National Bank of Canada was selective in expense management in the second quarter, specifically in areas of headcount, technology investment and discretionary spending.

In Q2, the bank’s tech spend increased 10% year over year to $122 million, according to the bank’s earnings supplement.

THE BIG PICTURE: The bank continued digital innovation in the quarter following fiscal 2022 efforts to boost tech investment, Chief Executive Laurent Ferreira said previously during the bank’s Q4 2022 earnings call.

This quarter, NBC’s higher expenses were attributed to salary increases and tech spend, Ferreira noted in the bank’s earnings supplement.

“Contributing to the increase in expenses were vast and new technology investments to deliver value for client experience and efficiency,” Marie Chantal Gingras, chief financial officer at NBC, said during the call.

BY THE NUMBERS:

• Non-interest expenses grew 9% YoY to $441 million; and
• Total revenue inched up 2% YoY to $1.8 billion.

NOTEWORTHY: In March, the bank’s Executive Vice President of International Ghislain Parent announced his retirement effective Oct. 1, according to a bank release.

“Ghislain has played an invaluable role in the bank’s success and performance throughout the years, notably in the evolution of our strategic planning,” Ferreira said in the release.

Additionally, the bank named Michael Denham executive vice president and head of commercial private banking effective Thursday, according to the release. Denham will move from his role of vice chairman of commercial banking and financial markets at NBC.

MARKET REACTION: National Bank of Canada shares were down 2.8% to $97.32 as of market close today.

FORWARD LOOK: The bank continues to post strong employment and saving levels amid higher interest rates and economic turbulence, Ferreira said.

“In the face of macroeconomic uncertainty and the U.S. banking turmoil, we remain very comfortable with our strategic positioning and defensive posture,” Ferreira said during the call.

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Editor’s note: All figures have been converted to USD.