2025 The Capital Markets segment’s net income totalled $1,373 million, up 10% from 2025. Total revenues amounted to $3,105 million, an increase of $320 million or 11%. Global markets revenues remained relatively stable compared with the prior year. The 2% increase in equities revenues and the 14% increase in commodities and foreign exchange revenues were offset by an 8% decline in interest rate and credit revenues. In addition, corporate and investment banking revenues were up 31% as a result of growth in banking service revenues and revenues from capital markets activity, as well as revenues from merger and acquisition activity. Non-interest expenses were up 15% due to higher compensation and employee benefits, mainly attributable to higher variable compensation 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 41.4%, deteriorating by 1.3 percentage points compared to last year. Provisions for credit losses totalled $92 million compared to $124 million in 2025, a decrease mainly attributable to lower 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, Third Quarter 2026 USSF&I (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 % Change 2026 2025 % Change Total revenues Credigy 158 136 16 458 422 9 ABA Bank 279 259 8 815 757 8 International 4 7 12 18 441 402 10 1,285 1,197 7 Non-interest expenses Credigy 33 40 (18) 106 119 (11) ABA Bank 97 89 9 274 249 10 International − 6 1 7 130 135 (4) 381 375 2 Income before provisions for credit losses and income taxes 311 267 16 904 822 10 Provisions for credit losses Credigy 55 22 122 82 49 ABA Bank 24 20 20 81 70 16 International − − − − 79 42 88 203 152 34 Income before income taxes 232 225 3 701 670 5 Income taxes Credigy 14 16 (13) 48 47 2 ABA Bank 33 31 6 96 92 4 International 1 − 2 1 48 47 2 146 140 4 Net income Credigy 56 58 (3) 182 174 5 ABA Bank 125 119 5 364 346 5 International 3 1 9 10 184 178 3 555 530 5 Return on common shareholders' equity(1) 26.4 % 26.4 % Average assets(2) 35,166 31,808 11 35,126 32,024 10 Average loans and receivables(2) 25,835 23,209 11 25,460 23,582 8 Net impaired loans(1) 1,320 1,152 15 1,320 1,152 15 Average deposits(2) 17,560 16,068 9 17,628 15,898 11 Efficiency ratio(1) 29.5 % 33.6 % 29.6 % 31.3 % (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 third quarter of 2026, net income totalled $184 million compared to $178 million in 2025, up 3%. The 10% increase in the segment’s total revenues was partly offset by the increase in provisions for credit losses. For the nine-month period of 2026, net income totalled $555 million, up 5% from $530 million in 2025. Credigy Third quarter of 2026 versus third quarter of 2025 The Credigy subsidiary reported net income of $56 million, down $2 million or 3%. Total revenues amounted to $158 million compared to $136 million last year. This increase was mainly due to a gain recorded in the third quarter of 2026 following the disposal of a loan portfolio. Non-interest expenses were $33 million, down $7 million mainly due to a decrease in compensation and employee benefits. Provisions for credit losses were up by $33 million due to higher provisions for credit losses on impaired loans and non-impaired loans, reflecting the impact of macroeconomic scenarios, partly offset by a decrease in provisions for credit losses on POCI loans. Nine-month period of 2026 versus nine-month period of 2025 The Credigy subsidiary reported net income of $182 million, up 5%. Total revenues amounted to $458 million, up 9% from $422 million in 2025. This increase was due to growth in loan volumes, a gain recorded in the third quarter of 2026 following the disposal of a loan portfolio and revenues recognized in the first quarter of 2026 following prepayments on credit facilities, partly offset by the impact of exchange rate fluctuations. Non- interest expenses were down $13 million, mainly due to compensation and employee benefits as well as the impact of exchange rate fluctuations. Provisions for credit losses were up $40 million due to higher provisions for credit losses on impaired loans and non-impaired loans, reflecting the impact of macroeconomic scenarios, partly offset by a decrease in provisions for credit losses on POCI loans.
Slide 22 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 22 Report to Shareholders, Third Quarter 2026 ABA Bank Third quarter of 2026 versus third quarter of 2025 The ABA Bank subsidiary recorded net income totalling $125 million, up $6 million or 5% from last year. Total revenues rose 8%, mainly attributable to sustained growth in assets, lower interest expenses on deposits and the impact of exchange rate fluctuations, partly offset by lower interest rates on assets. Non-interest expenses stood at $97 million, up 9%, an increase attributable to higher compensation and employee benefits and to occupancy expenses related to the subsidiary’s business growth and the opening of new branches. The subsidiary reported provisions for credit losses totalling $24 million, up $4 million. This increase was mainly due to higher provisions for credit losses on impaired loans, partly offset by lower provisions for credit losses on non-impaired loans. Nine-month period of 2026 versus nine-month period of 2025 The ABA Bank subsidiary recorded net income totalling $364 million, up $18 million or 5% from 2025. The increase in total revenues of 8% was due to the subsidiary’s business growth, notably sustained asset growth and lower interest expenses on deposits, partly offset by lower interest rates on assets and the impact of exchange rate fluctuations. The subsidiary’s non-interest expenses totalled $274 million, up 10%, due to the same factors as those mentioned for the quarter, partly offset by the impact of exchange rate fluctuations. Provisions for credit losses totalled $81 million, up $11 million, owing to higher provisions for credit losses on impaired and non-impaired loans. Other (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 2026 2025 Operating results Net interest income 28 (14) 8 (96) Non-interest income 42 24 134 (51) Total revenues 70 10 142 (147) Non-interest expenses 126 161 403 377 Income before provisions for credit losses and income taxes (56) (151) (261) (524) Provisions for credit losses − 2 4 2 Income before income taxes (recovery) (56) (153) (265) (526) Income taxes (recovery) (20) (92) (87) (192) Net loss (36) (61) (178) (334) Non-controlling interests − − − − Net loss attributable to the Bank’s shareholders and holders of other equity instruments (36) (61) (178) (334) Less: Specified items after income taxes(1) (37) (21) (132) (157) Net income (loss) – Adjusted(1) 1 (40) (46) (177) Average assets(2) 87,449 78,334 87,255 73,887 (1) See the Financial Reporting Method section on pages 5 to 12 for additional information on non-GAAP financial measures. During the quarter ended July 31, 2026, the Bank recorded integration and transaction-related charges of $37 million net of income taxes ($132 million net of income taxes for the nine-month period ended July 31, 2026). During the quarter ended July 31, 2025, the Bank had recorded integration and transaction-related charges of $68 million net of income taxes ($170 million net of income taxes for the nine-month period ended July 31, 2025) and an income tax recovery of $47 million related to a change in tax treatment. In addition, during the nine-month period ended July 31, 2025, the Bank had recorded amortization of the subscription receipt issuance costs in the amount 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. Third quarter of 2026 versus third quarter of 2025 For the Other heading of segment results, a net loss of $36 million was posted compared to a net loss of $61 million last year. The change in net loss was due to a higher contribution from Treasury activities, higher gains on investments 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 charges related to the transactions with LBC. The specified items, mainly related to the acquisition of CWB and the transactions with LBC, had a $37 million unfavourable impact on the net loss in 2026, compared to a $21 million unfavourable impact in 2025. Adjusted net income stood at $1 million, compared to an adjusted net loss of $40 million in 2025. Nine-month period of 2026 versus nine-month period of 2025 The net loss stood at $178 million compared to a net loss of $334 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, mainly as a result of higher compensation and employee benefits as well as charges related to the transactions with LBC and a $22 million reversal of the provision for property taxes recorded in the second quarter of 2025. The specified items, mainly related to the acquisition of CWB and the transactions with LBC, had an unfavourable impact of $132 million on the net loss, compared to an unfavourable impact of $157 million in 2025. The adjusted net loss amounted to $46 million, compared to $177 million in 2025.
Slide 23 — Consolidated Balance Sheet
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 23 Report to Shareholders, Third Quarter 2026 Consolidated Balance Sheet Consolidated Balance Sheet Summary (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 % Change Assets Cash and deposits with financial institutions 47,757 27,916 71 Securities 193,943 188,747 3 Securities purchased under reverse repurchase agreements and securities borrowed 40,355 27,091 49 Loans, net of allowances 324,544 302,623 7 Other 28,560 30,542 (6) 635,159 576,919 10 Liabilities and equity Deposits 464,732 428,003 9 Other 132,324 111,715 18 Subordinated debt 3,429 3,432 − Equity attributable to the Bank’s shareholders and holders of other equity instruments 34,674 33,769 3 Non-controlling interests − − − 635,159 576,919 10 As at July 31, 2026 versus as at October 31, 2025 Assets The Bank had total assets of $635.2 billion, up $58.3 billion or 10% from $576.9 billion. Cash and deposits with financial institutions stood at $47.8 billion, up $19.9 billion, owing primarily to an increase in deposits with regulated financial institutions, including the Federal Reserve and the Bank of England. Securities have risen $5.2 billion owing to a $6.1 billion increase in securities other than those measured at fair value through profit or loss. This increase was partly offset by a $0.9 billion or 1% decrease in securities at fair value through profit or loss, attributable to a decrease in equity securities, offset by increases in securities issued or guaranteed by the Canadian government, securities issued or guaranteed by provincial and municipal governments of Canada, securities issued or guaranteed by the U.S. Treasury and other U.S. agencies, other foreign governments, as well as other debt securities. Securities purchased under reverse repurchase agreements and securities borrowed increased by $13.3 billion, driven primarily by the Capital Markets segment and Treasury activities. Loans, net of allowances for credit losses, totalled $324.5 billion, up $21.9 billion. The following table provides a breakdown of the main loan portfolios. (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Loans Residential mortgage and home equity lines of credit 158,125 145,509 Personal 19,024 18,593 Credit card 3,205 3,022 Business and government 146,528 137,630 326,882 304,754 Allowances for credit losses (2,338) (2,131) 324,544 302,623 Residential mortgages (including home equity lines of credit) rose $12.6 billion, due to sustained demand for mortgage credit in Personal Banking and at the ABA Bank subsidiary. Personal loans increased by $0.4 billion, driven by business growth in Personal Banking and the Wealth Management segment. Credit card receivables increased by $0.2 billion. Business and government loans rose $8.9 billion or 6%, mainly due to business growth in Commercial Banking, Wealth Management and Capital Markets segments. Impaired loans include all loans classified in Stage 3 of the expected credit loss model and POCI loans. Gross impaired loans stood at $4,031 million compared to $3,712 million as at October 31, 2025. Net impaired loans totalled $3,007 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 the 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 the Credigy subsidiary. Other assets stood at $28.6 billion, down $1.9 billion or 6%, notably due to the decrease in other assets related to commodities.
Slide 24 — Laurentian Bank of Canada (LBC) Transactions
Management’s Discussion and Analysis Financial Analysis National Bank of Canada 24 Report to Shareholders, Third Quarter 2026 Liabilities The Bank had total liabilities of $600.5 billion compared to $543.2 billion, up $57.3 billion or 11%. Deposits stood at $464.7 billion compared to $428.0 billion, up $36.7 billion or 9%. Personal deposits amounted to $128.8 billion, up $4.4 billion. This increase was driven primarily by the business growth in the Wealth Management and Capital Markets segments. Business and government deposits totalled $330.2 billion, up $32.7 billion or 11%. The increase is explained by the business growth in Commercial Banking, Capital Markets segment as well as financing activities in Treasury, including a $6.0 billion increase in deposits subject to bank recapitalization (bail-in) conversion regulations. Deposits from deposit-taking institutions stood at $5.7 billion, down $0.4 billion. Other liabilities stood at $132.3 billion, up $20.6 billion, resulting essentially from a $21.8 billion increase in obligations related to securities sold under repurchase agreements and securities loaned. This increase is offset, among other factors, by a $1.1 billion decrease in liabilities related to transferred receivables. Equity Equity attributable to the Bank’s shareholders and holders of other equity instruments totalled $34.7 billion, up $0.9 billion. This increase was mainly attributable to the net income, net of dividends, and the $600 million issuance of Limited Recourse Capital Notes Series 4 (LRCN – Series 4). These increases were partly offset by the repurchase of common shares for cancellation and the redemption of outstanding Limited Recourse Capital Notes Series 1 (LRCN – Series 1), totalling $500 million. 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, paid in cash, 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. Event after the Consolidated Balance Sheet Date Acquisition of G5 Holdings Inc. (G5) On August 5, 2026, the Bank completed the 80% acquisition of the common shares of G5, an entity that owns GFI Investment Counsel Ltd. (GFI), an independent wealth management firm based in Toronto, Ontario, that provides investment management services to individuals and corporations, as well as investment fund management services. The Bank is in the process of determining the fair values of the identifiable assets acquired and liabilities assumed. 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, Third 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 a result, no amount has been recognized in the Consolidated Financial Statements as at July 31, 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 11.0%, a Tier 1 capital ratio of at least 12.5%, and a Total capital ratio of at least 14.5%. 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 3.0% domestic stability buffer (DSB) established by OSFI. On June 19, 2026, OSFI announced, with immediate effect, that the DSB had been decreased from 3.5% to 3.0% and the DSB range had been reduced, setting it at 0% to 3% of risk-weighted assets (RWA) instead of the previous range of 0% to 4%. The DSB 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 24.5% (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 July 31, 2026, outstanding liabilities of $32.1 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, Third 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 July 31, 2026 Ratios as at July 31, 2026 Minimum Capital conservation buffer Minimum set by BCBS D-SIB surcharge Minimum set by OSFI Domestic stability buffer(3) Minimum set by OSFI, including the domestic stability buffer Capital ratios CET1 4.5 % 2.5 % 7.0 % 1.0 % 8.0 % 3.0 % 11.0 % 13.5 % Tier 1 6.0 % 2.5 % 8.5 % 1.0 % 9.5 % 3.0 % 12.5 % 15.1 % Total 8.0 % 2.5 % 10.5 % 1.0 % 11.5 % 3.0 % 14.5 % 17.2 % Leverage ratio 3.0 % n.a. 3.0 % 0.5 % 3.5 % n.a. 3.5 % 4.2 % TLAC ratio 21.5 % n.a. 21.5 % n.a. 21.5 % 3.0 % 24.5 % 33.1 % TLAC leverage ratio 6.75 % n.a. 6.75 % 0.5 % 7.25 % n.a. 7.25 % 9.3 % 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 June 19, 2026, OSFI announced, with immediate effect, that the domestic stability buffer had been reduced from 3.5% to 3.0%. 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 introducing 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 nine-month period ended July 31, 2026, the Bank repurchased 9,266,600 common shares at a price of $1,755 million, which reduced Common share capital by $235 million and Retained earnings by $1,520 million. Under this program, the Bank repurchased a total of 10,652,000 common shares at a price of $1,968 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. On June 11, 2026, the Bank issued $600 million of LRCN – Series 4 for which recourse of the noteholders is limited to the assets held by an independent trustee in a consolidated limited recourse trust. The trust’s assets consist of $600 million of Series 51 First Preferred Shares issued by the Bank in conjunction with the LRCN – Series 4. The LRCN – Series 4 are sold for $1,000 each and bear interest at a fixed rate of 6.067% per annum until August 16, 2031 exclusively and, thereafter, at an annual rate equal to the five-year Government of Canada bond yield plus 2.95% until August 16, 2081. Given that the LRCN – Series 4 satisfy the non-viability contingent capital requirements, they qualify for the purposes of calculating regulatory capital under Basel III.
Slide 27 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 27 Report to Shareholders, Third Quarter 2026 Dividends On August 25, 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, payable on November 1, 2026 to shareholders of record on September 28, 2026. Shares, Other Equity Instruments, and Stock Options As at July 31, 2026 Number of shares or LRCN(1) $ million First preferred shares Series 30 14,000,000 350 Series 38 16,000,000 400 Series 40 12,000,000 300 Series 42 12,000,000 300 Series 47 5,000,000 128 Series 49 5,000,000 136 64,000,000 1,614 Other equity instruments LRCN – Series 2 500,000 500 LRCN – Series 3 500,000 500 LRCN – Series 4 600,000 600 1,600,000 1,600 65,600,000 3,214 Common shares 383,581,030 9,775 Stock options 9,664,825 (1) Limited Recourse Capital Notes (LRCN). As at August 21, 2026, there were 383,166,587 common shares and 9,651,743 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 1,688 million Bank common shares, which would have an 81.5% dilutive effect based on the number of Bank common shares outstanding as at July 31, 2026.
Slide 28 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Capital Management National Bank of Canada 28 Report to Shareholders, Third Quarter 2026 Movement in Regulatory Capital(1) (millions of Canadian dollars) Nine months ended July 31, 2026 Common Equity Tier 1 (CET1) capital Balance at beginning 25,962 Issuance of common shares (including Stock Option Plan) 119 Impact of shares purchased or sold for trading 5 Repurchase of common shares (1,755) Other contributed surplus 85 Dividends on preferred and common shares and distributions on other equity instruments (1,599) Net income attributable to the Bank’s shareholders and holders of other equity instruments 3,795 Removal of own credit spread (net of income taxes) (7) Regulatory adjustment related to contractual service margin(2) 150 Other 39 Movements in accumulated other comprehensive income Translation adjustments (8) Debt securities at fair value through other comprehensive income 27 Other − Change in goodwill and intangible assets (net of related tax liability) 81 Other, including regulatory adjustments Change in defined benefit pension plan asset (net of related tax liability) (32) 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) 2 Other deductions or regulatory adjustments to CET1 implemented by OSFI 1 Change in other regulatory adjustments (6) Balance at end 26,859 Additional Tier 1 capital Balance at beginning 2,597 New Tier 1 eligible capital issuances 600 Redeemed capital(3) − Other, including regulatory adjustments (38) Balance at end 3,159 Total Tier 1 capital 30,018 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 5 Other, including regulatory adjustments (20) Balance at end 4,083 Total regulatory capital 34,101 (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 — National Bank of Canada
National Bank of Canada 29 Report to Shareholders, Third Quarter 2026 Management’s Discussion and Analysis Capital Management Risk-Weighted Assets by Key Risk Drivers Risk-weighted assets (RWA) amounted to $198.7 billion as at July 31, 2026 compared to $188.8 billion as at October 31, 2025, a $9.9 billion increase resulting from organic growth and credit migration. 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 July 31, 2026 April 30, 2026 January 31, 2026 October 31, 2025 Non- counterparty credit risk Counterparty credit risk Total Total Total Total Credit risk – Risk-weighted assets at beginning 156,912 7,986 164,898 161,554 162,354 156,537 Book size 2,210 175 2,385 3,074 407 5,216 Book quality 877 (73) 804 386 116 234 Model updates − − − − − − Methodology and policy − − − − − − Acquisitions and disposals − − − − − − Foreign exchange movements 1,385 153 1,538 (116) (1,323) 367 Credit risk – Risk-weighted assets at end 161,384 8,241 169,625 164,898 161,554 162,354 Market risk – Risk-weighted assets at beginning 10,830 9,616 8,724 9,208 Movement in risk levels(2) (655) 1,214 892 (484) Model updates (158) − − − Methodology and policy − − − − Acquisitions and disposals − − − − Market risk – Risk-weighted assets at end 10,017 10,830 9,616 8,724 Operational risk – Risk-weighted assets at beginning 18,763 18,184 17,678 17,365 Movement in risk levels 341 579 506 313 Methodology and policy − − − − Acquisitions and disposals − − − − Operational risk – Risk-weighted assets at end 19,104 18,763 18,184 17,678 Risk-weighted assets at end 198,746 194,491 189,354 188,756 (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 and other items 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, Third Quarter 2026 Regulatory Capital Ratios, Leverage Ratio, and TLAC Ratios As at July 31, 2026, the Bank’s CET1, Tier 1, and Total capital ratios were, respectively, 13.5%, 15.1%, and 17.2% compared to ratios of 13.8%, 15.1% and 17.3%, respectively, as at October 31, 2025. The CET1 capital ratio decreased since October 31, 2025, while the Tier 1 and Total ratios remained relatively stable. The variation in the ratios was primarily driven by the repurchase of common shares for cancellation and the growth in RWA, partially offset by the net income, net of dividends. The Tier 1 and Total ratios were supported by the $600 million of LRCN – Series 4 issuance. As at July 31, 2026, the leverage ratio was 4.2% 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, including the LRCN issuance noted above. As at July 31, 2026, the Bank’s TLAC ratio and TLAC leverage ratio were 33.1% and 9.3% compared to 29.7% and 8.8%, respectively, as at October 31, 2025. The TLAC ratio and the TLAC leverage ratio increased primarily due to net issuances of instruments that met all of the TLAC eligibility criteria during the period. During the quarter and nine-month period ended July 31, 2026, the Bank was compliant with all of OSFI’s regulatory capital, leverage, and TLAC requirements. Regulatory Capital(1), Leverage Ratio(1) and TLAC(2) (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Capital CET1 26,859 25,962 Tier 1(3) 30,018 28,559 Total(3) 34,101 32,657 Risk-weighted assets 198,746 188,756 Total exposure 706,715 633,494 Capital ratios CET1 13.5 % 13.8 % Tier 1(3) 15.1 % 15.1 % Total(3) 17.2 % 17.3 % Leverage ratio(3) 4.2 % 4.5 % Available TLAC 65,771 55,993 TLAC ratio 33.1 % 29.7 % TLAC leverage ratio 9.3 % 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, Third 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 and the Strait of Bab el-Mandeb 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 Rapid advances in generative artificial intelligence (AI), or "Frontier AI," are accelerating the discovery and exploitation of software vulnerabilities across the industry, increasing the probability and sophistication of cyber incidents. In a highly interconnected financial system, this risk could extend beyond isolated events to create more systemic impacts. To date, the Bank has not identified any breach or confirmed exploitation linked to these developments. The Bank views this as an emerging, transversal risk and is integrating it into its cybersecurity, third-party risk, and enterprise resilience practices. Its response focuses on prioritized vulnerability remediation, strengthened oversight of critical service providers, and the use of AI to support proactive risk detection, with the objective of preserving the safety of its operations and client trust. 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, Third 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 July 31, 2026 Drawn(2) Undrawn commitments Repo-style transactions(3) Derivative financial instruments Other off-balance- sheet items(4) Total Standardized Approach(5) IRB Approach Retail Residential mortgages 109,838 10,431 − − − 120,269 18 % 82 % Qualifying revolving retail 4,781 14,179 − − − 18,960 − % 100 % Other retail 24,470 3,105 − − 41 27,616 28 % 72 % 139,089 27,715 − − 41 166,845 Non-retail Corporate 134,638 42,089 81,780 140 13,498 272,145 25 % 75 % Sovereign 99,759 7,106 132,079 291 752 239,987 2 % 98 % Banks 12,988 1,780 214,818 4,031 2,798 236,415 17 % 83 % 247,385 50,975 428,677 4,462 17,048 748,547 Trading portfolio − − − 18,593 − 18,593 3 % 97 % Securitization 3,874 − − − 7,888 11,762 100 % − % Total – Gross credit risk 390,348 78,690 428,677 23,055 24,977 945,747 16 % 84 % Standardized Approach(5) 81,194 2,325 58,676 4,112 9,024 155,331 IRB Approach 309,154 76,365 370,001 18,943 15,953 790,416 Total – Gross credit risk 390,348 78,690 428,677 23,055 24,977 945,747 16 % 84 % (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 – Third Quarter 2026 and Supplementary Regulatory Capital and Pillar 3 Disclosure – Third 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, Third 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 July 31, 2026 Market risk measures Balance sheet Trading(1) Non-trading(2) Not subject to market risk Non-traded risk primary risk sensitivity Assets Cash and deposits with financial institutions 47,757 241 40,627 6,889 Interest rate(3) Securities At fair value through profit or loss 147,203 144,904 2,299 − Interest rate(3) and equity At fair value through other comprehensive income 25,918 − 25,918 − Interest rate(3) and equity(4) At amortized cost 20,822 − 20,822 − Interest rate(3) Securities purchased under reverse repurchase agreements and securities borrowed 40,355 − 40,355 − Interest rate(3)(5) Loans, net of allowances 324,544 14,661 309,883 − Interest rate(3) Derivative financial instruments 12,390 11,947 443 − Interest rate and exchange rate Defined benefit asset 496 − 496 − Other Other 15,674 1,457 − 14,217 635,159 173,210 440,843 21,106 Liabilities Deposits 464,732 50,000 414,732 − Interest rate(3) Obligations related to securities sold short 12,971 12,971 − − Obligations related to securities sold under repurchase agreements and securities loaned 63,242 − 63,242 − Interest rate(3)(5) Derivative financial instruments 15,810 14,928 882 − Interest rate and exchange rate Liabilities related to transferred receivables 29,482 11,293 18,189 − Interest rate(3) Defined benefit liability 91 − 91 − Other Other 10,728 − − 10,728 Interest rate(3) Subordinated debt 3,429 − 3,429 − Interest rate(3) 600,485 89,192 500,565 10,728 (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, Third 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, Third 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 Nine months ended July 31, 2026 April 30, 2026 July 31, 2025 July 31, 2026 July 31, 2025 Low High Average Period end Average Period end Average Period end Average Average Interest rate (10.5) (26.0) (17.6) (13.2) (15.3) (16.3) (14.6) (14.7) (16.5) (13.2) Exchange rate (0.9) (2.7) (1.5) (1.6) (1.4) (1.8) (1.4) (2.0) (1.7) (1.7) Equity (4.0) (7.5) (5.6) (6.4) (6.1) (3.9) (5.3) (5.5) (5.9) (5.4) Commodity (1.3) (1.9) (1.5) (1.5) (1.8) (1.5) (1.9) (2.7) (1.6) (1.6) Diversification effect(3) n.m. n.m. 12.1 9.8 11.1 8.9 9.9 9.3 11.7 9.2 Total trading VaR (9.3) (22.5) (14.1) (12.9) (13.5) (14.6) (13.3) (15.6) (14.0) (12.7) 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 increased between the second and third quarter of 2026, mainly due to an increase in interest rate risk. Daily Trading and Underwriting Revenues The following chart shows daily trading and underwriting revenues and VaR. During the quarter ended July 31, 2026, daily trading and underwriting revenues were positive on 91% of the days. In addition, four days were marked by net daily trading and underwriting losses in excess of $1 million. One of these losses exceeded VaR. Quarter ended July 31, 2026 (millions of Canadian dollars) (42) (38) (34) (30) (26) (22) (18) (14) (10) (6) (2) 2 6 10 14 18 22 26 30 34 38 42 46 50 54 58 62 66 70 74 May 2026 June 2026 July 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, Third 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 July 31, 2026 As at October 31, 2025(1) Canadian dollar Other currencies Total Canadian dollar Other currencies Total Impact on equity 100-basis-point increase in the interest rate (637) (146) (783) (601) (82) (683) 100-basis-point decrease in the interest rate 654 121 775 605 83 688 Impact on net interest income 100-basis-point increase in the interest rate 103 (32) 71 104 (46) 58 100-basis-point decrease in the interest rate (106) 35 (71) (120) 49 (71) (1) Certain comparative figures have been adjusted to reflect a revision to the information previously presented. This change is limited to the interest rate sensitivity table and has no impact on the audited annual consolidated financial statements as at October 31, 2025. 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, mainly on the Internal Liquidity Adequacy Assessment Process (ILAAP) for Deposit-Taking Institution implementation and the 2027 Liquidity Adequacy Requirements (LAR) Guideline updates. 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 developments below are 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 and became effective on May 1, 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. On May 21, 2026, OSFI launched a 60-day consultation on draft 2027 revisions to the LAR Guideline, building on the version published on January 29, 2026. The proposals introduce a new level 1B high-quality liquid assets (HQLA) category and targeted net stable funding ratio (NSFR) interdependency updates for certain client gold deposits and central counterparty-related variation margin arrangements. The public consultation closed on July 20, 2026, with final guidance expected in February 2027 and effective May 1, 2027. 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, Third Quarter 2026 Liquid Asset Portfolio(1) (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Bank-owned liquid assets(2) Liquid assets received(3) Total liquid assets Encumbered liquid assets(4) Unencumbered liquid assets Unencumbered liquid assets Cash and deposits with financial institutions 47,757 − 47,757 15,373 32,384 13,359 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 59,071 97,971 157,042 90,407 66,635 54,180 Issued or guaranteed by Canadian provincial and municipal governments 18,518 17,040 35,558 22,256 13,302 14,032 Other debt securities 8,477 5,822 14,299 6,487 7,812 7,814 Equity securities 107,877 73,984 181,861 124,171 57,690 71,776 Loans Securities backed by insured residential mortgages 19,841 − 19,841 10,690 9,151 8,798 As at July 31, 2026 261,541 194,817 456,358 269,384 186,974 As at October 31, 2025 234,925 164,738 399,663 229,704 169,959 (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Unencumbered liquid assets by entity National Bank (parent) 120,324 117,051 Domestic subsidiaries 12,427 14,102 Foreign subsidiaries and branches 54,223 38,806 186,974 169,959 (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Unencumbered liquid assets by currency Canadian dollar 84,432 73,309 U.S. dollar 83,828 83,713 Other currencies 18,714 12,937 186,974 169,959 Liquid Asset Portfolio(1) – Average(5) (millions of Canadian dollars) Quarter ended July 31, 2026 October 31, 2025 Bank-owned liquid assets(2) Liquid assets received(3) Total liquid assets Encumbered liquid assets(4) Unencumbered liquid assets Unencumbered liquid assets Cash and deposits with financial institutions 37,764 − 37,764 15,321 22,443 17,374 Securities Issued or guaranteed by the Canadian government, U.S. Treasury, other U.S. agencies and other foreign governments 60,560 94,315 154,875 98,298 56,577 56,036 Issued or guaranteed by Canadian provincial and municipal governments 19,314 16,475 35,789 24,299 11,490 12,431 Other debt securities 10,341 5,615 15,956 6,438 9,518 8,888 Equity securities 133,701 77,323 211,024 132,537 78,487 67,211 Loans Securities backed by insured residential mortgages 19,102 − 19,102 9,556 9,546 9,211 280,782 193,728 474,510 286,449 188,061 171,151 (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, Third Quarter 2026 Summary of Encumbered and Unencumbered Assets(1) (millions of Canadian dollars) As at July 31, 2026 Encumbered assets(2) Unencumbered assets Total Encumbered assets as a % of total assets Pledged as collateral Other(3) Available as collateral Other(4) Cash and deposits with financial institutions − 15,373 32,384 − 47,757 2.4 Securities 75,888 − 118,055 − 193,943 12.0 Securities purchased under reverse repurchase agreements and securities borrowed − 12,971 27,384 − 40,355 2.0 Loans, net of allowances 40,005 − 9,151 275,388 324,544 6.3 Derivative financial instruments − − − 12,390 12,390 − Premises and equipment − − − 2,271 2,271 − Goodwill − − − 3,103 3,103 − Intangible assets − − − 1,643 1,643 − Other assets 833 − − 8,320 9,153 0.1 116,726 28,344 186,974 303,115 635,159 22.8 (millions of Canadian dollars) As at October 31, 2025 Encumbered assets(2) Unencumbered assets Total Encumbered assets as a % of total assets Pledged as collateral Other(3) Available as collateral Other(4) Cash and deposits with financial institutions − 14,557 13,359 − 27,916 2.5 Securities 54,779 − 133,968 − 188,747 9.5 Securities purchased under reverse repurchase agreements and securities borrowed − 13,257 13,834 − 27,091 2.3 Loans, net of allowances 40,971 − 8,798 252,854 302,623 7.1 Derivative financial instruments − − − 12,515 12,515 − Premises and equipment − − − 2,162 2,162 − Goodwill − − − 3,101 3,101 − Intangible assets − − − 1,748 1,748 − Other assets 3,158 − − 7,858 11,016 0.5 98,908 27,814 169,959 280,238 576,919 21.9 (1) See the Financial Reporting Method section on pages 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 securities lending and borrowing transactions, 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 July 31, 2026, the Bank’s average LCR was 161%, 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, Third Quarter 2026 LCR Disclosure Requirements(1)(2) (millions of Canadian dollars) Quarter ended July 31, 2026 April 30, 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. 114,057 116,644 Cash outflows Retail deposits and deposits from small business customers, of which: 90,650 9,425 8,251 Stable deposits 32,277 968 952 Less stable deposits 58,373 8,457 7,299 Unsecured wholesale funding, of which: 150,690 80,587 80,522 Operational deposits (all counterparties) and deposits in networks of cooperative banks 51,817 12,729 11,482 Non-operational deposits (all counterparties) 90,296 59,281 61,228 Unsecured debt 8,577 8,577 7,812 Secured wholesale funding n.a. 46,419 36,815 Additional requirements, of which: 103,683 28,543 26,995 Outflows related to derivative exposures and other collateral requirements 40,108 18,031 16,292 Outflows related to loss of funding on secured debt securities 1,832 1,832 2,209 Backstop liquidity and credit enhancement facilities and commitments to extend credit 61,743 8,680 8,494 Other contractual commitments to extend credit 7,960 4,098 1,876 Other contingent commitments to extend credit 233,433 3,074 2,600 Total cash outflows n.a. 172,146 157,059 Cash inflows Secured lending (e.g., reverse repos) 217,688 42,911 38,731 Inflows from fully performing exposures 14,580 8,305 7,754 Other cash inflows 47,739 47,739 38,842 Total cash inflows 280,007 98,955 85,327 Total adjusted value(5) Total adjusted value(5) Total HQLA 114,057 116,644 Total net cash outflows 73,191 71,732 Liquidity coverage ratio (%)(6) 161 % 170 % 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 July 31, 2026, Level 1 liquid assets represented 83% 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 July 31, 2026 and the preceding quarter was a result of normal business operations. The Bank’s liquid asset buffer is well in excess of its total net cash outflows. The LCR assumptions differ from the assumptions used for the liquidity disclosures presented in the tables on the previous pages or those used for internal liquidity management rules. While the liquidity disclosure framework is prescribed by the EDTF, the Bank’s internal liquidity metrics use assumptions that are calibrated according to its business model and experience. Net Stable Funding Ratio The BCBS has developed the net stable funding ratio (NSFR) to promote a more resilient banking sector. The NSFR requires institutions to maintain a stable funding profile in relation to the composition of their assets and off-balance-sheet activities. A viable funding structure is intended to reduce the likelihood that disruptions to an institution’s regular sources of funding would erode its liquidity position in a way that would increase the risk of its failure and potentially lead to broader systemic stress. The NSFR is calculated by dividing available stable funding by required stable funding. OSFI has been requiring Canadian banks to maintain a minimum NSFR of 100%.
Slide 40 — Management’s Discussion and Analysis
Management’s Discussion and Analysis Risk Management National Bank of Canada 40 Report to Shareholders, Third 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 July 31, 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 July 31, 2026 As at April 30, 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: 35,203 − − 3,429 38,631 37,548 Regulatory capital 35,203 − − 3,429 38,631 37,548 Other capital instruments − − − − − − Retail deposits and deposits from small business customers: 85,631 15,319 11,374 36,060 135,049 135,216 Stable deposits 32,104 4,581 3,946 9,207 47,807 48,271 Less stable deposits 53,527 10,738 7,428 26,853 87,242 86,945 Wholesale funding: 103,363 127,356 52,685 80,048 181,926 169,435 Operational deposits 50,490 − − − 25,245 24,655 Other wholesale funding 52,873 127,356 52,685 80,048 156,681 144,780 Liabilities with matching interdependent assets(4) − 2,829 2,243 24,410 − − Other liabilities(5): 18,500 25,843 1,029 1,029 NSFR derivative liabilities(5) n.a. 11,112 n.a. n.a. All other liabilities and equity not included in the above categories 18,500 4,209 294 10,228 1,029 1,029 Total ASF n.a. n.a. n.a. n.a. 356,635 343,228 Required Stable Funding (RSF) Items Total NSFR high-quality liquid assets (HQLA) n.a. n.a. n.a. n.a. 34,073 39,131 Deposits held at other financial institutions for operational purposes − − − − − − Performing loans and securities: 100,287 85,916 42,552 129,273 228,319 214,319 Performing loans to financial institutions secured by Level 1 HQLA 99 19,370 288 − 1,117 662 Performing loans to financial institutions secured by non-Level-1 HQLA and unsecured performing loans to financial institutions 7,061 13,206 1,456 1,696 5,911 5,442 Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: 47,185 40,852 27,310 49,624 116,212 109,613 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 641 3,616 1,280 790 3,379 2,852 Performing residential mortgages, of which: 9,607 11,198 12,829 76,183 71,682 67,454 With a risk weight of less than or equal to 35% under the Basel II Standardized Approach for credit risk 9,607 9,921 11,435 66,255 61,908 67,454 Securities that are not in default and do not qualify as HQLA, including exchange-traded equities 36,335 1,290 669 1,770 33,397 31,148 Assets with matching interdependent liabilities(4) − 2,830 2,242 24,410 − − Other assets(5): 10,776 50,236 33,525 32,725 Physical traded commodities, including gold 829 n.a. n.a. n.a. 704 2,496 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs(5) n.a. 17,285 14,692 12,603 NSFR derivative assets(5) n.a. 4,132 − − NSFR derivative liabilities before deduction of the variation margin posted(5) n.a. 20,520 1,026 992 All other assets not included in the above categories 9,947 2,975 658 4,666 17,103 16,634 Off-balance-sheet items(5) n.a. 164,307 6,468 5,836 Total RSF n.a. n.a. n.a. n.a. 302,385 292,011 Net Stable Funding Ratio (%) n.a. n.a. n.a. n.a. 118 % 118 % 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, Third 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 July 31, 2026 1 month or less Over 1 month to 3 months Over 3 months to 6 months Over 6 months to 12 months Subtotal 1 year or less Over 1 year to 2 years Over 2 years Total Deposits from banks(1) 568 462 85 − 1,115 − − 1,115 Certificates of deposit and commercial paper(2) 3,693 4,965 7,289 30,898 46,845 210 − 47,055 Senior unsecured medium-term notes(3) 2,321 4,426 8,154 13,219 28,120 12,865 17,047 58,032 Senior unsecured structured notes 28 287 398 2,477 3,190 923 2,927 7,040 Covered bonds and asset-backed securities Mortgage securitization − 969 1,789 2,220 4,978 3,074 21,430 29,482 Covered bonds − 1,213 1,597 1,742 4,552 2,908 2,822 10,282 Subordinated liabilities(4) − − − − − − 3,429 3,429 6,610 12,322 19,312 50,556 88,800 19,980 47,655 156,435 Secured funding − 2,182 3,386 3,962 9,530 5,982 24,252 39,764 Unsecured funding 6,610 10,140 15,926 46,594 79,270 13,998 23,403 116,671 6,610 12,322 19,312 50,556 88,800 19,980 47,655 156,435 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 July 31, 2026 One-notch downgrade Two-notch downgrade Three-notch downgrade Derivatives(1) 25 109 132 (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, Third 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 (GHG) 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, Third Quarter 2026 Risk Disclosures One of the purposes of the 2025 Annual Report, the Report to Shareholders – Third 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 66 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 64 to 75 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 64 to 75 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) Third quarter 2026. (2) These pages are included in the document entitled Supplementary Financial Information — Third Quarter 2026.
Slide 44 — Accounting Policies and Financial Disclosure
Management’s Discussion and Analysis National Bank of Canada 44 Report to Shareholders, Third Quarter 2026 Accounting Policies and Financial Disclosure Material Accounting Policies and Accounting Estimates The unaudited interim condensed consolidated financial statements for the quarter and nine-month period ended July 31, 2026 were prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and use the same accounting policies as those described in Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025. Judgment, Estimates and Assumptions In preparing consolidated financial statements in accordance with IFRS, management must exercise judgment and make estimates and assumptions that affect the reporting date carrying values of assets and liabilities, net income, and related information. Some accounting policies are considered critical given their importance to the presentation of the Bank’s financial position and operating results and require subjective and complex judgments and estimates on matters that are inherently uncertain. Any change in these judgments and estimates could have a significant impact on the Bank’s consolidated financial statements. The material accounting policies and accounting estimates are the same as those described on pages 119 to 124 of the 2025 Annual Report. The global economic and geopolitical landscape, notably the measures affecting international trade relations, including the imposition of tariffs and related countermeasures, the ongoing Russia-Ukraine war and conflicts in the Middle East 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 third 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 Q3(1) Q2(1) Q1(1) Q4(1) Q3(1) Q2(1) Q1 Q4 Total Total Total revenues 4,053 3,907 3,893 3,698 3,449 3,650 3,183 2,944 13,980 11,400 Net income 1,307 1,234 1,254 1,059 1,065 896 997 955 4,017 3,816 Earnings per share ($) Basic 3.29 3.10 3.12 2.60 2.61 2.19 2.81 2.69 10.18 10.78 Diluted 3.25 3.06 3.08 2.57 2.58 2.17 2.78 2.66 10.07 10.68 Dividends per common share ($) 1.32 1.24 1.24 1.18 1.18 1.14 1.14 1.10 4.64 4.32 Return on common shareholders’ equity (%)(2) 16.1 15.9 15.7 13.3 13.6 11.9 16.7 16.4 13.7 17.2 Total assets 635,159 617,734 605,871 576,919 552,621 536,194 483,833 462,226 Net impaired loans(2) 3,007 2,969 2,831 2,904 2,588 2,437 1,836 1,629 Per common share ($) Book value(2) 82.02 80.31 78.81 78.39 77.20 76.13 68.15 65.74 Share price High 235.32 205.04 175.57 156.70 144.96 127.44 140.76 134.23 Low 197.89 163.94 156.88 143.40 121.09 107.01 128.79 111.98 (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, Third 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 using an approach informed by applicable regulatory capital requirements and the capital required to support their activities (11.5%), 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, Third 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, Third 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, Third 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 Report to Shareholder, Third 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, Third Quarter 2026 Consolidated Balance Sheets (unaudited) (millions of Canadian dollars) As at July 31, 2026 As at October 31, 2025 Assets Cash and deposits with financial institutions 47,757 27,916 Securities (Notes 4 and 5) At fair value through profit or loss 147,203 148,118 At fair value through other comprehensive income 25,918 24,024 At amortized cost 20,822 16,605 193,943 188,747 Securities purchased under reverse repurchase agreements and securities borrowed 40,355 27,091 Loans (Note 6) Residential mortgage 123,603 113,929 Personal 53,546 50,173 Credit card 3,205 3,022 Business and government 146,528 137,630 326,882 304,754 Allowances for credit losses (2,338) (2,131) 324,544 302,623 Other Derivative financial instruments 12,390 12,515 Premises and equipment 2,271 2,162 Goodwill 3,103 3,101 Intangible assets 1,643 1,748 Other assets (Note 7) 9,153 11,016 28,560 30,542 635,159 576,919 Liabilities and equity Deposits (Notes 4 and 8) 464,732 428,003 Other Obligations related to securities sold short 12,971 13,257 Obligations related to securities sold under repurchase agreements and securities loaned 63,242 41,356 Derivative financial instruments 15,810 15,984 Liabilities related to transferred receivables (Note 4) 29,482 30,577 Other liabilities (Note 9) 10,819 10,541 132,324 111,715 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) 3,214 3,114 Common shares (Note 10) 9,775 9,865 Contributed surplus 201 137 Retained earnings 21,081 20,366 Accumulated other comprehensive income 403 287 34,674 33,769 Non-controlling interests − − 34,674 33,769 635,159 576,919 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, Third Quarter 2026 Consolidated Statements of Income (unaudited) (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 2026 2025 Interest income Loans 4,533 4,264 13,113 12,256 Securities at fair value through profit or loss 474 504 1,487 1,585 Securities at fair value through other comprehensive income 244 226 731 581 Securities at amortized cost 202 149 548 430 Deposits with financial institutions 251 293 759 895 5,704 5,436 16,638 15,747 Interest expense Deposits 3,308 3,281 9,597 9,649 Liabilities related to transferred receivables 218 196 614 589 Subordinated debt 40 36 119 89 Other 884 751 2,351 2,071 4,450 4,264 12,681 12,398 Net interest income(1) 1,254 1,172 3,957 3,349 Non-interest income Underwriting and advisory fees 183 190 549 398 Securities brokerage commissions 76 57 230 169 Mutual fund revenues 215 187 616 539 Investment management and trust service fees 424 346 1,220 1,008 Credit fees 103 95 289 260 Card revenues 61 54 167 157 Deposit and payment service charges 71 74 218 220 Trading revenues (losses) 1,427 1,118 3,957 3,687 Gains (losses) on non-trading securities, net 43 19 124 68 Insurance revenues, net 23 19 59 59 Foreign exchange revenues, other than trading 83 69 231 199 Share in the net income of associates and joint ventures 2 2 6 6 Other 88 47 230 163 2,799 2,277 7,896 6,933 Total revenues 4,053 3,449 11,853 10,282 Non-interest expenses Compensation and employee benefits 1,273 1,161 3,787 3,394 Occupancy 120 110 356 294 Technology 376 330 1,057 957 Communications 16 16 50 50 Professional fees 111 129 333 342 Other 197 179 580 476 2,093 1,925 6,163 5,513 Income before provisions for credit losses and income taxes 1,960 1,524 5,690 4,769 Provisions for credit losses (Note 6) 246 203 723 1,002 Income before income taxes 1,714 1,321 4,967 3,767 Income taxes (Note 14) 407 256 1,172 809 Net income 1,307 1,065 3,795 2,958 Net income attributable to Preferred shareholders and holders of other equity instruments 41 42 115 124 Common shareholders 1,266 1,023 3,680 2,834 Bank shareholders and holders of other equity instruments 1,307 1,065 3,795 2,958 Non-controlling interests − − − − 1,307 1,065 3,795 2,958 Earnings per share (dollars) (Note 15) Basic 3.29 2.61 9.51 7.58 Diluted 3.25 2.58 9.39 7.50 Dividends per common share (dollars) (Note 10) 1.32 1.18 3.80 3.46 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, Third Quarter 2026 Consolidated Statements of Comprehensive Income (unaudited) (millions of Canadian dollars) Quarter ended July 31 Nine months ended July 31 2026 2025 2026 2025 Net income 1,307 1,065 3,795 2,958 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 393 60 11 (76) Impact of hedging net foreign currency translation gains (losses) (216) (29) (19) 44 177 31 (8) (32) 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 12 48 55 56 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income 3 (13) (29) (48) Change in allowances for credit losses on debt securities at fair value through other comprehensive income reclassified to net income − − 1 − 15 35 27 8 Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges (5) 46 54 17 Net (gains) losses on designated derivative financial instruments reclassified to net income 15 (9) 43 (50) 10 37 97 (33) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans 34 (122) 22 (24) Net gains (losses) on equity securities designated at fair value through other comprehensive income 4 65 14 55 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (27) (207) (7) (80) 11 (264) 29 (49) Total other comprehensive income, net of income taxes 213 (161) 145 (106) Comprehensive income 1,520 904 3,940 2,852 Comprehensive income attributable to Bank shareholders and holders of other equity instruments 1,520 904 3,940 2,852 Non-controlling interests − − − − 1,520 904 3,940 2,852 The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
Slide 53 — Consolidated Statements of Comprehensive Income (cont.)
Interim Condensed Consolidated Financial Statements National Bank of Canada 53 Report to Shareholders, Third 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 July 31 Nine months ended July 31 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 (3) (2) − 1 Impact of hedging net foreign currency translation gains (losses) (80) (10) (9) 16 (83) (12) (9) 17 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 3 18 20 23 Net (gains) losses on debt securities at fair value through other comprehensive income reclassified to net income 1 (4) (11) (18) Change in allowances for credit losses on debt securities at fair value through other comprehensive income reclassified to net income − 1 − 1 4 15 9 6 Net change in cash flow hedges Net gains (losses) on derivative financial instruments designated as cash flow hedges (3) 18 20 6 Net (gains) losses on designated derivative financial instruments reclassified to net income 7 (3) 17 (19) 4 15 37 (13) Items that will not be subsequently reclassified to net income Remeasurements of pension plans and other post-employment benefit plans 14 (46) 9 (8) Net gains (losses) on equity securities designated at fair value through other comprehensive income 3 17 6 14 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (11) (79) (3) (30) 6 (108) 12 (24) (69) (90) 49 (14) 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, Third Quarter 2026 Consolidated Statements of Changes in Equity (unaudited) (millions of Canadian dollars) Nine months ended July 31 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) Issuance of Limited Recourse Capital Notes, Series 4 (Note 10) 600 − Redemption of Limited Recourse Capital Notes, Series 1 (Note 10) (500) − Preferred shares and other equity instruments at end 3,214 3,114 Common shares at beginning 9,865 3,463 Issuances of common shares pursuant to the Stock Option Plan 140 85 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) (235) − Impact of shares purchased or sold for trading 5 (13) Common shares at end 9,775 9,865 Contributed surplus at beginning 137 85 Stock option expense (Note 12) 18 18 Stock options exercised (21) (15) Replacement options related to the CWB acquisition − 29 Other 67 7 Contributed surplus at end 201 124 Retained earnings at beginning 20,366 18,633 Net income attributable to the Bank's shareholders and holders of other equity instruments 3,795 2,958 Dividends on preferred shares and distributions on other equity instruments (Note 10) (129) (140) Dividends on common shares (Note 10) (1,470) (1,300) Premium paid on common shares repurchased for cancellation (Note 10) (1,520) − Issuance expenses for shares and other equity instruments, net of income taxes (6) (10) Remeasurements of pension plans and other post-employment benefit plans 22 (24) Net gains (losses) on equity securities designated at fair value through other comprehensive income 14 55 Net fair value change attributable to the credit risk on financial liabilities designated at fair value through profit or loss (7) (80) Impact of a financial liability resulting from put options written to non-controlling interests − (1) Other 16 19 Retained earnings at end 21,081 20,110 Accumulated other comprehensive income at beginning 287 219 Net foreign currency translation adjustments (8) (32) Net change in unrealized gains (losses) on debt securities at fair value through other comprehensive income 27 8 Net change in gains (losses) on instruments designated as cash flow hedges 97 (33) Accumulated other comprehensive income at end 403 162 Equity attributable to the Bank's shareholders and holders of other equity instruments 34,674 33,375 Non-controlling interests at beginning − − Other − 1 Non-controlling interests at end − 1 Equity 34,674 33,376 Accumulated Other Comprehensive Income As at July 31, 2026 As at July 31, 2025 Accumulated other comprehensive income Net foreign currency translation adjustments 346 288 Net unrealized gains (losses) on debt securities at fair value through other comprehensive income 70 (18) Net gains (losses) on instruments designated as cash flow hedges (15) (110) Share in the other comprehensive income of associates and joint ventures 2 2 403 162 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, Third Quarter 2026 Consolidated Statements of Cash Flows (unaudited) (millions of Canadian dollars) Nine months ended July 31 2026 2025 Cash flows from operating activities Net income 3,795 2,958 Adjustments for: Provisions for credit losses (Note 6) 723 1,002 Amortization of premises and equipment, including right-of-use assets 231 209 Amortization of intangible assets 278 230 Deferred taxes (189) (61) Losses (gains) on sales of non-trading securities, net (124) (64) Share in the net income of associates and joint ventures (6) (6) Stock option expense 18 18 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 915 (24,581) Securities purchased under reverse repurchase agreements and securities borrowed (13,264) (7,123) Loans, net of securitization (23,082) (12,820) Deposits 36,719 35,413 Obligations related to securities sold short (286) 381 Obligations related to securities sold under repurchase agreements and securities loaned 21,886 7,838 Derivative financial instruments, net (49) (76) Interest and dividends receivable and interest payable (155) 262 Current tax assets and liabilities 232 (148) Due to clients, dealers and brokers 54 (145) Commodities 2,281 70 Other items 825 268 30,802 3,621 Cash flows from financing activities Issuance of Limited Recourse Capital Notes, Series 4 (Note 10) 600 − Redemption of Limited Recourse Capital Notes, Series 1 (Note 10) (500) − Redemption of preferred shares, Series 32, for cancellation − (300) Issuances of common shares (including the impact of shares purchased for trading) 124 57 Repurchases of common shares for cancellation (Note 10) (1,755) − Issuance of subordinated debt − 1,750 Redemption of subordinated debt − (125) Issuance expenses for shares and other equity instruments (6) (10) Repayments of lease liabilities (75) (52) Dividends paid on shares and distributions on other equity instruments (1,599) (1,443) (3,211) (123) 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 (28,344) (24,585) Maturities of non-trading securities 11,254 8,952 Sales of non-trading securities 10,363 10,649 Net change in premises and equipment, excluding right-of-use assets (132) (168) Net change in intangible assets (173) (150) (7,682) (5,156) Impact of currency rate movements on cash and cash equivalents (68) (330) Increase (decrease) in cash and cash equivalents 19,841 (1,988) Cash and cash equivalents at beginning 27,916 31,549 Cash and cash equivalents at end (1) 47,757 29,561 Supplementary information about cash flows from operating activities Interest paid 12,852 12,262 Interest and dividends received 16,655 15,873 Income taxes paid 1,161 754 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 $15.4 billion as at July 31, 2026 ($14.6 billion as at October 31, 2025) for which there are restrictions and of which $9.1 billion ($7.1 billion as at October 31, 2025) represents the balances that the Bank must maintain with central banks, other regulatory agencies, and certain counterparties.
Slide 56 — Notes to the Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements National Bank of Canada 56 Report to Shareholders, Third 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 77 Note 2 Future Accounting Policy Changes 56 Note 11 Capital Disclosure 78 Note 3 Fair Value of Financial Instruments 57 Note 12 Share-Based Payments 79 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 80 Note 5 Securities 63 Note 14 Income Taxes 81 Note 6 Loans and Allowances for Credit Losses 64 Note 15 Earnings Per Share 81 Note 7 Other Assets 76 Note 16 Segment Disclosures 82 Note 8 Deposits 76 Note 17 Significant Transactions 83 Note 9 Other Liabilities 76 Note 18 Event After the Consolidated Balance Sheet Date 83 Note 1 – Basis of Presentation On August 25, 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 nine-month period ended July 31, 2026. The Bank’s Consolidated Financial Statements were prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (IASB), using the same accounting policies as those described in Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025. As the Consolidated Financial Statements do not include all of the information required for full annual financial statements, they should be read in conjunction with the audited annual consolidated financial statements for the year ended October 31, 2025. Judgment, Estimates and Assumptions In preparing consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, management must exercise judgment and make estimates and assumptions that affect the reporting date carrying values of assets and liabilities, net income, and related information. Some of the Bank’s accounting policies, such as measurement of expected credit losses (ECLs), require particularly complex judgments and estimates. See Note 1 to the audited annual consolidated financial statements for the year ended October 31, 2025, for a summary of the most significant estimation processes used to prepare the Consolidated Financial Statements and for the valuation techniques used to determine the carrying values and fair values of assets and liabilities. The global economic and geopolitical landscape, notably the measures affecting international trade relations, including the imposition of tariffs and related countermeasures, the ongoing Russia-Ukraine war and conflicts in the Middle East 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, Third 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 July 31, 2026 Carrying value and fair value Carrying value Fair value Total carrying value Total fair value Financial instruments classified as at fair value through profit or loss Financial instruments designated at fair value through profit or loss Debt securities classified as at fair value through other comprehensive income Equity securities designated at fair value through other comprehensive income Financial instruments at amortized cost, net Financial instruments at amortized cost, net Financial assets Cash and deposits with financial institutions − − − − 47,757 47,757 47,757 47,757 Securities 146,969 234 25,645 273 20,822 20,830 193,943 193,951 Securities purchased under reverse repurchase agreements and securities borrowed − − − − 40,355 40,355 40,355 40,355 Loans, net of allowances 16,571 − − − 307,973 311,369 324,544 327,940 Other Derivative financial instruments 12,390 − − − − − 12,390 12,390 Other assets 67 − − − 3,722 3,722 3,789 3,789 Financial liabilities Deposits(1) − 40,468 424,264 425,531 464,732 465,999 Other Obligations related to securities sold short 12,971 − − − 12,971 12,971 Obligations related to securities sold under repurchase agreements and securities loaned − − 63,242 63,242 63,242 63,242 Derivative financial instruments 15,810 − − − 15,810 15,810 Liabilities related to transferred receivables − 11,771 17,711 17,539 29,482 29,310 Other liabilities − 3 4,540 4,540 4,543 4,543 Subordinated debt − − 3,429 3,461 3,429 3,461 (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, Third 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 July 31, 2026 and may change in the future. Furthermore, there may be measurement uncertainty resulting from the choice of valuation model used. Fair value is established in accordance with a rigorous control framework. The Bank has policies and procedures that govern the process for determining fair value. The Bank’s valuation governance structure has remained largely unchanged from that described in Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. The valuation techniques used to determine the fair value of financial assets and financial liabilities are also described in that 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, Third 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 July 31, 2026, $28 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 ($4 million in securities classified as at fair value through profit or loss during the quarter ended July 31, 2025). Also, during the quarter ended July 31, 2026, $20 million in securities classified as at fair value through profit or loss were transferred from Level 1 to Level 2 as a result of changing market conditions ($30 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 July 31, 2025). During the nine-month periods ended July 31, 2026 and 2025, financial instruments were transferred to (or from) Level 3 due to changes in the availability of observable market inputs as a result of changing market conditions. The following tables show financial instruments recorded at fair value on the Consolidated Balance Sheet according to the fair value hierarchy. As at July 31, 2026 Level 1 Level 2 Level 3 Total financial assets/liabilities at fair value Financial assets Securities At fair value through profit or loss Securities issued or guaranteed by Canadian government 6,601 12,652 − 19,253 Canadian provincial and municipal governments − 8,885 − 8,885 U.S. Treasury, other U.S. agencies and other foreign governments 2,428 4,047 − 6,475 Other debt securities − 4,957 29 4,986 Equity securities 103,585 3,066 953 107,604 112,614 33,607 982 147,203 At fair value through other comprehensive income Securities issued or guaranteed by Canadian government 2,583 6,764 − 9,347 Canadian provincial and municipal governments − 4,695 − 4,695 U.S. Treasury, other U.S. agencies and other foreign governments 8,663 1,434 − 10,097 Other debt securities − 1,506 − 1,506 Equity securities − 202 71 273 11,246 14,601 71 25,918 Loans − 16,319 252 16,571 Other Derivative financial instruments 472 11,814 104 12,390 Other assets – Other items − − 67 67 124,332 76,341 1,476 202,149 Financial liabilities Deposits(1) − 50,008 − 50,008 Other Obligations related to securities sold short 5,210 7,761 − 12,971 Derivative financial instruments 815 14,884 111 15,810 Liabilities related to transferred receivables − 11,771 − 11,771 Other liabilities - Accounts payable and accrued expenses − 3 − 3 6,025 84,427 111 90,563 (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, Third 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 nine-month period ended July 31, 2026, no significant change was made to the valuation techniques and significant unobservable inputs used in determining fair value. Sensitivity Analysis of Financial Instruments Classified in Level 3 The Bank performs sensitivity analyses for the fair value measurements of Level 3 financial instruments, substituting unobservable inputs with one or more reasonably possible alternative assumptions. For additional information on how a change in an unobservable input might affect the fair value measurements of Level 3 financial instruments, see Note 4 to the audited annual consolidated financial statements for the year ended October 31, 2025. For the nine-month period ended July 31, 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, Third 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. Nine months ended July 31, 2026 Securities at fair value through profit or loss Securities at fair value through other comprehensive income Loans and other assets Derivative financial instruments(1) Fair value as at October 31, 2025 856 71 308 18 Total realized and unrealized gains (losses) included in Net income(2) 74 − 10 (24) Total realized and unrealized gains (losses) included in Other comprehensive income − − − − Purchases 87 − 2 − Sales (35) − (18) − Issuances − − 44 − Settlements and other − − (27) (24) Financial instruments transferred into Level 3 − − − 24 Financial instruments transferred out of Level 3 − − − (1) Fair value as at July 31, 2026 982 71 319 (7) Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at July 31, 2026(3) 62 − 9 (24) Nine months ended July 31, 2025 Securities at fair value through profit or loss Securities at fair value through other comprehensive income Loans and other assets Derivative financial instruments(1) Fair value as at October 31, 2024 668 307 288 71 Total realized and unrealized gains (losses) included in Net income(4) 81 − 10 26 Total realized and unrealized gains (losses) included in Other comprehensive income − 25 − − Purchases 528 15 3 − Sales (420) (276) (24) − Issuances − − 69 − Settlements and other − − (46) (26) Financial instruments transferred into Level 3 − − − (4) Financial instruments transferred out of Level 3 − − − 3 Fair value as at July 31, 2025 857 71 300 70 Change in unrealized gains and losses included in Net income with respect to financial assets and financial liabilities held as at July 31, 2025(5) 29 − − 26 (1) The derivative financial instruments include assets and liabilities presented on a net basis. (2) Total gains (losses) included in Non-interest income was a gain of $60 million. (3) Total unrealized gains (losses) included in Non-interest income was an unrealized gain of $47 million. (4) Total gains (losses) included in Non-interest income was a gain of $117 million. (5) Total unrealized gains (losses) included in Non-interest income was an unrealized gain of $55 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, Third 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 July 31, 2026 Unrealized gains (losses) for the quarter ended July 31, 2026 Unrealized gains (losses) for the nine months ended July 31, 2026 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 234 − − − Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 40,468 (144) (1,167) 691 Liabilities related to transferred receivables 11,771 32 179 74 Other liabilities 3 − − − . 52,242 (112) (988) 765 Carrying value as at July 31, 2025 Unrealized gains (losses) for the quarter ended July 31, 2025 Unrealized gains (losses) for the nine months ended July 31, 2025 Unrealized gains (losses) since the initial recognition of the instrument Financial assets designated at fair value through profit or loss Securities 359 (4) − 8 Financial liabilities designated at fair value through profit or loss Deposits(1)(2) 30,521 (1,036) (961) 1,012 Liabilities related to transferred receivables 11,487 92 (42) 56 42,008 (944) (1,003) 1,068 (1) For the quarter ended July 31, 2026, the change in the fair value of deposits designated at fair value through profit or loss attributable to credit risk, and recorded in Other comprehensive income, resulted in a loss of $38 million ($286 million loss for the quarter ended July 31, 2025). For the nine-month period ended July 31, 2026, this change resulted in a loss of $10 million ($110 million loss for the nine-month period ended July 31, 2025). (2) The amount at maturity that the Bank will be contractually required to pay to the holders of these deposits varies and will differ from the reporting date fair value.
Slide 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, Third Quarter 2026 Note 5 – Securities Credit Quality As at July 31, 2026 and as at October 31, 2025, securities at fair value through other comprehensive income and securities at amortized cost were mainly classified in Stage 1, with their credit quality falling mostly in the “Excellent” category according to the Bank’s internal risk-rating categories. For additional information on the reconciliation of allowances for credit losses, see Note 6 to these Consolidated Financial Statements. Gross Unrealized Gains (Losses) on Securities at Fair Value Through Other Comprehensive Income(1) As at July 31, 2026 Amortized cost Gross unrealized gains Gross unrealized losses Carrying value(2) Securities issued or guaranteed by Canadian government 9,321 58 (32) 9,347 Canadian provincial and municipal governments 4,751 26 (82) 4,695 U.S. Treasury, other U.S. agencies and other foreign governments 10,191 10 (104) 10,097 Other debt securities 1,526 3 (23) 1,506 Equity securities 220 53 − 273 26,009 150 (241) 25,918 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 July 31, 2026 ($3 million as at October 31, 2025), are reported in Other comprehensive income. For additional information, see Note 6 to these Consolidated Financial Statements. Equity Securities Designated at Fair Value Through Other Comprehensive Income The Bank designated certain equity securities, the main business objective of which is to generate dividend income, at fair value through other comprehensive income without subsequent reclassification of gains and losses to net income. During the nine-month period ended July 31, 2026, a dividend income amount of $9 million was recognized for these investments ($27 million for the nine-month period ended July 31, 2025), including an amount of $1 million for investments that were sold during the nine-month period ended July 31, 2026 ($17 million for investments that were sold during the nine-month period ended July 31, 2025). Nine months ended July 31, 2026 Nine months ended July 31, 2025 Equity securities of private companies Equity securities of public companies Total Equity securities of private companies Equity securities of public companies Total Fair value at beginning 71 220 291 307 359 666 Change in fair value − 20 20 25 44 69 Designated at fair value through other comprehensive income − 14 14 15 89 104 Sales(1) − (52) (52) (276) (238) (514) Fair value at end 71 202 273 71 254 325 (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, Third Quarter 2026 Note 5 – Securities (cont.) Securities at Amortized Cost As at July 31, 2026 As at October 31, 2025 Securities issued or guaranteed by Canadian government 13,320 10,505 Canadian provincial and municipal governments 4,938 4,075 U.S. Treasury, other U.S. agencies and other foreign governments 579 339 Other debt securities 2,014 1,699 Gross carrying value 20,851 16,618 Allowances for credit losses 29 13 Carrying value 20,822 16,605 Gains (Losses) on Disposals of Securities at Amortized Cost During the nine-month periods ended July 31, 2026 and 2025, the Bank disposed of certain debt securities measured at amortized cost. The carrying value of these securities upon disposal was $417 million for the nine-month period ended July 31, 2026 ($305 million for the nine-month period ended July 31, 2025), and the Bank recognized gains of $2 million for the nine-month period ended July 31, 2026 ($2 million for the nine-month period ended July 31, 2025) under Non-interest income – Gains (losses) on non-trading securities, net in the Consolidated Statement of Income. Note 6 – Loans and Allowances for Credit Losses Determining and Measuring Expected Credit Losses (ECL) Determining Expected Credit Losses Expected credit losses are determined using a three-stage impairment approach that is based on the change in the credit quality of financial assets since initial recognition. Non-impaired loans Stage 1 Financial assets that have experienced no significant increase in credit risk between initial recognition and the reporting date, and for which 12-month expected credit losses are recorded at the reporting date, are classified in Stage 1. Stage 2 Financial assets that have experienced a significant increase in credit risk between initial recognition and the reporting date, and for which lifetime expected credit losses are recorded at the reporting date, are classified in Stage 2. Impaired loans Loans classified as impaired loans are divided into the following two categories: Stage 3 Financial assets for which there is objective evidence of impairment, for which one or more events have had a detrimental impact on the estimated future cash flows of these financial assets at the reporting date, and for which lifetime expected credit losses are recorded. POCI Financial assets that are credit-impaired when purchased or originated (POCI). For additional information, see Notes 1 and 8 to the audited annual consolidated financial statements for the year ended October 31, 2025. Credit Quality of Loans The following tables present the gross carrying amounts of loans as at July 31, 2026 and as at October 31, 2025, according to credit quality and ECL impairment stage of each loan category at amortized cost, and according to credit quality for loans at fair value through profit or loss. For additional information on credit quality according to the Internal Ratings-Based (IRB) categories, see the Internal Default Risk Ratings table on page 87 in the Credit Risk section of the 2025 Annual Report.
Slide 65 — Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 65 Report to Shareholders, Third Quarter 2026 As at July 31, 2026 Non-impaired loans Impaired loans Loans at fair value through profit or loss(1) Total Stage 1 Stage 2 Residential mortgage Excellent 41,271 2 − − 41,273 Good 20,289 70 − − 20,359 Satisfactory 17,324 4,133 − − 21,457 Special mention 586 810 − − 1,396 Substandard 113 280 − − 393 Default − − 396 − 396 IRB Approach 79,583 5,295 396 − 85,274 Standardized Approach 20,656 2,589 1,089 13,995 38,329 Gross carrying amount 100,239 7,884 1,485 13,995 123,603 Allowances for credit losses(2) 97 66 147 − 310 Carrying amount 100,142 7,818 1,338 13,995 123,293 Personal Excellent 24,814 9 − − 24,823 Good 9,882 568 − − 10,450 Satisfactory 8,336 1,596 − − 9,932 Special mention 2,595 1,003 − − 3,598 Substandard 45 300 − − 345 Default − − 290 − 290 IRB Approach 45,672 3,476 290 − 49,438 Standardized Approach 3,706 166 236 − 4,108 Gross carrying amount 49,378 3,642 526 − 53,546 Allowances for credit losses(2) 123 156 222 − 501 Carrying amount 49,255 3,486 304 − 53,045 Credit card Excellent 378 − − − 378 Good 531 − − − 531 Satisfactory 1,006 35 − − 1,041 Special mention 592 300 − − 892 Substandard 42 144 − − 186 Default − − − − − IRB Approach 2,549 479 − − 3,028 Standardized Approach 170 7 − − 177 Gross carrying amount 2,719 486 − − 3,205 Allowances for credit losses(2) 46 121 − − 167 Carrying amount 2,673 365 − − 3,038 Business and government Excellent 8,048 − − 809 8,857 Good 31,110 4 − 32 31,146 Satisfactory 45,030 12,670 − 141 57,841 Special mention 310 1,952 − − 2,262 Substandard − 788 − − 788 Default − − 815 − 815 IRB Approach 84,498 15,414 815 982 101,709 Standardized Approach 37,681 4,339 1,205 1,594 44,819 Gross carrying amount 122,179 19,753 2,020 2,576 146,528 Allowances for credit losses(2) 368 337 655 − 1,360 Carrying amount 121,811 19,416 1,365 2,576 145,168 Total loans Gross carrying amount 274,515 31,765 4,031 16,571 326,882 Allowances for credit losses(2) 634 680 1,024 − 2,338 Carrying amount 273,881 31,085 3,007 16,571 324,544 (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 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, Third Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) As at October 31, 2025 Non-impaired loans Impaired loans Loans at fair value through profit or loss(1) Total Stage 1 Stage 2 Residential mortgage Excellent 37,897 9 − − 37,906 Good 18,734 104 − − 18,838 Satisfactory 15,712 3,269 − − 18,981 Special mention 453 719 − − 1,172 Substandard 91 240 − − 331 Default − − 223 − 223 IRB Approach 72,887 4,341 223 − 77,451 Standardized Approach 20,840 671 957 14,010 36,478 Gross carrying amount 93,727 5,012 1,180 14,010 113,929 Allowances for credit losses(2) 88 69 102 − 259 Carrying amount 93,639 4,943 1,078 14,010 113,670 Personal Excellent 22,936 19 − − 22,955 Good 8,231 893 − − 9,124 Satisfactory 8,159 1,838 − − 9,997 Special mention 2,339 921 − − 3,260 Substandard 51 308 − − 359 Default − − 244 − 244 IRB Approach 41,716 3,979 244 − 45,939 Standardized Approach 3,845 97 292 − 4,234 Gross carrying amount 45,561 4,076 536 − 50,173 Allowances for credit losses(2) 119 141 180 − 440 Carrying amount 45,442 3,935 356 − 49,733 Credit card Excellent 357 − − − 357 Good 491 − − − 491 Satisfactory 909 29 − − 938 Special mention 563 278 − − 841 Substandard 44 156 − − 200 Default − − − − − IRB Approach 2,364 463 − − 2,827 Standardized Approach 189 6 − − 195 Gross carrying amount 2,553 469 − − 3,022 Allowances for credit losses(2) 43 114 − − 157 Carrying amount 2,510 355 − − 2,865 Business and government Excellent 7,116 2 − 1,251 8,369 Good 28,915 4 − 27 28,946 Satisfactory 40,097 12,453 − 146 52,696 Special mention 303 1,986 − − 2,289 Substandard − 550 − − 550 Default − − 864 − 864 IRB Approach 76,431 14,995 864 1,424 93,714 Standardized Approach 36,650 4,906 1,132 1,228 43,916 Gross carrying amount 113,081 19,901 1,996 2,652 137,630 Allowances for credit losses(2) 365 384 526 − 1,275 Carrying amount 112,716 19,517 1,470 2,652 136,355 Total loans Gross carrying amount 254,922 29,458 3,712 16,662 304,754 Allowances for credit losses(2) 615 708 808 − 2,131 Carrying amount 254,307 28,750 2,904 16,662 302,623 (1) Not subject to expected credit losses. (2) The allowances for credit losses do not include the amounts related to undrawn commitments reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 67 — Loans Past Due But Not Impaired(1)
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 67 Report to Shareholders, Third Quarter 2026 The following table presents the credit risk exposures of off-balance-sheet commitments as at July 31, 2026 and as at October 31, 2025 according to credit quality and ECL impairment stage. As at July 31, 2026 As at October 31, 2025 Stage 1 Stage 2 Impaired Total Stage 1 Stage 2 Impaired Total Off-balance-sheet commitments(1) Retail Excellent 17,355 17 − 17,372 16,332 13 − 16,345 Good 5,665 234 − 5,899 5,083 321 − 5,404 Satisfactory 1,968 219 − 2,187 1,771 236 − 2,007 Special mention 420 142 − 562 468 133 − 601 Substandard 18 42 − 60 20 44 − 64 Default − − 2 2 − − 2 2 Non-retail Excellent 20,962 − − 20,962 13,887 − − 13,887 Good 30,312 2 − 30,314 25,144 8 − 25,152 Satisfactory 20,637 7,376 − 28,013 17,682 6,376 − 24,058 Special mention 36 356 − 392 29 193 − 222 Substandard 5 234 − 239 8 125 − 133 Default − − 30 30 − − 25 25 IRB Approach 97,378 8,622 32 106,032 80,424 7,449 27 87,900 Standardized Approach 21,618 237 10 21,865 28,306 406 83 28,795 Total exposure 118,996 8,859 42 127,897 108,730 7,855 110 116,695 Allowances for credit losses 222 110 10 342 178 84 6 268 Total exposure, net of allowances 118,774 8,749 32 127,555 108,552 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 July 31, 2026 As at October 31, 2025 Residential mortgage Personal Credit card Business and government Residential mortgage Personal Credit card Business and government Past due but not impaired 31 to 60 days 348 109 28 122 366 126 34 194 61 to 90 days 164 44 16 81 101 52 18 68 Over 90 days(2) − − 38 − − − 41 − 512 153 82 203 467 178 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 July 31, 2026 As at October 31, 2025 Gross Allowances for credit losses Net Gross Allowances for credit losses Net Residential mortgage 1,485 147 1,338 1,180 102 1,078 Personal 526 222 304 536 180 356 Credit card(1) − − − − − − Business and government 2,020 655 1,365 1,996 526 1,470 4,031 1,024 3,007 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 68 — 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 68 Report to Shareholders, Third Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Allowances for Credit Losses The following tables present a reconciliation of the allowances for credit losses by Consolidated Balance Sheet item and by type of off-balance-sheet commitment. Quarter ended July 31, 2026 Allowances for credit losses as at April 30, 2026 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at July 31, 2026 Balance sheet Cash and deposits with financial institutions(2)(3) 13 1 − − − 14 Securities(3) At fair value through other comprehensive income(4) 4 − − − − 4 At amortized cost(2) 27 2 − − − 29 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 285 33 (9) (6) 7 310 Personal 486 59 (53) − 9 501 Credit card 169 29 (36) − 5 167 Business and government 1,323 78 (82) − 41 1,360 2,263 199 (180) (6) 62 2,338 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 33 7 − − − 40 Undrawn commitments 256 38 − − − 294 Backstop liquidity and credit enhancement facilities 9 (1) − − − 8 298 44 − − − 342 2,605 246 (180) (6) 62 2,727 Quarter ended July 31, 2025 Allowances for credit losses as at April 30, 2025 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at July 31, 2025 Balance sheet Cash and deposits with financial institutions(2)(3) 9 4 − − − 13 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 6 6 − − − 12 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 249 (3) (5) − 2 243 Personal 408 66 (43) − 3 434 Credit card 165 26 (32) − 5 164 Business and government 1,116 84 (93) − 36 1,143 1,938 173 (173) − 46 1,984 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 23 3 − − − 26 Undrawn commitments 224 16 − − − 240 Backstop liquidity and credit enhancement facilities 6 − − − − 6 253 19 − − − 272 2,209 203 (173) − 46 2,285 (1) The contractual amount outstanding on financial assets that were written off during the quarter ended July 31, 2026 and that are still subject to enforcement activity was $78 million ($63 million for the quarter ended July 31, 2025). (2) These financial assets are presented net of the allowances for credit losses on the Consolidated Balance Sheet. (3) As at July 31, 2026 and 2025, these financial assets were mainly classified in Stage 1 and their credit quality fell mostly within the Excellent category. (4) The allowances for credit losses are reported in the Accumulated other comprehensive income item of the Consolidated Balance Sheet. (5) The allowances for credit losses are reported in the Allowances for credit losses item of the Consolidated Balance Sheet. (6) The allowances for credit losses are reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 69 — Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 69 Report to Shareholders, Third Quarter 2026 Nine months ended July 31, 2026 Allowances for credit losses as at October 31, 2025 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at July 31, 2026 Balance sheet Cash and deposits with financial institutions(2)(3) 11 3 − − − 14 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 13 16 − − − 29 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 259 75 (24) (6) 6 310 Personal 440 195 (146) − 12 501 Credit card 157 106 (113) − 17 167 Business and government 1,275 253 (243) − 75 1,360 2,131 629 (526) (6) 110 2,338 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 25 15 − − − 40 Undrawn commitments 236 58 − − − 294 Backstop liquidity and credit enhancement facilities 7 1 − − − 8 268 74 − − − 342 2,426 723 (526) (6) 110 2,727 Nine months ended July 31, 2025 Allowances for credit losses as at October 31, 2024 Provisions for credit losses Write-offs(1) Disposals Recoveries and other Allowances for credit losses as at July 31, 2025 Balance sheet Cash and deposits with financial institutions(2)(3) 9 4 − − − 13 Securities(3) At fair value through other comprehensive income(4) 3 1 − − − 4 At amortized cost(2) 6 6 − − − 12 Securities purchased under reverse repurchase agreements and securities borrowed(2)(3) − − − − − − Loans(5) Residential mortgage 197 57 (14) − 3 243 Personal 360 189 (123) − 8 434 Credit card 156 88 (95) − 15 164 Business and government 628 599 (154) − 70 1,143 1,341 933 (386) − 96 1,984 Other assets(2)(3) − − − − − − Off-balance-sheet commitments(6) Letters of guarantee and documentary letters of credit 21 5 − − − 26 Undrawn commitments 188 52 − − − 240 Backstop liquidity and credit enhancement facilities 5 1 − − − 6 214 58 − − − 272 1,573 1,002 (386) − 96 2,285 (1) The contractual amount outstanding on financial assets that were written off during the nine-month period ended July 31, 2026 and that are still subject to enforcement activity was $221 million ($177 million for the nine-month period ended July 31, 2025). (2) These financial assets are presented net of the allowances for credit losses on the Consolidated Balance Sheet. (3) As at July 31, 2026 and 2025, these financial assets were mainly classified in Stage 1 and their credit quality fell mostly within the Excellent category. (4) The allowances for credit losses are reported in the Accumulated other comprehensive income item of the Consolidated Balance Sheet. (5) The allowances for credit losses are reported in the Allowances for credit losses item of the Consolidated Balance Sheet. (6) The allowances for credit losses are reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 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, Third Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) 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 July 31, 2026 Quarter ended July 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Residential mortgage Balance at beginning 95 67 123 285 81 88 80 249 Originations or purchases 7 − − 7 4 − − 4 Transfers(2): to Stage 1 17 (15) (2) − 29 (17) (12) − to Stage 2 (4) 11 (7) − (1) 7 (6) − to Stage 3 − (6) 6 − − (3) 3 − Net remeasurement of loss allowances(3) (12) 9 33 30 (28) 3 24 (1) Derecognitions(4) (2) − (2) (4) − (2) (4) (6) Changes to models − − − − − − − − Provisions for credit losses 6 (1) 28 33 4 (12) 5 (3) Write-offs − − (9) (9) − − (5) (5) Disposals (5) (1) − (6) − − − − Recoveries − − 1 1 − − 2 2 Foreign exchange movements and other 1 1 4 6 − − − − Balance at end 97 66 147 310 85 76 82 243 Includes: Amounts drawn 97 66 147 310 85 76 82 243 Undrawn commitments(5) − − − − − − − − Personal Balance at beginning 130 151 215 496 112 140 169 421 Originations or purchases 12 − − 12 13 − − 13 Transfers(2): to Stage 1 25 (23) (2) − 24 (22) (2) − to Stage 2 (12) 14 (2) − (8) 10 (2) − to Stage 3 − (24) 24 − (1) (20) 21 − Net remeasurement of loss allowances(3) (25) 44 36 55 (24) 44 38 58 Derecognitions(4) (3) (4) (1) (8) (2) (4) (1) (7) Changes to models − − − − − − − − Provisions for credit losses (3) 7 55 59 2 8 54 64 Write-offs − − (53) (53) − − (43) (43) Disposals − − − − − − − − Recoveries − − 5 5 − − 4 4 Foreign exchange movements and other 2 2 − 4 1 − (2) (1) Balance at end 129 160 222 511 115 148 182 445 Includes: Amounts drawn 123 156 222 501 109 143 182 434 Undrawn commitments(5) 6 4 − 10 6 5 − 11 (1) No POCI loans were acquired during the quarters ended July 31, 2026 and 2025. (2) Represent stage transfers deemed to have taken place at the beginning of the quarter in which the transfer occurred. (3) Includes the net remeasurement of loss allowances (after transfers) attributable mainly to changes in volumes and in the credit quality of existing loans as well as to changes in risk parameters. (4) Represent reversals to loss allowances arising from full loan repayments (excluding write-offs and disposals). (5) The allowances for credit losses on undrawn commitments are reported in the Other liabilities item of the Consolidated Balance Sheet.
Slide 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, Third Quarter 2026 Quarter ended July 31, 2026 Quarter ended July 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Credit card Balance at beginning 86 169 − 255 71 162 − 233 Originations or purchases 5 − − 5 4 − − 4 Transfers(2): to Stage 1 45 (45) − − 36 (36) − − to Stage 2 (6) 6 − − (5) 5 − − to Stage 3 − (22) 22 − − (19) 19 − Net remeasurement of loss allowances(3) (40) 57 9 26 (28) 46 8 26 Derecognitions(4) (1) − − (1) − (1) − (1) Changes to models − − − − − − − − Provisions for credit losses 3 (4) 31 30 7 (5) 27 29 Write-offs − − (36) (36) − − (32) (32) Disposals − − − − − − − − Recoveries − − 5 5 − − 5 5 Foreign exchange movements and other − − − − − − − − Balance at end 89 165 − 254 78 157 − 235 Includes: Amounts drawn 46 121 − 167 43 121 − 164 Undrawn commitments(5) 43 44 − 87 35 36 − 71 Business and government Balance at beginning 516 369 598 1,483 436 393 430 1,259 Originations or purchases 81 − − 81 66 − − 66 Transfers(2): to Stage 1 36 (35) (1) − 21 (21) − − to Stage 2 (31) 38 (7) − (34) 42 (8) − to Stage 3 (3) (4) 7 − − (2) 2 − Net remeasurement of loss allowances(3) (71) 37 109 75 (7) 18 82 93 Derecognitions(4) (19) (16) (6) (41) (26) (24) (10) (60) Changes to models − − − − − − − − Provisions for credit losses (7) 20 102 115 20 13 66 99 Write-offs − − (82) (82) − − (93) (93) Disposals − − − − − − − − Recoveries − − 37 37 − − 37 37 Foreign exchange movements and other 2 − 2 4 − − (1) (1) Balance at end 511 389 657 1,557 456 406 439 1,301 Includes: Amounts drawn 368 337 655 1,360 343 362 438 1,143 Undrawn commitments(5) 143 52 2 197 113 44 1 158 Total allowances for credit losses at end(6) 826 780 1,026 2,632 734 787 703 2,224 Includes: Amounts drawn 634 680 1,024 2,338 580 702 702 1,984 Undrawn commitments(5) 192 100 2 294 154 85 1 240 (1) No POCI loans were acquired during the quarters ended July 31, 2026 and 2025. (2) Represent stage transfers deemed to have taken place at the beginning of the quarter in which the transfer occurred. (3) Includes the net remeasurement of loss allowances (after transfers) attributable mainly to changes in volumes and in the credit quality of existing loans as well as to changes in risk parameters. (4) Represent reversals to loss allowances arising from full loan repayments (excluding write-offs and disposals). (5) The allowances for credit losses on undrawn commitments are reported in the Other liabilities item of the Consolidated Balance Sheet. (6) Excludes allowances for credit losses on other financial assets at amortized cost and on off-balance-sheet commitments other than undrawn commitments.
Slide 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, Third Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) Nine months ended July 31, 2026 Nine months ended July 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Residential mortgage Balance at beginning 88 69 102 259 62 85 50 197 Originations or purchases 21 − − 21 23 − − 23 Transfers(2): to Stage 1 38 (35) (3) − 53 (39) (14) − to Stage 2 (8) 29 (21) − (5) 21 (16) − to Stage 3 − (14) 14 − − (12) 12 − Net remeasurement of loss allowances(3) (33) 20 81 68 (47) 25 70 48 Derecognitions(4) (4) (2) (8) (14) (2) (4) (8) (14) Changes to models − − − − − − − − Provisions for credit losses 14 (2) 63 75 22 (9) 44 57 Write-offs − − (24) (24) − − (14) (14) Disposals (5) (1) − (6) − − − − Recoveries − − 5 5 − − 5 5 Foreign exchange movements and other − − 1 1 1 − (3) (2) Balance at end 97 66 147 310 85 76 82 243 Includes: Amounts drawn 97 66 147 310 85 76 82 243 Undrawn commitments(5) − − − − − − − − Personal Balance at beginning 125 146 180 451 107 127 135 369 Originations or purchases 38 − − 38 33 − − 33 Transfers(2): to Stage 1 78 (71) (7) − 76 (68) (8) − to Stage 2 (32) 37 (5) − (29) 34 (5) − to Stage 3 (1) (73) 74 − (1) (64) 65 − Net remeasurement of loss allowances(3) (71) 131 120 180 (65) 129 115 179 Derecognitions(4) (8) (11) (5) (24) (6) (10) (5) (21) Changes to models − − − − − − − − Provisions for credit losses 4 13 177 194 8 21 162 191 Write-offs − − (146) (146) − − (123) (123) Disposals − − − − − − − − Recoveries − − 13 13 − − 13 13 Foreign exchange movements and other − 1 (2) (1) − − (5) (5) Balance at end 129 160 222 511 115 148 182 445 Includes: Amounts drawn 123 156 222 501 109 143 182 434 Undrawn commitments(5) 6 4 − 10 6 5 − 11 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the nine-month period ended July 31, 2026 was $35 million ($379 million during the nine-month period ended July 31, 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 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, Third Quarter 2026 Nine months ended July 31, 2026 Nine months ended July 31, 2025 Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Allowances for credit losses on non-impaired loans Allowances for credit losses on impaired loans(1) Total Stage 1 Stage 2 Stage 1 Stage 2 Credit card Balance at beginning 81 154 − 235 70 141 − 211 Originations or purchases 17 − − 17 12 − − 12 Transfers(2): to Stage 1 120 (120) − − 98 (98) − − to Stage 2 (19) 19 − − (18) 18 − − to Stage 3 − (66) 66 − − (47) 47 − Net remeasurement of loss allowances(3) (107) 180 30 103 (82) 144 33 95 Derecognitions(4) (3) (2) − (5) (2) (1) − (3) Changes to models − − − − − − − − Provisions for credit losses 8 11 96 115 8 16 80 104 Write-offs − − (113) (113) − − (95) (95) Disposals − − − − − − − − Recoveries − − 17 17 − − 15 15 Foreign exchange movements and other − − − − − − − − Balance at end 89 165 − 254 78 157 − 235 Includes: Amounts drawn 46 121 − 167 43 121 − 164 Undrawn commitments(5) 43 44 − 87 35 36 − 71 Business and government Balance at beginning 473 417 532 1,422 308 215 229 752 Originations or purchases 179 − − 179 349 − − 349 Transfers(2): to Stage 1 73 (65) (8) − 48 (47) (1) − to Stage 2 (79) 98 (19) − (162) 176 (14) − to Stage 3 (7) (9) 16 − (2) (13) 15 − Net remeasurement of loss allowances(3) (82) (6) 314 226 (31) 128 306 403 Derecognitions(4) (47) (45) (10) (102) (53) (53) (13) (119) Changes to models − − − − − − − − Provisions for credit losses 37 (27) 293 303 149 191 293 633 Write-offs − − (243) (243) − − (154) (154) Disposals − − − − − − − − Recoveries − − 82 82 − − 80 80 Foreign exchange movements and other 1 (1) (7) (7) (1) − (9) (10) Balance at end 511 389 657 1,557 456 406 439 1,301 Includes: Amounts drawn 368 337 655 1,360 343 362 438 1,143 Undrawn commitments(5) 143 52 2 197 113 44 1 158 Total allowances for credit losses at end(6) 826 780 1,026 2,632 734 787 703 2,224 Includes: Amounts drawn 634 680 1,024 2,338 580 702 702 1,984 Undrawn commitments(5) 192 100 2 294 154 85 1 240 (1) The total amount of undiscounted initially expected credit losses on the POCI loans acquired during the nine-month period ended July 31, 2026 was $35 million ($379 million during the nine-month period ended July 31, 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 74 — 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 74 Report to Shareholders, Third Quarter 2026 Note 6 – Loans and Allowances for Credit Losses (cont.) 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 July 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) 1.4 % 1.7 % 2.0 % 1.9 % (6.0) % 2.7 % Unemployment rate 6.5 % 6.3 % 6.4 % 5.9 % 8.9 % 8.3 % Housing price index growth(2) 0.7 % 2.1 % 9.7 % 2.4 % (13.9) % 0.3 % BBB spread(3) 1.3 % 1.6 % 1.2 % 1.3 % 3.3 % 2.4 % S&P/TSX growth(2)(4) 6.0 % 3.1 % 8.2 % 3.2 % (30.5) % 7.5 % WTI oil price(5) (US$ per barrel) 82 70 77 75 54 52 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 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 75 — 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 75 Report to Shareholders, Third Quarter 2026 In general, during the third quarter, macroeconomic factors evolved favourably for financial variables and have been mixed for the economy. Nevertheless, the environment remains challenging and uncertainty is still high. Despite ongoing uncertainty surrounding trade relations with the United States, the Canadian economy was resilient. Following a difficult start to the year, labour market conditions improved supported by a return to economic growth. In an unstable geopolitical environment, our base scenario assumes that disruptions to oil supplies will be temporary; however, the shortfall in production will exert upward pressure on oil prices in the near term. In addition, limited refining capacity creates a risk of a price increase for refined energy products. As inflation was well contained prior to this shock in a subdued economic environment, the Bank of Canada is expected to maintain a cautious stance, despite temporarily higher inflation. The unemployment rate is projected to improve in the second half of 2026 as trade tensions with the United States ease. In the base scenario, Canada’s unemployment rate is expected to decline to 6.5% over the next 12 months, representing a decrease of 0.3 percentage points. As labour market conditions improve, housing prices are expected to stop falling, increasing by 0.7% year over year. The S&P/TSX sits at 36,156 points after one year, and the price of oil is at US$80. In the upside scenario, trade tensions dissipate entirely and the geopolitical conflicts gradually subside, strengthening confidence. Inflation continues to moderate as productivity gains materialize, allowing central banks to abandon restrictive monetary policies. The Canadian and U.S. governments continue to increase their spending. Housing prices rise sharply, supported by solid economic growth and a stronger labour market, which underpins consumer spending. After one year, the unemployment rate is expected to be 0.3 percentage points lower than in the base case scenario. Housing prices rise 9.7%, the S&P/TSX sits at 36,891 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 against a backdrop of global uncertainty. The Bank of Canada responds with significant interest rate cuts; however, weaker demand and declining confidence lead to a sharp reduction in business investment, prompting workforce reductions. Given their budgetary constraints, governments are unable to provide the same level of support to households and businesses as they did during the pandemic. The global geopolitical situation continues to cause concern. As the economy contracts, the unemployment rate rises to 9.7% after 12 months. Housing prices fall sharply (-13.9%). The S&P/TSX sits at 23,693 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 judgement 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 July 31, 2026 based on the probability weightings of three scenarios with allowances for credit losses resulting from simulations of each scenario weighted at 100%. Allowances for credit losses on non-impaired loans Balance as at July 31, 2026 1,606 Simulations 100% upside scenario 955 100% base scenario 1,079 100% downside scenario 2,285
Slide 76 — 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 76 Report to Shareholders, Third Quarter 2026 Note 7 – Other Assets As at July 31, 2026 As at October 31, 2025 Receivables, prepaid expenses and other items 2,058 1,768 Interest and dividends receivable 1,828 1,844 Due from clients, dealers and brokers 1,144 1,168 Defined benefit asset 496 441 Deferred tax assets 1,308 1,131 Current tax assets 758 819 Reinsurance contract assets 19 20 Insurance contract assets 33 40 Investments in associates and joint ventures 51 46 Commodities(1) 1,458 3,739 9,153 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 July 31, 2026 As at October 31, 2025 On demand(1) After notice(2) Fixed term(3) Total Total Personal 6,409 61,679 60,709 128,797 124,417 Business and government 80,928 37,372 211,896 330,196 297,512 Deposit-taking institutions 1,908 99 3,732 5,739 6,074 89,245 99,150 276,337 464,732 428,003 (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 $10.3 billion as at July 31, 2026 ($10.0 billion as at October 31, 2025). During the nine-month period ended July 31, 2026, the Bank issued an amount of 1.0 billion euros in covered bonds and an amount of 750 million pounds sterling in covered bonds matured (US$255 million and 1.0 billion euros in covered bonds matured during the nine-month period ended July 31, 2025). For additional information on covered bonds, see Note 27 to the audited annual consolidated financial statements for the year ended October 31, 2025. In addition, as at July 31, 2026, the Deposits – Business and government item also includes deposits of $32.1 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 July 31, 2026 As at October 31, 2025 Accounts payable and accrued expenses 4,168 4,192 Subsidiaries’ debts to third parties 246 313 Interest and dividends payable 2,304 2,475 Lease liabilities 783 644 Due to clients, dealers and brokers 1,119 1,065 Defined benefit liability 91 98 Allowances for credit losses – Off-balance-sheet commitments (Note 6) 342 268 Deferred tax liabilities 221 324 Current tax liabilities 356 185 Insurance contract liabilities 25 27 Other items(1)(2)(3) 1,164 950 10,819 10,541 (1) As at July 31, 2026, Other items included provisions for litigation of $37 million ($13 million as at October 31, 2025). (2) As at July 31, 2026, Other items included provisions for onerous contracts of $7 million ($10 million as at October 31, 2025). (3) As at July 31, 2026, Other items included the financial liability resulting from put options written to non-controlling interests of Flinks Technology Inc. (Flinks) for an amount of $5 million ($5 million as at October 31, 2025).
Slide 77 — 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 77 Report to Shareholders, Third Quarter 2026 Note 10 – Share Capital and Other Equity Instruments Shares and Other Equity Instruments Outstanding As at July 31, 2026 As at October 31, 2025 Number of shares or LRCN(1) Shares or LRCN $ Number of shares or LRCN Shares or LRCN $ First Preferred Shares Series 30 14,000,000 350 14,000,000 350 Series 38 16,000,000 400 16,000,000 400 Series 40 12,000,000 300 12,000,000 300 Series 42 12,000,000 300 12,000,000 300 Series 47 5,000,000 128 5,000,000 128 Series 49 5,000,000 136 5,000,000 136 64,000,000 1,614 64,000,000 1,614 Other equity instruments LRCN – Series 1 − − 500,000 500 LRCN – Series 2 500,000 500 500,000 500 LRCN – Series 3 500,000 500 500,000 500 LRCN – Series 4 600,000 600 − − 1,600,000 1,600 1,500,000 1,500 Preferred shares and other equity instruments 65,600,000 3,214 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 1,799,033 140 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 (9,266,600) (235) (1,385,400) (35) Impact of shares purchased or sold for trading(2) (16,944) 5 (74,337) (7) Common shares at end of period 383,581,030 9,775 391,065,541 9,865 (1) Limited Recourse Capital Notes (LRCN). (2) As at July 31, 2026, a total of 97,090 shares were sold short for trading, representing an amount of $24 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 Nine months ended July 31 2026 2025 Dividends or interest $ Dividends per share Dividends or interest $ Dividends per share First Preferred Shares Series 30 16 1.1608 16 1.1608 Series 32 − − 3 0.2399 Series 38 21 1.3176 21 1.3176 Series 40 13 1.0909 13 1.0909 Series 42 16 1.3230 16 1.3230 Series 47 6 1.1946 4 0.7964 Series 49 7 1.4346 5 0.9564 79 78 Other equity instruments LRCN – Series 1(1) 1 15 LRCN – Series 2(2) 15 15 LRCN – Series 3(3) 29 29 LRCN – Series 4(4) 5 − LRCN – Series 1 and 2 of CWB − 3 50 62 Preferred shares and other equity instruments 129 140 Common shares 1,470 3.8000 1,300 3.4600 1,599 1,440 (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. (4) The LRCN – Series 4 bear interest at a fixed rate of 6.067% per annum.
Slide 78 — 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 78 Report to Shareholders, Third Quarter 2026 Note 10 – Share Capital and Other Equity Instruments (cont.) Issuance of Limited Recourse Capital Notes On June 11, 2026, the Bank issued $600 million of Series 4 Limited Recourse Capital Notes (LRCN – Series 4) for which recourse of the noteholders is limited to the assets held by an independent trustee in a consolidated limited recourse trust. The trust's assets consist of $600 million of Series 51 First Preferred Shares issued by the Bank in conjunction with the LRCN – Series 4. The LRCN – Series 4 were sold for $1,000 each and bear interest at a fixed rate of 6.067% per annum until August 16, 2031 exclusively and, thereafter, at an annual rate equal to the five-year Government of Canada bond yield plus 2.95% until August 16, 2081. The LRCN – Series 4 will mature on August 16, 2086. In the event of (i) non-payment of interest on any of the interest payment dates, (ii) non-payment of the redemption amount upon redemption of the LRCN – Series 4, (iii) non-payment of the principal amount upon maturity of the LRCN – Series 4, or (iv) an event of default in respect of the LRCN – Series 4, the noteholders will have recourse only to the assets of the trust, and each noteholder will be entitled to its pro rata share of the assets of the trust. In such circumstances, delivery of the assets of the trust will eliminate all of the Bank’s obligations with respect to the LRCN – Series 4. The LRCN – Series 4 are redeemable at maturity or earlier to the extent that the Bank redeems the Series 51 preferred shares on certain redemption dates specified in the terms and conditions of the Series 51 preferred shares, and subject to OSFI’s consent and approval. Given that the LRCN – Series 4 satisfy the non-viability contingent capital requirements, they qualify for the purposes of calculating regulatory capital under Basel III. 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 nine-month period ended July 31, 2026, the Bank repurchased 9,266,600 common shares for $1,755 million, including tax, which reduced Common shares by $235 million and Retained earnings by $1,520 million. During the nine-month period ended July 31, 2025, the Bank had not repurchased any common shares. Note 11 – Capital Disclosure The Bank and all other major Canadian banks have to maintain the following minimum capital ratios established by OSFI: a CET1 capital ratio of at least 11.0%, a Tier 1 capital ratio of at least 12.5%, and a Total capital ratio of at least 14.5%. 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 3.0% domestic stability buffer (DSB) established by OSFI. On June 19, 2026, OSFI announced, with immediate effect, that the DSB had been decreased from 3.5% to 3.0% and the DSB range had been reduced, setting it at 0% to 3% of risk-weighted assets (RWA) instead of the previous range of 0% to 4%. The DSB 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 24.5% (including the DSB) of RWA and a TLAC leverage ratio of at least 7.25%.
Slide 79 — 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 79 Report to Shareholders, Third Quarter 2026 During the quarter and nine-month period ended July 31, 2026, the Bank was compliant with all of OSFI’s regulatory capital, leverage, and TLAC requirements. Regulatory Capital(1), Leverage Ratio(1) and TLAC(2) As at July 31, 2026 As at October 31, 2025 Capital CET1 26,859 25,962 Tier 1(3) 30,018 28,559 Total(3) 34,101 32,657 Risk-weighted assets 198,746 188,756 Total exposure 706,715 633,494 Capital ratios CET1 13.5 % 13.8 % Tier 1(3) 15.1 % 15.1 % Total(3) 17.2 % 17.3 % Leverage ratio(3) 4.2 % 4.5 % Available TLAC 65,771 55,993 TLAC ratio 33.1 % 29.7 % TLAC leverage ratio 9.3 % 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 July 31, 2026 and 2025, the Bank did not award any stock options. During the nine-month period ended July 31, 2026, the Bank awarded 922,520 stock options (1,004,492 stock options during the nine-month period ended July 31, 2025) with an average fair value of $28.87 per option ($23.26 in 2025). As at July 31, 2026, there were 9,664,825 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. Nine months ended July 31 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 July 31, 2026, a $6 million compensation expense was recorded for this plan ($7 million for the quarter ended July 31, 2025). During the nine-month period ended July 31, 2026, a $18 million compensation expense was recorded for this plan ($18 million for the nine-month period ended July 31, 2025).
Slide 80 — 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 80 Report to Shareholders, Third 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 July 31 Pension plans Other post-employment benefit plans 2026 2025 2026 2025 Current service cost 27 27 Interest expense (income), net (4) (5) 1 2 Administrative costs 1 1 Expense of the defined benefit component 24 23 1 2 Expense of the defined contribution component 17 15 Expense recognized in Net income 41 38 1 2 Remeasurements(1) Actuarial (gains) losses on the defined benefit obligation (143) (37) (2) (1) Return on plan assets(2) 97 206 Remeasurements recognized in Other comprehensive income (46) 169 (2) (1) (5) 207 (1) 1 Nine months ended July 31 Pension plans Other post-employment benefit plans 2026 2025 2026 2025 Current service cost 81 81 Interest expense (income), net (12) (15) 3 4 Administrative costs 3 3 Expense of the defined benefit component 72 69 3 4 Expense of the defined contribution component 47 31 Expense recognized in Net income 119 100 3 4 Remeasurements(1) Actuarial (gains) losses on the defined benefit obligation (368) (144) (5) (2) Return on plan assets(2) 342 178 Remeasurements recognized in Other comprehensive income (26) 34 (5) (2) 93 134 (2) 2 (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.
Slide 81 — Note 14 – Income Taxes
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, Third Quarter 2026 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 a result, no amount has been recognized in the Consolidated Financial Statements as at July 31, 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 July 31 Nine months ended July 31 2026 2025 2026 2025 Basic earnings per share Net income attributable to the Bank’s shareholders and holders of other equity instruments 1,307 1,065 3,795 2,958 Dividends on preferred shares and distributions on other equity instruments, net of income taxes 41 42 115 124 Net income attributable to common shareholders 1,266 1,023 3,680 2,834 Weighted average basic number of common shares outstanding (thousands) 384,657 391,609 387,101 373,982 Basic earnings per share (dollars) 3.29 2.61 9.51 7.58 Diluted earnings per share Net income attributable to common shareholders 1,266 1,023 3,680 2,834 Weighted average basic number of common shares outstanding (thousands) 384,657 391,609 387,101 373,982 Adjustment to average number of common shares (thousands) Stock options(1) 5,368 4,310 4,794 3,973 Weighted average diluted number of common shares outstanding (thousands) 390,025 395,919 391,895 377,955 Diluted earnings per share (dollars) 3.25 2.58 9.39 7.50 (1) For the quarter and nine-month period ended July 31, 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 July 31, 2025, as the exercise price of the options was lower than the average price of the Bank’s common shares, no options were excluded from the diluted earnings per share calculation. For the nine-month period ended July 31, 2025, the calculation of diluted earnings per share excluded an average number of 860,324 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.
Slide 82 — Note 16 – Segment Disclosures
Interim Condensed Consolidated Financial Statements Notes to the Interim Condensed Consolidated Financial Statements (unaudited) (millions of Canadian dollars) National Bank of Canada 82 Report to Shareholders, Third Quarter 2026 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 July 31 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 1,250 1,180 254 235 (655) (598) 377 369 28 (14) 1,254 1,172 Non-interest income 296 269 701 576 1,696 1,375 64 33 42 24 2,799 2,277 Total revenues 1,546 1,449 955 811 1,041 777 441 402 70 10 4,053 3,449 Non-interest expenses(1)(2) 848 805 553 477 436 347 130 135 126 161 2,093 1,925 Income before provisions for credit losses and income taxes 698 644 402 334 605 430 311 267 (56) (151) 1,960 1,524 Provisions for credit losses 117 134 − 1 50 24 79 42 − 2 246 203 Income before income taxes (recovery) 581 510 402 333 555 406 232 225 (56) (153) 1,714 1,321 Income taxes (recovery) 160 140 106 89 113 72 48 47 (20) (92) 407 256 Net income 421 370 296 244 442 334 184 178 (36) (61) 1,307 1,065 Non-controlling interests − − − − − − − − − − − − Net income attributable to the Bank’s shareholders and holders of other equity instruments 421 370 296 244 442 334 184 178 (36) (61) 1,307 1,065 Average assets(3) 231,995 211,499 14,626 11,140 273,785 234,289 35,166 31,808 87,449 78,334 643,021 567,070 Total assets 236,785 215,155 14,618 11,523 248,349 222,923 34,653 32,365 100,754 70,655 635,159 552,621 Nine months ended July 31 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(4) 3,702 3,270 735 692 (1,635) (1,612) 1,147 1,095 8 (96) 3,957 3,349 Non-interest income(5) 860 799 2,024 1,686 4,740 4,397 138 102 134 (51) 7,896 6,933 Total revenues 4,562 4,069 2,759 2,378 3,105 2,785 1,285 1,197 142 (147) 11,853 10,282 Non-interest expenses(1)(2) 2,477 2,250 1,615 1,394 1,287 1,117 381 375 403 377 6,163 5,513 Income before provisions for credit losses and income taxes 2,085 1,819 1,144 984 1,818 1,668 904 822 (261) (524) 5,690 4,769 Provisions for credit losses(6) 425 722 (1) 2 92 124 203 152 4 2 723 1,002 Income before income taxes (recovery) 1,660 1,097 1,145 982 1,726 1,544 701 670 (265) (526) 4,967 3,767 Income taxes (recovery) 457 305 303 264 353 292 146 140 (87) (192) 1,172 809 Net income 1,203 792 842 718 1,373 1,252 555 530 (178) (334) 3,795 2,958 Non-controlling interests − − − − − − − − − − − − Net income attributable to the Bank’s shareholders and holders of other equity instruments 1,203 792 842 718 1,373 1,252 555 530 (178) (334) 3,795 2,958 Average assets(3) 225,594 195,193 13,705 10,836 264,414 223,456 35,126 32,024 87,255 73,887 626,094 535,396 Total assets 236,785 215,155 14,618 11,523 248,349 222,923 34,653 32,365 100,754 70,655 635,159 552,621 (1) During the quarter ended July 31, 2026, the Bank recorded integration and transaction-related charges of $24 million ($18 million net of income taxes) related to the CWB acquisition and charges of $27 million ($19 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 July 31, 2025, integration and transaction-related charges of $94 million ($68 million net of income taxes) had been recorded related to the CWB acquisition in the Other heading. For the nine-month period ended July 31, 2026, charges related to the CWB acquisition were $146 million ($106 million net of income taxes) ($238 million, $173 million net of income taxes during the nine-month ended July 31, 2025) and charges related to LBC transactions were $36 million ($26 million net of income taxes). (2) During the quarter ended July 31, 2026, the Bank recorded an expense of $25 million ($18 million net of income taxes), allocated between the Personal and Commercial ($21 million), and the Wealth Management ($4 million) segments to reflect the amortization of intangible assets related to the CWB acquisition. For the nine-month period ended July 31, 2026, this expense amounted to $73 million ($53 million net of income taxes), allocated between the Personal and Commercial ($62 million) and the Wealth Management ($11 million) segments. For the quarter ended July 31, 2025, the expense amounted to $25 million ($18 million net of income taxes), allocated between the Personal and Commercial ($23 million) and the Wealth Management ($2 million) segments, and for the nine-month period ended July 31, 2025, the expense amounted to $49 million ($36 million net of income taxes) allocated between Personal and Commercial ($46 million) and Wealth Management ($3 million). (3) Represents the average of the daily balances for the period, which is also the basis on which segment assets are reported in the business segments.
Slide 83 — Note 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, Third Quarter 2026 (4) During the nine-month period ended July 31, 2025, the Bank had recorded an amount of $28 million ($20 million net of income taxes) in the Other heading to reflect the amortization of the issuance costs of the subscription receipts issued as part of the agreement to acquire CWB. (5) During the nine-month period ended July 31, 2025, the Bank had recorded a gain of $4 million upon the remeasurement at fair value of the interest already held in CWB. Also, during the nine-month period ended July 31, 2025, the Bank had recorded a mark-to-market loss of $23 million ($17 million net of income taxes) on interest rate swaps used to manage the fair value changes of CWB’s assets and liabilities that resulted in volatility of goodwill and capital on closing of the transaction. All these items had been recorded in the Other heading. (6) During the nine-month period ended July 31, 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 nine-month period ended July 31, 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. 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, paid in cash, 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. Note 18 – Event After the Consolidated Balance Sheet Date Acquisition of G5 Holdings Inc. (G5) On August 5, 2026, the Bank completed the 80% acquisition of the common shares of G5, an entity that owns GFI Investment Counsel Ltd. (GFI), an independent wealth management firm based in Toronto, Ontario, that provides investment management services to individuals and corporations, as well as investment fund management services. The Bank is in the process of determining the fair values of the identifiable assets acquired and liabilities assumed.
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 Third Quarter 2026 Results Conference Call — A conference call for analysts and institutional investors will be held on Wednesday, August 26, 2026 at 11:00 a.m. EDT. — Access by telephone in listen-only mode: 1-800-715-9871 or 647-362-9199. The access code is 3962251#. — A recording of the conference call can be heard until November 26, 2026 by dialing 1-800-770-2030 or 647-362-9199. The access code is 3962251#. 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).