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National Bank expects oilpatch loan provisions will take bite out of Q2 profit

MONTREAL – National Bank of Canada expects to record $195 million of provisions for credit losses, providing a drag on its second-quarter earnings.

The provisions include $183 million for loans to oil and gas producers and $12 million for specific loans.

National Bank estimates the sectoral provision will reduce its second-quarter earnings by 54 cents per share.

Analysts have been estimating National Bank would have about $1.14 per share of earnings for the quarter, which ended April 30, according to Thomson Reuters.

The Montreal-based bank (TSX:NA) says the credit performance of its overall loan portfolio, excluding the oil and gas producers, is within expectations.

Its full second-quarter financial report is scheduled to be released on June 1.