National Bank of Canada (TSX:NA) has become the latest lender to increase its quarterly dividend payout and announce a share buyback program.
In a news release, National Bank said it is boosting its quarterly payout to shareholders 23% to $0.87 per share. In addition, the bank will seek approval from the Office of the Superintendent of Financial Institutions (OSFI) to buyback up to seven million of its own common stock.
Montreal-based National Bank is able to hike its dividend after OSFI lifted its prohibition on dividend increases and share buybacks that was implemented in early 2020 as the COVID-19 pandemic took hold.
Separately, National Bank reported its latest financial results, stating that its full-year profit rose to $3.18 billion from $2.08 billion a year earlier. For the bank’s fiscal fourth quarter, which ended October 31, its net income surged 58% to $776 million.
On an adjusted basis, National Bank earned $2.21 per share. Analysts had expected earnings per share of $2.19, according to Refinitiv data.
