UPDATE 2-National Bank of Canada stock surges on profit beat

Wed Aug 28, 2013 3:52pm EDT
 
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* Strong trading, wealth management income drive profit

* Shares up 2.7 percent on results, hit 2-year high (Adds comments from fund manager, bank CEO)

By Cameron French

TORONTO, Aug 28 (Reuters) - National Bank of Canada reported a stronger-than-expected 10.6 percent rise in quarterly profit on the back of higher wealth management and trading income, pushing its stock to a two-year high on Wednesday.

The shares of the country's sixth-largest bank, the third Canadian lender to report results for the quarter, were up 2.7 percent at C$81.39 in Toronto, their highest since May 2011.

Net income rose to C$419 million ($398.84 million), or C$2.39 per share, in the third quarter ended July 31, from C$379 million, or C$2.14 per share, a year earlier.

Excluding a C$37 million reversal of income tax provisions, and other items, earnings rose to C$2.22 a share from C$1.98. That was well ahead of the profit of C$2.06 analysts expected, according to Thomson Reuters I/B/E/S.

The news follows market-beating results from larger rivals Bank of Montreal and Bank of Nova Scotia on Tuesday.

"The earnings are going really well right now ... Long term, banks are attractive," said Jason Donville, chief executive of Donville Kent Asset Management Inc.   Continued...