Montreal-based National Bank of Canada posted fiscal second-quarter net income attributable to common shareholders of C$522 million, or C$1.44 per share, up from the year-ago figure of C$462 million, or C$1.28 per share.
The S&P Capital IQ consensus estimate for normalized EPS for the fiscal second quarter was C$1.39.
National Bank President and CEO Louis Vachon said business growth and improved efficiency were "major contributors" to the recent quarter's "excellent results."
Net income from the wealth management segment increased 23% year over year to C$119 million, while net income from financial markets segment was up 11% to C$190 million. The U.S. specialty finance and international segment's net income jumped 58% to C$63 million.
The personal and commercial segment posted a 6% year-over-year decline in net income to C$213 million. This was mainly because during the second quarter of 2017, National Bank had partially reversed a sectoral provision on non-impaired loans recorded for the oil and gas producer and service company loan portfolio.
Also, the board of National Bank authorized a normal course issuer bid to buy for cancellation up to 8 million of the bank's issued and outstanding common shares, which represents roughly 2.36% of its issued and outstanding common shares as of May 24. The buyback plan, which is subject to approval from the Office of the Superintendent of Financial Institutions Canada and the Toronto Stock Exchange, will begin on or about June 6, and end on or about June 5, 2019.
The board also increased its quarterly dividend to 62 Canadian cents per share from 60 Canadian cents per share. The dividend is payable Aug. 1 to shareholders of record as of June 26.
