National Bank Of Canada Clocks 9% Revenue Growth In Q2, Increases Dividend

National Bank of Canada NA (OTC: NTIOF) reported a second-quarter net income of C$893 million compared to C$801 million in 2Q21. EPS improved by 13% year-over-year to C$2.55.

The growth was driven by year-over-year increases in total revenues across all business segments.

Adjusted revenue increased by 9% Y/Y to C$2.49 billion.

Net interest income totaled C$1.31 billion (+14% Y/Y), and non-interest income totaled C$1.13 billion (+4% Y/Y).

Return on common shareholders' equity (ROE) was 20.6% compared to 22% a year ago.

Non-interest expenses increased 8% Y/Y to C$1.29 billion.

Personal and Commercial net income increased to C$313 million (+2.6% Y/Y), and revenue increased 9% Y/Y to C$962 million.

Wealth Management's net income increased by 3% Y/Y to C$169 million, and revenue increased 7% Y/Y to C$579 million.

Financial Markets net income increased 17% Y/Y to C$289 million, and revenue was C$632 million (+8% Y/Y).

U.S. Specialty Finance and International net income were C$152 million (+18% Y/Y), and revenue amounted to C$285 million (+20% Y/Y). 

As at April 30, 2022, the Common Equity Tier 1 capital ratio under Basel III stood at 12.9%, up from 12.4% as at October 31, 2021; and the Basel III leverage ratio was 4.4%, unchanged from October 31, 2021.

Dividend: Board increased the dividend by 6% per common share to C$0.92 per common share for the quarter ending July 31, 2022. This dividend is payable on August 1, 2022, to common shareholders of record on June 27, 2022.

Price Action: NA shares are trading higher by 2.85% at C$97.58 on TSX and NTIOF higher by 3.25% at $76.60 on the last check Friday.

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