National Bank of Canada (TSX: NA) continues the trend started by the Canadian big banks in the Q2 2023 earnings season. The bank reported $847 million in net income, down from last year’s $889 million.
The bottomline figure translates to $2.38 earnings per share, down from $2.53 per share in the comparable period last year but beating the consensus estimate of $2.36 per share.
“Our defensive posture with strong capital and liquidity positions and prudent levels of allowances for credit losses will continue to support profitable growth and help us navigate the uncertainty that may lie ahead,” said CEO Laurent Ferreira.
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Net income contributed by Financial Markets division came in at $268 million, down 7% from $287 million last year. U.S. Specialty Finance and International also contributed to the net income decline, posting $128 million in second quarter versus $152 million in the past year.
The earnings come after Canada’s top four banks announced lower-than-expected earnings due to increased bad loan reserves and higher expenses tied to personnel and other technology upgrades. National Bank also increased its credit loss provision to $85 million from $3 million a year ago.
The bank also followed suit in increasing its dividend, increasing the rate by $0.05 per common share to bring the dividend to $1.02 per common share for the quarter ending July 31, 2023, up 5% from the previous quarter.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
