National Bank of Canada (TSE:NA), the country's sixth-largest lender, raised its dividend payments while reporting a 12 percent increase in profit for its fiscal second quarter.
Net income rose to C$388 million, or C$1.13 per share, in the three months ended April 30, from C$345 million, or C$1.01 per share, a year earlier, the Montreal, Quebec-based company said in a statement today.
Excluding items, earnings were C$1.15 per share, above analysts' average estimate of C$1.12 per share, according to Capital IQ.
Revenue rose 11.4 percent to C$1.5 billion.
The bank reported big gains in its financial markets and wealth management business lines. Its wealth management earnings were boosted by the disposal for Fiera Capital shares.
Profit at the bank's financial markets business rose 25 percent to C$160 million in the quarter, aided by higher equity trading activity.
Profit in the personal and commercial banking business rose nearly 6 percent to C$166 million.
Adjusted profit at the bank's wealth management business rose 8 percent to C$84 million.
“Results once again underlined the strength of our franchise with strong volume growth in personal and commercial loans and deposits, higher wealth management revenues and good overall performance from our financial markets activities,” chief executive officer Louis Vachon, 52, said in the statement.
It had been feared that Canadian banks would suffer from the slowdown in the oilpatch and low interest rates.
National Bank raised its quarterly dividend to C$0.52 from C$0.50 per share. it has also renewed its buyback program for common shares.
Shares were up 0.7 percent at C$49.67 at 2:06 p.m. in Toronto. The stock has lost 7 percent over the past six months.
Also today, Bank of Montreal (TSE:BMO), Canada’s fourth-largest lender, increased its quarterly dividend 2 percent while reporting fiscal-second-quarter profit that topped analysts’ estimates.