UPDATE 1-National Bank of Canada's profit beats, raises dividend

Wed May 27, 2015 7:45am EDT
 
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(Adds dividend increase, compares with estimates)

May 27 (Reuters) - National Bank of Canada, the country's sixth-largest lender, reported a higher-than-expected quarterly profit on Wednesday and raised its dividend by 4 percent.

The company's net income attributable to shareholders rose to C$388 million ($311.6 million), or C$1.13 per share, in the second quarter ended April 30 from C$345 million, or C$1.01 per share, a year earlier.

Excluding items, the Montreal-based lender earned C$1.15 per share, above analysts' average estimate of C$1.12 per share, according to Thomson Reuters I/B/E/S.

Net income at the bank's financial markets business rose 25 percent to C$160 million in the quarter, helped by higher equity trading activity.

Net income in the personal and commercial banking business rose nearly 6 percent to C$166 million.

Excluding items, net income at the bank's wealth management business rose 8 percent to C$84 million.

Total revenue rose 11.4 percent to C$1.5 billion.

National Bank raised its quarterly dividend to 52 Canadian cents per share from 50 Canadian cents.

Up to Tuesday's close of C$49.34, National Bank's shares had risen about 5 percent over the last 12 months on the Toronto Stock Exchange.

($1 = C$1.24) (Reporting by Sneha Banerjee in Bengaluru; Editing by Sriraj Kalluvila)