National Bank of Canada Reports $1.06 Billion Q4 Profit, Raises Dividend

National Bank of Canada has announced a fourth-quarter profit of $1.06 billion while increasing its dividend to shareholders. The bank stated that the new quarterly dividend will be $1.24 per share, which represents an increase of six cents compared to the previous rate.

On Tuesday, the bank revealed that it is acquiring the retail and small business segments of Laurentian Bank, a move that is expected to further strengthen its position in the Canadian banking sector. Despite the acquisition announcement, the bank’s fourth-quarter profit amounted to $2.57 per diluted share. This compares to a net income of $955 million, or $2.66 per diluted share, in the same quarter last year when there were fewer shares outstanding.

Revenue for the quarter ending 31 October reached $3.70 billion, showing a significant increase from $2.94 billion reported in the previous year. On an adjusted basis, the bank earned $2.82 per diluted share, up from an adjusted profit of $2.58 per diluted share in the fourth quarter of the prior year.

Financial analysts had anticipated an adjusted profit of $2.62 per share, according to estimates compiled by LSEG Data & Analytics, meaning the bank’s actual results exceeded expectations. The increase in dividend, combined with strong quarterly revenue and profit growth, signals the bank’s ongoing focus on returning value to shareholders while expanding its business operations.

Fourth-quarter financial highlights:

National Bank’s financial results reflect both organic growth and the strategic acquisition of new business segments. The bank continues to focus on enhancing shareholder value while maintaining a strong balance sheet and increasing profitability. Analysts and investors will likely monitor how the Laurentian Bank acquisition impacts the bank’s operations in upcoming quarters.