National Bank to take $183M writeoff on oil and gas sector loans

National Bank says it will take a $195-million after-tax provision for bad loans in the second quarter, with the bulk of that related to credit losses in the beleaguered oil and gas sector.

National said it would take specific provisions of $12 million after tax, plus another provision of $183 million after tax on its loan portfolio to oil and gas producers and services.

The bank said Thursday the provision will cut its earnings per share by approximately 54 cents. 

Shares of National Bank were off 67 cents at $41.86 in afternoon trading on the TSX following the news.

Analysts have been estimating National Bank would have about $1.14 per share of earnings for the quarter, which ended April 30, according to Thomson Reuters.

"The credit performance of the overall loan portfolio, excluding the oil and gas producers and services loan portfolio, remains within expectations," National said in a release.

The bank is due to report its second-quarter results on June 1.

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