Weltnachrichten – AU – CEO of the National Bank sees M&A as helpful in cooling the trade boom

Louis Vachon, chief executive officer of the National Bank of Canada, expects an increase in mergers and acquisitions to bolster the company’s financial markets operations in year results will be supported as the trading boom cools.

The National Bank’s profit in the financial market business rose by 3% to 209 million in the fourth quarter of the financial year. CAD (162 million. USD). This was aided by gains in bond trading as well as corporate and investment banking, the company reported on Wednesday. However, the trade spurt that fueled profits earlier in the pandemic showed some cracks, with earnings from stocks, commodities and foreign exchange falling year over year.

With the turmoil at the start of the pandemic, companies are increasingly looking to acquisitions to drive sales, while private equity firms want to put cash in and baby boomer entrepreneurs want to pass their businesses on. Vachon said in an interview on Wednesday.

« Strategic M&A, private equity M&A, and demographic M&A – these are three global trends, but they’re also very present in Canada, » said Vachon.

The Montreal-based bank reported a total profit of CAD 1. 69 a share with no items in the three months to October. This surpassed the C $ 1 of the analysts. 52 average estimate. Net income fell 19% to 492 million. CAD or 1 CAD back. 36 one share.

Shares in the National Bank fell 1. 2% off CAD 72. 57 at 3:40 p. m. in Toronto. The shares won 0. 7% this year, compared to a 1st. S&P / TSX Commercial Banks Index down 9%.

National Bank of Canada, Louis Vachon, Finance, Chief Executive Officer, Financial Markets