How Stronger Core Earnings And New Dividends At National Bank (TSX:NA) Have Changed Its Investment Story
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In December 2025, National Bank of Canada reported fourth-quarter 2025 results showing higher net interest income and net income year-on-year, recorded a CA$62 million impairment on intangible assets, and declared both common and preferred share dividends payable in early 2026.
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This combination of stronger core banking income, a non-cash impairment charge, and continued cash returns via common and preferred dividends offers a nuanced picture of the bank’s operating momentum and capital allocation priorities.
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We’ll now examine how the stronger net interest income and fresh dividend declaration influence National Bank of Canada’s investment narrative.
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To own National Bank of Canada, you need to believe it can keep growing core banking earnings while managing its Quebec concentration and integrating Canadian Western Bank without major credit or cost surprises. The latest quarter’s higher net interest income and sustained profitability support that thesis in the near term, while the CA$62 million non cash impairment does not materially change the main short term catalyst or the key macro and credit risk.
The most relevant update here is the higher common share dividend of CA$1.2400 per quarter, payable on February 1, 2026, which points to continued cash returns alongside rising net interest income. For investors focused on the earnings and dividend story as the main catalyst, the interaction between dividend growth, loan growth and any future pressure on net interest margins will be important to watch.
Yet against this backdrop of higher income and dividends, investors should still be aware of the risk that persistently pressured net interest margins could…
Read the full narrative on National Bank of Canada (it’s free!)
National Bank of Canada’s narrative projects CA$16.2 billion revenue and CA$4.2 billion earnings by 2028. This requires 10.3% yearly revenue growth and a CA$0.5 billion earnings increase from CA$3.7 billion today.
Uncover how National Bank of Canada’s forecasts yield a CA$155.00 fair value, a 8% downside to its current price.
Five members of the Simply Wall St Community see fair value between CA$113.04 and CA$226.72, highlighting very different views on upside. Set against this, the recent lift in net interest income and dividend increases keeps attention squarely on how sustainable National Bank of Canada’s core earnings power really is over time.
