MONTREAL — National Bank of Canada hiked its dividend as it reported second-quarter profit was up compared to a year ago, but its latest earnings fell just short of market expectations.
The lender increased its quarterly payment to shareholders by three cents to 68 cents per share.
The Montreal-based bank’s net income for the quarter ended April 30 amounted to $558 million or $1.51 per diluted share, compared with $547 million or $1.44 per diluted share in 2018.
Analysts on average had expected a profit of $1.52 per share, according to Thomson Reuters Eikon.
Net income rose in personal and commercial banking, U.S. specialty finance and international, and wealth management divisions, which was tempered by a slowdown in its financial markets segment.
Provisions for credit losses, or money set aside for bad loans, during the quarter totalled $84 million, down from $91 million during the same period a year earlier.
National Bank chief executive Louis Vachon said the lender had a “solid performance” in its second quarter.
“On the strength of favourable economic fundamentals, our performance was driven by positive momentum in our businesses, disciplined cost management, strong credit quality and solid capital ratios.”
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The Canadian Press