National Bank of Canada hiked its dividend as it reported fourth-quarter (Q4 2018) net income of $566 million, up 8% from the previous year, as each of its three main business units improved earnings.
The Montreal-based bank’s profit during the three months ended Oct. 31 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 Q4 2018 was $1.87 billion, slightly above analyst estimates.
During Q4 2017, National Bank had $525 million of net income or $1.39 per share and $1.76 billion of revenue.
The bank also said its quarterly dividend will rise three cents to 65¢ per common share, payable Feb. 1, 2019.
National Bank’s Q4 2018 results were fuelled by a 10% year-over-year increase in net income from its personal and commercial banking division, totalling $257 million.
The bank’s wealth management division posted net income of $124 million during Q4 2018, up 14% from the same period in Q4 2017. Its financial markets segment reported net income of $192 million during the quarter, up from $183 million in 2017.
For the full financial 2018 year, the bank reported net income of $2.23 billion, up 10% from the same 12-month period ended Oct. 31 in 2017.
“2018 ended with record net income of over $2.2 billion driven by strong performance across all business lines and an improved efficiency ratio,” said Louis Vachon, National Bank’s president and chief executive officer in a statement.
National Bank’s latest quarter was in line with expectations as strength in capital markets offset seasonally elevated expenses, said Robert Sedran, an analyst with CIBC Capital Markets.
“A good result with each of the operating segments showing consistent trends,” he said in a note to clients.