Press Releases

Quanto Financial Corporation Formed as an Independent Company by Executives of National Bank Financial Inc.’s Institutional Fixed Income Group

Montreal, 14 October 2005 -

National Bank Financial Inc.to Retain a Minority Stake in the New Firm

National Bank Financial (NBF) announced today that it has transferred its wholesales distribution division, OpenSky Capital, to a newly formed independent company, OpenSky Capital Inc.   This independent company will be held under a newly formed company, Quanto Financial Corporation (Quanto). Quanto will also own 100% of Metcalfe & Mansfield Capital Corporation (MMC). MMC will pursue activities similar to NBF’s Structured Finance and Securitization Group. NBF will retain a minority stake in Quanto.

NBF also announced today that Alain Pelchat and Mathieu Lafleur-Ayotte, Managing Directors, Structured Financeand Securitization at NBF, are leaving the company to lead the activities of Quanto and its subsidiaries.  

The wholesale distribution activities of OpenSky Capital will continue to operate from Montreal, Toronto and Calgary and will retain 37 employees currently working at NBF.

OpenSky Capital was launched in 2002 with the idea that the business would be incubated within NBF before being spun out into an independent entity.  The business has now grown to a size where it will benefit from greater independence in its operations, product development and distribution activities.

National Bank of Canada, NBF, and other affiliates will provide administrative and financial services to the new businesses of Quanto such as liquidity lines, placement, trust, clearing and payment agency services. 

NBF’sInstitutional Fixed Income division will continue to be active in structured finance products, which will be distributed through NBF’s retail and Correspondent Network channels, as well as in securitization products.

About National Bank Financial
National Bank Financial (NBF) is the investment banking arm (broker dealer) of the National Bank of Canada (NBC). NBC and its subsidiaries have combined assets of $110 billion (Q3 2005), with over 17,000 employees worldwide.

National Bank Financial is a leading Canadian full-service investment bank, with origins dating back to 1902.  National Bank Financial has over 3,400 employees with offices and operations in Canada, Switzerland, the US, and the United Kingdom.  The firm offers financial services and products to private and publicly owned corporations and institutional investors, individual investors and government agencies.  National Bank Financial has over 86 retail offices across Canada and is the dominant provider of third party brokerage services in the country. 

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
$110 billion in assets and, together with its subsidiaries, employs 17,049 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.):

Josée Lagacé
Public Relations Department
National Bank of Canada
Tel.: (514) 394-6500

Pierre Fournier
Executive Vice President
National Bank FinancialInc.
(514) 879-2423