At National Bank of Canada’s annual meeting of shareholders today in Montreal, Louis Vachon, president and CEO, commented on the bank’s results for fiscal 2007 and highlighted the main areas of strategic focus that will guide the bank’s development over the next few years.

“Without the specified items for the year, net income would have reached a record $933 million, but was instead reduced to $541 million, mainly because of the commercial paper problem. This performance was unsatisfactory,” Vachon told shareholders. But he assured them that management is working to restore the bank “to its position as one of the top performing financial institutions in the industry.”

Vachon outlined four goals that the bank will be focusing on over the next five years: to become the best financial institution in the Quebec market; to seize the right opportunities to accelerate its growth; to match or exceed the average financial performance of its peers; and to maintain the balance among the interests of the groups responsible for its success

Vachon called for more openness from government with respect to bank mergers, pointing out that the bank could be an important part of the solution in the event of a transaction between two of its competitors. Mergers would allow National Bank to extend its range of activities and have a more substantial presence outside Quebec.

“I believe that consolidation in the insurance industry illustrates the potential advantages of consolidation for the banking sector,” Vachon said.

At the meeting, the bank officially launched a new distinctive brand signature, National Bank Financial Group, to accurately reflect what the institution has become over the years, namely, a group offering a complete line of financial solutions.