National Bank hikes dividend after profit climbs 11 per cent

National Bank of Canada is hiking its dividend after all of its business units drove profit higher, bringing the company’s reported net income to $893 million in the second quarter.

The bank’s profit jumped 11 per cent from the same period last year in the three months ending April 30. The quarter’s earnings reached $2.55 per share, up 13 per cent from $2.25 per share reported in 2021.

National Bank also joined most of the other big six banks as it announced it would be hiking its dividend by five cents (or by six per cent) to $0.92 per share, which is payable on Aug. 1.

The bank’s U.S. specialty finance and international segment saw the most growth from last year, jumping 18 per cent to a net income totalling $152 million on higher revenues, outpacing noninterest expenses and credit loss provisions. National Bank’s financial markets unit surged 17 per cent year-over-year to $289 million; the wealth management division edged up three per cent to $169 million; and the net income for personal and commercial banking business grew by just under three per cent to $313 million compared to the same quarter last year.

National Bank president and chief executive officer Laurent Ferreira noted that growth across these segments were working in tandem to deliver stronger results for the bank.