The news for Canadian bank stock National Bank of Canada (TSE:NA) turned out to be a winner on several fronts. But despite improvements in both earnings and revenue, shareholders were not pleased. In fact, National Bank of Canada shares fell over 3.5% in Wednesday morning’s trading as a result.
The news was oddly good for a stock so clearly in decline. The bank put up first quarter earnings of $2.78 per diluted share, up from $2.59 per diluted share in the first quarter of 2024. Revenue managed to do comparatively well as well, rising from $2.71 billion in 2024’s first quarter to $3.18 billion in 2025’s first quarter.
Adjusted profit for the quarter came in at $2.93 per share, which was not only above the first quarter of 2024’s figures, but above analyst estimates as well. The first quarter of 2024 came in at $2.59 per share, and LSEG data looked for $2.65 per share. This was all done despite National Bank expanding its provisions for credit losses, more than double what they previously were. Earlier provisions were for $120 million. Now, they stand at $254 million.
Bearish on Bitcoin
This news comes just days after a surprise report emerged suggesting that the bank was bearish on Bitcoin (BTC-USD), which is a surprise given how much it has surged in recent months. But National Bank was looking to pare back its holdings, and filed for a Put option against $1.3 million worth of BlackRock iShares Bitcoin Trust.
It filed the for the Put option following multiple days of outflows from Bitcoin ETFs, as markets were reacting to a global picture of “economic uncertainty,” reports noted. The uncertainty in question caused a flight away from “risk-on assets” to “safe-haven financial assets,” a move that left cryptocurrency somewhat in the lurch.
Is National Bank of Canada a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:NA stock based on three Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 23.12% rally in its share price over the past year, the average TSE:NA price target of C$140.10 per share implies 14.37% upside potential.
