National Bank Q4 net income drops 11%, but adjusted profit, revenue, dividend up

MONTREAL – National Bank says its fourth-quarter net income was down 11.5 per cent from the same time last year, falling to $307 million from $347 million, as it recorded a number of higher expense items.

Canada’s sixth-largest bank (TSX:NA) says the quarter included $96 million of restructuring charges, up from $62 million recorded a year earlier.

The Montreal-based bank announced a few days before the quarter ended on Oct. 31, that it would offer early retirement or other positions to 300 workers and eliminate 600 jobs over the next three years — about 50 per month.

After excluding restructuring and certain other items in both years, National Bank’s adjusted profit for the quarter was up 11 per cent, rising to $463 million from $417 million. Its revenue was up 12 per cent to $1.57 billion from $1.41 billion.

National Bank’s net income amounted to 78 cents per share, down from 95 cents per share in the fourth quarter of fiscal 2015, while the adjusted earnings rose to $1.24 per share from $1.16 per share a year earlier.

The bank says its dividend to common shareholders will rise by two per cent to 56 cents per share, payable Feb. 1.