May 27, 2022
National closes Big 6 earnings season with beat, dividend hike
By Noah Zivitz
Valuation of Canadian banks are becoming more compelling: Mandy Braun
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National Bank of Canada closed out earnings season for the country's Big Six lenders Friday by beating expectations and raising its quarterly dividend.
The Montreal-based bank said its net income rose 11 per cent year-over-year to $893 million in the fiscal second quarter, which ended April 30. On an adjusted basis, it earned $2.55 per share; the average analyst estimate was for $2.25 in per-share profit.
Profit rose in each of National's major divisions, with standout growth coming from capital markets, where net income surged 17 per cent year-over-year to $289 million.
National said it booked $3 million in total provisions for credit losses in the period; ending a streak of three straight quarters when it freed up cash that had been set aside for loans that could go bad.
The bank announced Friday its quarterly dividend will rise to $0.92 per share from $0.87, as of the payment scheduled for Aug. 1.
