National Bank of Canada has obtained the necessary regulatory approvals to proceed with its plan to repurchase a portion of its issued and outstanding shares. The bank's normal course issuer bid has been approved by both the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions. This bid allows the bank to buy back up to approximately 2.1% of its shares over a period of 12 months.
By implementing this share buyback plan, National Bank aims to enhance its capital management flexibility. The purchases will be conducted either through the Toronto Stock Exchange or any alternative trading system in Canada, with the deadline for completion set for December 11, 2024.
The decision to initiate the buyback was approved by the bank's board at the end of November. Notably, National Bank's Common Equity Tier 1 (CET1) capital ratio surged to 13.5% as of October-end, marking an increase from 12.7% recorded in the same period last year.
Although the bank's most recent normal course issuer bid is set to expire soon, it is worth mentioning that no shares have been repurchased under this bid.
