(Reuters) -National Bank of Canada reported a rise in fourth-quarter profit on Wednesday, helped by strong performance in its wealth management unit.
In October, the Bank of Canada cut interest rates for the fourth time in a row, marking a shift towards a low inflation era, and boosting banks’ loan growth as lower rates prompt consumers to take more loans.
Lower interest rates also reduce the possibility of more loan defaults.
National Bank of Canada’s results were similar to the country’s largest bank, Royal Bank of Canada, which also posted a rise in quarterly profit on wealth management strength.
Adjusted net income from National Bank of Canada’s wealth management unit totaled C$219 million in the fourth quarter, up 17% from C$187 million a year earlier.
The bank’s adjusted profit rose to C$928 million ($659.93 million), or C$2.58 per share, for the three months ended Oct. 31, from C$850 million, or C$2.39 per share, a year earlier.
($1 = 1.4062 Canadian dollars)
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shinjini Ganguli)
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