National Bank Profits Increases Resulting in Dividends being Raised

National Bank of Canada has increased its net income by 13% in the second quarter, and has also announced that it will be increasing its quarterly dividend by 5 cents.

The net income for the quarter that ended on April 30th was $295 million or $1.48 per diluted share, compare with $261 million or $1.50 in the same period a year ago. Revenue for the 3 month period was $1.14 billion, an increase from $1.05 billion in the same period a year ago.

National Bank was expected to be among Canada’s financial institutions to deliver good news on its operations, and make possible dividend increases.

As you have seen, it has done exactly that, having raised its dividend for the quarter ending July 31st to 71 cents from 66 cents, payable to shareholders of record on June 23rd.

In February, National Bank promised to increasingly reward shareholders as it reviews its 66 cent per share quarterly dividend and prepares to reactivate a program to repurchase common shares.

National Bank has been ranked 3rd overall in the world’s top 20 strongest banks, according to data compiled by Bloomberg.

What will National Bank of Canada be doing in the future?

Just today, National Bank and Wellington West Holdings Inc. have announced that they have entered into an agreement pursuant to which National Bank will acquire all the common shares of Wellington West that it does not currently own.

This transaction allows the combined firm to deliver increased value to Wellington West investment and their clients, not to mention National Bank shareholders.

Wellington West is an employee owned firm that has become one of the largest and fastest growing independent full service wealth management firms in Canada. As it stands, it has over $10 billion in assets under administration and a strong capital markets franchise that focuses primarily on the energy, mining and agricultural space.

National Bank is also doing their part and more to raise financial literacy, through their financial literacy website, clearfacts.ca. Currently a contest is being run, “The Adventure of Saving“, giving kids a chance to learn the basics of money management, and have a chance to win a scholarship, among other things.

National Bank is definitely doing what it set out to do to please clients, not to mention teach future generations, I for one cannot wait to see what products and other innovative tools they bring out in the future.