Major Canadian Banks Raise Dividends After Strong Q2 Earnings

BMO raises dividend, reports $2.63B Q2 profit, up from $1.96B a year ago

BMO Financial Group reported a stronger second quarter, with profit rising more than 30% year over year. The bank also increased its quarterly dividend to $1.71 per share from $1.67. For the quarter ended April 30, BMO reported earnings of $2.63 billion, or $3.53 per diluted share, compared with $1.96 billion, or $2.50 per diluted share, a year earlier. Revenue was $9.57 billion, and the provision for credit losses declined to $739 million from $1.05 billion.

On an adjusted basis, BMO reported $3.67 per diluted share, beating the average analyst expectation of $3.45 per share, according to LSEG data.

National Bank reports Q2 profit up from year ago, raises dividend

Montreal-based National Bank of Canada reported second-quarter profit of $1.23 billion, up from $896 million a year ago, and announced an increase in its quarterly dividend to $1.32 per share (an eight-cent rise). The bank reported earnings of $3.06 per diluted share for the quarter ended April 30, compared with $2.17 per diluted share a year earlier.

Revenue rose to $3.91 billion, while the provision for credit losses fell to $233 million from $545 million. On an adjusted basis, National Bank reported $3.23 per diluted share versus an adjusted $2.85 a year ago, slightly above analysts’ expectations of $3.13 per share.

Scotiabank raises dividend, reports $2.6B Q2 profit, up from $2B a year earlier

The Bank of Nova Scotia reported a second-quarter profit of $2.63 billion, up from $2.03 billion a year earlier, and raised its quarterly dividend to $1.14 per share from $1.10. The bank’s earnings were $2.00 per diluted share for the quarter ended April 30, versus $1.48 a year earlier.

Revenue increased to $9.84 billion, while the provision for credit losses declined to $1.22 billion from $1.40 billion. On an adjusted basis, Scotiabank reported $2.02 per diluted share, above the $1.94 analysts had forecast.

CIBC signs deal to sell CIBC Caribbean for US$1.6B, reports Q2 profit up

CIBC announced a deal to sell its 91.67% interest in CIBC Caribbean to the Bank of N.T. Butterfield & Son for US$1.6 billion in a combination of cash and stock. Under the agreement, CIBC will receive US$1 billion in cash plus 52.1 million Butterfield common shares, representing roughly a 22% stake in that company.

For the quarter ended April 30, CIBC reported earnings of C$2.47 billion, or C$2.53 per diluted share, up from C$2.01 billion, or C$2.04 per diluted share, a year earlier. Revenue was C$8.01 billion, while the provision for credit losses remained C$605 million, unchanged from the prior year. Adjusted earnings were C$2.54 per diluted share, ahead of LSEG’s average analyst estimate of C$2.44.

TD Bank reports $4.25B second-quarter profit, raises dividend

TD Bank Group reported second-quarter profit of $4.25 billion and raised its quarterly dividend to $1.12 per share from $1.08. The bank recorded earnings of $2.43 per diluted share for the quarter ended April 30, compared with $11.13 billion or $6.27 per diluted share a year earlier when TD recorded the sale of its Charles Schwab shares.

On an adjusted basis, TD reported $2.38 per diluted share, beating the average analyst expectation of $2.26. Revenue was $15.80 billion, and the provision for credit losses was $1.00 billion, down from $1.34 billion a year earlier.

RBC reports Q2 profit up 25% from year ago, raises dividend

Royal Bank of Canada reported second-quarter profit of $5.51 billion, a 25% increase from $4.39 billion a year earlier, and raised its quarterly dividend to $1.76 per share from $1.64. Earnings were $3.85 per diluted share for the quarter ended April 30, up from $3.02 a year earlier.

Revenue rose to $17.45 billion while the provision for credit losses declined to $912 million from $1.42 billion. On an adjusted basis, RBC reported $3.90 per diluted share, slightly above analysts’ average expectation of $3.78.

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