National Bank Of Canada Amends Buyback Plan; Raises Repurchase Limit To 14.5 Mln Shares

National Bank of Canada received Toronto Stock Exchange and OSFI approval to amend its normal course issuer bid to increase the maximum number of shares that may be repurchased; the release did not specify the new limit. The expanded NCIB is a supportive capital-return measure that can modestly lift EPS and share demand but is a routine corporate action. Expect limited immediate market reaction unless the bank discloses a large new repurchase capacity or an accelerated buyback program.

Analysis

National Bank of Canada received Toronto Stock Exchange and OSFI approval to amend its normal course issuer bid to increase the maximum number of shares that may be repurchased; the release did not specify the new limit. The expanded NCIB is a supportive capital-return measure that can modestly lift EPS and share demand but is a routine corporate action. Expect limited immediate market reaction unless the bank discloses a large new repurchase capacity or an accelerated buyback program.