National Bankof Canada will record a sectoral provision for credit losses ofC$183 million after tax, in connection with its oil-and-gas producers andservices loan portfolio in the second quarter.

The move will likely lower second-quarter EPS by 54 Canadiancents and its CET1 ratio by 16 basis points to 9.7%.

In addition, National expects to record specific provisionsof C$12 million after tax and return its annual credit loan loss guidance tothe 20-to-30 basis point range, instead of the 25-to-35 basis points projectedearlier. Credit performance outside of energy producers and servicers is stillwithin expectations.

The second-quarter earnings report will be released June 1.