Press Releases

Redemption for cash preferred shares series 13

Montreal, 15 June 2005 -

National Bank of Canada (TSX:NA) announced today that it will redeem, for the purpose of cancellation, all of its Non-cumulative First Preferred Shares Series 13 (TSX:NA.PR.J) on August 15, 2005, for $25.00 per share, together with $0.40 representing declared and unpaid dividends per share to the redemption date.  The Bank will pay the dividend to the registered holders of the Preferred Shares Series 13 as of August 15, 2005.  7,000,000  Preferred Shares Series 13 are currently outstanding and making the total nominal value of the transaction $175 million. 

This redemption, funded solely with the Bank’s general funds, is part of the Bank’s capital management.  The redemption will have no effect on the Bank’s Tier 1 capital as the Bank has ceased to include the Preferred Shares Series 13 in its regulatory capital on March 15, 2005.  At April 30, 2005, the Bank’s Tier 1 capital ratio was 9.5%.  The notice of redemption will be promptly sent to the registered holders of Preferred Shares Series 13.

About National Bank
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its customers elsewhere in the world. National Bank offers a full array of banking services, including 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 close to $100 billion in assets and, together with its subsidiaries, employs nearly 17,000 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.

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

Denis Dubé
Manager, Public Relations
National Bank of Canada
Tel.: (514) 394-8644