National Bank is executing strongly on Western expansion and CWB synergies, but its premium valuation leaves less room for disappointment.
Overview
National Bank delivered a strong Q2 fiscal 2026, with **reported net income up 38% and adjusted EPS up 13%**, beating consensus. Performance was supported by organic loan growth, fee-based revenue strength, disciplined expenses, and faster-than-expected CWB synergies. The franchise remains highly profitable, with adjusted ROE of 16.8%, while geographic expansion beyond Quebec is improving diversification. However, valuation already reflects much of the good news, with the stock trading near its 52-week high and above peer multiples.