National Bank of Canada beat expectations as it reported a second-quarter profit of $801 million, more than double compared with a year ago at the start of the pandemic.
The Montreal-based bank said Friday the profit amounted to $2.25 per diluted share for the quarter ended April 30, up from a profit of $379 million or $1.01 per share in the same quarter last year.
“Our solid results once again reflect the fact that we have made the right strategic choices and have built a strong, diversified and agile franchise,” National Bank CEO Louis Vachon said in a statement.
Provisions for credit losses in the quarter fell to $5 million compared with $504 million in the same quarter last year when the pandemic crashed the economy.
Revenue totalled nearly $2.2 billion, up from $2.0 billion in the same quarter a year ago.
On an adjusted basis, National Bank said it earned $2.25 per diluted share in its latest quarter, up from an adjusted profit of $1.01 per diluted share in the same quarter last year.
Analysts on average had expected a profit of $2.00 per share, according to financial data firm Refinitiv.
The results came as National Bank’s personal and commercial banking division earned $321 million compared with $56 million a year ago, when it was hurt by higher provisions for credit losses due to the downturn in the economy.
The bank’s wealth management business earned $165 million in the quarter, up from $141 million in the same quarter in 2020.
In a release, the bank said that wealth management revenues ($541 million, compared with $475 million a year earlier) were driven by “growth in fee-based revenues as well as in transaction-based and other revenues.”
Assets under administration and management were $702 billion as of April 30, up from $597 billion as of Oct. 31, 2020. Total assets were $351 billion, up from $332 billion for the same periods.
National Bank’s financial markets business earned $238 million in the latest quarter, up from $159 million a year ago, while its U.S. specialty finance and international operations earned $129 million compared with $74 million in the same quarter last year.
The bank’s board of directors declared a dividend of $0.71 per common share for the quarter ending July 31, unchanged from the same period a year ago.