Article content continued

Jobs in the province are being created at a rate not seen since 2007, National said, home sales are on track for a new record this year and housing affordability is better than the national average.

The bank’s current forecast calls for the Quebec economy to grow 2.2 per cent in 2019, compared to 1.4 per cent for Canada as a whole.

“Looking forward, we will maintain our overweight positions in the province of Quebec, as well as in secured lending, which we view as favourable in the current economic environment,” Vachon said.

National Bank reported a profit of $608 million for the three months ended July 31, up approximately seven per cent from the same quarter of 2018. Adjusted earnings per share were $1.66, an increase of about nine per cent and better than analyst expectations.

Photo by Brent Lewin/Bloomberg files

The solid fundamentals of the broader Canadian economy are providing “a favourable backdrop in our core markets,” Vachon said.

Particular areas of strength during the bank’s third quarter included its personal and commercial business, as well as its U.S. specialty finance and international operations, where year-over-year income rose approximately 28 per cent to $69 million. The international unit includes National’s Cambodian subsidiary, ABA Bank, where revenue rose 68 per cent to $79 million due to growing loans and deposits.

Provisions for credit losses, meanwhile, ticked up approximately 13 per cent for the quarter, to $86 million.