National Bank of Canada (TSE:NA) slumped to near one-year low after the nation’s sixth-largest lender said it will take a C$64mln restructuring charge in the fourth quarter and warned that its investment in Maple Financial Group Inc. is at risk of “substantial loss”.
Shares fell 5.6% to C$40.76 at 11:26 a.m. in Toronto, expanding this year’s loss to 17%.
The restructuring costs are tied to employee severances, “premises optimization” and professional fees, the Montreal, Quebec-based company said in a statement late on Thursday.
National Bank holds a 25% stake in Maple Financial, with a carrying value of $165mln, the lender said.
Maple Financial’s German unit was raided last week as part of an investigation by Frankfurt prosecutors into transactions that took advantage of tax refunds linked to dividend payments.
National Bank also said it will sell 7.16mln shares at $41.90 around October 9 to raise $300mln.