By Nivedita Balu
TORONTO (Reuters) – Canadian lender National Bank’s expansion from east to west, rather than following Canada’s big banks south of the border, could help secure growth, analysts and investors said.
The Quebec-based bank’s C$5 billion ($3.65 billion) deal to buy Alberta’s Canadian Western Bank (TSX:), announced on Tuesday, surprised Canada’s highly concentrated sector where consolidation has included No.1 lender Royal Bank of Canada’s C$13.5 billion purchase of HSBC’s domestic operations.
Veritas analyst Nigel D’Souza said the Canadian Western deal was “a clear winner” for National Bank, which had C$423.6 billion in assets at the end of fiscal 2023. D’Souza praised the expansion and diversification of the bank’s Canadian franchise which he said had the highest risk-adjusted returns over the long term.
D’Souza said international banking, a segment that many big Canadian banks have increasingly pursued, has the…
