MONTREAL, Feb. 7, 2016 /CNW Telbec/ - On February 6, 2016 BaFin, the German Federal Financial Supervisory Authority, placed a moratorium on the business activities of Maple Bank GmbH, with the result that Maple Bank is no longer able to undertake its normal business activities.

These events result from ongoing investigations launched by German authorities in September, 2015 focusing on selected trading activities by Maple Bank, and certain of its current and former employees, during taxation years 2006-2010. The German authorities have alleged that these trading activities violated German tax laws. None of National Bank of Canada and its employees were involved in these trading activities, nor to our knowledge is National Bank of Canada or any of our employees the subject of these investigations.

National Bank of Canada owns approximately 24.9% of Maple Financial Group Inc., the parent of Maple Bank GmbH. In light of the situation, National Bank will take a full reserve of its current carrying value, being approximately $165 million, in respect of the first fiscal quarter ended January 31, 2016. This will reduce the Bank's CET 1 capital ratio by 13 basis points.

National Bank has advised the German authorities that if it is determined portions of dividends received from Maple Financial Group Inc. could be reasonably attributable to tax fraud by Maple Bank, arrangements will be made to repay those amounts to the relevant authority. If any repayments are required they are not expected to be material to National Bank.

Caution Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These forward-looking statements include, without limitation, statements relating to ongoing investigations involving Maple Bank GmbH, the viability of Maple Bank GmbH, the value of the Bank's investment in Maple Financial Group Inc., the amount of any dividends paid to the Bank reasonably attributable to tax fraud, and the expected capital level of the Bank. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of the Bank. Such risks, uncertainties and changes in circumstances may include, without limitation, the risks disclosed in the sections of our management's discussion and analysis contained in the Bank's 2015 annual report titled "Top and Emerging Risks" and "Other Factors That Can Affect Future Results", and risks related to the ongoing investigations into Maple Bank GmbH such as the outcome of such investigations, any related litigation proceedings, liabilities or restitution, and the potential impact of the investigations and outcome on the Bank's public image. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes.

About National Bank of Canada
With $216 billion in assets as at October 31, 2015, National Bank of Canada, together with its subsidiaries, forms one of Canada's leading integrated financial groups. The Bank has close to 20,000 employees and is widely recognized as a top employer. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media such as Facebook, LinkedIn and Twitter.

SOURCE National Bank of Canada