National Bank of Canada reported an increase in its fourth-quarter profit, which was led by the strength in its wealth management business. The bank’s adjusted net income stood at C$928 million ($659.93 million) for the three months through October 31, 9% higher than C$850 million it had reported in the same period last year. That amounts to C$2.58 per share, compared with C$2.39 per share in the fourth quarter of 2023.

Perhaps more importantly, however, its wealth management business was the major factor supporting performance and adjusted net income of 17% year over year, to C$219 million, from C$187 million in the same quarter the previous year. The fact that the growth comes on this front speaks of the health of the bank’s offerings here, which are some of its leading revenues even at difficult times.

The positive results come in the context of a broader shift in the Canadian economy. In October, the Bank of Canada lowered interest rates for the fourth consecutive time, signaling a transition to a low inflation era. This decision has provided a favorable environment for lending, as lower interest rates tend to encourage borrowing by consumers, thus supporting loan growth for Canadian banks. Moreover, lower interest rates will reduce the odds of loan defaults, which can benefit banks like the National Bank of Canada.

Performance was in line with major other Canadian financial groups like Royal Bank of Canada, whose profit also edged higher by the strength in wealth management business. That is a pretty interesting sign because, after all the beating from changing interest rates, that the Canadian banks take to change economic policy has made this banking sector still rather robust, capitalizing, by and large, on the good fortune in wealth management business.

Overall, results from National Bank of Canada show solid finishing points in the fiscal year, with wealth management continuing to be a key pillar of growth. Positive earnings for the bank will shore up investor confidence entering the new year.