Bank raises dividend in fourth quarter
National Bank of Canada capped off its 2024 fiscal year with a net income of $955 million, a 27% jump from the $751 million recorded during the same period last year.
Diluted earnings per share (EPS) for Q4 rose to $2.66 from $2.09, while adjusted EPS climbed 8% to $2.58, narrowly exceeding analysts’ expectations of $2.57, according to FactSet.
The bank attributed its strong performance to growth in personal and commercial loans and deposits. Total revenue for the quarter rose 15% year over year to $2.94 billion, aligning with market forecasts. Wealth management revenue also surged, bolstered by higher fees in investment management, trust services, and mutual funds.
Meanwhile, financial markets revenue declined slightly, down about 1%, driven by reduced global markets and corporate investment banking activity.
For the full fiscal year, National Bank recorded a net income of $3.82 billion, up 16% from $3.29 billion in 2023. Diluted EPS reached $10.68, a 16% increase from the prior year. Adjusted net income for 2024 stood at $3.72 billion, marking a 10% year-over-year growth.
“Through disciplined execution, strong organic growth and resilient credit performance, we met all of our medium-term financial objectives in 2024,” Laurent Ferreira, president and CEO of National Bank of Canada, said in the financial report.
The bank posted provisions for credit losses (PCL) of C$162 million for the quarter, up from C$115 million a year earlier. The rise was mainly due to higher provisions on impaired loans, which increased by C$57 million. However, provisions on non-impaired loans decreased by C$38 million.
Shareholders also benefited from the bank’s strong results. National Bank increased its quarterly dividend by 3.6% to C$1.14 per share, payable on February 1, 2025. This new payout, equivalent to an annual yield of about 3.2%, reflects the bank’s confidence in its financial stability.
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“Looking ahead to 2025 in what will remain a complex environment, we will continue to leverage our diversified business model and disciplined approach to credit, capital and costs as we pursue our growth path,” Ferreira said.
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