National Bank of Canada confirms normal course issuer bid

Montreal, 27 January 2011 - 

National Bank of Canada (the “Bank”) (NA) announced today that the Toronto Stock Exchange (the “TSX”) and the Office of the Superintendent of Financial Institutions Canada (“OSFI”) have approved the Bank’s normal course issuer bid to purchase for cancellation up to 4,903,162 common shares, through the facilities of the TSX, representing approximately 3% of its issued and outstanding common shares.

The normal course issuer bid will begin on February 1, 2011 and will end no later than January 31, 2012. All purchases will be made through the facilities of the TSX in accordance with applicable regulatory requirements. The Bank will determine the number of common shares that may be purchased and the timing of any such purchases. The Bank will only make purchases under the bid after consulting with OSFI. The price the Bank will pay for any shares purchased under the normal course issuer bid will be the market price for the common shares on the TSX at the time of acquisition.

There were 163,438,750 common shares of the Bank issued and outstanding as at January 17, 2011. No common shareswere repurchased under the Bank’s previous normal course issuer bid which is expected to end on or before January 31, 2011. The average daily trading volume (the “ADTV”) of the Bank’s common shares over the last six completed calendar months, calculated in accordance with the rules of the TSX, was 689,672. Under the rules of the TSX, the Bank is entitled to repurchase during the same trading day up to 25% of the ADTV of its common shares, being 172,418 (other than purchases made pursuant to the block purchase exception).

The normal course issuer bid represents a proper utilization of the Bank’s available funds as part of the Bank’s capital management strategy and is being established to enhance shareholder value.

About National Bank of Canada
National Bank of Canada is an integrated group that provides 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. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has over $145 billion in assets and, together with its subsidiaries, employs 18,322 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at www.nbc.ca. To access National Bank Financial Group’s financial education portal, visit www.clearfacts.ca.

Information (The telephone number provided below is for the exclusive use of journalists and other media representatives.):

Claude Breton
Senior Manager – Public Affairs
National Bank Financial Group
Tel.: 514-394-8644