NEWS
06/01/2016 08:24 EDT | Updated 06/02/2017 01:12 EDT

National Bank second-quarter net income slashed to $210 million from $404 million

MONTREAL — National Bank posted second-quarter net income of $210 million or 52 cents a share, compared with $404 million or $1.13 a share a year earlier.

The Montreal-based bank attributed the drop to a $183-million provision for credit losses for oil and gas producers and service companies.

Six-month net income through April 30 totalled $471 million or $1.19 a share, down from $819 million or $2.29 a share a year earlier.

"In the second quarter of 2016, the bank continued to benefit from good growth in personal and commercial loan and deposit volumes and maintained tight cost control," CEO Louis Vachon said in a statement.

"In addition, the bank took action, by way of a sectoral provision, to address credit uncertainties in its oil and gas producer and service company loan portfolio. The credit quality of the overall loan portfolio, excluding the oil and gas producer and service company loan portfolio, remains within expectations."