National Bank keeps a lid on dividend despite 13 per cent growth in Q3 profits

MONTREAL – The National Bank of Canada isn’t following the dividend-increasing example of country’s large banks, even though the Quebec-based bank’s profits grew by 13 per cent in the third quarter to $379 million.

The country’s sixth-largest bank, which raised the quarterly payout three months ago, kept it steady at 79 cents per share, it said after markets closed.

Canada’s five largest banks all increased their dividends over the past couple of days after earning $7.8 billion in cumulative profits.

National Bank (TSX:NA) said its net income attributable to shareholders increased to $360 million from $318 million.

Adjusting for one-time items it earned $353 million, up from $334 million in the prior year. The amount attributable to shareholders grew to $334 million from $316 million in the third quarter of 2011.

Adjusted net income for the period ended July 31 equalled $1.98 per diluted share, up from $1.86 a year earlier.

Revenues grew 11 per cent to $1.2 billion.

The bank was expected to earn $1.90 per share in adjusted profits on $1.25 billion of revenues, according to analysts polled by Thomson Reuters.