National Bank (TSX:NA) posts no change in dividend for Q4: Buy or not?

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 National Bank (TSX:NA) posts no change in dividend for Q4: Buy or not?
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Highlights 

  • National Bank of Canada (TSX:NA) put out its earnings report for the third quarter of fiscal 2021 early on Wednesday, August 25.
  • As it did, NA stocks traded in the green zone in the premarket hours (6AM EST), after having closed at a price of C$ 99.54 on Tuesday.
  • National Bank of Canada reported a 39 per cent year-over-year (YoY) surge in its net income for Q3 FY21.

National Bank of Canada (TSX:NA) followed in line after Bank of Montreal and Bank of Nova Scotia to put out its earnings report for the third quarter of fiscal 2021 early on Wednesday, August 25.

As it did, NA stocks traded in the green zone in the premarket hours (6AM EST), after having closed at a price of C$ 99.54 on Tuesday.

Let’s take a closer look at National Bank’s latest quarterly report.

Also read: BMO Q3 profit soars by 85%, but still no dividend hike! Buy or not?

National Bank of Canada (TSX:NA) Q3 FY21 results

National Bank of Canada reported a 39 per cent year-over-year (YoY) surge in its net income of C$ 839 million for Q3 FY21.

The bank’s income before provisions for credit losses (PCL) stood at C$ 1.038 billion, up by 16 per cent YoY in the latest quarter. Its PCL, on the other hand, dropped by C$ 77 million YoY.

Its diluted earnings per share (EPS) was up by 42 per cent YoY to C$ 2.36 for Q3 FY21, as compared to that of C$ 1.66 in the same quarter a year before.

National Bank has also chosen to leave its quarterly dividend undisturbed at C$ 0.71 for the fourth fiscal quarter. It currently yields 2.849 per cent.

Also read: BNS stocks rise as Scotiabank posts $2.5B Q3 profit. Time to buy?

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National Bank of Canada stock performance

The large-cap financial stock has moved up by over 47 per cent in the past one year, recording a market cap of C$ 33.6 billion at close on August 24.

The bluechip shares also swelled by about 39 per cent year-to-date (YTD), and over 31 per cent in the last six months.

National Bank currently holds a price-to-book (P/B) ratio of 2.14, a price-to-earnings (P/E) ratio of 13.3, and a return on equity (ROE) of 17.7 per cent.

Bottomline

National Bank’s President and CEO Louis Vachon said that the lender’s “strong performance” that began this fiscal year continued in Q3 FY21, and the sustained improvement of the economy has been “conducive” to its growth.

The bank remains “focused” on its plans that can help bring notable returns for its shareholders, added Mr Vachon.

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