National Bank Increases Its Provision for Credit Losses

Montreal, 26 April 2002 - 

The National Bank today announced that its provision for credit losses for the second quarter will be approximately $130 million or $70 million more than initially projected, in order to take into account the decision by BCE Inc. to cease providing long-term support to its subsidiary Teleglobe. 

Nevertheless, the Bank stated that it was maintaining its target of 4% to 6% growth in earnings per share for fiscal 2002.

National Bank of Canada is an integrated group whose mission is to provide comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world.  The National Bank has assets of over $75 billion and, together with its subsidiaries, it employs some 17,000 people.  The Bank's shares are listed on the Toronto Stock Exchange.

Caution regarding forward-looking statements

As part of its analyses and reports, National Bank of Canada from time to time makes forward-looking statements concerning the economy, market changes, the achievement of strategic objectives, certain risks and other related matters.

By their very nature, such forward-looking statements involve inherent risks and uncertainties. It is therefore possible that express or implied projections contained in such statements will not materialize and will differ materially from actual future results. Such differences may be caused by factors which include, but are not limited to, changes in Canadian and/or global economic conditions, particularly fluctuations in interest rates, currencies and other financial instruments, market conditions, technological changes or regulatory developments.

Investors and others who base themselves on the Bank's forward-looking statements to make decisions should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. The Bank therefore cautions readers not to place undue reliance on these forward-looking statements.

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Information: Carole Gagné
Senior Manager
Public Relations Department
National Bank of Canada
(514) 394-6991
carole.gagne@bnc.ca
* The telephone number and e-mail address are for the exclusive use of journalists and other media representatives.