National Bank of Canada (TSE:NA) Issues Earnings Results

National Bank of Canada (TSE:NA) announced its quarterly earnings data on Wednesday. The financial services provider reported C$3.23 earnings per share for the quarter, FiscalAI reports. National Bank of Canada had a net margin of 15.85% and a return on equity of 12.83%. The company had revenue of C$3.91 billion during the quarter.

Here are the key takeaways from National Bank of Canada’s conference call:

• National Bank of Canada posted Q2 EPS of CAD 3.23, up 13% year over year, with ROE of 16.8% and a strong CET1 ratio of 13.54%.
• The bank raised its quarterly dividend by 6% to CAD 1.32 per share and continued active share repurchases, having bought back 8.8 million shares under its NCIB.
• Management said the CWB integration is progressing well, with CAD 215 million of cost and funding synergies already realized and the annualized target increased to CAD 300 million. Revenue synergies also continue to build, supporting the outlook.
• Core businesses performed solidly, led by 18% growth in Personal & Commercial Banking net income, 18% growth in Wealth Management, and a strong quarter in Capital Markets on active client flows and favorable trading conditions.
• Management flagged continued margin pressure as loan growth outpaced deposits, with Q3 expected to see a slight decline in P&C NIM and deposits likely staying flat in retail amid a low-rate environment.

National Bank of Canada Trading Down 4.0%

TSE:NA opened at C$203.90 on Thursday. National Bank of Canada has a 12 month low of C$131.28 and a 12 month high of C$214.78. The company has a market cap of C$78.93 billion, a PE ratio of 19.66, a price-to-earnings-growth ratio of 7.14 and a beta of 1.30. The company has a 50 day simple moving average of C$196.64 and a two-hundred day simple moving average of C$180.97.

National Bank of Canada Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 1st. Shareholders of record on Friday, May 1st were given a $1.24 dividend. This represents a $4.96 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Monday, March 30th. National Bank of Canada’s payout ratio is 45.71%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on NA shares. Barclays boosted their price objective on shares of National Bank of Canada from C$177.00 to C$183.00 and gave the stock an “equal weight” rating in a report on Thursday, February 26th. Jefferies Financial Group boosted their price objective on shares of National Bank of Canada from C$172.00 to C$188.00 in a report on Wednesday, May 20th. Royal Bank Of Canada decreased their price objective on shares of National Bank of Canada from C$193.00 to C$180.00 and set a “sector perform” rating for the company in a report on Wednesday, March 25th. Scotiabank boosted their price objective on shares of National Bank of Canada from C$202.00 to C$214.00 and gave the stock a “sector outperform” rating in a report on Monday, May 4th. Finally, Desjardins boosted their price objective on shares of National Bank of Canada from C$200.00 to C$215.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Three research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of C$197.54.

National Bank of Canada Company Profile

National Bank of Canada is the sixth-largest Canadian bank. The bank offers integrated financial services, primarily in the province of Quebec as well as the city of Toronto. Operational segments include personal and commercial banking, wealth management, and a financial markets group.