National Bank of Canada is focusing on commercial banking as a key growth area after acquiring Canadian Western Bank (CWB). The bank has noted progress in integration, expanded product offerings, and initial signs of growth in its loan portfolio.
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National Bank aims for approximately CAD 300 million in expense synergies and CAD 200 million to CAD 250 million in revenue synergies from the acquisition. The bank plans to leverage the anticipated CAD 1.3 trillion business-wealth transfer to assist entrepreneurs with lending, advisory services, and mergers-and-acquisitions during succession planning or business sales.
Despite economic uncertainty and tariff-related risks—less than 1% of National Bank's portfolio is significantly impacted—the bank has maintained its cautious stance, building provisions over 17 consecutive quarters. In addition, it is integrating artificial intelligence across various functions including relationship management and underwriting.
Judith Ménard, Head of Commercial and Private Banking, stated that quickly adopting National Bank's processes and branding helped facilitate a smoother transition for CWB's clients. The integration process has focused on data management and onboarding clients to the bank’s cash-management platform.
Ménard highlighted the enhanced capabilities available to CWB employees, allowing them to offer a wider range of products and access to a larger balance sheet. She reported a robust commercial-banking pipeline as of September and noted early indicators of loan-book growth following a quarter of flat lending.