National Bank of Canada's Profit Declines Due to Rising Provisions

National Bank of Canada reported a fall in second-quarter profit on Wednesday as a shaky economy and a meltdown in the U.S. banking sector prompted the lender to set aside higher provisions.

The results come after Canada’s top four banks reported lower-than-expected earnings as they had to set aside more money for bad loans and incurred higher expenses related to workforce and other tech investments.

National Bank, like its peers, has also set aside rainy-day funds, signaling fears that the economy is set for challenging times that could see more Canadians defaulting on their loans.

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