National Bank Reports $1.06B Q4 Profit, Announces Dividend Increase

National Bank of Canada has closed its financial year on a confident note, reporting a robust fourth-quarter profit of $1.06 billion and announcing an increase in its quarterly dividend, signalling management’s confidence in the bank’s earnings strength and forward outlook. Shareholders will now receive a dividend of $1.24 per share, representing an increase of six cents from the previous level.

The earnings announcement coincided with a significant strategic move. On Tuesday, the bank confirmed it will acquire Laurentian Bank’s retail and small business banking segments, a transaction that strengthens National Bank’s domestic footprint and expands its reach among personal and small enterprise clients. The acquisition is expected to enhance scale, diversify revenue streams and create long-term growth opportunities within Canada’s competitive banking landscape.

For the three months ended in the fourth quarter, National Bank posted earnings of $2.57 per diluted share, compared with $955 million, or $2.66 per share, in the same period a year earlier. While the reported per-share figure declined slightly year-on-year, the overall profit increase reflects stronger underlying business performance and higher revenues.

Quarterly revenue rose sharply to $3.70 billion, up from $2.94 billion in the corresponding quarter last year, highlighting solid growth across the bank’s core business lines. On an adjusted basis—excluding certain one-time items—the bank delivered earnings of $2.82 per diluted share, compared with $2.58 a year earlier. This result comfortably exceeded market expectations.

According to LSEG Data & Analytics, analysts had forecast adjusted earnings of $2.62 per share, meaning National Bank outperformed consensus estimates by a wide margin. This upside surprise is likely to be welcomed by investors, particularly in an environment where banks continue to navigate economic uncertainty, interest rate volatility and regulatory pressures.

The dividend increase further underscores the bank’s strong capital position and commitment to returning value to shareholders. With rising revenues, resilient profitability and an acquisitive growth strategy, National Bank appears well positioned to sustain momentum into the new financial year.

The acquisition of Laurentian Bank’s retail and small business operations also marks a notable shift in the competitive dynamics of Canada’s banking sector. By absorbing these segments, National Bank is expected to gain new customers, deepen relationships with small businesses and unlock efficiencies over time.

Overall, the fourth-quarter results present a picture of a bank combining financial discipline with strategic ambition—rewarding shareholders in the present while investing decisively in future growth.

Key Financial Figures – Fourth Quarter