National Bank has reported a rise in its second-quarter profit compared to the same period last year, prompting the bank to increase its dividend. The Montreal-based lender announced the results on May 27, 2026, highlighting strong performance across its business segments.
Financial Highlights
The bank's net income for the quarter ended April 30, 2026, was $1.2 billion, up from $1.1 billion a year earlier. Earnings per share rose to $3.45 from $3.10 in the prior year quarter. The increase was driven by higher revenues in personal and commercial banking, as well as wealth management.
Dividend Increase
National Bank's board of directors approved a quarterly dividend increase of 5% to $1.05 per share, payable on August 1, 2026, to shareholders of record on July 15, 2026. This marks the bank's fifth consecutive annual dividend increase.
CEO Statement
"Our second-quarter results reflect the strength of our diversified business model and the dedication of our teams," said Laurent Ferreira, President and CEO of National Bank. "We continue to invest in growth opportunities while maintaining a strong capital position."
Segment Performance
Personal and commercial banking saw net income rise 8% to $550 million, benefiting from higher loan volumes and improved margins. Wealth management net income increased 12% to $320 million, driven by higher fee-based revenues and strong market performance. Financial markets net income was flat at $250 million, as higher trading revenues were offset by lower underwriting fees.
Capital Position
The bank's Common Equity Tier 1 (CET1) ratio stood at 12.5% as of April 30, 2026, well above regulatory requirements. This strong capital position supports the dividend increase and provides flexibility for future growth initiatives.
Outlook
National Bank expects the Canadian economy to remain resilient, with moderate growth in the coming quarters. The bank plans to continue focusing on organic growth and strategic acquisitions to enhance shareholder value.
The bank's shares rose 1.5% in early trading on the Toronto Stock Exchange following the earnings release.
