National Bank Q4 profit up 8%, Laurentian misses estimates

National Bank of Canada had $566 million of net income in its fourth quarter, up 8% from the same period last year as each of its three main business units improved earnings.

The Montreal-based bank says the profit amounted to $1.52 per share on a diluted basis and $1.53 per share after adjustments.

Analysts had estimated $1.52 per share of net income and $1.52 per share of adjusted earnings, according to Thomson Reuters Eikon.

Revenue for the three months ended Oct. 31 was $1.87 billion, slightly above analyst estimates. During the same period of fiscal 2017, National Bank had $525 million of net income or $1.39 per share and $1.76 billion of revenue.

For fiscal 2018, the bank‘s net income totalled $2.2 billion, a 10% increase from the previous year.

National Bank’s wealth management segment saw net income of $124 million in the quarter, up 14% from Q4 2017. The gains were driven by growth in net interest income from higher deposit volumes and growth in fee-based and transaction-based revenues, a release said.

The bank says its quarterly dividend will rise three cents to 65 cents per common share, payable Feb. 1.

Laurentian Bank net income down 13%

Laurentian Bank of Canada’s fourth-quarter net income dropped by 13% from the previous year to $50.8 million, on lower revenues and loan volumes, and missed analyst estimates.

The Montreal-based company’s net income amounted to $1.13 per diluted share during the three months ended Oct. 31, down from $1.42 during the same period a year ago.

Analysts had expected earnings of $1.26 per share, according to Thomson Reuters Eikon.

On an adjusted basis, the Montreal-based bank reported net income of $54.3 million, down 18% from $66.5 million.

Other factors weighing on Laurentian’s results include a $5.9 million gain on the sale of its investment in Verico Financial Group during the same quarter one year ago, as well as an increase in provisions for credit losses or money set aside for bad loans.

For the full 2018 financial year, Laurentian reported net income of $224.6 million, up 9% from $206.5 million during 2017.

“Our 2018 results reflect our actions to strengthen the Group’s financial foundation, including maintaining healthy liquidity levels and our investments in people, processes and technology,” said Laurentian’s president and chief executive officer Francois Desjardins in a statement. “This positions us well to deliver our strategic objectives.”

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.