National Bank reports Q4 profit down from year ago, raises quarterly dividend

MONTREAL –

National Bank of Canada raised its dividend because it reported its fourth-quarter revenue fell 4 per cent in contrast with a 12 months in the past.

The Montreal-based financial institution stated Wednesday it’s going to up its quarterly cost to shareholders by 5 cents to 97 cents per share.

The elevated cost got here as National Bank stated it earned $738 million or $2.08 per diluted share for the quarter ended Oct. 31, down from $769 million or $2.17 per diluted share in the identical quarter final 12 months. Revenue totalled $2.33 billion, up from $2.21 billion a 12 months earlier.

Provisions for credit score losses totalled $87 million within the fourth quarter in contrast with a restoration of $41 million a 12 months in the past.

National Bank stated it earned $2.08 per diluted share on an adjusted foundation in its newest quarter, down from an adjusted revenue of $2.19 per diluted share in the identical quarter final 12 months.

Analysts on common had anticipated a revenue of $2.24 per share, in keeping with estimates compiled by monetary markets information agency Refinitiv.

The outcomes got here as National Bank’s private and business banking business earned $351 million in its fourth quarter, up from $311 million in the identical quarter final 12 months.

National Bank stated its wealth administration operations earned $198 million in its newest quarter, up from $160 million a 12 months earlier. Its monetary markets business earned $205 million, down from $238 million a 12 months in the past.

The financial institution’s U.S. specialty finance and worldwide operations earned $132 million, up from $129 million in the identical quarter final 12 months, whereas beneath the opposite heading the financial institution reported a lack of $148 million in contrast with a lack of $69 million a 12 months earlier.

For its full 12 months ended Oct. 31, National Bank stated its general revenue amounted to $3.38 billion or $9.61 per diluted share on $9.65 billion in income in contrast with a revenue of $3.14 billion or $8.85 per diluted share on $8.93 billion in income throughout the identical interval a 12 months earlier.

“We generated superior organic growth across all our business segments and the operating leverage was positive for the year,” National Bank chief govt Laurent Ferreira stated in an announcement.

“We maintain prudent allowances for credit losses and robust capital ratios. We continue to prioritize deploying capital to support organic growth, investing in efficiency improvements and returning capital to shareholders.”