Yahoo Finance National Bank hikes dividend as earnings beat expectations
The National Bank of Canada beat analyst expectations and boosted its dividend in the second quarter as profit grew in the bank’s core banking businesses.
National Bank’s profit slipped five per cent year-over-year to $847 million on a reported basis for the three months ending April 30, weighed down by higher loan loss provisions and expenses. The bank’s adjusted earnings of $2.38 per share were also down from $2.53, but exceeded average Bloomberg estimates of $2.36 per share.
National Bank joined most other big Canadian banks this reporting season in hiking its quarterly dividend, in its case by five cents to $1.02 per share.
“The bank delivered solid second-quarter results and an industry-leading (return on equity) amidst a challenging environment, underscoring its core strength, discipline and resiliency,” said National Bank chief executive Laurent Ferreira in a press release accompanying the results. “Our defensive posture with strong capital and liquidity positions and prudent levels of allowances for credit losses will continue to support profitable growth and help us navigate the uncertainty that may lie ahead.”
Profit in the bank’s personal and commercial banking segment grew by 14 per cent since last year to $335 million, supported by a double-digit growth in commercial lending. National Bank’s wealth management business also grew, with net income rising about nine per cent year over year to $178 million.
Higher provisions for credit losses and choppier markets weighed on National Bank’s financial markets segment as profit fell seven per cent to $268 million.
National Bank’s conference call to discuss the results will take place today at 1:00 p.m. ET.
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