National Bank reports $893M profit
The Montrealbased bank said it will now pay a quarterly dividend of 92 cents per share, up five cents from 87 cents per share
National Bank of Canada beat expectations as it reported its second-quarter net income grew to $893 million and raised its quarterly dividend on Friday.
The Montreal-based bank said it will now pay a quarterly dividend of 92 cents per share, up five cents from 87 cents per share.
The increased payment to shareholders came as the bank says it earned $2.55 per diluted share for the quarter ended April 30 compared with a profit of $801 million or $2.25 per diluted share a year earlier.
Revenue totalled $2.44 billion, up from $2.24 billion.
National Bank said its total provisions for credit losses for the quarter amounted to $3 million compared with $5 million in the same quarter last year.
On an adjusted basis, National Bank said it earned $2.55 per diluted share, up from an adjusted profit of $2.25 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $2.25 per share for the quarter, according to estimates that were compiled by the financial markets data firm Refinitiv.
“We are maintaining our strategic objectives of delivering a high return on equity and ensuring prudent management of risk and regulatory capital,” National Bank chief executive Laurent Ferreira said in a statement.
National Bank said its personal and commercial banking operations earned $313 million in the second quarter compared with $305 million in the same quarter last year, helped by growth in total revenue, tempered by higher provisions for credit losses.
Meanwhile, the bank’s wealth management arm earned $169 million in the quarter, up from $164 million in the second quarter of 2021.
National Bank’s financial markets business recorded $289 million in the quarter, up from $248 million in the same quarter last year, as it benefited from higher total revenues and lower provisions for credit losses.
The bank’s U.S. specialty finance and international arm earned $152 million in the quarter, up from $129 million a year ago.