National Bank of Canada boosts dividend amid Q2 profit dip

MONTREAL - National Bank of Canada (OTC:NTIOF) reported a slight decrease in net income for the second quarter of 2025, with figures reaching $896 million, down 1% from the same quarter in the previous year. The bank’s diluted earnings per share also saw a decrease, standing at $2.17 compared to $2.54 in the second quarter of 2024. Despite the profit dip, the bank announced a quarterly dividend increase to $1.18 per share.

The financial results include the post-acquisition performance of Canadian Western Bank (TSX:CWB), which National Bank acquired on February 3, 2025. The acquisition has been a notable event, impacting the bank’s results and leading to an adjusted net income of $1,166 million for the quarter, a significant rise from $906 million in the comparative quarter of 2024. Adjusted diluted earnings per share also increased by 12% to $2.85.

For the six-month period ending April 30, 2025, the bank’s net income totaled $1,893 million, marking a 4% increase from the corresponding period in 2024. However, diluted earnings per share for the six-month period declined due to the common shares issued as part of the CWB acquisition. Excluding specified items, the adjusted net income for the six-month period surged by 21% to $2,216 million, with adjusted diluted earnings per share rising by 13% to $5.78.

Laurent Ferreira, President and CEO of National Bank of Canada, attributed the strong quarterly results to solid organic growth in business segments and the successful completion of the CWB acquisition. He emphasized the bank’s strong capital position in the face of ongoing geopolitical and geoeconomic uncertainty, allowing the bank to support business growth.

The bank’s capital management remained robust, with the Common Equity Tier 1 (CET1) capital ratio under Basel III standing at 13.4% as of April 30, 2025, slightly down from 13.7% as of October 31, 2024. The Basel III leverage ratio improved to 4.7% from 4.4% over the same period.

The bank’s Board of Directors declared a dividend of $1.18 per common share on May 27, 2025, payable on August 1, 2025, to shareholders of record on June 30, 2025. This represents a 3.4% increase from the previous dividend.

The information in this article is based on a press release statement from the National Bank of Canada.

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